Demand for housing is expected to increase further
Kapiti Coast has remained resilient amid COVID-19 pandemic, boasting an average of 29.1% increase in house values in the last three years, according to the latest data by Quotable Value (QV).
Kapiti Coast's new valuations put the average house price at $711,465, up from $541,000 in 2017.
QV prepared the new valuations for 26,134 properties. They revealed that the total capital value for the district is now $20,092,493,000 – with the land value of those properties now valued at $10,946,834,000.
“Kāpiti is a great place to live, and with factors like the imminent opening of Transmission Gully and the housing pressures in Wellington, we can expect more people to look at moving here,” said Kāpiti Coast District Mayor K Gurunathan.
“We are expecting more retirees and young families to see the light and join us on the Kāpiti Coast, which is going to see demand for housing continue to increase. Put simply, Kāpiti is hot, and this is borne out in property values.”
Mark de Haast, the group manager for corporate services at Kāpiti Coast District Council, said an increase in the rateable value of a property does not mean an equivalent rates increase for that property.
“Typically, where a property's revaluation increase exceeds the average revaluation increase, the property will likely have a higher rates increase than the average rates increase for the district,” de Haast said.
“Conversely, a property that has a revaluation increase below the average revaluation increase will have a lower rates increase than the average rates increase for the district.”
“We know there are concerns in the community about rates affordability as we grapple with the ongoing impacts of COVID-19, but it is important to understand that the total amount of rates collected by the council from ratepayers across the district isn't affected by an increase in property values.”
The council offers assurances that it will look at the impact of the revaluation on rates as part of its rating system review.
“Any change proposals for how rates are spread across the district differently will be shared with the community for feedback in 2021. Rates will not be based on the new 2020 rating valuations until July 01, 2021,” de Haast said.