Homeowners in Christchurch’s poorest suburbs will be hit hardest by the council rates rises, as valuations out Wednesday will show the city’s average home value has jumped nearly 50% in three years.
The city council is likely to trim its expected overall rates increase to between 5% and 6% – according to a briefing given to councilors on Tuesday – but how the rates burden is divided between ratepayers depends on the new valuations.
The council’s budget is yet to be confirmed, and following a public consultation, the new rates will take effect in July.
Property revaluations are done three years. Bigger house price rises in some eastern suburbs since 2019 mean their rates will rise by the biggest percentage, although their rates are lower overall.
The city’s average home value has been calculated based on an August 2022 snapshot at $774,000. This is a jump of 47.3% from August 2019, according to the valuations done for the council by Quotable Value.
Woolston, Bromley, Ferrymead, and Bexley had the biggest jump in average rating values at 59%. The smallest increase was 36% for the central city.
Property owners’ new individual rating valuations will be online on Wednesday on the council website, and some will be available this evening.
Also known as capital valuations, the rating valuations are done as desktop calculations and are not intended as accurate market valuations. The valuations determine how the city’s rates burden is divided among property owners, not how much rates are paid in total.
Based on figures put before councilors today, the average rates rises would be 11% or 12% in Bromley, Bexley, Woolston, Ferrymead, Aranui, Woolston, Burwood, Avondale, Central Brighton, North Brighton, and South Brighton.
Where rises in values are lower, rates could rise by close to 1% or even drop very slightly, in the central city, Avonhead, Russley, Upper Riccarton, Sockburn, Fendalton, Burnside, and Ilam.
In Bromley, an average resident is paying $2227 in rates annually and would have their annual bill rise by $278 a year to $2505, if the proposed budget is approved. This is an increase of about $5 a week.
An average Merivale resident is paying $4635 in rates and will face an annual $405 jump to $5040. In Avonhead, an average resident pays $3336, and their bill would reduce by $12 to $3324.
In light of the jump in home values, the council plans to adjust the rates equation to even up the share paid by owners of business premises, according to the council’s chief financial officer Leah Scales.
“Broadly, values across the city have increased substantially compared with the previous revaluation three years ago, particularly for residential property,” she said.
“The significant increase in the residential valuations has moved more of the rates burden from business to residential ratepayers.
“To keep the proportion of rates paid by business properties the same, we’re looking at increasing their general rate differential.”
The differential is the equation used to set business rates at a different level from residential rates.
Property owners will receive letters from the city council in the coming days informing them of their new valuations. They will then have until March 16 to object if they consider their rating value incorrect.
In light of the jump in home values, the council plans to adjust the rates equation to even up the share paid by owners of business premises, according to the council’s chief financial officer Leah Scales.
“Broadly, values across the city have increased substantially compared with the previous revaluation three years ago, particularly for residential property,” she said.
“The significant increase in the residential valuations has moved more of the rates burden from business to residential ratepayers.
“To keep the proportion of rates paid by business properties the same, we’re looking at increasing their general rate differential.”
The differential is the equation used to set business rates at a different level from residential rates.
Property owners will receive letters from the city council in the coming days informing them of their new valuations. They will then have until March 16 to object if they consider their rating value incorrect.
Average home values, and 3-year value increase
Akaroa – $1,024,000, 56.7%
Aranui, Wainoni, Burwood, Avondale – $517,000, 57.6%
Avonhead, Russley – $761,000, 38.2%
Beckenham, Addington, Sydenham, Waltham, Opawa – $615,000, 53.7%
Belfast, Northwood – $764,000, 41.6%
Bryndwr, Wairakei – $713,000, 48.7%
Burwood, Parklands – $779,000, 47.8%
Casebrook, Bishopdale – $682,000, 46.3%
Cashmere, Westmorland – $1,141,000, 51.6%
Central City – $703,000, 36.0%
Fendalton – $1,625,000, 41.0%
Halswell – $807,000, 47.1%
Hoon Hay – $649,000, 50.5%
Hornby, Hei Hei, Islington – $692,000, 47.4%
Ilam, Burnside – $966,000, 41.0%
Linwood, Charleston – $472,000, 52.7%
Lyttelton – $799,000, 46.1%
Lyttelton Bays – $841,000, 45.9%
Merivale – $1,237,000, 52.2%
Mt Pleasant to Taylors Mistake – $1,145,000, 49.6%
New Brighton (North, South and Central) – $578,000, 56.9%
Northern & Western Periphery – $866,000, 42.8%
Papanui, Elmwood – $841,000, 46.3%
Peninsula – $702,000, 53.7%
Redwood, Northcote – $690,000, 46.9%
Riccarton, Middleton – $642,000, 44.6%
Shirley, Dallington, Avonside, Richmond – $566,000, 51.3%
Somerfield, Spreydon – $648,000, 46.1%
Southern & Hills Periphery – $1,060,000, 47.6%
St Albans, Mairehau – $677,000, 53.7%
St Martins, Murray Aynsley, Huntsbury, Hillsborough – $877,000, 49.9%
Upper Riccarton, Sockburn – $592,000, 39.8%
Woolston, Bexley, Ferrymead, Bromley – $550,000, 58.9%
Overall Christchurch – $774,000, 47.3%