House valuations rise over 55 p.c.

Press, 27 September 1989, Page 9

House valuations rise over 55 p.c.

By

TOM METCALFE

Houses in northern Christchurch are valued on average more than half again what they were valued in 1984. A summary of new Government valuations for residential properties in northern Christchurch City suburbs released by Valuation New Zealand shows average increases of between 55 per cent and 69 per cent Prices in Merivale and St Albans showed the greatest increase, rising 69 per cent from an average of $87,785 in 1984 to an average of $148,700 this year. The announcement marks the end of the second of three stages of the city revaluation, the largest single revaluation by Valuation New Zealand. The stage covers Merivale, St Albans, Papanui, Mairehau, Shirley, Dallington, Avonside, Richmond, Aranui, Wainoni and Burwood. House prices in Papa-

nui rose 60 per cent from an average price in 1984 of $60,236 to $96,068; in inner St Albans and Mairehau, up 59 per cent from $50,160 to $79,653; in Shirley, Dallington, Avonside and Richmond, 55 per cent from $49,743 to $76,984; and in Aranui, Wainoni and Burwood, 56 per cent from $47,568 to $74,052. Ownership flats were not included in the summary, but average increases for them at 50 to 54 per cent were slightly less than for houses. Residential land values about doubled over the five years.

One of three district valuers working on the city revaluation, Mr Andrew McSkimming, said last evening that the new values showed a steady growth in prices over the last five years.

Historically, it was not the largest increase in prices in the city. “There’s nothing dramatic or unusual

about it — it’s just steady,” he said. The new values are based on property sales, exclusive of chattels, up to July 1 this year. New values for individual properties will be posted to property owners this week. The third and final stage of the revaluation, covering Linwood, Addington, Waltham, Beckenham and the central city, will be released on October 27. There is particular interest in new valuations of commercial properties in the central business district, which are expected to be several times what they were five years ago. Some commentators fear that a large jump in land tax arising from the higher valuations will force retailers out of the central city. Land tax is calculated on the Government valuation for a property, and is usually paid by the tenant.