Queenstown's $74 billion valuation
Property owners in Queenstown Lakes District will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 32,604 properties in the district by independent valuers Quotable Value (QV) on behalf of Queenstown Lakes District Council. They reflect the likely price a property would have sold for on 1 September 2024, not including chattels.
The total rateable value for the district is now $74,502,570,990 according to QV, with the land value of those properties now valued at $44,678,191,000.
Since the district’s last revaluation in 2021, the value of residential housing has increased by an average of 18.3%. The average house value is now $2,035,732, while the corresponding average land value has also increased by 19.3% to a new average of $1,076,925.
QV South Island Revaluation Manager Melanie Halliday noted these averages were heavily skewed by the upper end of the market, with the median house value in Queenstown Lakes being $1,610,000 and the median land value being $860,000.
“Rating valuations are like a snapshot of the market at a point in time. When these were last set back in 2021, the market was rising very quickly; that growth has continued but at much more subdued levels. Overall the market has been fairly stable since the beginning of 2024,” she said.
“There are varying demand levels within the market, with properties under $2,000,000 being the most in demand, and substantial growth continuing in the luxury home market. There was, however, some softness in the middle of those two markets on the back of high interest rates and a softer property market conditions elsewhere in the country.”
“Queenstown Lakes District has seen continued population growth over the last three years. Market supply was particularly low through 2023, and while listing numbers have steadily increased through 2024, demand for this region remains strong.”
Meanwhile, many of the same economic factors have also impacted the local commercial and industrial sectors.
QV Urban Revaluations Manager Tim Gibson said commercial property was tightly held in the Queenstown Lakes District, as evidenced by continued rent growth and softening of yields for commercial property, resulting in an average 15.7% increase in commercial values.
Industrial markets have also been in high demand, experiencing slightly larger average increases of 21.5% for capital values and 31.8% for land.
“In both commercial and industrial trends, we have seen increased demand for more affordable and modern facilities available in Frankton and Three Parks. Aside from some softness in the office market, the Queenstown CBD’s prime location and limited supply still attracts yields sub 4%,” Mr Gibson said.
Since 2021, the average capital value of a lifestyle property has also increased by 28.7% to $4,386,000, while the corresponding land value for a lifestyle property increased by 27.7% to $2,713,000.
QV rural and lifestyle valuer Tim McCaw commented: “The lifestyle market in key locations outperformed other sectors. Of note for the general market, there was strong growth immediately after the 2021 revaluation which has now been accounted for. The cost to build, development potential, and steady demand for quality properties are the leading factors influencing values.”
He said lifestyle property made up a smaller component of the market yet made up a large part of the luxury property market in the district, with around 2,157 lifestyle properties. “This sub-sector of the lifestyle market has performed more consistently on the back of strong demand for superior lifestyle properties.”
There are limited rural properties in Queenstown Lakes District, with approximately 300 properties in total.
“Queenstown Lakes District is typically impartial to the wider issues affecting the rural sector in New Zealand. This is due to these properties being influenced by a mixture of amenity values, lifestyle factors and development potential. These influences have led to increases of 13.8% on average for pastoral property and 22.8% for horticulture,” Mr McCaw said.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.
They reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2024, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.
Queenstown Lakes District Council will use the new values as the base for setting rates from 1 July 2025.
QLDC General Manager Assurance, Finance, and Risk, Katherine Harbrow, said Council staff are now reviewing the values to assess the impact on rates for individual properties.
“Rating valuations help us determine everyone’s share of general rates collected. But it’s important to keep in mind that it’s just part of the picture. Rates are based on Council’s Long Term Plan and annual budgets and applied based on a range of factors such as the use of a property and its location.”
“An increase in your property value may not mean you pay more in rates. Any rates increase is determined by your property value increase compared with the average increase across the region,” she said.
Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. They are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards.
New rating values will be posted or emailed to property owners from 19 March 2025. If owners do not agree with their rating valuation, they can submit an objection by 24 April 2025.
