Citywide property revaluations have been delayed by about a month and are now expected to be available towards the end of December.

Property revaluations take place every three years to reflect changing market values and are a legal process independently audited by the Office of the Valuer-General.

The new valuations will be used to calculate rates for the next three years, beginning on July 1, 2022.

The last Tauranga revaluation took place in 2018.

Tauranga City Council transactional services manager Jim Taylor says the Valuer-General has extended the revaluation timeframe due to the Covid-19 lockdown.

'Revaluation notices would usually be sent out in November. However, due to these delays, property owners will receive the new valuations from December 20, if the valuations are approved.”

Independent valuation company, Opteon, conducts Tauranga revaluations by analysing recent property sales information, resource and building consent data and undertaking sample inspections to establish an updated picture of land and capital values (capital value is the combined value of land and improvements) across the city.

Opteon regional director Avella Collopy says residential and industrial property values have increased strongly in the last three years.

'High demand, coupled with a lack of available development land, has increased land values throughout Tauranga. The lack of residential listings is also driving prices higher. At the same time, constraints on the building industry and significant delays in getting materials to New Zealand continue to increase construction costs.”

Collopy says growth in property values has varied across the city.

'Overall, for Tauranga, we are observing increases in residential property capital values at the lower end of the market of between 40 per cent and 60 per cent, with mid-value property increases between 30 per cent and 40 per cent. At the top end of the market, value increases are in the 20 per cent to 30 per cent range, with the exception of Matua, Mount Maunganui and Papamoa, where increases are between 40 per cent and 60 per cent.

'We've also seen strong movement in the industrial market, with increases between 40 per cent and 60 per cent, particularly in the Mount and Tauriko areas. Commercial properties are more varied, with movements generally between 20 per cent and 40 per cent,” Collopy says.

It should be noted that changes in valuations don't necessarily impact rates costs, unless the change is significantly higher or lower than the citywide average.

Property owners wanting early notice of their revaluations are asked not to contact the Council or Opteon, as that information will not be available until the valuations have been audited and approved.

To find out more about the revaluation process, including the latest estimate of valuation increases for your suburb, and sign up to receive an e-valuation notice, visit our website.