Western Bay Property Revaluations: Results and Outlook

Residential property values in the Western Bay of Plenty have declined by an average of 7% since 2022, according to the latest rating valuations conducted by Quotable Value (QV) on behalf of the Western Bay of Plenty District Council.

The revaluations, which cover 26,104 properties across the district, establish a total rateable value of $42.76 billion. This represents a 2% decrease from the previous revaluation conducted on September 1, 2022.

Market Value and Sector Performance

The average home value in the district has fallen to $977,000, dropping from a previous average of $1.05 million. Average residential land values saw a steeper decline, decreasing by 9.1% to $574,000.

Performance varied significantly by geographic area and property type:

• The central rural area, including Kaimai and Waitao, experienced the sharpest decline, with average capital values dropping 12.09%.
• The southern rural area, covering Te Puke and Maketū, was the only region to avoid a decrease, recording a slight increase in capital values of 0.07%.
• Lifestyle properties with dwellings saw an average capital value decline of 9.9%, falling to $1,436,000.
• Total land value across the district fell 8.5% over three years to $21.78 billion.

While much of the district experienced a softening of values, the Rangiuru Business Park was identified as an area of stronger growth due to significant development since the previous revaluation.

Economic Drivers and Market Conditions

The decline in property values is attributed to a combination of macroeconomic pressures and local supply factors. The council stated that a relatively subdued residential market and an increase in available vacant land placed downward pressure on land values.

Interest rate hikes between 2022 and 2025 significantly impacted borrowing capacity and buyer demand. Adrienne Mikkelsen, a valuer and Property Indepth franchisee, noted that higher interest rates resulted in difficult market conditions, and demand for property eased, resulting in lower prices.

The impact of these economic shifts was not uniform across all price points. Lower-value properties remained more resilient, supported by consistent demand from first-home buyers. Conversely, mid-to-high-value properties were more heavily affected by tighter lending requirements and higher interest rates.

Valuation Methodology and Rating Impact

The updated valuations reflect the likely selling price of properties, excluding chattels, as of the effective revaluation date of August 1, 2025. These figures do not include market movements that occurred after that date, nor are they intended for securing finances or determining replacement values.

All rating valuations were independently audited by the Office of the Valuer-General before being finalized. The process is a statutory requirement for New Zealand councils, which must perform revaluations at least every three years to ensure rates are calculated fairly, and accurately.

Matt Potton, the council’s corporate services acting general manager, clarified that a change in property value does not automatically result in a corresponding rise or fall in rates. The actual impact depends on how an individual property’s value shifted relative to others in the district.

The specific impact on rates will not be determined until the rating requirement for the 2026/27 year is established through the annual planning process, which is scheduled for finalization in June 2026.