Updated valuations throughout the city confirmed a mostly stable property market since 2022.
However, residential properties were worth a bit less in places such as central Dunedin and the combined area of Māori Hill, Roslyn and Belleknowes.
Property owners have received, or soon will receive, their three-yearly valuations by Quotable Value (QV) on behalf of the Dunedin City Council.
They reflect the likely price a property would have sold for on June 1 this year, excluding chattels.
This affects the amount of rates paid by each ratepayer, comparatively, but not the total rate take for the council.
QV released a summary of data yesterday.
The average home in Dunedin was worth $664,651, down 2.63% on three years ago, the state-owned enterprise said.
Average land value for residential properties decreased 6.37% to $340,650.
Industrial property was worth 4.3% more on average than in 2022, and the value of commercial property increased by 1.2%.
Overall, the total rateable value for the 57,395 properties in the city was $48,862 billion — down 0.1% on three years ago.
Land value decreased by 4.8% to $24,472b.
This reflected a downturn in the market since the city’s 2022 revaluation, QV said.
“Following the nationwide peak of late 2021, Dunedin’s residential home values began to decrease during 2022, bottoming out in mid-2023, with values declining by approximately 6% during that period.”
There had since been a slight recovery.
First-home buyers had been active, looking for properties under $600,000.
“Overall, we consider the market to be entering a stable period of supply and demand.”
QV urban valuations manager Tim Gibson said properties in good condition and modern dwellings were generating more demand than the average property in Dunedin.
“Property values have remained relatively stable within Dunedin City over the past three years and values have generally had minimal changes since the 2022 rating revaluation,” he said.
There had been minimal appetite for new lifestyle developments and subdivisions.
Residential land value in St Kilda fell 13.6% and capital value, or property value, was down 4.4%.
In South Dunedin, land value dropped by 9.8%, but capital value decreased by only 1.7%.
QV noted about two-thirds of South Dunedin and most of St Kilda were within flood-zoned areas.
Land value at St Clair held up relatively well, dipping just 1.6%.
Outram had the highest increase in residential property values, up 1.5%.
Central Dunedin had the largest decrease, down 8.3%.
“Many central city properties are predominantly residential investment properties, and this area has fallen away somewhat,” QV said.
“For land, this is the part of the market where lease demand has reduced due to rising building costs.
“We’re also coming off the back of the nationwide market peak in 2021, when appetite for land was strong, even for less-desirable sites. The subsequent market correction is now being reflected in the value drops.”
In Māori Hill, the strongest activity in the market was for properties under $650,000.
There was less demand in the $750,000 to $950,000 bracket, “where a lot of property in this suburb sits — some superior homes in this locality will have observed increases in capital values”.
QV said the central business district’s retail and office sector experienced higher vacancy levels.
Suburban commercial properties fared better. For those, the highest increases in capital value were at Mosgiel (12.3%) and Green Island (14%).
QV said industrial property remained investors’ first choice and it highlighted activity at Hillside Rd and Dukes Rd North, on the Taieri.
Pastoral and dairy property values remained close to 2022 levels.
If property owners do not agree with their rating valuations, they can lodge objections until December 5.
