The average Christchurch home-owner will soon pay an extra $NZ2.83 per week in rates as demand for housing after the earthquakes drives property values up in the shaky city.
The city's first post-quake property revaluation shows residential property values have risen by 16.2 per cent since independent valuer Quotable Value's last valuation in 2007.
An influx of workers to help with the rebuild, and the relocation of about 7000 red-zoned properties has created a strong demand for housing which led to the increase in property values, QV southern operations manager Brendon Bodger says.
The government approved a special rating system that didn't take into account earthquake damage as it was not practical to physically inspect over 160,000 properties.
But Mr Bodger says the valuations reflect the market's reaction to the quakes.
The last revaluation was in 2007 when the property market was at its peak, and almost 80 per cent of properties have experienced a rise of 10 per cent or more on the previous value high.
The average house in Christchurch now has a rating of $NZ455,000 (about $A430,000) and will pay $NZ2076 in rates - an almost $NZ150 annual increase.
But Christchurch City Council finance committee chairman Raf Manji says an increase in value doesn't necessarily mean an increase in rates.
"Your rates bill is based on the value of your property in relation to the value of all other properties city-wide."
While residential property has risen, commercial land values have fallen sharply in the inner part of the central city, with some properties falling by as much as 50 per cent.
Some commercial suburban areas have experienced value rises of more than 40 per cent.
The new rates and values will take effect in July this year.
