Outer suburbs have captured more of the rise in Auckland’s property values in the latest 3-yearly valuation, dated 1 July and released (in broad terms) yesterday.
As it’s the value movement compared to what’s happening in other suburbs that determines whether the share of rates rises or falls, that means it’s the outer suburbs that are more likely to face higher rates increases.
That’s in contrast to the 2014 valuation, when residents in central suburbs were up in arms at facing a bigger increase in rates bills because their property values had taken a hike.
Property owners will receive their valuation notices from Auckland Council in the mail or via email from next Monday, 20 November.
The average rise in Auckland property values across all market sectors since 2014 was 45%. For residential it was 46%, commercial 43%, industrial 47%, lifestyle properties 57%, rural 35%.
Auckland Council chief economist David Norman said the rise in residential values reflected at least 3 things: “First, Auckland’s strong population growth over the last 3years has not been matched by increases in the number of new houses being built, and this has pushed prices up. Second, record low interest rates have allowed people to bid up prices to secure somewhere to live because housing has been in short supply. And third, the unitary plan has added a lot of value to properties that can now carry higher intensity residential development than before.”
Mr Norman said the largest movements in the outer suburbs appeared to be a result of higher demand in areas where property was less expensive.
Local board areas with the largest movements – an average over 45% – are in Waiheke, Otara-Papatoetoe, Papakura, Mangere-Otahuhu, Manurewa, Henderson-Massey, Maungakiekie-Tamaki, Franklin, Howick, Rodney & Upper Harbour.
Movements within the remaining boards ranged between 11-44%.
The rates impact
Auckland Council head of rates Debbie Acott said a big increase in property value wouldn’t necessarily mean a corresponding increase in rates: “We expected to see an increase in valuations since the last revaluation in 2014, so movements in the 40-50% bracket really aren’t a surprise.
“Generally speaking, the values in Auckland’s outer suburbs appear to be catching up with the 2014 revaluation.
“Areas that increased the most in the last revaluation – by & large central Auckland – are now moving roughly along the average. Those that didn’t last time – mainly outer Auckland – are the ones with the highest increases this time.
“Property valuations are used to help us work out everyone’s share of rates – they don’t mean that we collect any more money. However, we won’t know the impact of this revaluation on rates until we agree our next budget in 2018.
“Because of Auckland’s dynamic property market, and valuations only capturing a moment in time, they should not to be viewed as current market value.”
The council revalued 549,000 properties, including every piece of land except roads & waterways.
Individual property data will be available from next Monday, 20 November, at the Auckland Council website.
Before valuations are finalised, they have to be approved by the Valuer-general, who’s responsible for authorising rating valuations for the Government.
Auckland Council uses capital value, or CV, as its rating valuation method, measuring the likely price the property would have sold for on 1 July 2017. The new values will be used to help set rates for the 3-year rating period beginning on 1 July 2018.
The council didn’t mention it, but many people refer to the council valuation as CV as if it’s a valuation that’s updated outside the rating valuation process.
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8 November 2014: Brewer pushes for higher uniform charge in rates bill
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20 August 2014: Auckland valuations used as rates basis rise average 33% in 3 years
Attribution: Council release.