Published 21 October 2008
Auckland City councillor Doug Armstrong issued a release on the process of a revaluation for rating processes today, presumably as chairman of the council’s finance & strategy committee.
He explained how the mass appraisal approach was used. One thing he didn’t explain – and it was something that in the past the council has gone to some lengths to explain – was how valuations had moved in different areas. Another was how valuations had moved for different classes of property.
Some of that information is available on the council website if you hunt – a link, 2005 valuation changes by suburb, actually refers to 2008 changes.
The council said capital values in the city had increased overall by 13%. The website also gives changes in land value suburb by suburb, but the figure which is important in the council exercise is the annual value, which is what the rates are based on.
Above the average and you pay more (well, you pay more anyway because of inflation, but your increase is higher than your neighbours’ if it’s above the average), and vice versa if you slip below the average.
While the Citizens & Ratepayers-led council, with Cllr Armstrong in charge of finance, has trumpeted its intention to hold rates at the level of inflation (that’s the council’s assessment of inflation as it affects the council, not the other theory of inflation propounded by Statistics NZ), the outcome is an average across the whole city, complicated by revaluation.
The city valuation is dated 1 July 2008 so it doesn’t reflect subsequent value shifts (mostly falls) over the past 2 months. The new values will be applied to council rates applied next year, with effect from 1 July 2009.
The annual value dictates rates movement, but the other council valuation columns – land & capital – also have their place.
Take land values, for example. The big movers were Otahuhu (up 51% on 3 years ago), Great Barrier Island 45%, Western Springs 43%, Pt England 36%.
Also in the Tamaki area with Pt England, Glen Innes’ land value rose an average 28%, Mt Wellington 26%, Panmure 27%. The Prime Minister announced a kickstart $25 million for the NZ Innovation Centre at Auckland University’s Tamaki campus today, so the gentrification of the area back of Remuera officially begins and capital values will also start to rise.
Between Remuera & those Tamaki suburbs, Meadowbank’s valuation rose 30%, St John’s 32%.
Western Springs is on its own with a 43% land value rise – around it, Grey Lynn & Pt Chevalier are on 6%, Mt Albert 19%, Waterview 16%, Westmere 10%.
Otahuhu’s 51% land value increase shows the kind of rise that recognises its unique position on the Auckland isthmus: the central point everyone has to travel through on any north-south journey, the place where – in an intensified urban Auckland – you can expect highrise to shift out the old villas, where the graffiti, lowlife & migrant influences will be replaced. Otahuhu is across a bridge from the Highbrook Business Park, a high-class work environment which will change its nearest suburb. The suburb’s capital value rise was the third-highest in the city at 23%.
Capital values move at different speeds, depending on how soon they catch up on increases in land value. Great Barrier’s rises in both land & capital value stood out – 45% for land, 39% for capital.
Around Tamaki, capital values were up in Pt England by 21%, Panmure 15%,Glen Innes 19%, Mt Wellington 15%.
At Western Springs the capital value rise was highest on the isthmus at 27%, but suburbs around it didn’t have matching increases.
Council website: Valuation changes by suburb
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Attribution: Council release, website, story written by Bob Dey for the Bob Dey Property Report.