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Auckland property revaluations

The council is required to revalue every property every three years and the valuations are used in the setting of rates the council charges. The last revaluation was in 2011 which means a new one is due this year. The council have announced some early results and they present an interesting picture and show why home owning affordability is such an issue. Across the whole region property values are up by an average of 33% which is a massive increase over just three years. Here’s the press release:

Auckland’s three-yearly general property revaluation is well underway, with indicative data showing significant value movements across the region.

A report is going to Thursday’s Finance and Performance Committee:
http://infocouncil.aucklandcouncil.govt.nz/Open/2014/08/FIN_20140821_AGN_4759_AT.PDF

Auckland Council’s Registered Valuer Peter McKay says: “At this stage we are looking at an upward movement for the Auckland region of an average 33% since the last revaluation in 2011, which is broadly in line with expectations.

“Local board areas with the largest movements – of over 40% – are Kaipatiki, Maungakiekie-Tamaki, Puketapapa and Whau, reflecting a general value increase in the more central suburbs.”

“Average movements within the remaining local boards (excluding the Hauraki Gulf islands) range between 22% and 44%, with the larger movements generally due to proximity to central Auckland, with lower increases found in outer suburban and rural areas.”

“Local value movements will vary due to the type of property, its quality and condition, zoning, views and other factors.”

Property owners receive their notices in the mail in mid-November 2014.

“It’s very important to remember that Auckland’s property revaluation doesn’t determine the total amount of rates collected by the council – rather it helps determine each ratepayer’s share of rates.

“The revaluation exercise is used by the council to determine the allocation of rates, and doesn’t affect the overall amount of rates collection.

“Capital value, or CV, used as the rating valuation, is the likely price the property would have sold for on 1 July 2014. Its new value will be used to help set rates for the three year rating period beginning next year, 1 July 2015.”

All councils are required by law to revalue every property in their region every three years. Over 525,000 properties are being revalued in Auckland.

Council’s team of experienced, qualified valuers work closely with independent organisation Quotable Value Ltd. Before valuations are finalised, they have to be approved by the Valuer-General, who’s responsible for authorising rating valuations for the Government across New Zealand.

and they’ve provided this map showing the average change by local board area.

2014 property revaluations by local board

What’s most noticeable is the strong growth in values on the areas just outside the inner suburbs while the urban fringe and rural local boards are seeing much smaller average increases. This suggests people are moving as close to the city as they can currently afford and that would fit with other trends both locally and internationally we’ve seen over the last decade or so.

In addition the council have provided some notes about some of the influences in each local board area

Albert-Eden (37%)
Value growth in this central area is strong, particularly in the Grammar Schools zone with very strong demand for properties offering redevelopment potential.

Devonport-Takapuna (37%)
Demand is strong across all housing types in this established and sought after residential area.

Franklin (22%)
Demand is increasing in Pukekohe but is slightly more subdued in Waiuku. Remote areas and rural settlements are showing modest increases over 2011 levels in comparison to other areas. Development at Beachlands is continuing with a large volume of sections coming to market at present.

Great Barrier (-12%)
Value levels have declined since 2011 and sales volumes are low. There are a large number of properties available for sale and marketing periods of 12 months or more are common. Factors associated with remoteness and a decrease in demand for coastal properties is driving value levels.

Henderson-Massey (39%)
The Proposed Unitary Plan is influencing buyer expectations particularly in areas identified for more intensive land use, such as Te Atatu Peninsula and Westgate. Demand is strong for housing in all areas. Ranui, Massey, Henderson and Glendene are seen as affordable options for first home buyers.

Hibiscus & Bays (29%)
A consolidating residential locality characterised by homes dating predominantly from the early 1980s through to more recently constructed houses of above average quality, to executive style. Growth areas include Orewa and Millwater where average lot sizes are smaller. Weathertightness issues are still a factor in the market with housing that is subject to known weather tightness issues selling close to or in some instances below the 2011 roll values.

Howick (35%)
The market has moved fairly consistently throughout, with strong growth in the area of Flat Bush driving value levels.

Kaipatiki (41%)
A diverse area including character homes with views south towards the Waitemata Harbour, with easy access to motorway connections at Northcote and Birkenhead through to the more affordable housing areas of Beachaven and Birkdale. This area is showing an above average increase, especially properties with further development potential.

Mangere-Otahuhu (37%)
Buyers are actively seeking larger sites with further development potential in this area pushing value increases. Otahuhu provides relatively central but affordable housing compared to the inner city. Mangere Bridge has seen some of the strongest growth in values across the region since 2011, which is in part attributed to the community feel of the village, enhancement of waterfront areas with views to the Manukau Harbour, and the continual development of State Highway 20.

Manurewa (32%)
The introduction of the LVR is linked to a lower increase in this area, which predominately comprises a market for first home buyers and investors.

Maungakiekie-Tamaki (44%)
Value growth has been strong as the area is seen to be relatively central. Transportation and roading including recent rail development in Onehunga and new rail station in Panmure, as well as AMETI in the east and SH20 to the west, are also drivers towards value increases.

Orakei (35%)
These central suburbs have seen strong value growth; however growth has been weaker for high value coastal land and properties at the top end of the market ($4million-plus).

Otara-Papatoetoe (35%)
Buyers are looking to this area as being relatively central but affordable compared to the inner city. Demand is particularly strong within Papatoetoe for sites with development potential.

Papakura (26%)
While the area provides a range of housing for first home buyers and is one of the most affordable areas of the region, Papakura value movements are more modest than other areas, with travel times of 30 minutes to the CBD off-peak.

Puketapapa (41%)
Similar to Mangakiekie-Tamaki, housing in the Puketapapa area is seen as an attractive option for buyers looking to locate centrally and for generally less than $850,000. Transportation is improving as State Highway 20 development continues and the area is seen as more accessible than it was 10 years ago.

Rodney (24%)
Generally residential values increases are modest in comparison to the central suburbs, and land values of coastal sites have increased a slower rate than inland property.

Upper Harbour (31%)
Housing with known weathertightness issues selling close to or in some instances below 2011 values are impacting on overall value movements. Significant development is occurring at Hobsonville, with overall section sizes being relatively small.

Waiheke (10%)
Value levels on Waiheke have seen smaller increases relative to the isthmus with land values generally only showing modest increases.

Waitakere Ranges (32%)
The overall demand is weaker than in central locations with accessibility issues and development difficulties, such as steep bush clad sites, which can impact on desirability and value levels.

Waitemata (29%)
Waitemata has two distinct markets – CBD apartments and secondly, traditional inner city housing areas such as Freeman’s Bay, Herne Bay, Ponsonby and Grey Lynn. Value movements for traditional housing areas is similar to Orakei and Albert/Eden, while average movements for CBD apartments is lower.

Whau (41%)
The Proposed Unitary Plan is influencing buyer expectations, particularly in areas identified for more intensive land use such as New Lynn. The extension of State Highway 20 and the Waterview connection has contributed to increased interest in the area, and significant value growth has occurred over the last three years

We’ll have to wait till November before the details are available for each individual property.

4 comments to Auckland property revaluations

  • Fred

    So how’s building a pile of sprawl on the edge of the city going to help affordability? This clearly shows people want to live centrally.

    • Bryan

      It “clearly” shows the opposite – the Waitakere ranges did better than Ponsonby and Grey Lynn, with the highest growth in the “affordable” outer isthmus suburbs (Onehunga, Panmure, New Lynn) . Ironically, the most central area did as badly as the two most distant areas.

      What it more likely shows is the areas with the highest RV growth in 2011-2014 are just playing catchup with the areas that had higher RV growth in 2008-2011 – whether that’s because people were priced out of the central areas or some other factors is hard to say?

  • Anon-o -mouse

    Mind you. For those of us in the Rural Fringes. If they built the rail loop we wouldn’t BE on the fringes. We’d have the same access to the city as others. Maybe even better.

  • mfwic

    It shows me the inner city East Coast Bays and Papakura are probably the best places to be buying while the red areas have had there lift and are probably done for now. Remember buy low sell high. I think they are all crazy on Waiheke so don’t extend my theory to there.

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