Massive RV increase for Auckland
Residential valuations skyrocket to 46% higher than the 2014 valuation.
Thursday, November 16th 2017, 12:00AM
by The Landlord
Auckland Council announced today that residential property in the district has almost doubled in value in just three years.
The outer Auckland suburbs have been the biggest movers, with Waiheke, Ōtara-Papetoetoe, Papakura, Māngere-Ōtāhuhu, Manurewa, Henderson-Massey, Maungakiekie-Tāmaki, Franklin, Howick, Rodney and Upper Harbour all showing upward movement of over 45%
The breathtaking rise in values has been attributed to three key factors.
“First, Auckland’s strong population growth over the last three years 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," says Auckland Council chief economist David Norman.
While valuations have increased dramatically, Auckland Council assures home owners that they need not be concerned about an equivalent increase in rates.
“We expected to see an increase in valuations since the last revaluation in 2014, so movements in the 40% to 50%t bracket really aren’t a surprise,” says Auckland Council Head of Rates, Debbie Acott.
“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 and 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, so I encourage Aucklanders to view these valuations with that in mind.”
Commercial property also increased (by 43%), with industrial property increasing to 47%. Meanwhile lifestyle properties increased by 57% and rural properties by 35%.
Ascott says that as the Auckland property market is very dynamic, these valuations should not be viewed as current market value.
New valuations will be sent to property owners in the mail on November 20.
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