Auckland Council has released it's latest rating valuations and they show an average value increase of 34% compared to the previous valuations, dating from 2017.
Council rating valuations are supposed to be re-set every three years, however Auckland's last revaluation which was supposed to take place in 2020, was postponed due the impact of the Covid-19 pandemic.
There have been big variations in the rate of value increase around the region.
In general, the biggest increases in percentage terms have occurred in areas where property prices are lowest, while the more expensive areas have recorded lower rates of valuation increases.
The maps below show the rate at which the latest revaluations have increased compared to the previous 2017 valuations in each of the Auckland Council wards.
The smallest increase was in the Waitemata Ward, which includes some of the city's most expensive suburbs such as Herne Bay, Grey Lynn and Ponsonby. Its rating valuations have increased by 15%.
The biggest increases were in Aotea/Great Barrier Island at 59%, followed by Mangere/Otahuhu 49%, Maungakiekie-Tamaki 43%, Henderson/Massey 41%, Waiheke 41%, Manurewa 39% and Papakura 39%.
Auckland Council's rating valuations are undertaken by the government-owned valuation company Quotable Value, and are based on most likely selling prices as at 1 June 2021. They will be used to apportion the rates which property owners will pay for the 2022/2023 year.
The new rating valuations for individual properties can be viewed here.
The comment stream on this story is now closed.
- You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
44 Comments
Will people gauge the value of a property on the CV? I know some used to - for a period of time anyway, it'll be interesting to see...
I think some buyers will try to use this to their advantage being in a "buyers market" but these CV's are not accurate at all and better off getting someone to come to your door and do one
Just as an example: a house down my street is smaller in land size by 100sqm, smaller floor plan/less bedrooms and everything else is the same but yet somehow their CV is a lot higher than mine...go figure.
As the property bubble deflates, the 2021 CV will come to be known as the "clown value".
Or the hard floor, time will tell.
.... or the "Ponzi appraisal"
As properties inflate, CV's are known as "conservative value".
TTP
No way there will be more inflation on them for a while, there are still few more ocr raises to go. NZ fertility rate is 1.9, aging population, war(?), already in full employment ( only possible direction is down), etc etc
New Zealand’s total fertility rate is more like 1.60. https://www.stats.govt.nz/information-releases/births-and-deaths-year-e…
huh, thanks, good link, I referred to this one https://www.worldometers.info/world-population/new-zealand-population/
probably things are getting worse then :D
CV up by more than 70%
https://www2.aucklandcouncil.govt.nz/property-rates-valuations/Pages/ra…
Good timing to give some base to falling housing market from crashing.
That's nutty.
good for 10% of NZ.
face palm news.
Just had a look at mine. Bit low I think.
Having said that, CV's are only one yardstick, plus values increased another 10-15% from July 2021?
I reckon if I added 10-15% to my property's valuation it would look about right. Still 20% below homes.co.nz !!!
"average value increase of 43%": we only got a 23% increase, so looking forward to a big rates decrease next year (we don't intend to sell).
so looking forward to a big rates decrease next year
Lol.
How many times you can sell a car at an increased price.
On some fine day, that old junk will be super expensive for all the buyers.
Rent vs Buy.... mmmm
Houses are going down circa 2% per month, but let's pretend that they will just go down 1%
1% on 2M house is 20k per month (loss)
Renting the same house is a bit less than 5k (as expense, worst case, + if you use your house as office you can take some of it out of taxes)
Am I missing something?
Wellington CVs all over again. Not worth the paper they are written on.
41% increase in CV in my ward, mostly driven by flash new housing in the Massey/Westgate area, with no rapid transit or similar services actually serving it, and pre-Covid commutes from the CBD taking over an hour and only getting worse. So more money from more people, but living standards declining and commuting costs getting out of control.
Best time to announce inflated CV- will support as real estate agent use this to upsell the house.
HOUSE sold in 2019 for $920000 which had a CV of $970000 has a new CV of $1650000. WoW.
Tax tax tax tax. Council waits to after peak to lock in the biggest future rating gouge it can. If only we had confidence on the councils ability to use it wisely.
The property owners know that rates do not go up because the RV of a house goes up, unless is goes up more proportionately to similar houses in the same suburb
Important typo in the first sentence. In fact values increased by 34% on average across Auckland.
Auckland Council has released it's latest rating valuations and they show an average value increase of 43%
The main headline states: Auckland Council rating valuations up 34% overall, which is correct?
https://www.nzherald.co.nz/nz/skyrocketing-property-values-revealed-whe…
This herald article says 32% and lower down 34%. Confusion reigns.
So I have no idea what the average is that I have to compare mine against.
Plus I have no idea what Goff is increasing the total to. Plus water charges of course.
Whatever, its a huge mess. The train tunnel, the water tunnel, Council salary costs and just general wastes of money are to blame.
Again, rates don't go up because RVs go up
"Rateable value (RV) is the 'value' of a property set by the local authority for the purpose of determining and allocating rates. It is made up of three components: Capital Value (CV) - based on recent comparable sales in the area. Land Value (LV) – based on recent sales of vacant section in the area.Value of Improvements – the CV minus the LV."
https://www.barfoot.co.nz/buy/buying-tips/difference-between-rateable-a…
RVs purpose is just that, increments might or might not be proportional, but if RV goes up Rates go up too (at least relatively to each other).
It even says this on Auckland councils website, for some reason Yvil loves trying to argue against it...
Averageman and Nifty
Don't embarrass yourselves.
Clearly neither of you understand the detail of the Council’s rate budgeting process and application of RV in determining individual property rates.
Not sure if per Averageman you mean me... if that so please note I am another person.
Anyways I stated "(at least relatively to each other)." <= which means exactly that.
What I am pointing out is that is false that RV movement are neutral in terms of Rates.
I am embarassed for many things in my life, this is not one of those :D
This thread has become a bit weird. I think most intelligent people understand that the required rates take and relative CVs both affect the next rates bills. But the main question is: what are some of those embarrassing things that you have done luce?
many... if you are interested, Uninterested. One of those is wheh I sent 230k paper mail to 230k wrong addresses :D (that is a real story), but I got much better/spicier ones
Not true: If everyone's RV goes up by the same amount then no ones rates would go up.
RVs are only used to proportion rates. The council get to choose the total amount of rates, not RVs. Otherwise Auckland Council would be mega rich!
Well spotted. It's 34%. We have corrected the article. Sorry for the confusion.
I don't know if RV's have gone up 34% on average (as stated in the main headline) or 43% as stated in the article above but 34% increase since 2017 is definitely way too low, I think 43% is too low as well. Houses in Auckland have gone up a good 50% from 2017 to 2021 in reality and much more in some places.
Yeh, probably more than that, a powerful mix of fear and madness garnished with parmesan and selfishness made the magic.
Anyways, to be honest, is not just a New Zealand issue. But being "small" our beta coefficient is higher.
House price dissonance.
RV NV in da house !!
There has been the expected outcry from those advocating for the less salubrious suburbs, however they never mention that Len and Phil have changed the rates proportions so that the fixed portions are minimized and the variable component maximized. So years ago, they have hit the more valuable suburbs with higher rates bills than what they used to be. Overall this increase this time where these less valuable suburbs face slightly above average increases in no way goes anywhere near redressing the huge rates increases from a number of years ago. Not only that, but on the North Shore a minor unit with family living in it (usually elders) did not attract a separate fixed component. Len and Phil did away with that quick smart. They are anti-family.
These rating changes happened years before Phill Goff became mayor. You gonna start blaming Ms Ardern for Muldoons think big projects next?
stating the obvious
Average Auckland Values have increased a lot more than 43 percent over the last 5 years since the last CV.
Commercial rates are a scandal- way to high.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.