Auckland’s property trend revaluation data shows significant value movements across the region and an overall average increase across all sectors of 45 per cent.
Reflecting the upward trend in the Auckland property market, the residential valuation shows an average increase in value of 46 per cent since the 2014 valuation.
Higher demand in outer suburbs
Local board areas with the largest movements – of more than the 45 per cent average – are in Waiheke, Ōtara-Papetoetoe, Papakura, Māngere-Ōtāhuhu, Manurewa, Henderson-Massey, Maungakiekie-Tāmaki, Franklin, Howick, Rodney and Upper Harbour.
Movements within the remaining boards range between 11 per cent and 44 per cent.
The largest movements in the outer suburbs appear to be a result of higher demand in areas where property is less expensive.
Central Auckland values now increasing near average rate
Auckland Council Head of Rates, Debbie Acott, says that Aucklanders should remember that a high increase in property value doesn’t necessarily mean there will be a corresponding increase in rates.
“We expected to see an increase in valuations since the last revaluation in 2014, so movements in the 40 per cent to 50 per cent bracket really aren’t a surprise,” she says.
“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.”
Lifestyle properties show 57% increase in value
Commercial and industrial properties received a rise of 43 per cent and 47 per cent respectively, while lifestyle properties increased by 57 per cent and rural by 35 per cent.
Property owners will receive their notices in the mail or via email from 20 November.
“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,” says Ms Acott.
Population growth, low interest rates drive increases
Auckland Council chief economist David Norman says that the rise in residential property values reflects at least three things.
“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.”
All councils are required by law to revalue every property in their region every three years. This year in Auckland more than 549,000 properties have been revalued, including every piece of land except roads and waterways.
Individual property data will be available from 20 November at the Auckland Council website.