General Property Values Out. Some Key Information. (UPDATED)

Please read the post very carefully. A 41% hike in your rateable value does not mean a 41% rates hike next year….

 

budget

The general property revaluation cycle has completed its main part in revaluing 525,000 properties across Auckland.

From Auckland Council which includes fact sheets and maps

Auckland’s property revaluation reveals average 33% increase

 

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.

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Some Facts

Revaluation 2014 – factsheet 

  • Every property in New Zealand is revalued every three years for rating purposes.  Auckland properties were last revalued in 2011, so will be valued again this year in 2014
  • A Capital Value (CV) is assessed for every property as at 1 July 2014 – this is the probable price that would have been paid for the property on that date. It is different to the market value which is the probable price that would have been paid for the property at any given date depending on market factors at that time.  Council also has to assess a Land Value and the Value of Improvements.
  • About 525,000 properties will be revalued – this is every property in Auckland excluding roads and waterways.
  • Before valuations are finalised, they have to be approved by the Valuer-General (VG). The VG audits rating valuations for every property in New Zealand to ensure the values and processes undertaken meet the standards set out in the rating valuations rules.
  • Values assessed as part of the 2014 revaluation will not be used for rating purposes until 1 July 2015. The council is currently working through the process of developing the draft Long-term Plan, which will contain policies relating to rates.
  • Revaluation doesn’t impact on the total amount of rates collected by Auckland Council. It is one factor in determining everyone’s share of rates, which is based on the CV for each property. A change in a property’s CV does not automatically mean rates will increase or decrease because of that change.
  • Given there are about 525,000 properties in Auckland it is logistically impossible to inspect them all individually. As such, rating valuations are calculated using mass appraisal techniques. Mass appraisal valuations are used for all rating valuations in New Zealand and globally.
  • When the value of a property is assessed the factors considered include the following:
    • what properties are selling for in the neighbourhood
    • the type of property: house, town house, factory, shop, etc
    • information in the District Valuation Roll, which contains the valuation details of individual properties in the Auckland region
    • information about industrial and commercial rental trends obtained from market surveys
    • changes that have been made to the property since the last revaluation (2011).
  • Values are assessed with respect to sales relevant to 1 July 2014 which may be influenced by proposed changes in zoning under the Unitary Plan along with other factors likely to influence the selling price of a property
  • Property owners have the right to object to their valuation for a 30 day statutory period beginning 10 November 2014 and closing on 19 December 2014. The process for making an objection is displayed on the notice.

Definitions:

Capital Value: The assessment of the most likely selling price had the property (including building/s and all other improvements on the land but excluding chattels) been sold on 1 July 2014.

Land Value: The assessment of the probable price that would have been paid for the bare land as at 1 July 2014. It includes development work such as drainage, retaining walls and levelling, but disregards any buildings or other improvements to the property.

Improvement Value: The Value of Improvements is the difference between the capital and land values. It reflects the additional value given to the land by any buildings, other.  It does not necessarily reflect replacement value (how much it would cost to rebuild the home) or depreciated replacement value.  It should not be used for insurance purposes.

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A Map and some commentary on valuation movements by Local Board area

 

Update: Commentary

Council Commentary on the valuation movements between Local Board areas

General Property Revaluation 2014
Commentary to accompany map: ‘Average indicative residential value movements by local board’

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.

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Source: http://www.scribd.com/doc/237157569/General-Property-Value-Movements

 

These are interesting trends and closer analysis alongside the commuting patterns (see Auckland’s Commuting Journeys – A Series. #Introduction for the overview and Auckland’s Commuting Journeys – A Series. #The City Centre for the City Centre. Other employment centres will be covered in subsequent posts). I will do closer analysis of this at the end of the week but I can say this kind of stuff is what Geographers live for 🙂 .