Uni­tary Plan to have big im­pact on CVs

Auckland City Harbour News - - MUST GO!! – SAMPLES, SECONDS, END OF LINES, CANCEL - JACK­SON THOMAS

New in­ten­si­fi­ca­tion rules are likely to have a big im­pact on the next round of Auck­land CVs, prop­erty ex­perts say.

In Novem­ber Auck­land Coun­cil will is­sue a new lot of prop­erty cap­i­tal val­ues (CVs), which es­ti­mate the to­tal value of a sec­tion, tak­ing into ac­count im­prove­ments, school zones, lo­ca­tion, floor area and re­cent sales in the area.

The reval­u­a­tion of all prop­er­ties helps coun­cil work out ev­ery­one’s share of rates.

The last round of CVs was in Novem­ber 2014 when the av­er­age sell­ing price for an Auck­land home was about $750,000 - 33 per cent less than the cur­rent av­er­age price of just over $1 mil­lion.

Ex­perts agree that CVs will rise given how heated the prop­erty mar­ket has been over the past three years, but by how much is the big un­known.

Homes.co.nz head of mar­ket­ing Jeremy O’Hanlon said Auck­land’s Uni­tary Plan, ap­proved in Septem­ber, would make this round of CVs dif­fer­ent to the last and be ‘‘one of the main vari­ables’’ come Novem­ber.

Un­der the Uni­tary Plan, much of Auck­land was re­zoned. Mixed hous­ing ur­ban zones and ter­race hous­ing and apart­ment build­ings zones al­low for greater hous­ing in­ten­si­fi­ca­tion while sin­gle house zones have much stricter con­di­tions for de­vel­op­ment.

‘‘We’ve seen that ur­ban zone prop­er­ties are sig­nif­i­cantly more likely to sell for over one and a half times the CV,’’ O’Hanlon said.

Ac­cord­ing to Homes.co.nz data, more than half of Auck­land prop­er­ties sold within the last 12 months in high den­sity mixed hous­ing ur­ban zones sold for more than one and a half times the CV.

O’Hanlon said there were sim­i­lar trends for both the ‘‘mixed hous­ing sub­ur­ban’’ and ‘‘ter­race hous­ing and apart­ment build­ings zones’’.

Mean­while, only 32 per cent of prop­er­ties in low den­sity ‘‘sin­gle house zones’’ sold for more than 1.5 times their CV.

O’Hanlon said that in­di­cated that the coun­cil CVs were strug­gling to keep up with the zon­ing changes in the Uni­tary Plan.

New­land Burl­ing and Co fi­nan­cial ad­vi­sor Oliver New­land said prop­er­ties on main roads would be im­pacted in par­tic­u­lar.

‘‘Some could be more than 10 times what they were af­ter the last val­u­a­tion, and that has a lot to do with the Uni­tary Plan,’’ New­land said.

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