Unitary Plan to have big impact on CVs
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.