Auck­land set for CV shake-up

Central Leader - - YOUR LOCAL NEWS - 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, but by how much is the big un­known.

Homes.co.nz head of mar­ket­ing Jeremy O’Han­lon said Auck­land’s Uni­tary Plan 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 con- di­tions for de­vel­op­ment.

Ac­cord­ing to Homes.co.nz data, more than 50 per cent 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.

New­land Burl­ing and Co prop­erty in­vestor and au­tho­rised fi­nan­cial ad­vi­sor Oliver New­land said the Uni­tary Plan would im­pact the CVs of prop­er­ties on main roads in par­tic­u­lar.

‘‘Some could be more than 10 times what they were af­ter the last val­u­a­tion, we are go­ing to end up with a city of mul­ti­mil­lion­aires, on pa­per at least,’’ New­land said.

Auck­land Coun­cil head of rates and val­u­a­tions Deb­bie Acott said it was not able to pro­vide any fore­cast fig­ures, but said that the process was cur­rently un­der­way and on sched­ule. Rat­ing val­u­a­tions are cal­cu­lated us­ing mass appraisal tech­niques.

CHRIS SKEL­TON/STUFF

Auck­land prop­er­ties are due for new CVs in Novem­ber.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.