Auckland set for CV shake-up
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.
Auckland properties are due for new CVs in November.