Lower rate rises not for poor

through the budget, the council had struck a fair balance between keeping average general rates low and making the investment in the city’s transport system, housing and environment that Aucklanders demanded.

Otara-Papatoetoe Local Board chairwoman Lotu Fili was not aware many people in her South Auckland community faced rates increases above 2.5 per cent.

“Any rise in expenditure will affect people in my Local Board area because the majority in our area do suffer from high levels of deprivation,” she said.

The latest valuations found that many homes in Otara were low-cost properties from the 1960s onwards, which investors had looked to buy, renovate and sell for a quick gain, the council said last November.

Another example of high price growth was Papakura, which the council said remained affordable and popular with first-home buyers. New subdivisions with affordable housing, plus improved trains and roads, were other contributing factors to prices rising by more than 60 per cent.

Alan Johnson, a policy analyst with the Salvation Army and former Manukau City councillor, said the impact of higher rates in South Auckland would not be massive because most people did not own property. Landlords could afford to absorb what was not a big increase in dollar terms and not have to raise rents.