Rate hikes hit poorer suburbs
Property owners in some of Auckland’s poorest suburbs face rates rises of around 13 per cent after Auckland Council’s latest property valuations.
The council’s first valuation since 2017 showed a 34 per cent increase in the regions’ average property value.
However, this was not an evenly spread increase, so some areas of the city would see much higher rates than others. For those in Māngere-Ōtāhuhu, there would be an average 13.3 per cent increase which worked out at $346 a year more, while in HendersonMassey the average increase would be 12.9 per cent, or $321 a year more.
The average income of this area was $35,200, which is well short of more affluent areas like Devonport at $45,800. Rates for Devonport-Takapuna rates were expected to increase by 4.6 per cent.
Areas seeing the smallest increases included Hibiscus and Bays, Waitematā and Upper Harbour, increasing by 0.2, 1.6 and 1.6 per cent respectively.
In Maungakiekie-Tamaki, there would be an average 12 per cent rise for residential property owners. That came to about $352 a year more.
These areas include some traditionally cheaper suburbs like Glen Innes, Māngere,
tāhuhu, Ranui and Massey, and meant the rises could hit lower-income households who might struggle with the increased rate burden.
Aotea Great Barrier Island saw one of the most significant residential rates increase at 18.3 per cent, going up by $232 to $1495 a year.
Homes on Waiheke would also see a jump of 9.4 per cent to $3658.
Auckland Council financial policy manager Andrew Duncan said an increase in a property’s value did not automati
‘‘If a property increases above the average itmight see rates rise, but if the increase is below average itmight see a reduction, or a smaller increase. ’’ Andrew Duncan
Auckland Council financial policy manager
cally mean an equivalent increase in rates.
‘‘If a property increases above the average it might see rates rise, but if the increase is below average it might see a reduction, or a smaller increase.’’
For residential properties, the average rate rise was calculated at 6.02 per cent, but the council had projected that for 53 per cent of properties the increase would be below that, he said.