Archive | City revaluation

New Auckland valuation will be on capital value

Published 3 June 2011

Auckland Council will issue its first rating valuations on 26 October – 514,000 of them for the whole city, which until last November was divided among 7 councils.

The valuations, with an effective date of 1 July 2011, will be used to set the rates for the financial year starting 1 July 2012. This year’s rate, to be set at the end of this month and applied on 1 July, is based on predecessor councils’ valuations.

This year’s valuation exercise – by Auckland Council staff for the old Auckland City Council area and Quotable Value for the rest – will be the first for most property owners on a capital value basis.

Previously, Franklin was done on capital value, Auckland City & Manukau were on annual value and the rest (North Shore, Papakura, Rodney & Waitakere) were on land value.

The previous councils’ rating cycles were also different, ranging from September 2007 for the last valuation in Rodney & Waitakere to September 2009, the most recent valuation, which was done in Papakura.

Auckland Council valuations manager Pete McKay said yesterday some trends had already come through in the data collected: “At this early stage, market trends indicate that residential property values are still, on average, below the peak of the market between late 2007 & early 2008. Indications are that value movements are likely to be in the +/-10% range for most residential properties.”

That compares with an overall rise in Auckland City in 2008 of 13% in residential valuations, and about 40% in 2005.

The valuers will start work on the last piece of the exercise, valuing commercial & industrial property

The effective date of the rating valuations will be 1 July 2011.  The valuations will be used to calculate rates from 1 July 2012.

Want to comment? Go to the forum.

 

Attribution: Council report, interview, story written by Bob Dey for the Bob Dey Property Report.

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Otahuhu heads the Auckland land value rise

Published 21 October 2008

Auckland City councillor Doug Armstrong issued a release on the process of a revaluation for rating processes today, presumably as chairman of the council’s finance & strategy committee.

 

He explained how the mass appraisal approach was used. One thing he didn’t explain – and it was something that in the past the council has gone to some lengths to explain – was how valuations had moved in different areas. Another was how valuations had moved for different classes of property.

 

Some of that information is available on the council website if you hunt – a link, 2005 valuation changes by suburb, actually refers to 2008 changes.

 

The council said capital values in the city had increased overall by 13%. The website also gives changes in land value suburb by suburb, but the figure which is important in the council exercise is the annual value, which is what the rates are based on.

 

Above the average and you pay more (well, you pay more anyway because of inflation, but your increase is higher than your neighbours’ if it’s above the average), and vice versa if you slip below the average.

 

While the Citizens & Ratepayers-led council, with Cllr Armstrong in charge of finance, has trumpeted its intention to hold rates at the level of inflation (that’s the council’s assessment of inflation as it affects the council, not the other theory of inflation propounded by Statistics NZ), the outcome is an average across the whole city, complicated by revaluation.

 

The city valuation is dated 1 July 2008 so it doesn’t reflect subsequent value shifts (mostly falls) over the past 2 months. The new values will be applied to council rates applied next year, with effect from 1 July 2009.

 

The annual value dictates rates movement, but the other council valuation columns – land & capital – also have their place.

 

Take land values, for example. The big movers were Otahuhu (up 51% on 3 years ago), Great Barrier Island 45%, Western Springs 43%, Pt England 36%.

 

Also in the Tamaki area with Pt England, Glen Innes’ land value rose an average 28%, Mt Wellington 26%, Panmure 27%. The Prime Minister announced a kickstart $25 million for the NZ Innovation Centre at Auckland University’s Tamaki campus today, so the gentrification of the area back of Remuera officially begins and capital values will also start to rise.

 

Between Remuera & those Tamaki suburbs, Meadowbank’s valuation rose 30%, St John’s 32%.

 

Western Springs is on its own with a 43% land value rise – around it, Grey Lynn & Pt Chevalier are on 6%, Mt Albert 19%, Waterview 16%, Westmere 10%.

 

Otahuhu’s 51% land value increase shows the kind of rise that recognises its unique position on the Auckland isthmus: the central point everyone has to travel through on any north-south journey, the place where – in an intensified urban Auckland – you can expect highrise to shift out the old villas, where the graffiti, lowlife & migrant influences will be replaced. Otahuhu is across a bridge from the Highbrook Business Park, a high-class work environment which will change its nearest suburb. The suburb’s capital value rise was the third-highest in the city at 23%.

 

Capital values move at different speeds, depending on how soon they catch up on increases in land value. Great Barrier’s rises in both land & capital value stood out – 45% for land, 39% for capital.

 

Around Tamaki, capital values were up in Pt England by 21%, Panmure 15%,Glen Innes 19%, Mt Wellington 15%.

 

At Western Springs the capital value rise was highest on the isthmus at 27%, but suburbs around it didn’t have matching increases.

 

Council website: Valuation changes by suburb

 

Want to comment? Email [email protected].

                                       

Attribution: Council release, website, story written by Bob Dey for the Bob Dey Property Report.

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Auckland City rates benchmark is 42% valuation gain

Published 14 January 2006


42% is the benchmark to calculate a likely rise or fall in your Auckland City rates bill for the next financial year starting in July.



That’s the average by which the annual value of the city’s 163,000 properties has risen since the last Auckland revaluation in July 2002. To see the changes in land, capital & annual values around the city, click the box:


Maps produced by the council showed pepper-potting of rises & falls, rises generally in areas of large subdivision, and on the Hauraki Gulf islands large rises were almost universal.


Annual value is the measure Auckland City Council uses to work out the rates it charges on individual properties (along with other calculations such as the commercial differential). It’s calculated as the higher of the estimated gross rental less 20% (or 10% if it’s a vacant site), or 5% of the property’s capital value. The rental assessment is done whether or not the property is actually rented.


The council also assesses land value & capital value. In the latest revaluation, land value rose 86%, capital value 51%. At the 2002 revaluation the rises were much more conservative – 11% for annual value, 14% for land value, 13% for capital value.


The council will send its revaluation notices out on Monday 16 January. Objections close on Wednesday 15 March. The council will hold its annual plan meeting on Wednesday-Friday 8-10 March then set the total rates requirement & individual components in June.


42% is the benchmark for rates contributions. A revaluation assessment above that means the property’s share of overall rates will be higher than before, but other factors include targeted rates, as well as changes in the total rates bill and in the number of rateable properties.


John Wells, who headed the council project, said factors affecting valuation changes included:

strong industrial & retail markets (low vacancies in those markets, but office vacancies ranging from 5-15%, depending on location)
the big demand for mixed-use properties
single-digit cap rates across much of the city, except for large office buildings (where the cap rate range was 10-11.5%)
big rises in land values rather than the value of improvements
consequently, a bigger valuation movement for larger properties
strong presence of owner-occupiers keen to insulate against future rent rises, “often in desperation & at a premium)
greater recognition across the city of parking as assessable property (where previously parking may not have been recognised as a contributor to value or assessed separately – there are more unit titles for parking spaces, with rent being paid for parking spots in places like Mt Eden & One Tree Hill)
a significant increase in contribution from the rural sector, especially affecting island rural property.

On average, residential values have risen by 44%, non-residential by 36% (cbd 30%, elsewhere 39%). Click the box for detail:


To check the change in cbd values, click the next box:


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].


 


Attribution: Council statistics & press release, council media conference, story written by Bob Dey for this website.

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Auckland City capital values up 13.1%

Published 7 November 2002


Auckland City capital values have risen 13.1% over 3 years to $70.4 billion, and 25.2% since the city council’s first revaluation on a new system in 1997.



Until 1997, the city council carried out revaluations only on an annual value basis (rental value less 20%, less 10% if the site is vacant, or 5% of the estimated capital value if that’s greater) to levy rates, and the other 2 valuation methods — capital & land values — were done by the former government department, Valuation NZ.


Now the council does all 3 valuation methods — annual, capital & land. The latest assessment is dated 1 September, covers 151,000 properties and will be posted out to ratepayers on 11 November. Objections close on 18 December.


The revaluation shows Auckland City land values up 14% to $34.3 billion since 1999. On an annual value basis the rise is 11.7%.


The capital value of residential property rose 16.5% to $48.9 billion, and residential land value rose 17.4% to $26 billion. On an annual value basis, the rise was 14.4%.


The capital value of non-residential property rose 9.2% to $11.3 billion, and land value 11.4% to $4.6 billion.


In the central business district, the capital value of non-residential property rose only 1% to $6.6 billion, land value fell 1.6% to $2.3 billion. On an annual value basis, the rise was 4.9%.


The cbd west area (the central business district from the west side of Queen St, down to Quay St, along Fanshawe St and including part of Freemans Bay, across to Newton Rd) was the only part of the city to show a decline in value, falling 5.12%.


Council finance director David Rankin said a lot of cbd apartments were sold at prices that hadn’t been sustained on resale. Commercially, lower-grade buildings had been taken up for education purposes, but he said rents had not risen.


Below are the percentage movements in capital value by suburb over the past 3 years, the 1st figure for residential, the 2nd in bold for non-residential property and the 3rd for land value:


Central

CBD central, -8.1%, 15.3%, 2.6%
CBD east, -0.6%, 4.4%, 2.8%
CBD west, 1.4%, -6.1%, -6.8%

Inner west

Arch Hill, 10.3%, 7.2%, 8.9%
Freemans Bay, 14.4%, -3%, 8.7%
Grey Lynn, 26.9%, 10.4%, 18.5%
Herne Bay, 25.3%, 5.4%, 20%
Pt Chevalier, 21.1%, 38.1%, 27.2%
Ponsonby, 14.5%, 14.3%, 9.9%

South-west

Avondale, 13.6%, 4%, 6.8%
Blockhouse Bay, 8.7%, 10.1%, 14.9%
Mt Albert, 16.8%, 8.1%, 10.6%
Mt Roskill inland, 6.8%, 5.5%, 10.1%
Mt Roskill coastal, 9.5%, -12.7%, 6.9%
Sandringham, 19.9%, 16.5%, 27%
3 Kings, 20.8%, 18%, 23.4%

Eastern suburbs

Glendowie/St Heliers, 13.7%, 3.7%, 15.4%
Kohimarama/Mission Bay, 9.4%, -0.7%, 15.5%
Orakei, 31.6%, -5.2%, 29.8%
Remuera East, 18.7%, 7.2%, 14.7%
Remuera South, 13.5%, 11%, 14.7%
Remuera West, 18.6%, 1.6%, 17.3%
St Johns/Meadowbank/Glen Innes/Pt England, 7.9%, 6.4%, 1.5%

South-east

Ellerslie, 8.9%, 29.2%, 22.5%
Epsom, 32.5%, 10.9%, 35.7%
Mt Eden, 25.3%, 3.7%, 22.5%
Mt Wellington, 0.7%, 13.4%, 13%
Newmarket, 6.3%, 16.1%, 4%
1 Tree Hill, 28.9%, 5.6%, 18.4%
Otahuhu, -6.3%,12.8%, 17.1%
Onehunga, 10.7%, 21.7%, 36.8%
Parnell, 12.7%, 4%, 6.5%

Hauraki Gulf

Waiheke Island, Rakino Island, 32.5%, 46.7%, 36.2%
Outlying islands, 29.2%, 53.2%, 60%
Great Barrier Island, 45.7%, 46.5%, 64.3%

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New Auckland City valuations out next week

Published 11 January 2006


Auckland City Council has completed the 3-yearly process of valuing every property in the city and has had the valuations audited & approved by the Valuer-general.


 


The new valuations will be used to apportion annual property rates for the next 3 years, starting in July 2006.


 


The council valuation roll will be published & available for public inspection and property owners will receive the new values from 16 January.


 


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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