Auckland's 'affordable suburbs' see the largest jump in value

Two small settlements just north of Pukekohe - so small only one has barely earned itself a Wikipedia entry - have experienced such a growth in popularity their average value has surged by 151 per cent.

The two areas, Paerata and Runciman, had a combined population of 1572 but have grown the most in value across all the Auckland suburbs in the latest council revaluation.

Auckland Council today revealed the total value of all residential properties across the region surged by 45 per cent taking the average house value in the Super City to $1.076m.

In terms of local board areas, Waiheke Island, Papakura and Papatoetoe-Otara all grew in average value by more than 60 per cent; up 64 per cent, 61 per cent and 62 per cent respectively.

Council also provided a breakdown of the percentage value change since the last revaluations in 2014 to the suburb level, which showed two suburbs rising by more than 100 per cent in value, Paerata-Runciman and Wainui/Waitoki, which grew by 102 per cent.

Sixty-eight suburbs rose in value by 50 per cent or more, with two rising in value by more than 80 per cent since the last valuation - Drury up 81 per cent and Westgate up 86 per cent.

Council said the largest movements in the outer suburbs appeared to be a result of higher demand in the outer suburbs where property was less expensive.

Paerata-Runciman, which saw the largest jump, was one such suburb which has been tipped to expand exponentially in the years to come.

Infrastructure New Zealand predicted it would one day be a new satellite city capable of housing 500,000 people.

Housing Minister Phil Twyford was interested in using it as part of Labour's $2 billion KiwiBuild scheme, to build 100,000 affordable homes over the next 10 years - half of which would be in Auckland.

Building is already under way in the township, with a small village of 4000 to 5000 houses being set up on the grounds formerly owned by Wesley College.

Hobsonville, another area that's been an "affordable" housing development, was another that saw a significant rise in its value since 2014 - rising in value by 63 per cent.

Council would not release the dollar values of these suburbs today, but said it would do so on Monday.

Without access to its data set from 2014, it was not possible for the Herald to calculate how these figures translated into dollars.

Commercial properties had also risen by 43 per cent, industrial properties 47 per cent, and lifestyle properties 57 per cent.

New RVs are released triennially, after a region-wide revaluation of all commercial, industrial and rural properties that every council in New Zealand is legally required to carry out.

Individual rateable values (RV) for the roughly 548,000 properties analysed will be released on Monday.

Property owners who had subscribed would receive an email on Monday detailing their individual property valuations, otherwise the information would be on the council website.

Individual valuations will also be available on qv.co.nz and on the Herald website on Monday.

The valuation figures, which Auckland Council used to help calculate property rates, could lead to a rise in homeowners' rates bills - albeit officials have said that this would be unlikely to happen till next year.

Head of rates Debbie Acott said property valuations helped council work out everyone's share of rates, but was not the only thing taken into account when rates were calculated.

"They don't mean that we collect any more money. However, we won't know the impact of this revaluation on rates until we agree our next budget in 2018, so I encourage Aucklanders to view these valuations with that in mind."