An exclusive waterfront home has suffered an $800,000 drop in Auckland Council's latest valuations.
Geoff Burton's house at 13 Peacock St, Glendowie, has gone from a capital value of $2.3 million to just $1.5 million - despite the suburb's values rising by 7.79 per cent overall.
Mr Burton is one of more than 1000 homeowners who have so far complained to the council about the new valuations.
The house, on a 1998sq m section, was once owned by the family of realtors Barfoot & Thompson and Mr Burton cannot fathom the revaluation.
"This is a very special property that had been treasured by the Barfoot family for nearly 60 years. The property was originally purchased by Mr Barfoot, who was the founder of Barfoot and Thompson, and then later passed on to the four Barfoot brothers.
"Because I knew the property needed work, I was careful to buy under the capital valuation or CV so as to avoid over-capitalising when I later spent money to enhance it.
"Nothing has changed on the property in the three years since the last valuation," Mr Burton said, noting how Glendowie's valuation rise was based on sales in the area.
A neighbouring property at 5 Peacock St has a similar gradient but is almost half the size at 1047sq m. Yet it enjoyed a land valuation rise from $1.1 million to $1.2 million, Mr Burton said.
"It seems hard to understand how two properties, side by side, could see an increase in the land value of one and such a dramatic drop in the land value of the other.
"My concern is that in today's market, CVs are commonly used as a guide for establishing the value of a property when buying and selling. Independent valuers even refer to this when calculating their own valuations.
"While CVs are only a guide, you would expect some form of consistency from one valuation to the next."
There was no consistency with this property because it was a sunny site facing northeast with its own micro-climate and access to two swimming beaches below, Mr Burton said.
"While it is not my intention to subdivide, we have established that the property is legally able to be divided into three sites."
The case follows that of Judith Pohn, whose Prebble Place house in Mission Bay had a $690,000 valuation three years ago and is on the market for $734,000 but was revalued at $550,000.
Peter McKay, the council's valuation team leader, said 1009 people from a total of 516,000 rateable properties had lodged objections to the valuations since they were released on October 27 - "this puts the current objection rate at around 0.02 per cent".
"The information released pertaining to capital value movements are average movements for the suburbs identified," Mr McKay said.
"The value movements of individual properties within locations will vary according to a number of factors including site-specific factors, the quality and age of the improvements built upon the site and locational factors."
There had been no analysis of the values that caused the objections, Mr McKay said.
Nicki Bilbrough, president of the Institute of Valuers, said homeowners should hire a registered valuer for a true assessment of market worth and not rely on council revaluations.
"The rating value is described as being the probable value a property would sell for on that date and is assessed under the Rating Act 1998 and it is not possible that every rating value is the result of a property inspection by a valuer.
"It could have been the product of a computer-estimated value. In these instances, the presentation of the property or any improvements that may have been undertaken without requiring resource consent may not have been accounted for," she said.
"A registered valuer will fully inspect a property, internally and externally, measuring the floor area and taking note of the age, condition, and ancillary improvements such as garaging, car parking, landscape, swimming pools, etc.
"The size of the site along with access, contour and views are also noted and taken in account."
People unhappy with revaluations have until December 16 to lodge a written objection.
Queries about valuations or the valuation process should go to Auckland Council's revaluation team on 0800 874 060 or www.aucklandcouncil.govt.nz/revaluation