House value jump raises rates fears

Our house is worth how much? Quotable Value is defending a 110 per cent land value rise on Auckland's North Shore, saying the new valuations accurately reflect market activity.

Thousands of houses in many parts of the Shore are now assessed as worth more than $1 million, turning what used to be working-class suburbs into havens for the wealthy.

New valuations in Birkdale and Beach Haven have climbed faster than other parts of the Shore.

Many Shore residents are fuming about their reassessments, which arrived in the mail this month, fearing their rates will cost a fortune.

But the North Shore City Council says the higher valuations are unlikely to lead to higher rates for most home owners, as long as house values rise across the board.

Rates on the Shore are already forecast to rise by about 5 per cent, possibly more because of inflation.

Quotable Value says new values in its three-yearly review are based on actual market activity since 2003.

Capital values (land and improvements) are up 62 per cent across the Shore but land values are up 110 per cent. And the shock might spread throughout other parts of Auckland.

Lorna Stewart, of Torbay, this month challenged Quotable Value about an "amazing figure" put on her house as at September 1.

"I was told land value averages in New Zealand had gone up by 62 per cent since the last valuation. My rate percentage was so much higher because the average land price on the North Shore had increased 110 per cent," she said in a letter to the Herald.

"That is ridiculous: the average land price has been hugely inflated, hiked by the very expensive properties on the North Shore that often sell in the millions."

But Steve Langridge, Quotable's online general manager, said the new assessments were not skewed by the sale of exceptionally expensive seaside homes.

"Values are based on comparable properties, so any million-dollar sales will only result in value changes to comparable million-dollar properties."

Mr Langridge said the new values did not include chattels that might be sold with a house, so houses were expected to sell for slightly above those figures.

Melanie Gallagher, QV Rating's regional account manager in Auckland, said residents should not assume their rates would automatically increase.

North Shore City Council's group manager finance, Dale Lott, said the QV reassessment was realistic but it would not push up rates much.

* Home owners have the right to object to revaluations. For more information, telephone 0800-787-284 or click on the link below to be taken to the Quality Value website.