Auckland Council's CVs aren't due out for another two months. But the Herald has stepped in to do a mock CV estimate. Find out your suburb's value. Photo / 123f
Auckland Council's CVs aren't due out for another two months. But the Herald has stepped in to do a mock CV estimate. Find out your suburb's value. Photo / 123f
Retirees and beachside residents in Omaha are - depending on your point of view - likely to be among the biggest winners or losers when new Auckland Council valuations are released in two months.
Omaha values have jumped more than half a million dollars since the last council valuations werecalculated in 2017, while citywide prices have risen 23 per cent, new mock CVs by analysts CoreLogic show.
Omaha's price jump is one of the biggest in the city and is likely to be reflected in official new CVs - formally known as capital values - expected to be sent to home owners in October.
It comes as Auckland Council has already completed revaluations by pretending every city home had been sold on June 1 and then estimating the most likely selling price for each one.
Owen Vaughan, editor of NZME-owned property website OneRoof, said there has been so much talk of booming prices in the past year that some might be surprised to find their CVs hadn't jumped as high as expected.
Life's a beach. Prices have skyrocketed in northern beach suburb Omaha since Auckland Council last estimated capital values in July 2017. Photo / Michael Craig
Those wanting to sell often hope for a new higher CV in the belief it might help convince future buyers to pay more for their homes.
Higher CVs can also convince banks to lend more money to those wanting to borrow.
Yet, on the flip side, residents with no intention to sell can face a higher Auckland Council rates bill if their new CVs jump too much in value.
Overall, most city residents can expect their CVs to jump compared to the last July 1, 2017, valuation.
That's according to the Herald on Sunday and CoreLogic's mock CV estimates, which show median house prices rose in each of the 228 Auckland suburbs featured in the data.
Overall, the combined median values of all Auckland suburbs rose by a combined $60 million in value over the past four years, with the average price jump per suburb being $264,369.
Omaha prices in Auckland's north were among those to boom.
Its median house price hit $1.78 million on June 1, up 44 per cent compared to its 2017 median CV value of $1.23m.
House prices in exclusive Stanley Point, next to Devonport in the North Shore waterfront, rose by $690,000 - a 41 per cent rise from a median CV of $1.7m in 2017 - to sit at $2.4m in June.
Inner suburbs Ponsonby, with a $645,000 jump to hit $2.5m, Saint Mary's Bay, with a $565,000 rise to $2.6m, and Point Chevalier, with a $545,000 increase to $2m, were the next-biggest risers.
And it wasn't just the posh suburbs making big jumps.
South Auckland's Clendon Park, Rosehill and Manurewa East were all among the top five suburbs to rise by the highest percentage increase compared to their old CVs.
Clendon Park prices rose 45 per cent ($235,000) to hit $755,000 in June, Rosehill also rose 45 per cent ($269,000) to $869,000, and Manurewa East increased 43 per cent or $261,000 to $871,000.
Auckland Council's CVs aren't due out for another two months. But the Herald has stepped in to do a mock CV estimate. Find out your suburb's value. Photo / 123f
Overall, eight Auckland suburbs jumped by more than $500,000 in price, while 54 jumped between $300,000 and $500,000 and another 121 suburbs rose by between $200,000 and $300,000.
Forty-one increased by between $100,000 and $200,000, while just four suburbs rose in value by less than $100,000.
Those with the smallest rises tended to be suburbs with a lot of apartments.
That included Auckland CBD where prices rose just 7 per cent or $43,000 in four years to hit $703,000 and Newmarket with a 7 per cent increase of $52,000 to reach $752,000.
It also included Manukau, Grafton and Eden Terrace, which all had price rises less than 20 per cent.
CoreLogic head of research Nick Goodall said apartments, especially small inner-city apartments, tended to be rented by foreign students and tourists on short stays.
But with these groups being locked out of the country after the Covid-19 pandemic closed international borders, apartment prices had remained relatively flat.
But before home owners get too upset or happy about price rises, Auckland Council cautioned they are just one factor determining how much each household pays in rates.
"What will determine a rates increase is if your property value has increased more than the average increase across the region," council said.
"If your property increases in value, but this increase is below the average, this may mean you will pay less in rates."
CVs also do not change the total dollar amount the council collects from rates.
The council instead decides ahead of time how much money it wants each year, and then uses CVs to help work out the share each home and commercial property owner pays.
The council has already decreed it intends to raise $2.3 billion from rates in the 2022/2023 financial year – the first year the new CVs come into effect.
New CVs had earlier been planned to be calculated in July last year.
But the council was given permission to delay the revaluation until this year, after it argued attempts to estimate home values in the uncertain market created by Covid-19 would likely produce distorted results that might be unfair to home owners.
Key stats
• All 228 suburbs rose in value compared with Auckland Council's 2017 CVs. • The total increase in value across the 228 suburbs was $60.3m at an average rise of $264,369. • Eight suburbs rose by more than $500,000. Fifty-four jumped between $300,000 and $500,000, 121 jumped between $200,000 and $300,000 and 41 jumped between $100,000 and $200,000. • Just four suburbs rose by less than $100,000.
