Property valuations - fair or flawed? | Auckland News | Local News in Auckland

The Auckland property valuations came out last week and here at The Aucklander we're hearing a few grumbles from people about their property values falling.

It's the first time the new Auckland Council has done the valuations, assisted by QV New Zealand.

All 516,000 houses in Auckland were revalued and the Council issued somewhat of a pre-emptive strike in early October by warning that some valuations could fall by as much as 10 per cent. It also outlined suburbs where values had risen - like Grey Lynn and Westmere, up 18 per cent.

The council's valuation team leader Peter McKay said the last valuations - done through the old councils - were conducted in either 2007, 2008 or 2009, depending on a property's location.

"Prior to 2008, the market was heated with lots of activity. It is now in recovery mode so, overall, we haven't seen the big shifts in residential values that we saw in previous revaluations, with the exception of some inner city suburbs," says Mr McKay.

One Mission Bay homeowner told the NZ Herald her house had been valued at $690,000 three years ago and was currently on the market for $734,000.

But Judith Pohn said her new valuation received last week set its worth at $550,000, which she believes is unrealistic.

"It's obvious there has been a mistake and the council told me to put in writing my objections or call an 0800 number," she said.

She cited a number of improvements to the property since the last valuation.

But McKay says home improvements don't affect values. He said the valuations are based solely on what the property might sell for on the exact day of valuation. Council only took into account improvements made that required resource consents.

The biggest falls in residential valuations were in North Auckland where Rodney is down 7.8 per cent. In West Auckland, Waitakere is down 2.8 per cent on average.

But capital values for industrial properties in those areas have been even harder-hit. Real estate agents or landowners trying to sell commercial land are faced with valuations showing the properties are worth 13 per cent less on the North Shore and in Waitakere, 12 per cent less in Rodney, and 9 per cent less in Manukau. 

Other suburbs saw quite big jumps in their residential values. Apart from Grey Lynn and Westmere, the big rises were in Pt Chevalier, Western Springs, Kingsland and Sandringham up 13 per cent, Mt Eden and Epsom are up 10 per cent, Ponsonby 9 per cent, Mt Roskill up 8 per cent and One Tree Hill, Greenlane, Onehunga, Oranga, Penrose, Three Kings and Royal Oak are all up 7 per cent.

People The Aucklander has spoken to say, aside from any disappointment or satisfaction they may have over their valuation, it was annoying that the valuation document sent in the mail did not show the previous valuation figure so a comparison could easily be made.

A property's valuation generally affects the rates a homeowner pays, but the 2011 valuation won't affect rates until July 1, 2012.

It's a double-edge sword for homeowners. When properties are valued higher, they can expect to pay higher rates, but the flipside is they may get a better price if they are selling the house.

If the valuation is lower, the rates bill falls, but so could the price of their property if they were to put it to market.

But that correlation between property values and rates paid is actually up in the air. It's unclear whether the two will be as intertwined as in the past. The council's long-term draft plan says it will look at how a property's values affect the owner's rates bill, but that information won't be available until next year.

Property owners can object to their property valuations if they believe they are incorrect, and have until December 16 to do that.

* We'd like to hear what you think. Values fair or flawed? Leave your comment through the box below, or email letters@theaucklander.co.nz

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