Auckland ratepayers are set to receive new property valuations from this week, as Auckland Council prepares to update rates from 1 July.
The Council says the rating valuations property owners will receive this week are based on property market trends and recent sales activity as at 1 May 2024. Therefore, the valuations are not intended to accurately reflect current market value – instead, the information will help enable rates to be fairly shared across Auckland’s 630,000 properties.
The new rating valuations have been prepared by two independent valuation providers, QV and Opteon. These experienced property valuers have worked closely with Auckland Council to deliver valuations that meet robust standards, the Council explained in a statement.
Auckland Council chief financial officer, Ross Tucker said he was pleased to announce that the Valuer-General has now approved the new valuations for release to Aucklanders.
“As we know, the last council valuations from 1 June 2021 were completed close to the market peak and between then and May 2024 the economy and property market generally trended down.
“Therefore, as most people would expect, the May 2024 Capital Values (CVs) are lower than the previous 2021 CVs for many properties,” said Mr Tucker.
The overall CV movements between June 2021 and May 2024, by property type for Auckland, are:
- industrial +5%
- lifestyle +4%
- rural + 4%
- commercial -5%
- residential -9%.
Valuation movements over that period also varied across the Auckland region. Residential properties in centrally located local board areas tended to see a bigger reduction than those further out, the council says.
Auckland Council chief economist, Gary Blick said it was important to note that the last two Auckland rating valuations happened to coincide with markedly different stages of the recent economic cycle.
“At the time of the 2021 rating valuation, in June 2021, the Official Cash Rate (OCR) had been at an all-time low,” says Mr Blick.
“We saw exceptionally low mortgage rates and strong upward pressure on property prices. The 2021 rating valuation reflected those higher prices.
“In contrast, the 2024 rating valuation in May 2024, occurred when the OCR had been lifted to its recent high of 5.5%. Higher interest rates cooled buyer demand, leading to a decline in property prices.
“Despite that fall, the median house price as at May 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today. The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations,” he said.
Anyone concerned about paying their rates is encouraged to get in touch with the Council to access a range of assistance. This information can be found on the Auckland Council website and rates notices.
Ratepayers can access their property valuations via the Auckland Council website from Tuesday, 10 June. Formal notices will be posted or emailed from Friday, 13 June.
