How Auckland ratepayers can learn their new property valuations
An aerial view of an Auckland suburb showing many blocks of housing.
Photo:
RNZ / Kate Newton
Auckland ratepayers can learn their new property valuations this week.
Auckland Council will release the rating valuations for Auckland's 630,000 properties online from Tuesday, while ratepayers will be sent formal notices from Friday.
Monday's valuation data showed residential values have fallen nine percent since the last CVs were unveiled in 2021.
Auckland Council chief financial officer Ross Tucker said the rating valuations are based on property market trends and recent sales activity as at 1 May, 2024.
"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," Tucker said.
He said for 2025/2026, Auckland Council has approved an overall average rates increase of 5.8 percent for residential ratepayers
This means annual rates for an average residential property (CV $1.29 million) will be $4,069. The 5.8 percent average increase for 2025/2026 will equate to $223 per year or around $4.30 per week.
"We are acutely aware of the tough cost of living facing our community and we continue to work hard to achieve council savings and improve value for ratepayers, to help keep rates as low as possible," Tucker said.
"Most Auckland ratepayers will see some degree of rates increase from 1 July, 2025. However, how a residential property's CV changes compares to other properties in the region will generally determine whether that property's rates increase from 1 July is more, or less, than the 5.8 percent average.
"If your residential property value has reduced more than the average (-9 percent) change between the two valuations, you can expect a smaller rates increase than the 5.8 percent. Conversely, if your property value held up better than the average, then you can expect a larger rates increase."
During Monday's media briefing, Auckland Council said residential properties in centrally located local board areas tended to see a bigger reduction than those further out, particularly apartment dwellings which had fallen 12 percent.
Properties closer to the city centre by in large had above-average reductions like Puketāpapa, Albert-Eden, Maungakiekie-Tāmaki, Waitematā and Whau (all -14 or -13 percent).
Auckland Council said this could be influenced by the varied market, including apartments, multi-units and stand-alone homes, which all have different sales trends.
For many residential properties, land values had fallen an average of -13 percent and commercial land is also down -6 percent. The reduction in land values reflects reduced development activity since 2021 and, in some cases, potential zoning changes.
Reduced demand for properties with redevelopment potential contributed to larger value declines in areas like Māngere, Henderson, Massey, Glen Innes, Point England and Panmure.
Values for areas further from the city centre held up slightly better with Hibiscus & Bays, Upper Harbour and Franklin ranging from -4 percent to -1 percent.
Commercial values were also down 5 percent, while lifestyle and rural increased by 4 percent, industrial was also up 5 percent.
Council said it was also difficult to quantify the overall effect of the 2023 Auckland flooding event on the market due to the number of variables involved.
Despite that, data shows that values in Muriwai increased by 12 percent while values in Henderson fell by 10 percent.
Rodney held its values (average 0 percent change) and Aotea Great Barrier is up (+38 percent) which Auckland Council said is a continuing trend, with residential values on Aotea Great Barrier up 59 percent at the 2021 revaluation.
Auckland Council chief economist Gary Blick said it was important to highlight that the previous two Auckland rating valuations coincided 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 per cent. 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."
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
6 hours ago
- RNZ News
Speedway deal: Proposal to sell Baypark stand for $1, extend lease
Speedway could stay at Mercury Baypark until 2039. Photo: Supplied/LDR The community is being asked if speedway should stay at Mercury Baypark Stadium as the council decides whether to extend the club's lease. Baypark Speedway has called the Mount Maunganui stadium home since it was built in 2001 and has a lease to operate there until 2029. Tauranga City Council is considering a proposal that would extend speedway operations until 2039. The proposal would involve Speedway Racing Ltd buying the north stand of 15,600 seats for $1 and being responsible for its maintenance, while leasing the land from the council through the facilities arm Bay Venues. The council would retain ownership of the land and the north stand would be returned to the council at the end of the lease in 2039 for $1. Under the proposal speedway would buy and maintain the curved north stand at Baypark Stadium. Photo: NZME via LDR Baypark Speedway promoter Melissa Webb said the proposal was its preferred option for running speedway in Tauranga. If the agreement was approved, Baypark Speedway would bring more events to Tauranga that would not be limited to just speedway, said Webb. "This will be a positive for the city." Speedway would prefer a longer lease than 2039 because of the investment it would make, she said. "We intend on investing a considerable amount of money into improvements at the stadium, and we need the security and longevity for our investment." Webb said it was understandable the council wanted Tauranga ratepayers to have their say on the proposal. Councillor Kevin Schuler said before decisions about the proposal were made, the council wanted to understand the community's views. "This consultation is about testing the community's support for the proposal and weighing up what Mercury Baypark Stadium's future should look like for the next decade." The proposal provided a way for speedway to continue operating without placing immediate costs on ratepayers, he said. "If there's not strong community support for this approach, we'll explore alternative options for the site beyond 2029." Schuler said the north stand was in poor condition and required investment to remain operational. It was used almost exclusively for speedway events, around 15 times a year. "If speedway continues until 2039, it would be under new arrangements that shift the immediate cost and responsibility for maintaining the stand to Speedway Racing." "If not, there are potential opportunities to reimagine the site for future recreational or commercial uses that could serve the wider community from 2029." Tauranga City Councillor Kevin Schuler at the inauguration on August 2, 2024. Photo: LDR/David Hall Speedway was at risk of being displaced in 2022 when the commission governing the council had plans to replace the stadium with a multi-use sporting precinct for outdoor netball, track and field athletics and gymnastics. A protest was held and a "Hands Off Baypark Speedway" campaign was launched. There was also the threat of legal action if an agreement about speedway was not reached. In September 2023, the plans were changed to keep the stadium and pits and allow speedway to retain its current lease until 2029. Consultation on the speedway proposal closes at 5pm on 23 June. A drop-in session with councillors will be held at Mercury Baypark Arena Suites on 14 June from 10am to noon. LDR is local body journalism co-funded by RNZ and NZ On Air.
RNZ News
7 hours ago
- RNZ News
Heat on Agriculture Minister Todd McClay to deliver KiwiSaver farm promise
Agriculture Minister Todd McClay. Photo: RNZ / Samuel Rillstone The heat is on the Agriculture Minister to deliver this term on a pre-election promise to unlock KiwiSaver so it can be used to buy a first farm, a flock of sheep or herd of cows, and not just a house. At the moment, if you have been contributing to KiwiSaver for three years, you can withdraw almost all the money to buy a first home to live in, although there are a few exceptions. As a general rule, you can't have owned a home or land before. But there are some exceptions for second chance buyers who, for example, might have been through a relationship breakup. Federated Farmers has launched a petition urging the government to loosen the rules for accessing the retirement scheme, saying it will turbo charge the next generation of farmers and deliver on a commitment that Agriculture Minister Todd McClay made during a meeting in Morrinsville prior to the election. The minister has now said that his comments were a National Party promise, rather than a coalition promise. But McClay told Checkpoint he does intend to uphold the promise before the end of the government's term. "I hope to have an announcement later this year and yes, that would be before the end of this term. But the work is underway now," he said. "We're gonna work pretty hard on it. If there is a reason not to, I'll front up and tell them. But I'm confident that it will be done before the election" McClay said that while he is determined to stick to the pre-election promise, he wants to ensure that it does not come with any unintended consequences. "You've gotta make sure that it's fair cause there will be others in the economy that say, well, you know, I want to use my KiwiSaver to buy a business that also allows me to get into a farm," he said. "Secondly, it's around whether if you get a flock of sheep and what happens if you decide that you don't wanna go any further, and then purchase a home... then money might go back into KiwiSaver." McClay said that because of these scenarios, the overall policy responsibility lies with another minister. "As Agriculture Minister, I'm focused on what we can do for farmers... I think there's a much broader conversation than I'm willing to have as the Agriculture Minister." Federated Farmers Dairy Chair Richard McIntyre told Checkpoint the changes would help young farmers get on the property ladder. "This is a chance to allow young farmers to actually progress their way up the ladder, investing in in small scale business ownership with ultimately the goal of buying a farm," he said. "A tangible asset like a flock or herd that gets young farmers progressing up up the ladder within the agriculture sector makes a huge amount of sense." He said although the promise hasn't yet been delivered, he still has faith in the Agriculture Minister to deliver. "We've still got a lot of confidence that we're gonna get this over the line. It's just taking a little bit more work and a bit more pressure than we'd like it to." McClay said that this government has already delivered the majority of what Federated Farmers had called for prior to the election, as well as intending to fulfil this final promise in some form. "We announced probably 25 pieces of policy and [Federated Farmers] had a list of 12 that we had already put out. Of those, 11 have been delivered on fully or are now underway with law changes." National MP for Rangitīkei Suze Redmayne submitted a members bill late last year, which will achieve some of what Federated Farmers is calling for, but it is yet to be drawn from the ballot. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
7 hours ago
- RNZ News
3D animal scanning app up for award at Fieldays
Scanabull team Dan Bull (left) and Daniel Stuart-Jones. Missing Paul Schlumbom and Paul Sealock. 3D scan of a cow (right). Photo: Scanabull Scanabull founder Dan Bull using the app. Photo: Supplied / Scanabull Fieldays is back for another year, kicking off next week at Hamilton's Mystery Creek. It's the Southern Hemisphere's largest agricultural event and is well known for launching cutting edge technology in the farming sector. Scanabull is one of the finalists for this year's Innovation Awards - they've developed an app that allows farmers to take a 3D scan on an animal, to determine its weight - something that will help save time and money, while also reducing the number of trucks on roads at the same time. Scanabull's founder Dan Bull speaks to Susie and Mihi.
