Latest news with #GaryBlick
RNZ News
18-06-2025
- Business
- RNZ News
Auckland Council says 100,000 new homes built after planning rule book came into force
Auckland Council says 100,000 new homes have been built in the eight years since its planning rule book came into force . It comes as the government plans to take back power from local councils if their decisions are going to negatively impact economic growth, development or employment. Housing and Resource Management Act (RMA) reform minister Chris Bishop said the new regulation within the RMA would stop councils from stalling on housing developments. Bishop said the provision would be added into the RMA amendment legislation currently before Parliament. The Auckland Unitary Plan has governed what can be built and where since 2016, and the council has crunched numbers to show how many consented houses became reality. The number of homes constructed rose from 10,200 in 2018 to a record 18,100 in 2023, with 17,200 built in 2024. As of December 2024, there were 20,200 new homes in Auckland's housing pipeline - 13,800 under construction and 6,400 consented but not yet started. Taking into account population growth, there were close to six homes per 1000 residents before the Unitary Plan came into force and now there are 9.5 homes per 1000 residents. Auckland Council's chief economist Gary Blick. Photo: Supplied/Auckland Council Auckland Council's chief economist Gary Blick said there had been a boost in new houses with 90 percent of consented houses being completed. "What this data really shows is that the vast majority of building consents become new homes. "It also shows that the changes that were made with the Unitary Plan in late 2016 have created a lot of development opportunities." The housing pipeline is still sensitive to economic shifts, such as higher interest rates which contributed to fewer new projects starting construction from late 2022. The number of new houses consented in Auckland last year dropped 10 percent to 13,939 compared with 2023. The region's median house price of $1 million is 7.5 times the median income, compared to five times that in 2000 which in today's terms would be $680,000. "That's how far we've slipped so what we really need to see is a sustained material improvement in housing," Blick said. This month, the government announced it would allow Auckland Council to scrap its intensification plan change, called Plan Change 78. It was required to develop three storey town houses throughout the city but put on hold due in part to 2023's flooding and cyclone. Council must replace it with a change to the Unitary Plan that permits buildings of at least six stories around the City Rail Link stations in Mount Eden, Kingsland, Morningside, and others. It has until October 10 to notify the plan change. Blick said the focus should remain on enabling housing capacity in accessible places, such as close to town centres and transport options. "That could mean making it easier for people to live and work near major transport infrastructure - like the City Rail Link - giving them faster commutes, better access to jobs and education, and easing pressure on our roads," he said. More than half of the houses built in recent years have been town houses. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
The Spinoff
10-06-2025
- Business
- The Spinoff
Auckland homeowners, try not to freak out about your new CV
Updated Auckland property valuations are out today, and I'll bet yours is down. Here's why you shouldn't freak out. First of all, if it makes you feel any better, the CV of my itty-bitty first home is down by a third. Have I shat my pants? No. Am I crying? Also no. I do feel a little less flash, but I always knew that me being anything other than a scrappy gremlin was an illusion. I could say something lovely and heartwarming about it still being a home where my heart is, but I am not that stupid. I know what property is in this country, and particularly in this city – for those lucky enough to have it, it's likely our biggest financial investment. I for one cannot count my 1998 Toyota Corolla as a comparable asset and I am counting on one day cashing in my house to move somewhere nice and small by the seaside. So why am I not freaking out about a loss that on paper, looks like almost a decade of saving every cent from a full-time job? Let's start at the beginning. Where is my CV? You can check your CV (and your neighbours' CVs, your friends' CVs, etc) online here. On average, residential CVs have dropped by 9% across Auckland, though this varies from suburb to suburb – Aotea Great Barrier Island has seen huge increases and suburbs near the central city are generally where drops are. What even is a CV? CV stands for capital value. It's assessed by independent valuation providers who work closely with the council. It's an estimate of what a property would have sold for at a certain date, based on property market trends and recent sales activity. Every three years, property values are assessed. In the case of the CVs which have come out today, that date is May 1, 2024 (they have been delayed by months and months). Why have CVs dropped? The CVs that have just been swept away like old cobwebs were based on data from June 1, 2021 – very near the property market peak. There were record low interest rates for mortgages and lots of pressure in the market. It should be no surprise to anyone that since then the economy and the property market have, erm, not improved. During Monday's media briefing, Auckland Council chief economist Gary Blick said that the previous two valuations had been taken at markedly different stages of the economic cycle compared to the latest, which has been taken at a time of high mortgage interest rates and a cool property market. ' 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. How are CVs calculated? Today, the CVs for 630,000 properties were released. That is far too many to calculate one by one. Instead, standard methods are used to calculate many properties at once. Valuers look at the sale prices of similar properties in the same area then apply this data like a blanket. For example, the CVs of renovated villas in Grey Lynn will be aligned with the sales of renovated villas in Grey Lynn. It means that the changes in your CV are likely similar to your neighbours', though it will vary between different types of homes like standalone houses, cross-leases or units. How will this affect my rates? It really depends. Already the council has approved an overall average rates increase of 5.8% for residential ratepayers. The annual rates for a property with a CV of $1.29 million will be $4,069 for 2025/2026. The increase equates to paying $223 more for the year. But this will differ if the decrease or increase in your property CV is more or less than other properties in the region. If your CV has reduced more than the average you will have a smaller rates increase (a silver lining!). If it has held up better than the average, your increase will be bigger. I swear my evaluation is wrong! You certainly won't be the only person thinking this. CV reevaluations tend to trigger worries no matter what the change. On the one hand, people don't want the value of their property to drop. On the other, they also don't want to pay more rates. After the last evaluation in 2021, more than 9,000 objections were made to the council. Objections can be made online, and you will likely have six weeks to object. Once you've filed your objection a valuer will assess your property – the CV could go up, down, or stay the same. So why shouldn't I freak out? Like any other market, Auckland's housing market will have dips and slides in response to the economy, policy settings and market shifts. CVs will reflect this. If we look back only three years, yes, there's a decline. But if we zoom way out, we see that the trend goes the other way – up, up and up. If you had stocks in a company, and suddenly there was a paper loss, freaking out would not be the thing to do. Instead, you hold onto your stocks and wait. So unless you need to sell your house tomorrow for cold hard cash (and not to buy another house with a CV that has also gone down), then the best thing to do is nothing. Have a look around your lovely little house. How nicely the curtains match with the cushions! The roof is still over your head, you're still one of the lucky ones. You haven't lost anything at all.
1News
10-06-2025
- Business
- 1News
Auckland's new property valuations released: Check your CV today
Auckland homeowners checking their latest council valuations, released this morning, might be surprised to see their properties are now valued 9% less on average. The new rating valuations were released on the Auckland Council website while formal notices will be posted or emailed to ratepayers from Friday. Based on property market trends in May 2024, the figures show variations across property types and locations throughout the region, with industrial, lifestyle, and rural properties bucking the downward valuation trend. The valuations are not intended to accurately reflect current market value but are used to determine how the city's rates burden is shared among property owners. It comes as the council prepares to roll out a 5.8% average rates increase from July. Properties whose values decreased by less than the 9% average will likely face higher-than-average rate increases. ADVERTISEMENT Auckland Council building (file image). (Source: 1News) "If your residential property value has reduced more than the average (-9%) change between the two valuations, you can expect a smaller rates increase than the 5.8%," said Auckland Council chief financial officer Ross Tucker. The overall capital value movements between the 2021 and 2024 valuations show industrial properties increased 5%, while commercial properties fell 5%. Lifestyle and rural properties both increased by 4%. Properties closer to Auckland's central business district generally experienced larger value decreases, with Albert-Eden, Maungakiekie-Tāmaki, Waitematā, Whau and Puketāpapa areas all seeing drops of 13 to 14%. But, values in areas further from the city centre held up better, with Hibiscus and Bays, Upper Harbour and Franklin experiencing smaller decreases between 1 and 4%. Auckland skyline with harbour bridge visible (file image). (Source: ADVERTISEMENT Auckland Council chief economist Gary Blick explained the context behind the shifts. "At the time of the 2021 rating valuation in June 2021, the official cash rate had been at an all-time low," he said. "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 morning's headlines in 90 seconds, including new corruption report, California protests, and Justin Baldoni's legal loss. (Source: 1News) "The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations." Tucker said most Auckland ratepayers will see some degree of rates increase from July 1, with the average annual rates for a residential property valued at $1.29 million set to be $4069 – an increase of $223 per year or about $4.30 weekly. The valuations do not change how much the council takes in rates, as this is set annually following community consultation. For the upcoming financial year, Auckland Council has approved an overall average rates increase of 5.8% for residential ratepayers.
1News
09-06-2025
- Business
- 1News
Auckland ratepayers to receive new rating valuations
Auckland ratepayers will receive new property valuations tomorrow, showing an average 9% drop in residential capital valuations. It comes as the council prepares to roll out a 5.8% average rates increase from July. The new rating valuations, based on property market trends in May 2024, show variations across property types and locations throughout the region, with industrial, lifestyle, and rural properties bucking the downward valuation trend. Auckland Council chief financial officer Ross Tucker said the valuations reflect the economic downturn since the previous valuations in June 2021. "As we know, the last council valuations from June 1, 2021 were completed close to the market peak and between then and May 2024 the economy and property market generally trended down," he said in a media release ADVERTISEMENT "Therefore, as most people would expect, the May 2024 capital values (CVs) are lower than the previous 2021 CVs for many properties." An old house with a view of Auckland's city centre skyline (file image). (Source: The new valuations are not intended to accurately reflect current market value. Instead, they're used to determine how the city's rates burden is shared among property owners, with those whose properties decreased in value less than the 9% average likely to face higher-than-average rate increases. "If your residential property value has reduced more than the average (-9%) change between the two valuations, you can expect a smaller rates increase than the 5.8%." The overall capital value movements between the 2021 and 2024 valuations show industrial properties increased 5%, while commercial properties fell 5%. Lifestyle and rural properties both increased by 4%, while residential properties dropped by 9% on average. ADVERTISEMENT Properties closer to Auckland's central business district generally experienced larger value decreases, with Albert-Eden, Maungakiekie-Tāmaki, Waitematā, Whau and Puketāpapa areas all seeing drops of 13 to 14%. Auckland Council building (file image). (Source: 1News) But, values in areas further from the city centre held up better, with Hibiscus and Bays, Upper Harbour and Franklin experiencing smaller decreases between 1 and 4%. Auckland Council chief economist Gary Blick explained the context behind the shifts. "At the time of the 2021 rating valuation in June 2021, the official cash rate had been at an all-time low," he said. "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. ADVERTISEMENT "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." Tucker said most Auckland ratepayers will see some degree of rates increase from July 1, with the average annual rates for a residential property valued at $1.29 million set to be $4069 – an increase of $223 per year or about $4.30 weekly. The valuations do not change how much the council takes in rates, as this is set annually following community consultation. For the upcoming financial year, Auckland Council has approved an overall average rates increase of 5.8% for residential ratepayers. The new valuations will be available on the Auckland Council website from tomorrow, with formal notices to be posted or emailed from Friday.
