Latest news with #NickGoodall
RNZ News
4 days ago
- Business
- RNZ News
Are property valuations still the best way to allocate rates?
Photo: 123rf As Aucklanders digest their new property valuations, questions are being raised over whether using these CV's are the best way to work out rates. The calculations released yesterday are already 12 months old, and council staff say they are not necessarily a true reflection of a homes value. The valuations showed an average drop of 9 percent across the city's 630,000 homes. But they will be the basis of rates calculations over how to distribute payments among ratepayers. Some have suggested that there might be better ways to work out how much each household should be contributing toward the cost of running the council. So are CVs useful as a rating tool? Kathryn speaks with Nick Goodall of Cotality, formerly CoreLogic.
NZ Herald
4 days ago
- Business
- NZ Herald
Council valuations are past their use-by date. It's time to move on.
The valuations don't reflect the the current market value because they were released a full year after the actual valuing took place. OneRoof estimates that in that year, property values have changed between -9% and +8% depending on the suburb. Nick Goodall, head of research at Core Logic, went so far as to describe the CVs as 'old news'. So, the council has dropped a seemingly official figure into Auckland's property market that is actually more than a year old. Perhaps the market will simply ignore the new CVs. On the other hand, the year-old values might confuse the market, resetting some of the shifts from the last 12 months. Aucklanders are supposed to ignore the valuation part of the council valuations, and only use the CVs to understand what will happen to their rates. But wait: just because your CV went down doesn't mean that your rates will go down! CVs are not directly related to rates. Changes in rates depend on the amount of money the council wants to raise and the CVs are used to distribute those rates among the ratepayers. The council doesn't need to release outdated property values to calculate, or communicate, how rates are distributed. They simply need to rank the properties of Auckland in order of value and use their relative ranks to calculate the rates. This would be more informative to rate payers. A decrease in relative rank might mean a decrease in rates - although currently it's more likely to simply mean less of an increase. And conversely an increase would mean you are going to shoulder more of the city's rates burden. Currently, the valuations don't even give that level of information. They force the council to expend resources explaining why your rates are going to move in the opposite direction of your valuations. Releasing council valuations is a poor way to communicate rates changes. They aren't timely enough to help the market, and they may even disrupt the market - so maybe this should be the last time they are released.
NZ Herald
30-04-2025
- Business
- NZ Herald
Tenant of $4m Ponsonby state house suggests sale amid Kāinga Ora review
'I feel privileged being in it. It's very peaceful, I can say that, there's no drama. It's pretty safe I can say, really safe around here.' Data from Corelogic shows the villa is the most valuable single dwelling in Kāinga Ora's portfolio – at $3.9m. 'It's actually quite a big property, well I reckon it is and I'm actually looking at transfering so they can have the house for a bigger family because it's only the three of us and it's quite big for us,' Jones said. 'My thoughts would be I reckon they should sell it.' Building projects that would create more than 1000 state homes are on hold while Kāinga Ora reviews its portfolio, with decisions expected from July. It also intends to sell about 900 homes nationally over the next 12-18 months – currently 49 state homes are on the market of which 32 are in Auckland. A nearby neighbour of the most valuable state house, who wished to remain anonymous, said it does not make financial sense for the state agency to keep the Ponsonby house. 'I think it probably should be sold because it's worth three or four million so you could probably build a lot more for that.' Kāinga Ora said it does not have plans to develop any of its five most valuable houses, and they are not for sale. All are in Auckland and each are worth more than $3.5m, according to CoreLogic. Five most valuable state homes in New Zealand (supplied by Corelogic) Ponsonby CV $3,900,000 - 619m2 Henderson CV $3,770,000 - 4626m2 Westmere CV $3,700,000 - 620m2 Westmere CV $3,650,000 - 612m2 Hillcrest CV $3,525,000 - 2904m2 CoreLogic head of research Nick Goodall said the properties' values were tied up in large plots of land. 'It shows that you could probably build multiple units on that block of land to get better use and more people living in that area which would be well in demand from people wanting to live there to be closer to town.' Goodall believed Kāinga Ora should be considering the future of all five of its most valuable properties. 'There's probably lots of potential development all across Auckland. You would expect that these would be ones that would be on the list to look at.' Advertisement Advertise with NZME. Kāinga Ora general manager for strategy, finance and policy Gareth Stiven said the planned sale of 900 state homes represented about 1% of its current portfolio. 'These homes will be in regions across the country. Decisions to sell specific sites will be ongoing, and at any one time there will be properties at various stages of the process.' He said tenants would be offered another Kāinga Ora home, suited to their needs. 'Money from the sale of existing Kāinga Ora properties will be reinvested into our housing portfolio, so we can deliver new, fit-for-purpose homes that are the right size and in the right location.' Stiven said in the next financial year, the agency estimates $400-$500m of money from house sales would be redirected toward new replacement homes. 'It's also important to note we are not reducing the number of Kāinga Ora homes. For each existing Kāinga Ora home sold, a newly built home is delivered elsewhere.' In Ponsonby, the median value of a house is $2.4m, while a flat or unit is about the $1m mark. Jones said she was ready to move out of the area. 'It's actually not affordable, especially in the area Ponsonby it's not actually suited for low income families. It's nice to be close to the city but income, it's not affordable.' She said she recently asked to transfer to another house in Auckland, partly because her family felt increasingly out of place in the upmarket suburb. 'Because I'm actually ready to move along, there's been a lot of stuff happening inside the house and my family and we've kind of caused a bit of riff-raff on the street so I think it's time for us to move.'
