Latest news with #propertyvaluation
RNZ News
15 hours ago
- Business
- RNZ News
'It would be foolish to be relying on a council valuation'
The CVs for Auckland's 630,000 homes have decreased by an average of 9 percent. File photo. Photo: 123rf Keep calm and carry on - that is the message for Auckland homeowners after many found out the new council valuations (CV) for their properties today. The CVs for Auckland's 630,000 homes have decreased by an average of 9 percent, alongside an average rates increase of 5.8 percent. Property experts say the drop is unnerving and a tough pill to swallow for many - especially after the highs of 2021 - but that the CV is just a taxation tool and homeowners should not let it influence their decisions. Waiheke Island resident Amanda Wright said the value of her home had dropped $50,000 - down from $1,150,000 to $1,100,000 - about a 4.5 percent decrease. "I don't like that it's gone down, but I thought it would have gone down more, so I'm happy that it's not gone down that much," she said. "But it is a worry. There's that underscore of worry that the valuation's not going to come back up. It's stressful, but I think it's going to be okay." Others had seen a much sharper decline in their valuations, with the council delivering more muted figures after the last round in 2021 when the market was considered to be at a peak. Homeowners and Buyers Association of NZ president John Gray said there was no reason to panic. "People shouldn't be disappointed that their ratings valuations have decreased because it is a taxation tool," he said. "It does not reflect the value of the property insofar as its amenity or condition." Gray said his own home had its CV lowered by a whopping $250,000. To him that was good news. "I'm very happy with that because that's - as I said - a rating tool, so my rates should be less... Well, I mean, obviously Auckland Council is increasing the rates, but in terms of the CV being used as the primary factor in calculating the rates that I will pay, that is reduced," he explained. Property Investors Federation spokesperson Matt Ball said he was not worried about the valuations for his two properties, and expected most investors and landlords to feel the same. "It's only really going to have an impact if you're selling right now. If you are, like most property investors, a buy and hold investor, then you'll be thinking long term," he said. "You'll navigate probably several property cycles throughout your investment career, and this sort of thing really doesn't concern you that much." But Wright said her valuation had given her pause. "Before perhaps the pandemic we were feeling optimistic about our investment and our intention to renovate and possibly sell at some point," she said. "But now it feels, 'oh gosh, have we overcapitalised?' You know, we're a bit more nervous." Wright said she was reconsidering plans to renovate her home, but Gray said homeowners should not let their CV influence their decisions. "It would be foolish to be relying on a council valuation to make any decisions about the value of a property, whether it be for the purposes of doing renovations or building a new home on the site," he said. "Because if you were going to get a mortgage, the banks would want a registered valuation from a qualified valuer." Ball said house prices were ultimately set by the market, and a council valuation could only have so much impact. "I think with these CVs, it might set a bit of a price in a buyer's mind. But really, if you're selling your house, the price will still be what that buyer is willing to pay," he said. "So no, I don't think this really is going to affect the market. The market is probably moving ahead of where the CVs are." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
a day ago
- Business
- RNZ News
How Auckland ratepayers can learn their new property valuations today
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. You can check your valuation here . 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 Auckland Council chief financial officer Ross Tucker. Photo: RNZ/Calvin Samuel 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. Auckland Council chief economist Gary Blick. Photo: RNZ/Calvin Samuel 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.
RNZ News
2 days ago
- Business
- RNZ News
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.
Associated Press
02-06-2025
- Business
- Associated Press
e2Value Launches Innovative Risk Assessment Tool for Home Insurers
06/02/2025, Stamford, Connecticut // PRODIGY: Feature Story // e2Value, a forward-thinking firm known for its property valuation technology and risk management solutions, has launched its Structure Insurance Score (SIS). This analytical tool is designed to enhance risk assessment and underwriting accuracy in the home insurance market. Co-developed for over seven years with WTW and now fully owned by e2Value, SIS introduces a more granular approach to home insurance pricing, empowering small to mid-sized carriers with tools previously reserved for large-scale insurers. 'We believe this is a watershed moment for us as well as the insurance industry at large,' says Todd Rissel, CEO and co-founder of e2Value. 'With the launch of SIS, this helps our clients advance beyond more traditional underwriting methods that rely on more generalized data points. SIS is a precision instrument that can redefine how risk is understood and priced in the market. It can do what make-and-model scoring did for auto insurance.' SIS is an innovative rating mechanism that evaluates the specific structural characteristics of a home to deliver a more accurate reflection of potential reaction to various perils. Most carriers use basic property features, such as the number of bathrooms, stories, or roof age. SIS delves deeper. It analyzes up to over a hundred data points per property, enabling underwriters to detect nuanced differences in risk that would otherwise go unnoticed. 'Think of two houses of identical age, size, and replacement cost in the same ZIP code. House A is a two-story home with upper-level bathrooms and less roofing. House B is a one-story home with a simpler profile, but more roof area. The former may be more vulnerable to water and fire damage than the latter. They may receive vastly different scores because of disparities in layout, materials, or elevation. This sensitivity to structure detail provides insurers with improved segmentation, pricing accuracy, and partial loss impacts,' Rissel explains. e2Value's AI-powered technology is the backbone of SIS. Millions of residential policies, complete with premiums, structural data, and loss history, were compiled and analyzed to develop the SIS model. Leveraging this dataset, e2Value applied cost modeling across peril categories, such as fire, water, weather, theft, and liability. The result is a risk score that reflects replacement cost and how a structure will likely respond to a specific event. Geospatial analytics were integrated to further refine territorial risk factors all the way down to ZIP code levels. This technology reflects e2Value's broader mission to build intelligent, localized, and bias-resistant property risk models. It doesn't utilize geographic averages or cost multipliers based on distant markets. Instead, the company's tools emphasize pinpoint accuracy. This ensures that pricing reflects actual on-the-ground conditions. Their data strategy has been refined through decades of monitoring losses from hurricanes, fires, and other large-scale events, ensuring high reliability. The impact of SIS is bound to be massive. It offers a ready-made competitive advantage for insurers, particularly small to mid-sized carriers that may lack in-house analytics teams and data. The score enables smarter segmentation, allowing carriers to identify high-risk properties that might otherwise skew loss ratios. Conversely, it recognizes homes that may warrant premium discounts. In addition, SIS democratizes advanced risk analytics. Carriers of all sizes now have access to a subscription-based tool that allows them to make underwriting and pricing decisions with insight once reserved for only the largest insurers with proprietary tools. The launch of the Structure Insurance Score represents a new era in home insurance. It aligns with market demands for precision and transparency. Moreover, it leverages the full power of AI and massive datasets to solve persistent challenges in property risk modeling. Ultimately, with SIS, e2Value aims to redefine how insurers underwrite homes and how they understand them. Media Contact Name: Angela Connolly Email: [email protected] Source published by Submit Press Release >> e2Value Launches Innovative Risk Assessment Tool for Home Insurers
Yahoo
26-05-2025
- Business
- Yahoo
Kiwi Property Group Ltd (KWIPF) Full Year 2025 Earnings Call Highlights: Strong Leasing Spreads ...
New Leasing Spreads: Up 8.3%. Property Valuations: Increased by 1.1%. Employment and Administration Expenses: Reduced by $7.5 million, a 23% decrease. Customer Visits: Increased by 600,000, a 2.2% rise. Total Rental Growth: Up 4.3% for FY25. Portfolio Occupancy: Declined from 99.3% to 96.9%. Activate Income: Increased by 30%, now approximately $7 million. Mixed-Use Sales: $1.76 billion, a 1.3% decline. Net Rental Income: Increased by 5% across the portfolio. Adjusted Funds from Operations: Down by $7 million, or 7%. Dividend: $0.054 per share, with a payout ratio of 93%. Total Property Assets: Increased to $3.3 billion. Gearing: Up to 38.4%. Weighted Average Cost of Debt: Reduced to 5.3%. Warning! GuruFocus has detected 10 Warning Signs with KWIPF. Release Date: May 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kiwi Property Group Ltd (KWIPF) achieved strong new leasing spreads, up 8.3%, with property valuations marginally increasing by 1.1%. The company successfully opened its first build-to-rent development, Resido, at Sylvia Park, with 88% of apartments leased, indicating strong demand. Kiwi Property Group Ltd (KWIPF) reduced employment and administration expenses by $7.5 million, or nearly 23%, from the prior year. The company reported a 30% increase in Activate income, which includes revenue from pop-up activations, media space, and digital signage. Foot traffic at mixed-use assets increased by 2.2%, with nearly 600,000 more visits compared to the prior year, demonstrating the attractiveness of their properties. Overall portfolio occupancy declined from 99.3% to 96.9%, primarily due to tenant departures at the Vero Centre and Sylvia Park. Net rental income for the office portfolio decreased by $900,000, reflecting a softer office market. Adjusted funds from operations were down by $7 million, or 7%, due to higher finance costs and increased current tax. Total sales across the portfolio were lower by 1.6%, amidst a slowdown in the wider New Zealand retail sector. The combined valuation of the Drury landholding decreased by $11.7 million, or 6.9%, due to development spend outpacing land value growth. Q: Regarding Resido, there seems to be a change in how rents are reported. Is there a new benchmark being used? A: No, there is no change in benchmarks. Apologies if there was any confusion. - Clive Mackenzie, CEO Q: Can you provide insights on the behavior of wholesale investors in Mackersy Property given the current interest rate environment? A: We are encouraged by the quality of the management team and investment portfolio. We are starting to see initial signs of activity, and with potential interest rate cuts, we expect more activity. - Clive Mackenzie, CEO Q: Where does the FY26 dividend guidance fall within your payout policy range, and does it include assumptions around land sales? A: The payout range remains within 90% to 100%, and no land sales are included in the guidance. - Clive Mackenzie, CEO and Steve Penney, CFO Q: How are employment and admin cost reductions being achieved, and can you provide examples? A: We focus on developing our senior leadership and promoting a results-driven culture. This includes internal promotions and reducing reliance on external hires. - Clive Mackenzie, CEO Q: For the Drury land sales, when can we expect these to convert to sales? A: We expect to progress these sales through this financial year, likely more towards the second half. - Clive Mackenzie, CEO Q: Can you provide an update on the occupancy at Vero following Bell Gully's departure? A: We have about 2,700 square meters of vacancy and are in advanced discussions to fill some of this space. - Clive Mackenzie, CEO Q: How does the pricing of Drury land sales affect valuation, and when do you expect to receive proceeds? A: The pricing is supportive, and we expect proceeds around FY27 or FY28 after necessary infrastructure is in place. - Steve Penney, CFO Q: What is the expected CapEx for FY26, and how does it relate to Drury? A: We won't initiate further spend at Drury until land sales are confirmed. Total CapEx is expected to be around $60 million to $65 million, down significantly from last year. - Steve Penney, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
