PHOTO: CoreLogic head of research Nick Goodall. FILE
Auckland homeowners waiting for updated capital valuations (CVs) will face another delay, with Auckland Council announcing the new figures won’t be ready until July 2025 due to mandatory data amendments requested by the Valuer-General.
The CVs, originally due in October 2024, are undergoing a rigorous review to ensure consistency in valuation across the region. Auckland Council plans to resubmit data to the Valuer-General by April, paving the way for a public release in May.
Why Are CVs Important?
CVs, which are updated every three years, help determine rates for Auckland properties by distributing the city’s total rates bill based on property values. They break down into land value and improvement value, but these figures don’t necessarily reflect current market trends or rebuild costs.
CoreLogic head of research Nick Goodall said while CVs don’t indicate market value, the 2023 Auckland Anniversary floods may have exposed discrepancies in how CVs align with real-world insurance claims.
“The floods highlighted properties being insured for far more than their CVs, raising questions about the accuracy of these valuations,” Goodall explained.
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Stagnant or Falling Values?
Goodall speculated that while CVs may stay relatively stagnant, there’s potential for declines due to a cooling market.
Buyer’s agent Alexandra Vincent Martelli highlighted New Zealanders’ “CV obsession,” noting how CVs influence vendor expectations and marketing strategies. She observed many Auckland homes selling below their 2021 CVs, sparking concerns about whether the new valuations will reflect further price drops.
Council’s Assurance: Accuracy Over Speed
Auckland Council’s head of rates, revaluations, and data management, Rhonwen Heath, said the delay was necessary to address concerns raised by the Valuer-General.
“The main issues involve applying valuations consistently across sales data, zoning, and development potential,” Heath explained. She added that the additional time would ensure Aucklanders could trust the accuracy of the new valuations.
Heath clarified that the updated CVs won’t impact the total rates collected but will redistribute how rates are shared among property owners.
What’s Next?
The council aims to finalize the process by July 1, 2025, so the new CVs can be used for the next financial year. However, Aucklanders are advised that changes in property value will only affect rates if their value shifts significantly compared to the citywide average.
SOURCE: 1NEWS