More than half a million homes in Auckland are expected to see a jump in value – potentially by as much as 50% – when rating valuations are released next month.
The average house price value across the Auckland region has risen 40% since the latest rates valuation (RV) three years ago, and property experts are expecting a similar rise in RV across the city.
TradeMe head of property Nigel Jeffries said “nowhere in Auckland would we expect a rating valuation to drop”.
The council is expected to release the latest RVs in early November.
Andrea Rush, national spokeswoman for Quotable Value, which is one of the companies working on the valuations, cautioned against anyone using them as the ultimate gauge of what their property would sell for.
“It will only reflect market value at the time it is set and for this reason the RV should not be used as a guide to what your property will sell for on the market anytime thereafter [July 1, this year].”
QV House Price Index figures showed in the three years since the 2014 valuation, the average value has risen 40%, from $720,426 in July 2014, to $1.04m in July 2017.
Broken down into sub-regions in some areas prices had grown by as much as 56.8%.
Homes.co.nz head of marketing Jeremy O’Hanlon expected properties that would see the biggest jump in values were those in high-density areas.
Based on the market he expected to see a significant rise in the RVs this year.
“The latest rates valuation grew by 34%, we are expecting this to be beaten again by 5 to 10%, based on an analysis of sales results over 2017.”
Homeowners can go to the council website to see the latest rating valuation or can sign up to an email that they should receive the same day the new figures are released.
New RVs are released triennially, after a region-wide revaluation of all commercial, industrial and rural properties that every council in New Zealand is legally required to carry out.
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