Auckland rating values continue to unravel
August 18th, 2015 by Steve McNamara
Property InDepth is not surprised that Auckland’s city-wide rating valuations continue to unravel at a rate of knots.
Earlier this month the Auckland Council admitted that 70% of objections against its July 2014 rating valuations have been upheld. That means about 7,000 Auckland residents have successfully challenged the valuations their properties were given. The lion’s share of the 10,000 overall objections – nearly 8500 of them – came from residential property owners. Nearly 40% of them managed to get their valuations reduced (and with them their rates bills). A further 31% sought and received higher valuations.
This has totally vindicated concerns Property InDepth publicly raised back in December about the validity of whole mass valuation process. It is still tracking this trend across-the-board.
The NZHerald [August 16] reports that as a result of the objections 10 properties changed value by nearly $40 million. Christine Fernyhough’s cliff-tip Parnell property was one of them. The businesswoman and philanthropist has successfully halved the capital value placed on her home, having $6.25 million – and with that $16,000 in annual rates – wiped off it. She had another $1.7 million taken off the value of another adjoining property. While she had some sympathy for the Council, given the Auckland’s “crazy” housing market, she considered it “mad” for her property value to be halved. She surmised that the original value given to it was probably “way over the top.”
This is prompting yet more discussion on rating valuations whether the system should be overhauled. Property InDepth’s co-founder and managing director Steve McNamara spoke with Jim Mora on Radio New Zealand’s The Panel yesterday. To hear his initial comments click on this audio link:
http://www.radionz.co.nz/audio/player/201766816
Property InDepth intends releasing more up-to-date, quantifiable information on this shortly.