Auckland home values rose 32% while tariff bills soared 18% in some areas. Picture/File
Average Auckland home values have jumped by $338,000 or 32% in four years, according to new council valuations released today.
But while homeowners might be happy with the rise in house values, they will now also pay around 6% more on average to Auckland Council in annual bills after charges rose across most of the city.
Full details can be seen below in exclusive NZ Herald-Valocity interactive charts and maps showing exactly where property prices have risen the most and which owners are now facing the heaviest bills.
These show that Omaha homeowners enjoyed the largest percentage increases in home value.
A typical home in the North Beach suburb now has a CV of $2.64 million, up 58% or $969,714 in the four years between the calculation of the new CVs in June last year and previous CVs in July 2017.
In terms of rates, owners of Aotea-Great Barrier Island and Henderson-Massey in West Auckland face the biggest jumps.
Aotea owners will now pay 18% – or $232 – more in annual rates, while Henderson-Massey local commission owners will pay 13% – or $321 – more.
James Wilson, of Valocity property appraisers, said the suburbs with the biggest house price increases are usually vacation spots, like Omaha or Aotea, or areas where new housing is springing up, like Otara, Point England and Manurewa. .
Those with the smallest jumps include downtown areas with lots of apartments, such as the CBD, Newmarket and Grafton, he said.
CVs are a major source of fascination for Auckland property enthusiasts and involve Auckland Council estimating the value of every residential and commercial property in the area.
They are usually published every three years, however, the latest Auckland Council CVs have been delayed by almost 18 months due to the uncertainty caused by the Covid pandemic and problems in calculating property data.
Resumes can influence the sale price of a home or the amount of loan banks lend to a potential buyer or renovator.
They also play a role in determining how much each owner must pay in council rates.
Where home values have increased the most by percentage
While Omaha had the highest percentage of house value jumps, Red Hill in the far south of Auckland was not far behind.
Home prices in the suburb where many new homes are being built jumped 57% to an average CV of $950,997.
Aotea-Great Barrier Island came next with a 56% jump to $799,143, while Otara jumped 55% to $896,513.
Other suburbs where prices have risen sharply include Mangere East, Tawharanui Peninsula, Mangere, Point England, Rosehill and Manurewa East.
Wilson said homes had generally increased in vacation spots because during the Covid pandemic demand had increased among buyers, but there remained a shortage of homes for sale in those areas.
Where home values have increased the most in dollar value
While Omaha rose the most in percentage, Herne Bay homes rose the most in dollar value.
Herne Bay homes now have an average CV of $3.8 million – a jump of $1 million from the 2017 average CV in the suburbs.
Other big jumpers include Westmere and Ponsonby, who jumped $850,000 and $844,000 respectively.
Auckland’s most expensive suburb
Herne Bay may be the suburb with the highest average resume at $3.8 million, but Remuera has shown to still be home to the most multi-millionaires.
Latest valuations show Remuera has 11 homes valued between $20 million and $50 million, compared to 10 in Herne Bay.
However, when it comes to homes worth between $10 million and $20 million, Remuera has 111 homes, compared to just 32 in Herne Bay.
Where prices have risen the least
“Suburbs with the least growth were concentrated in Auckland Central and surrounding suburbs, where apartments are the dominant property type,” Wilson of Valocity said.
Demand for city center apartments plummeted when international borders were closed to students, he said.
This led to ownership increasing by just $14,000 or 2.5% to a new average CV of $615,597 in Auckland Central.
Over four years, that’s a price hike of just over $3,000 per year.
Grafton and Newmarket rose 11% each to average new CVs of $665,397 and $983,586, respectively.
Overall, the CV of apartments in the city increased by 8%, while flats increased by 27% and detached houses and townhouses increased by 34%, Auckland Council said.
Overall, residential and commercial properties in Auckland over $590,000 are up 34% in value according to the latest CVs.
Among commercial properties, industrial buildings have increased in value the most with average CV values now 53% higher than four years ago.
Commercial values jumped 29%, lifestyle buildings 29% and rural properties 24%.
Who will pay the most in tariff bills
Auckland Council estimates that 373,555 homeowners will now face higher rates, while 138,275 will see their bills drop.
Of these, an estimated 139,359 are seeing their bills rise by more than 10%, the council said.
While Aotea-Great Barrier Island and Henderson-Massey local commission owners face the largest percentage rate increase, Maungakiekie-Tamaki local commission owners face the largest percentage increase the dollar value of the fares.
The local council area includes the suburbs, Onehunga, One Tree Hill, Penrose, Southdown, Mt Wellington, Panmure, Tamaki and Glen Innes, with landlords there now paying an extra $352 a year in fares as their annual bill rises at $3,276.
Orakei owners will pay the highest bills overall as they face a 4.8% increase to an annual bill of $5,169.
According to Auckland Council, residents of Waiheke Island pay the highest local government charges as a percentage of household income, with tariffs and water bills accounting for up to 4.77% of typical household income. $81,744 from the island.
Howick residents face the highest bills, with rates and water accounting for up to 3.83% of the region’s typical income of $112,528.
Homeowners will have to pay the new rates in the 2022/2023 rate year beginning July 1.
CVs are used as a metric to set rates, but they do not change the total dollar amount the board collects from rates.
Instead, the council decides how much money it wants each year, then uses CVs to help calculate the share each home and commercial property owner pays.
Owners will receive assessment notices in the mail, including information on how to object to their resume assessments, starting next week.
Are the ratings already outdated?
Auckland Council estimated the value of every property in the area in June 2021.
Still, Auckland’s property market benefited from another six months of rising property prices afterwards.
For example, Omaha’s new average CV value calculated in June of last year is $2.64 million.
However, the Valocity index value for the suburbs puts the average home price at $2.78 million, already $140,000 more.
As for Herne Bay, the typical new CV is $3.8 million, but Valocity estimates the current value is nearly $400,000 higher at $4.2 million.