It is a response to COVID-19 pandemic’s impact on council
Auckland Council will soon release the latest capital values (CVs) for the 560,000-plus properties in the region after a 12-month delay. As Aucklanders await council valuations, Century 21 New Zealand owner Derryn Mayne has outlined her views on the impacts of the delay.
Last year, the council asked the Valuer General for permission to delay its triennial revaluation of properties in the region in response to the impacts of the COVID-19 pandemic on the council’s ability to source reliable market data.
The council received a go-signal to delay the release of CVs for 12 months and is now set to issue CVs from October 2021.
Mayne noted that it has been four years since Auckland’s properties received their last CVs, with many sales prices up over 35% since then.
“For different reasons, plenty of Aucklanders are hanging out for these new CVs. For buyers, CVs can help determine how much money they can borrow. For sellers, an up-to-date CV can help them achieve the best market price,” Mayne said.
The most disadvantaged by the delay were those who may have bought a new build or built a house since 2017 and have been trying to sell without a CV at all, according to Mayne.
“It’s not the end of the world because independent and market valuations can be easily sought,” she continued. “Nonetheless, when you’re a vendor hoping for top dollar in this current price boom, it’s harder to argue when there’s no baseline in the sand.”
Read more: Government issues historic-high numbers of annual building consents
Mayne revealed that Century 21 franchises and agents are also hearing complaints from frustrated property buyers, particularly first-home buyers.
“The sooner Auckland Council releases the latest capital values, or CVs, for the region’s 560,000-plus properties, the sooner more Aucklanders can buy and sell,” the realtor owner said.
“Buyers sitting in the bank trying to borrow for a million-dollar property have to try and explain away its $650,000 CV. Everyone knows the CVs are 2017 and outdated. Nonetheless, their mere appearance can be frustrating.”
Auckland Council announced that its revaluations will be available via aucklandcouncil.govt.nz from October and will be sent after that date. Revised values will reflect a property’s estimated worth on June 01, 2021.
While the council said it uses the valuations as “a guide for setting your rates,” it warned that “a change in a property’s capital value does not automatically mean rates will increase or decrease because of that change.”
Mayne stated that Aucklanders’ property CVs are likely to change a lot. However, as in the past, their subsequent rates bill will likely be moderated.
“There’s no need to race off and buy or sell on the sole basis of what might happen to your rate’s bill. After the 2021 CVs land, how the burden of rates is spread is a debate and decision for Auckland Council next year,” she added.
“Given it’s also the local body elections next year, the 12-month delay in CVs could, in the end, prove very useful to ratepayers.”
