MEDIA RELEASE

6 November 2002

Property valuations increase by 13.1%

Auckland City’s property values have gone up 13.1% in the past three years.

Auckland City has completed the triennial assessment of the land, capital and annual values of each property as at 1 September 2002.

“The 2002 revaluation reveals an average capital value increase for Auckland City properties of 13.1% on the 1999 figures. The total capital value of Auckland City has increased from $62.3 billion in 1999 to $70.4 billion in 2002,” Auckland City Director of Finance David Rankin said today.

The biggest gains were experienced by the islands in the Hauraki Gulf, especially Waiheke and Great Barrier, which increased between 35.7% and 52.6%. The CBD western area had the only decrease, down 5.12%.

Capital value is the probable price that would have been paid for the land and buildings on 1 September this year – it does not include chattels or trees.

Land value is the assessment of the value of the land without any buildings or other improvements.

The annual value is based on how much the property could be rented for in one year, less 20% (or less 10% if there are no buildings on the land), or 5% of the property’s estimated capital value, whichever is the greatest.

The average movements by rating category have been:
Residential: Capital Value +16.5%; Land Value +17.4%; Annual Value +14.4%
CBD Non-Residential: Capital Value +1.0%; Land Value -1.6%; Annual Value +4.9%
Non-Residential: Capital Value +9.2%; Land Value +11.4%; Annual Value +9.4%

“The annual plan consultation process in May each year determines how much money the Council needs to run the city. The Council will then use the new annual values to help it set rates from July 2003. Properties that experience an increase in annual value greater than the average are more than likely to pay higher rates,” Mr Rankin said.

The new property values have been audited by the Valuer General and valuation notices will be posted to property owners from 11 November 2002.

Ratepayers have until 18 December 2002 to check the 2002 District Valuation Roll free of charge. They may object to their valuations, provided the objection is based on information other than any effect the new values may have on a property’s rates.

Objectors will receive a written response from Council in 2003. Owners who are still not satisfied with the Council’s response may then choose to have their objection heard by the Land Valuation Tribunal.

ENDS

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