PHOTO: Tens of thousands of Auckland homeowners are being warned that their latest property valuations may be significantly inflated. FILE
⚠️ Warning: Your New Auckland CV Might Be Way Off
Tens of thousands of Auckland homeowners are being warned that their latest property valuations may be significantly inflated – by hundreds of thousands of dollars in some cases.
The Auckland Council this week released its new capital values (CVs), showing a 9% average drop across the city. But many real estate professionals are calling foul, claiming the figures don’t reflect current market conditions – particularly in areas now restricted by Watercare’s development freeze.
Property Carnage in Auckland: New Council Valuations Reveal Huge Drops Across the Board
🏗️ Watercare’s 10-Year Development Ban Ignored
Council CVs were based on data gathered prior to Watercare’s 10-year water and wastewater capacity restrictions, which have since blocked or delayed development in key growth zones such as Ōtara, Papatoetoe, Beach Haven, and Warkworth.
Ray White Manukau’s Tom Rawson said the oversight is causing serious confusion. He cited a property in Ōtara that had a CV of $880,000 – but said its real market value, taking into account the water constraints, is likely closer to $770,000.
“You’ve wiped out a massive buyer pool,” Rawson said. “Developers can’t touch it until 2035 or later – so of course it’s not worth what the CV says.”
📉 Inflated CVs = Misguided Expectations
Despite repeated council statements that CVs are not a reflection of market price, agents say homeowners continue to rely on them when setting sale expectations.
David Findlay of Harcourts JK Realty said the CV confusion could lead to disappointment.
“It sets sellers up with false hope,” he explained. “Buyers use automated valuation tools online, and those often include CVs in the algorithm. So when the CV is wrong, everything else is skewed too.”
Findlay added that many homeowners now bypass agents altogether, relying on online tools that compound the problem.
Boom Outside the Big Cities? Regional Property Prices Set to Outpace Auckland & Wellington
🏠 “It’s Not Worth That Anymore” – Agents Speak Out
Harcourts agent Harsh Kathuria said he was stunned the council hadn’t factored in the water constraints, especially as the financial impact was so obvious.
“People will end up paying very high rates for a piece of land that’s not worth much now,” he said.
Another agent, Alex Dunn, said the inconsistency of the CVs would only add to buyer and seller confusion.
“Some CVs have shot up, others have dropped for no clear reason. It’s all over the place.”
He noted that owners with inflated CVs are unlikely to complain unless a nearby sale drags their valuation further down.
💬 “The CV Means Nothing to Me” – Developer Pushes Back
Property developer Craig Alexander said he had no intention of objecting to the CVs on his properties – because he ignores them altogether.
“They’re based on an outdated system purely for calculating rates. They have nothing to do with what a property’s actually worth,” he said.
“Problem is, most people still think it’s the price tag.”
🏛️ Council: “It’s Just for Rates”
Auckland Council’s Chief Financial Officer Ross Tucker stood by the new CVs, noting they were assessed using a “mass appraisal” method and were only designed to divide up the city’s rates bill fairly.
He confirmed that Watercare’s November 2024 capacity announcement was not taken into account – because the CVs were assessed as of 1 May 2024.
“They are not intended to represent an accurate estimate of what a property might sell for today,” he said.
🧾 Bottom Line:
If your Auckland home’s CV feels off – it probably is.
The new valuations may not reflect your home’s actual market value, especially if you’re in a zone impacted by Watercare’s development freeze. Sellers are urged to get professional advice before setting price expectations – and not to take CVs as gospel.
SOURCE: NZHERALD