PHOTO: An increasing number of homes in Auckland and Christchurch are selling below their capital value. Source: Seven Sharp
Capital Valuations should be dropped as as a way to price a property for the market because they’re irrelevant once the market moves, according to a data expert for a valuation website.
Traditionally CVs prepared by councils are used to allocate rates, but they’ve also been useful starting points for potential purchasers.
However, suddenly a staggering number of houses in Auckland and Christchurch are selling below CV, Seven Sharp reported.
In one third of all Auckland suburbs – that’s 50 of them – houses are now worth less than their CV. They’re also worth less than the CV in nine Christchurch suburbs.
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