Ross Tucker: Auckland Council Group CFO explains why Auckland home values have dropped

Auckland home values have fallen, down nine percent on CVs released in 2021.

New capital values are being released tomorrow for 630,000 properties, with inner-city suburbs taking a bigger hit.

Central Auckland areas - including Mount Eden and Maungakiekie - fell about 13 percent.

Auckland Council Group CFO, Ross Tucker, says a few reasons have driven the slump.

"We've seen apartments fall 12 percent, converted flats fall 12 percent as well - also, we're seeing some of the areas where there's a lot of development potential have bigger than average falls."

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Big Day tomorrow. If you're an Auckland rate payer, that's
when the new property rating valuations will be released. Now,
on average, residential property values have fallen nine percent since
the last valuation in twenty twenty one. Ross Tucker is
Auckland Council Group CFO, Hey, Ross, Hello, Gez. Nine percent
is a bit big ward happened.

Speaker 3 (00:33):
So that's that is the movement that we've seen over
that period. So these are the rating valuations as it
May last year. It's and the nine percent is the
movement from twenty twenty one to twenty twenty four. That
this reflects what we've seen in the market. Anyone that's
been following the property market will know things that come
off over that period largely due to rising higher interest rates.

(00:54):
And this is the results that we've seen. Okay, what
do you want to rehetorrate? These are rating valuations than
that as of May last year. They're not an indication
what things would sell for today.

Speaker 2 (01:03):
Yes, and why has it fallen so much more in
the city center?

Speaker 3 (01:09):
So that that is where that's the result of supply
and demand. What we've seen. One of the reasons might
be that there is is because of the apartments in
converted flats. We've seen apartments for twelve percent, converted flats
for twelve percent as well. Also, we've seen some of
the areas where there's a lot of development potential have
bigger than average falls as well.

Speaker 2 (01:30):
Now, residential has gone down, industrial has gone up. Right,
Does that mean that residential pays less in rates than
industrial or are they each individually ring fenced and has
no bearing on the other.

Speaker 3 (01:41):
They are individually ring fence. Businesses do pay high higher rates,
and that that is that's unchanged by these valuations. So
the rates increase is set by a budget, it's not
determined by the evaluations. The average is set by how
much money the council needs. Whether valuations come in is
who pays more than the average? Who pays what? Whatsone's

(02:05):
rates increases above or below the average?

Speaker 2 (02:07):
Hey, what's going on in Great Barrier? Did that just
go up thirty eight percent?

Speaker 3 (02:11):
It's gone up thirty eight percent, and the previous evaluations
that went up fifty nine percent. So what we've seen
there is it's moved up from a very low base.
It's that they still have the lowest capital value in
any part of Auckland, so it's about seven hundred and
forty thousand, and they also have the lowest rates.

Speaker 2 (02:27):
Ross. Thanks for talking us through to appreciate it. Ross Tucker,
Auckland Council Group CFO.

Speaker 1 (02:32):
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