Auckland, Christchurch properties worth less than CV
Monday, 8 October 2018
Properties in about 50 parts of Auckland are now worth less than their CVs, new data from Homes.co.nz shows.
The city's properties were revalued last year but now suburbs including Mangere Bridge, Dannemora, Epsom, Half Moon Bay, New Lynn, Remuera and Te Atatu South all have Median HomesEstimates – a value based on the current sales price of others in the area – of less than their CV.
St Johns had the lowest price-to-CV ratio, with a median value of 94 per cent of median CV.
Homes.co.nz chief data scientist Tom Lintern said the concept of relying on a CV as a price guide was becoming less relevant.
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While buyers were used to putting a multiplier on CVs to assess a potential price, that was no longer an accurate indication.
'Approximately 50 Auckland suburbs are valued less than their current CVs, highlighting how the capital valuation for a property can become out-of-date,' he said.
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Christchurch was in a similar situation – Avonside, Upper Riccarton, Dallington and Avonhead were among the suburbs with properties worth less than CV, as a median value.
Lintern said while other main centres were still selling above CV, new valuations were due in Wellington, Hamilton and Tauranga.
If they then proved to have been done at the high point of the market, those centres could see the same trend.
Overall, Auckland now has a median HomesEstimate of $918,000, 0.2 per cent up on the year before. Christchurch is at $437,000, 0.3 per cent down.
However figures from Quotable Value (QV), the nation's state owned valuation service, show a slightly different picture for Christchurch. House values in Christchurch according to QV have remained largely flat for several years, and increased 0.5 per cent in the past year to a median of $493,922.
Dunedin had the fastest value growth in the country, up 8.8 per cent. Wellington was also strong – up 6.2 per cent.
Lintern said Auckland's flat price did not tell the full story. Lynfield values were down more than 5 per cent year on-year, St Johns down 3.9 per cent and Burswood down 3.8 per cent.
Lintern said the total value of New Zealand's housing stock was now valued at $1.2 trillion.
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Where are median values less than CV?
Auckland
St Johns
Dannemora
Schnapper Rock
Totara Vale
Mangere Bridge
Flat Bush
Hillsborough
Half Moon Bay
Stonefields
Greenlane
Auckland Central
Burswood
East Tamaki Heights
New Lynn
Milford
Remuera
Epsom
Pt England
Lynfield
Otara
Wattle Downs
Te Atatu South
Kelston
Mt Roskill
Torbay
Wst Harbour
Kingsland
Ponsonby
St Marys Bay
Mission Bay
Te Atatu Peninsula
Farm Cove
Pinehill
Onehunga
Pakuranga Heights
Blockhouse Bay
Morningside
Pakuranga
Botany Downs
Glenfield
Howick
Mt Wellington
Randwick Park
Papatoetoe
Forrest Hill
Glen Eden
Beachlands
Royal Oak
Herne Bay
Christchurch
Avonside
Upper Riccarton
Dallington
Riccarton
Avonhead
Northcote
Russley
Burnside
Ilam