Recently Auckland Council released the re-valuation of properties within its jurisdiction. These valuations had an effective date of 1 July 2011. The Rating Valuations were undertaken by Quotable Value New Zealand. QV define the rating value as the “likely, or probable, price a property would sell for at the time of re-valuation (July 2011) although this does not include chattels”.
It is with concern that we note that in a number of instances the Rating Valuation does not accurately reflect “market value” i.e. the value the property would likely achieve if sold on the open market under normal market circumstances. A comparison between actual sale prices and RV’s for those properties sold around, and since, the effective date, makes this readily apparent. Sales data indicates that whilst many properties are selling around or close to their RV, there are a number which are selling both above and below.
For those who place reliance on the Rating Valuation as a guide to market value this could lead to serious consequences. For a lender or financier, lending based on an RV could result in advancing funds in excess of the property’s market value, which may have serious consequences downstream. For a vendor there is the possibility that if they price their property based on the RV, they may under sell if it is less than true market value or may end up not selling their property if the RV is excessive. Similarly a purchaser may potentially pay significantly over the market for a property if they based their decision on an RV which is excessive.
Where there is a clear pattern or correlation between the RV and market value, it may be acceptable as a rough guide to market value, however recent sales indicate there is no clear pattern and therefore we recommend no reliance be placed on the RV for buying, selling or financing a property.
It should be pointed out that the RV is completed using mass appraisal techniques and, in most instances, does not involve a detailed inspection of each specific property. Only improvements where a Building Consent has been obtained will be taken into account and thus the standard, nature and quality of the interior of a building is often completely unknown to the rating valuer.
It is only by using a Registered Valuer with strong local knowledge that an accurate and reliable market valuation will be obtained.
To support our contention we have considered sales data in the local area. We acknowledge there may be a limited number of sales quoted which may have had special circumstances relating to them, or, for various reasons, could not be considered strictly bona fide. Nevertheless, to the best of our knowledge, the sales detailed are straightforward market transactions. To preserve client confidentiality street numbers of property addresses have been removed.
The percentages in red indicate the percentage the Rating Valuation is above the actual sale, those in blue the percentage the Rating Value is below the sale price.
AREA ANALYSIS:
WARKWORTH:
As you can see from the sales data, there is a variance from 32% above through to 23% below within the Warkworth area.
SNELLS BEACH / ALGIES BAY:
Just about every sale in the Snells Beach area has sold below the Rating Valuation. Most are well below and we note one sale at 38% below. Out of 25 sales in the area only two sales have been above the Rating Valuation price.
OMAHA:
The variances range from 46% above through to 21% below.
POINT WELLS:
The variances range from 22% above through to 32% below.
SCOTTS LANDING, MATAKANA, WHANGATEAU, MATHESON’S BAY and LEIGH:
At these smaller settlements the variances range from 14% above through to 21% below within these areas.
SALES SINCE JULY 2011 RELATIVE TO THE RATING VALUATION RELEASE - WARKWORTH AREA
STREET AREA SALE DATE SOLD PRICE RATING VALUE % + / -
Belmont Place Warkworth Aug-11 $472,000 $430,000 10%
Bertram Street Warkworth Sep-11 $495,000 $455,000 9%
Bertram Street Warkworth Sep-11 $500,000 $380,000 32%
Campbell Drive Warkworth Jul-11 $280,000 $365,000 -23%
Coquette Street Warkworth Jul-11 $398,000 $455,000 -13%
Earlsway Warkworth Aug-11 $460,000 $510,000 -10%
Melwood Drive Warkworth Aug-11 $635,000 $560,000 13%
Pulham Road Warkworth Sep-11 $400,000 $490,000 -18%
Southgate Road Warkworth Jul-11 $465,000 $495,000 -6%
Victoria Street Warkworth Jul-11 $540,000 $585,000 -8%
View Road Warkworth Sep-11 $435,000 $395,000 10%
Wickens Place Warkworth Jul-11 $350,000 $440,000 -20%
Woodcocks Road Warkworth Sep-11 $680,000 $650,000 5%
Melwood Drive Warkworth Aug-11 $635,000 $560,000 13%
SALES SINCE JULY 2011 RELATIVE TO THE RATING VALUATION RELEASE - OMAHA / POINT WELLS
STREET AREA SALE DATE SOLD PRICE RATING VALUE % + / -
Darroch Slope Omaha Aug-11 $750,000 $650,000 15%
Paraoa Crescent Omaha Aug-11 $1,325,000 $910,000 46%
Paraone Place Omaha Jul-11 $1,900,000 $1,750,000 9%
Thistle Terrace Omaha Jul-11 $635,000 $695,000 -9%
Shamrock Crescent Omaha Oct-11 $845,000 $750,000 13%
Dungarvon Place Omaha Oct-11 $687,000 $610,000 13%
Paraone Place Omaha Sep-11 $880,000 $850,000 4%
Taumata Road Omaha Aug-11 $730,000 $680,000 7%
Karahu Lane Omaha Nov-11 $3,900,000 $2,900,000 34%
Kokopu Street Omaha Nov-11 $2,175,000 $1,975,000 10%
Paua Lane Omaha Nov-11 $3,010,000 $2,775,000 8%
Taumata Road Omaha Nov-11 $1,600,000 $1,775,000 -10%
North West Anchorage Omaha Nov-11 $1,200,000 $980,000 22%
Success Court Omaha Nov-11 $605,000 $770,000 -21%
Point Wells Road Point Wells Aug-11 $500,000 $600,000 -17%
Harbour View Road Point Wells Aug-11 $330,000 $440,000 -25%
Point Wells Road Point Wells Jul-11 $441,500 $650,000 -32%
Waimanu Place Point Wells Aug-11 $575,000 $470,000 22%
Point Wells Road Point Wells Aug-11 $500,000 $520,000 -4%
Point Wells Road Point Wells Aug-11 $500,000 $550,000 -9%
Riverside Drive Point Wells Aug-11 $610,000 $540,000 13%
Riverside Drive Point Wells Oct-11 $750,000 $920,000 -18%
Harbour View Road Point Wells Oct-11 $605,000 $670,000 -10%
SALES SINCE JULY 2011 RELATIVE TO THE RATING VALUATION RELEASE - ALGIES / SNELLS BEACH / MAHU WEST
STREET AREA SALE DATE SOLD PRICE RATING VALUE % + / -
Alexander Road Algies Bay Jul-11 $475,000 $500,000 -5%
Mahurangi East Road Algies Bay Aug-11 $555,000 $570,000 -3%
Willjames Avenue Algies Bay Oct-11 $690,000 $500,000 38%
Ferndale Drive Snells Beach Oct-11 $305,000 $350,000 -13%
Foster Crescent Snells Beach Sep-11 $225,000 $270,000 -17%
Foster Crescent Snells Beach Sep-11 $330,500 $395,000 -16%
Foster Crescent Snells Beach Jul-11 $365,000 $330,000 11%
Gerontious Lane Snells Beach Aug-11 $335,000 $390,000 -14%
Gerontious Lane Snells Beach Sep-11 $299,000 $400,000 -25%
Gerontious Lane Snells Beach Sep-11 $275,000 $350,000 -21%
Grange Street Snells Beach July-11 $650,000 $1,050,000 -38%
Hinemoa Place Snells Beach Jul-11 $527,000 $560,000 -6%
Kawau View Road Snells Beach Jul-11 $335,000 $450,000 -26%
Kotuku Place Snells Beach Aug-11 $385,000 $440,000 -13%
Mahurangi East Road Snells Beach Jul-11 $330,000 $425,000 -22%
Merehai Place Snells Beach Sep-11 $250,000 $330,000 -24%
Piccardily Circus Snells Beach Jul-11 $401,000 $485,000 -17%
Piccardily Circus Snells Beach Jul-11 $350,000 $470,000 -26%
Riverleigh Drive Snells Beach Aug-11 $475,000 $530,000 -10%
Snells Beach Road Snells Beach Jul-11 $350,000 $435,000 -20%
Snells Beach Road Snells Beach Nov-11 $449,000 $415,000 8%
Tamatea Drive Snells Beach Aug-11 $650,000 $810,000 -20%
Virginia Circus Snells Beach Aug-11 $285,000 $385,000 -26%
Winward Terrace Snells Beach Jul-11 $400,000 $490,000 -18%
Woodlands Avenue Snells Beach Jul-11 $375,000 $430,000 -13%
Merehai Place Snells Beach Sep-11 $250,000 $290,000 -14%
Ferndale Drive Snells Beach Oct-11 $305,000 $350,000 -13%
Kawau View Road Snells Beach Aug-11 $385,000 $460,000 -16%
Jamiesons Road Mahurangi West Aug-11 $420,000 $485,000 -13%
Schollum Access Road Mahurangi West Nov-11 $700,000 $560,000 25%
Kanuka Road Sandspit Jul-11 $677,000 $600,000 13%
SALES SINCE JULY 2011 RELATIVE TO THE RATING VALUATION RELEASE
SREET AREA SALE DATE SOLD PRICE RATING VALUE % + / -
Grant Street Scotts Landing Jul-11 $615,000 $770,000 -20%
Pakiri Road Leigh Jul-11 $250,000 $288,000 -13%
Matakana Valley Rd Matakana Jul-11 $560,000 $610,000 -8%
Torea Road Matakana Nov-11 $439,000 $540,000 -19%
Grand View Road Matheson Bay Sep-11 $500,000 $440,000 14%
Leigh Road Matheson Bay Sep-11 $405,000 $510,000 -21%
Schollum Road Whangateau Sep-11 $805,000 $870,000 -7%
THIS REPORT WAS PUT TOGETHER BY STEVE JACK, SPECIALIST VALUER FOR THE KOWHAI COAST. IF YOU WISH
TO CONTACT STEVE PLEASE RING OR EMAIL TODAY.
Stephen Jack B.Com VPM ANZIV SPINZ Registered Valuer.
steve@hsl.net.nz
WARKWORTH OFFICE
Papworth Building,
52 Queen Street
Ph: 09 425 8810
Fax: 09 425 7732
