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Ross Tucker: Auckland Council Group CFO explains why Auckland home values have dropped · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk ZEDB. Follow
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  Speaker 2: Big Day tomorrow. If you're an Auckland rate payer, that's
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  Speaker 2: when the new property rating valuations will be released. Now,
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  Speaker 2: on average, residential property values have fallen nine percent since
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  Speaker 2: the last valuation in twenty twenty one. Ross Tucker is
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  Speaker 2: Auckland Council Group CFO, Hey, Ross, Hello, Gez. Nine percent
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  Speaker 2: is a bit big ward happened.
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  Speaker 3: So that's that is the movement that we've seen over
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  Speaker 3: that period. So these are the rating valuations as it
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  Speaker 3: May last year. It's and the nine percent is the
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  Speaker 3: movement from twenty twenty one to twenty twenty four. That
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  Speaker 3: this reflects what we've seen in the market. Anyone that's
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  Speaker 3: been following the property market will know things that come
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  Speaker 3: off over that period largely due to rising higher interest rates.
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  Speaker 3: And this is the results that we've seen. Okay, what
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  Speaker 3: do you want to rehetorrate? These are rating valuations than
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  Speaker 3: that as of May last year. They're not an indication
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  Speaker 3: what things would sell for today.
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  Speaker 2: Yes, and why has it fallen so much more in
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  Speaker 2: the city center?
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  Speaker 3: So that that is where that's the result of supply
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  Speaker 3: and demand. What we've seen. One of the reasons might
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  Speaker 3: be that there is is because of the apartments in
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  Speaker 3: converted flats. We've seen apartments for twelve percent, converted flats
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  Speaker 3: for twelve percent as well. Also, we've seen some of
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  Speaker 3: the areas where there's a lot of development potential have
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  Speaker 3: bigger than average falls as well.
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  Speaker 2: Now, residential has gone down, industrial has gone up. Right,
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  Speaker 2: Does that mean that residential pays less in rates than
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  Speaker 2: industrial or are they each individually ring fenced and has
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  Speaker 2: no bearing on the other.
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  Speaker 3: They are individually ring fence. Businesses do pay high higher rates,
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  Speaker 3: and that that is that's unchanged by these valuations. So
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  Speaker 3: the rates increase is set by a budget, it's not
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  Speaker 3: determined by the evaluations. The average is set by how
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  Speaker 3: much money the council needs. Whether valuations come in is
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  Speaker 3: who pays more than the average? Who pays what? Whatsone's
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  Speaker 3: rates increases above or below the average?
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  Speaker 2: Hey, what's going on in Great Barrier? Did that just
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  Speaker 2: go up thirty eight percent?
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  Speaker 3: It's gone up thirty eight percent, and the previous evaluations
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  Speaker 3: that went up fifty nine percent. So what we've seen
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  Speaker 3: there is it's moved up from a very low base.
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  Speaker 3: It's that they still have the lowest capital value in
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  Speaker 3: any part of Auckland, so it's about seven hundred and
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  Speaker 3: forty thousand, and they also have the lowest rates.
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  Speaker 2: Ross. Thanks for talking us through to appreciate it. Ross Tucker,
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  Speaker 2: Auckland Council Group CFO.
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