Auckland houses making double the CV

Author
Corazon Miller, NZ Herald Staff ,
Section
Auckland,
Publish Date
Thursday, 20 April 2017, 9:31PM
Bayleys sold this house on Clovelly Road Bucklands Beach for more than double its CV. (Bayleys Real Estate)
Bayleys sold this house on Clovelly Road Bucklands Beach for more than double its CV. (Bayleys Real Estate)

In Auckland this year homes have sold, on average, at a price 1.4 times greater than the capital valuation - at least four sold for more than double.

Homes.co.nz data given to the Herald showed the top four properties with the biggest margin of difference all sold for more than double their valuation.

Topping this list was a 4-bedroom house in Papakura which went for $505,000 in February - 2.24 times its valuation. Also in February a three-bedroom property in Papatoetoe sold for $870,000 - 2.2 times its valuation

Even in January, a typically more sluggish month for sales - a 4-bedroom Papatoetoe house sold for $1.45m - 2.2 times its valuation.

Homes.co.nz spokesman Jeremy O'Hanlon said of the approximately 2800 sales that went on the public record since the beginning of the year, the average sale price was 1.4 times greater than the CV.

He said the biggest price premiums were seen in South Auckland - a fact he attributed to the numbers leaving the central city in order to find a more affordable property.

Otahuhu saw the biggest margin, with 20 properties sold at an average of 1.65 times their CV. Papakura, Mangere East and Papatoetoe followed closely with between 21 and 53 properties sold for an average of 1.64 times the CV.

Bayleys Real Estate agent Gary Robertson last week had a sale go through at auction for just over double the valuation of the property, in Clovelly Rd.

The 12-year-old house in Bucklands Beach sold at auction for $3.95m. The 5-bedroom property designed by architect Julian Guthrie had a valuation of $1.9m.

Robertson said the fact the property went for more than double the CV was "not surprising", given its location and quality architecture.

"Bucklands Beach - the eastern suburbs have seen some seriously big sales, certainly a couple in excess of $7m on the peninsula."

He said the area's waterfront features, the ferry connections into the city, and good public schools in the area all contributed to making it a good place to live in and were attractive features for buyers.

And Robertson said because of these features, and the fact sections were a rarity in the area, prices on the peninsula were likely to continue growing.

"If it's beach-front, or on the cliff and if it's just a single house section, the land would start at about $2m."

"That's probably where things start now."

He said just last week, a site on the water at Bucklands Beach went for $3m.

However, O'Hanlon cautioned against people using the CV as a guide to determine a property's exact value.

"CVs are a very rough measure for determining value given how infrequently they are updated. Auckland in particular has seen a lot of movement in the market over this time.

"As with any computer generated estimate, there are a number of factors the CV doesn't take into account. Recent renovations, development potential and landscaping are a few that come to mind"

Property Institute of New Zealand chief executive Ashley Church said the CV was "not in any way a barometer of what a house is actually worth".

"It's only done every three years and so from the moment it's done it's wrong and it gets more wrong the longer time passes."

Church said a valuer would give a better idea of how much a property was worth.

"If you actually want to know what it's worth you have to get it valued by someone who is actually valuing the property on its own merits.

The CV is a value generated by the local council to set rates and is sometimes known as a government valuation or as a rateable valuation - Auckland's latest valuation figures date back to 2014.

Church said the figure was based on a whole lot of factors around sales in a particular area but didn't take into account the individual features of a given property.

Top four properties with biggest margin of difference between sale price and CV

12 Igloo Place, Red Hill, Papakura sold for $505k in Feb with a CV of $225k - 2.24x CV
20 Margaret Rd, Papatoetoe sold for $870k in Feb with a CV of $395k - 2.2x CV
45 Landscape Rd, Papatoetoe sold for $1.45M in Jan with a CV of $660k - 2.2x CV
3 Haughey Ave, Three Kings sold for $1.81M in Feb with a CV of $830k - 2.18x CV

Auckland suburbs experiencing the biggest difference between sale price and CV

Otahuhu: Average 1.65xCV - 20 sales since Jan 2017
Papakura: Average 1.64xCV - 21 sales since Jan 2017
Mangere East: Average 1.64xCV - 25 sales since Jan 2017
Papatoetoe: Average 1.64xCV - 53 sales since Jan 2017
Otara: Average 1.61xCV - 15 sales since Jan 2017

-NZ Herald

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