40 Kitenui Ave sold for $280,000 less than its CV, but many other local properties are selling above the new valuations. Picture: Bruce Morris
Testing the new capital values against actual local sale prices has produced some interesting results.
Some properties have sold over the last month or so for spot on the new CV (which attempts to reflect market value on July 1 this year), but others have fetched much more… and a few have gone for quite a bit less.
The varied results confirm what we all know: CVs are set in a mass appraisal way as part of the process for apportioning rates. They aim to mirror what houses would sell for on July 1 (excluding chattels) but in reality they are only a rough guide and can often be either too high or too low, especially as time passes.
As with most of Auckland, the Mt Albert housing market has been subdued lately – but mainly in terms of properties for sale.
While volumes are well down on previous years – with, it seems, people holding back pre-election and, since then, because of the uncertainty over the impact of new Government policies – prices are staying fairly steady.
Stuart Robertson, acting sales manager of Bayleys Mt Albert, says “auction activity” has increased over the last month or so, but there are still relatively few new listings.
He expects the Reserve Bank’s moves on loan-to-value restrictions will encourage buyers in the New Year and, looking further ahead, says new Government policy adds motivation for those looking to sell before foreign buyer restrictions, the bright-line test extension and end of the negative gearing tax.
But at the moment it’s certainly a wildly different market than a year or more ago when houses sold in short campaigns with multiple bidders at top prices. Even with the lack of supply, prices have levelled off, and plenty of places are being passed in at auction. Well-presented homes, though, are still doing well.
The biggest margin (comparing selling price to CV) was at 14 Brewster Ave, which sold for $2.025m against a latest CV of $1.525m. On the other side of the equation, properties in Finch St and Woodward Rd sold for much less than their 2017 capital values.
A cross-section of successful auctions over the last six weeks or so:
40 Kitenui Ave sold for $1.82m (2017 CV: $2.1m), Anne Duncan Real Estate; 3/90 St Lukes Rd sold for $1.01m (CV: $980,000), Anne Duncan Real Estate; 6/44 Allendale Rd sold for $2.22m (CV: $1.98m), Anne Duncan Real Estate;
8/40 Arabi St sold for $710,000 (CV: $710,000), Anne Duncan Real Estate; 34 Mulgan St sold for $1.25m (CV: $1.215m), Anne Duncan Real Estate;
70 Woodward Rd sold for $1.348m (CV: $1.5m), Barfoot and Thompson; 1E/11 Morning Star Place sold for $278,000 (CV: $290,000), Barfoot and Thompson; 8 Caughey Pl sold for $1.36m (CV: $1.4m), Barfoot and Thompson;
1/47 St Lukes Rd sold for $630,000 (CV: $610,000), Barfoot and Thompson; 811 New North Rd sold for $1.205m (CV: $1.1m), Barfoot and Thompson; 40 Weston Ave sold for $2.425m (CV: $2.13m), Barfoot and Thompson;
1/57A Mountain View Rd sold for $638,888 (CV: $530,000), Barfoot and Thompson; 13 Brewster Ave sold for $2.025 (CV: $1.525m), Barfoot and Thompson; 38 Finch St sold for $1.29m (CV: $1.4m), Barfoot and Thompson; 1/25 Locarno Rd sold for $846,000 (CV: $630,000), Barfoot and Thompson;
39 Bannerman Rd sold for $1.1m (CV: $1.08m), Bayleys; 33A Western Springs Rd sold for $2.29m (CV: $2.025m), Bayleys.