Price increases ‘frightening’
Sunday Oct 19, 2014
Auckland property values have risen by more than a third in the past three years.
Property author and commentator Olly Newland said the country had not seen these sorts of property value hikes since the 1970s.
“It is, I think, a permanent readjustment of prices and everybody’s going to have to get used to it,” he said.
“I think it will taper off over the next three years – I don’t think these percentages will be repeated – but even if it drops to a quarter of what it is now it’ll be a quarter of a much bigger number.”
Auckland’s property values have skyrocketed by more than a third in the past three years as the heated housing market continues to surge.
Figures from the council’s 2014 capital valuations, released today, are a double-edged sword for homeowners – your biggest asset has grown markedly, but the likelihood of rates increases is the sting in the tail.
The new average CVs in every suburb reveal the shifting Auckland landscape. The biggest rises are in outlying suburbs as buyers have been priced out of central city areas.
That has meant surges in the North Shore, where Forrest Hill has seen a 55 per cent average increase, and in the south, where Mangere Bridge values have leapt 53 per cent.
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