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Speaker 1: Big day tomorrow if you're an Auckland rate payer. That's

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Speaker 1: when the new property rating valuations will be released. Now,

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Speaker 1: on average, residential property values have fallen nine percent since

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Speaker 1: the last valuation in twenty twenty one. Ross Tucker is

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Speaker 1: Auckland Council Group CFO, Hey Ross, Hello gez. Nine percent

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Speaker 1: is a bit big war happened.

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Speaker 2: So that's that is the movement that we've seen over

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Speaker 2: that period. So these are the rating valuations as it

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Speaker 2: May last year. It's and the nine percent is the

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Speaker 2: movement from twenty twenty one to twenty twenty four. This

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Speaker 2: reflects what we've seen in the market. Anyone that's been

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Speaker 2: following the property market will know things have come off

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Speaker 2: over that period largely due to rising higher interest rates.

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Speaker 2: And this is the results that we've seen. Okay, do

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Speaker 2: want to reet rate? These are rating valuations than not

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Speaker 2: that as of May last year. They're not an indication

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Speaker 2: what things would sell for today.

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Speaker 1: Yes, and why has it fallen so much more in

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Speaker 1: the city center.

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Speaker 2: So that that is that's the result of supply and

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Speaker 2: demand what we've seen. One of the reasons might be

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Speaker 2: that there is because of the apartments in converted flats

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Speaker 2: we've seen apartments for twelve percent, converted flats for twelve

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Speaker 2: percent as well. Also, we've seen some of the areas

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Speaker 2: where there's a lot of development potential have bigger than

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Speaker 2: average falls as well.

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Speaker 1: Now, residential has gone down, industrial has gone up. Right,

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Speaker 1: Does that mean that residential pays less in rates than

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Speaker 1: industrial or are they each individually ring fenced and has

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Speaker 1: no bearing on the other.

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Speaker 2: They are individually ring fence. Businesses do pay higher rates,

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Speaker 2: and that that is that's unchanged by these valuations. So

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Speaker 2: the rates increase is set by a budget, it's not

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Speaker 2: determined by the evaluations. The average is set by how

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Speaker 2: much money the council needs. Where the valuations come in

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Speaker 2: is who pays more than the average? Who pays what's

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Speaker 2: one's rates increases above or below the average?

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Speaker 1: Hey, what's going on in Great Barrier? Did that just

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Speaker 1: go up thirty eight percent?

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Speaker 2: It's gone up thirty eight percent. In the previous evaluations

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Speaker 2: that went up fifty nine percent. So what we've seen,

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Speaker 2: as it's moved up from a very low base, that

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Speaker 2: they still have the lowest capital value in any part

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Speaker 2: of Auckland. So it's about seven hundred and forty thousand

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Speaker 2: and they also have the lowest rates.

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Speaker 1: Ross, thanks for talking us, I'd appreciate it. Ross Tucker

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Speaker 1: Auckland Council Group CFO.

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