This lovely Alexis Ave Californian bungalow sold for $2.1m against the latest CV of $1.75m
What do you read into new capital values? People who have been around the real estate industry for a few years know that “sight unseen” council valuations – imposed every three years to help assess rates levied on individual property owners – can have their imperfections.
The latest valuations were set at July 1, 2017, and revealed late last year, but selling results since then show how unreliable CVs can be for actual market value, especially as time moves on.
Everyone should understand that – they are “near as dammit” rating valuations fixed at a moment in time through an automated mass-market formula and no one should be relying on them to stick up on a for sale sign.
The only true guide to market value is what someone is prepared to pay on the day, and registered valuers and real estate agents are best equipped to make that assessment, though a competitive auction can change the dynamic (just as a lack of competition can weigh on a selling price).
An interesting local example: two Mt Albert homes sold in Barfoot and Thompson auction rooms a day apart earlier this month. One of them fetched $350,000 above CV – a jump of 20 per cent; the other sold for $705,000 – a drop of about 10 per cent on its latest capital value.
Mt Albert Inc gathered together 15 auction sale results in Mt Albert over the last month or two, and eight of them sold below CV:
5/1098 New North Rd sold for $705,000 (CV: $780,000), Barfoot and Thompson; 6 Alexis Ave sold for $2.1m (CV: $1.75m), Barfoot and Thompson; 9 Phyllis St sold for $1.228m (CV: $1.18m), Harcourts;
28 Tasman Ave sold for $1.1m (CV: $1.06m), Anne Duncan Real Estate; 3 Douglas Ave sold for $1,490,000 (CV: $1.8m), Anne Duncan Real Estate; 3 Fontenoy St sold for $1,460,000 (CV: $1.32m), Anne Duncan Real Estate;
8 Sadgrove Tce sold for $1.648m (CV: $1.88m), Ray White; 7 Seaview Tce sold for $2.55m (CV: $2.99m), Ray White; 71 Lloyd Ave sold for $2.195m (CV: $2.225m), Ray White; 5 Fowler Ave sold for $1.76m (CV: $1.825m), Ray White; 11 Knight Ave sold for $1.575m (CV: $1.65m), Ray White;
49 Grande Ave sold for $1.825m (CV: $1.85m), Custom Residential. 20/43 Woodward Rd sold for $298,000 (CV: $200,000), Unlimited Potential;
12 Triton Ave sold for $1.16m (CV: $1.12m), Barfoot & Thompson; 20 Rawalpindi St sold for $893,000 (CV: $1.04m), Barfoot and Thompson; 165 Hendon Ave sold for $860,000 (CV not registered), Barfoot and Thompson.
Bruce Morris
