How realistic is selling above your CV?

Last month we looked at how likely sellers are to reach their asking price in comparison to the price the list their property for.  To go one step further, we have delved into what suburbs and areas are most and least likely to sell property for above the Capital Value (CV).  This is based on sales this year in January through to March.

Top 10 areas

Looking at the top 10 areas and suburbs relative to CV, Auckland features heavily with 5 Auckland districts in the top 10 areas and 9 out of the top 10 suburbs from Auckland also.  This is largely due to the steep increase in values since Auckland was revalued back in 2011.  Christchurch also features, with values in the city and outlying areas reaching prices above their CV.  Another reason for this is that Christchurch has not been revalued since 2007. It was due to have been done in 2010 but was postponed due to the earthquakes and is now going to be re-done soon.

While values in Buller and Hurunui have not risen strongly over the last year, previous years’ growth has still pushed those areas to the top of the list.

Top 10 areas

Top 10 suburbs

Bottom 10 areas

The bottom areas and suburbs are mainly dominated by areas in the middle of the North Island.  A lot of these areas have seen declining growth in values over the last year especially, limiting the likelihood they are going to sell for above the CV despite some being revalued almost 3 years ago.  Like Christchurch, with new revaluations scheduled for later this year, things may change.

One of the only areas featured to have seen positive growth in values over the past year is Wanganui.  However values did decline there in the previous two years.

Bottom 10 areas

Bottom 10 suburbs