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Transcript of Revaluation: A simple explanation.
About ratings valuations
A rating valuation assesses the value of a property every three years. It is an estimate of what each property would have sold for on a set date.
We use the valuation as a guide for setting rates, but it is not the only factor. How you use the property and where it is located also affects your rates.
How often we revalue properties in Auckland
The law requires all councils to revalue properties in their area every three years.
The last revaluation took place in June 2021. Our latest revaluations are now in progress. We expect to send valuation notices to property owners in 2025.
Why we revalue properties
Revaluations are required by law and help us set rates fairly across all property owners. Because property values change over time, we need to update how we distribute rates to maintain fairness.
The property revaluation is not intended for use in:
- marketing
- sales
- any other purpose.
Impact of a revaluation on property rates
Revaluations do not affect the amount of money the council collects from rates. Instead, they help us work out everyone's share of rates.
Any change in your rates depends on how your property's value changes compared to the average across the Auckland region.
If your property value has changed by more, or less, than the average, you may pay more or less than the average 5.8 per cent rates increase forecast for the 2025/2026 year.
How we calculate property values
New values are calculated by using recent property and sales information. Revaluing a property shows how its value has changed over time.
A zoning change under the Auckland Unitary Plan can affect a property’s value if it:
- allows more development, such as extra housing, or
- changes how the land can be used, for example from residential to business.
Independent property valuers work with the council to set property values. The Valuer-General checks these values to make sure they are correct.
Factors we consider for revaluations
- Property type
- Location
- Land size
- Zoning
- Floor area
- Consented work (like renovations, new builds, subdivisions).
What a property value is made up of
Capital value (CV)
The CV is the most likely selling price at the date of valuation.
It is also known as government valuation (GV) or rateable value (RV).
Land value (LV)
The LV is the likely price the land would sell for on the valuation date, without any buildings or improvements.
Improvement value (IV)
The IV is the difference between the capital value and the land value. It does not necessarily reflect the actual value or replacement costs of any building.
Visit
How your property rates bill is made up for more information.
