A quick guide to property revaluations
The facts about Auckland Council property valuations.
Every three years, we revalue all of the properties in Auckland. Revaluations are required by law. Our last revaluation was in 2014 and our current revaluation is being carried out this year.
2017 property revaluations
You will receive your revaluation notice in the post or via email in November.
Why we revalue properties
Each year, the council’s budget sets out the amount of rates needed to keep Auckland running. Once the budget is set, we need to work out how much each ratepayer should pay.
Your rates bill is determined by a number of factors. One of these is your property’s value, which we figure out through the revaluation process.
Other factors that help determine how much you pay in rates include the amount of money required to run the city, and how much income we receive from other sources.
A change in your property’s value does not mean that your rates will increase or decrease by the amount of this change – instead, your property’s new value will help determine the share of rates you pay.
Property revaluations don’t determine the total amount of rates collected by Auckland Council. Instead, they help us work out everyone’s share of rates.
How we calculate property values
We compare recent sales in the area with the property being valued.
We consider many factors, including:
- property type
- location
- land size
- zoning
- floor area
- consented work (renovations, new build, subdivisions etc).
How property values work
A property value is made up of three parts:
- Capital value (CV): the most likely selling price if the property had sold on 1 July 2017
- Land value (LV): the most likely selling price of the bare land on 1 July 2017
- Improvement value (IV): The CV minus LV. The IV does not represent the replacement value of the building(s) or other improvements on the land.
Revaluations do not reflect market value
Revaluations are only used to work out rates. Property values should reflect the likely selling price of the property if it had been sold on 1 July 2017. However, the Auckland property market is dynamic, and market values may have changed significantly by the time you receive your property valuations.
Council valuations do not reflect your property’s market value, and should not be used for insurance or mortgage purposes.
Revaluation won’t affect rates until 2018
The impact of revaluation won’t come into play until the 2018/2019 rating year. Your current rates will stay the same until then.
Visit aucklandcouncil.govt.nz/revaluation to find out more.