Revaluation 2021: Everything you need to know
Updated property values for all properties in the Auckland region will hit mailboxes, inboxes and online in October 2021.
We are proud of the rigorous process being undertaken to reach these values. Revaluation is exciting as it allows us to set rates fairly for the 2022/2023 rating year and crack on with the initiatives in the 10-year budget.
Auckland has seen significant population growth over the last few years and the pressures this has put on the housing market are well-known to all of us.
Our valuations only capture a moment in time and should not be viewed as a current market value but we know that there is still a huge amount of interest from Aucklanders in their new values.
Revaluation this year
Every three years, we revalue all properties in Auckland – all councils in New Zealand are required by law to do this. Our last revaluation was in 2017.
We were due to conduct a revaluation in 2020 but the COVID-19 pandemic made it difficult to accurately forecast sales data. Under these circumstances, the Valuer General granted the council a deferral of 12 months.
The new values we assign are based on the most likely selling price if the property had sold on 1 June 2021.
Why we revalue properties
The value of properties is one of the ways we calculate each ratepayer’s share of rates so it is important we are using current figures to ensure a fair rating system. The property market is dynamic which is why these values change over time.
How we calculate the values
We compare recent sales in the area with the property being valued. We consider many factors, including the property type, location, land size, zoning, floor area and any consented work for renovations, new builds or subdivisions.
The property value is made up of three parts: the capital value, the land value and the value of improvements.
- Capital value (CV): the most likely selling price if the property had sold on 1 June 2021
- Land value (LV): the most likely selling price of the bare land on 1 June 2021
- 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.
The revaluation is a ‘point in time’ exercise and is not meant to reflect the ongoing probable sales price of a property.
Keep in mind, the value of improvements is an indicative value and won’t necessarily represent the value of any buildings currently on the land.
Revaluation and rates
We use property values to share the rates the city needs to raise between properties.
Revaluing Auckland’s properties won’t affect the amount of money the council collects from rates. It helps us make sure we are sharing the rates requirement fairly between properties as valuations move across the city.
Aucklanders already know that the council is increasing rates by 3.5 per cent in from June 2022. This was set through the council’s 10-year budget process. These updated values help us determine how this increase will be shared across all ratepayers in the region.
Your property value is only one of the elements which help us determine your share, therefore if your property value has increased, this does not automatically mean you pay more in rates. What will determine a rates increase is if your property value has increased more than the average increase across the region. If your property increases in value but this increase is below the average, this may mean you will pay less in rates.
Revaluation won’t affect rates until 2022
The impact of revaluation won’t come into play until 1 July 2022. Your current rates will stay the same until then.
Visit aucklandcouncil.govt.nz/revaluation to find out more.