Source: Auckland Council
Rating valuation is undertaken every three years, by all councils nationwide. It’s legislated so councils fairly and accurately distribute rates.
Often, the process prompts a range of questions from our ratepayers – so we’ve busted some of the most common myths, below.
Myth: My property value has reduced – so my rates will reduce too.
BUSTED: A change in your property’s CV (capital value) will not necessarily mean your rates will be higher for an increased value, or lower for a decreased value. It’s how your property value moves with the average change, that affects rates.
To explain… if your residential property’s value change is higher than the overall average change, you will pay more in rates. Valuation changes below the average change will mean rates fall relative to the general increase.
Myth: The council is taking more rates, as a result of revaluing properties.
BUSTED: Property rates contribute to about 40 per cent of council funding. Property values help us share that rates revenue fairly across all property owners – the values do not increase or decrease the amount the council receives.
A council valuation has the sole purpose of enabling rates to be fairly shared across 630,000 properties in our region.
Myth: My rates increase will be exactly 5.8% this year.
BUSTED: The average residential rates increase for 2025/2026 will be 5.8 per cent which was set through the council’s budget process. But it’s how the change in your property’s CV compares to the change in other properties that will determine whether your increase from 1 July is more, or less, than 5.8 per cent.
Myth: Council valuations are a current property value.
BUSTED: The values are not a good indication of what a property would sell for today. We recommend ratepayers reach out to local real estate agents or registered valuers for an up-to-date appraisal. Rating valuations are only used to fairly set rates.
The property valuations will reflect the likely selling price of the property, without chattels, if it sold on 1 May 2024. Council valuations should not be used for insurance or mortgage purposes.
The latest values (based on 1 May 2024) are a historical moment in time. Values are completed by mass valuation, using information held by council and valuers – not by individual inspection.
Further information
More information is available on the Auckland Council website.
The latest revaluation trends for Auckland are summarised on OurAuckland.
