Source: Auckland Council
Auckland ratepayers will receive new property valuations this week, as Auckland Council prepares to update rates from 1 July 2025.
The rating valuations Auckland property owners receive this week are based on property market trends and recent sales activity as at 1 May 2024. Therefore, the valuations are not intended to accurately reflect current market value – instead, the information will help enable rates to be fairly shared across Auckland’s 630,000 properties.
The new rating valuations have been prepared by two independent valuation providers, QV and Opteon. These experienced property valuers have worked closely with Auckland Council to deliver valuations that meet robust standards.
Auckland Council chief financial officer Ross Tucker said he was pleased to announce that the Valuer-General has now approved the new valuations for release to Aucklanders.
“As we know, the last council valuations from 1 June 2021 were completed close to the market peak and between then and May 2024 the economy and property market generally trended down. Therefore, as most people would expect, the May 2024 Capital Values (CVs) are lower than the previous 2021 CVs for many properties,” said Mr Tucker.
The overall CV movements between June 2021 and May 2024, by property type for Auckland, are:
- industrial +5%
- lifestyle +4%
- rural + 4%
- commercial -5%
- residential -9%.
Valuation movements over that period also varied across the Auckland region. Residential properties in centrally located local board areas tended to see a bigger reduction than those further out.
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Economic backdrop
Auckland Council Chief Economist Gary Blick said it is important to note that the last two Auckland rating valuations happened to coincide with markedly different stages of the recent economic cycle.
“At the time of the 2021 rating valuation, in June 2021, the Official Cash Rate (OCR) had been at an all-time low,” says Mr Blick. “We saw exceptionally low mortgage rates and strong upward pressure on property prices. The 2021 rating valuation reflected those higher prices.
“In contrast, the 2024 rating valuation in May 2024, occurred when the OCR had been lifted to its recent high of 5.5 per cent. Higher interest rates cooled buyer demand, leading to a decline in property prices.
“Despite that fall, the median house price as at June 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today. The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations.”
What it means for rates
The valuations do not change how much the council takes in rates – this is set annually following community consultation. For 2025/2026, Auckland Council has approved an overall average rates increase of 5.8 per cent for residential ratepayers.
The council has kept the rates increase down, due to the commitment made as part of the council’s Long-term Plan 2024-2034, along with good progress in savings.
“We are acutely aware of the tough cost of living facing our community and we continue to work hard to achieve council savings and improve value for ratepayers, to help keep rates as low as possible,” said Mr Tucker.
“Most Auckland ratepayers will see some degree of rates increase from 1 July 2025. However, how a residential property’s CV changes compares to other properties in the region will generally determine whether that property’s rates increase from 1 July is more, or less, than the 5.8 per cent average.
“If your residential property value has reduced more than the average (-9 per cent) change between the two valuations, you can expect a smaller rates increase than the 5.8 per cent. Conversely, if your property value held up better than the average, then you can expect a larger rates increase.”
For 2025/2026, the annual rates for an average residential property (CV $1.29 million) will be $4,069. The 5.8 per cent average increase for 2025/2026 will equate to $223 per year or around $4.30 per week.
Anyone concerned about paying their rates is encouraged to get in touch to access a range of assistance available. This information can be found on the Auckland Council website and rates notices.
Ratepayers can access their property valuations via the Auckland Council website from Tuesday, 10 June 2025. Formal notices will be posted or emailed from Friday, 13 June 2025.
Supporting information
What are the valuation trends from this rating valuation?
The rating valuations are based on 1 May 2024. At that time, these were the high-level trends for residential properties compared to the previous valuation:
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Values for areas further from the city centre have held up slightly better (Hibiscus & Bays, Upper Harbour and Franklin range from -4% to -1%).
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Conversely, properties closer to the city centre generally had above-average reductions (-11 to -14%). These include Puketāpapa, Albert-Eden, Maungakiekei-Tāmaki, Waitematā and Whau (all -14 or -13 per cent). This may be influenced by the varied market, including apartments, multi-units and stand-alone homes, which all have different sales trends.
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In some areas, reduced demand for properties with redevelopment potential has contributed to larger value declines. These include Māngere Bridge, Henderson, Massey, Glen Innes, Point England and Panmure.
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Land values have driven changes in CV. For many residential properties, land values had fallen an average of -13% and commercial land is also down -6%. The reduction in land values reflects reduced development activity since 2021 and, in some cases, potential zoning changes.
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Some have bucked the trend. Rodney held its values (average 0% change) and Great Barrier is up (+38%). This is a continuing trend, with residential values on Great Barrier up 59% at the 2021 revaluation.
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For storm-affected properties, it is difficult to quantify the overall effect of the 2023 storms on the market due to the number of variables involved. For instance, values in Muriwai have increased by 12%, whereas values in Henderson have fallen by 10%.
How are rating valuations completed?
Valuers assess a property’s CV by analysing data, such as local sales, property type, location and other property factors. The values are not a good indication of what a property would sell for today (the values are based on 1 May 2024).
Rating valuations allow rates to be fairly shared. Council valuations do not accurately reflect a property’s current market value and should not be used for insurance or mortgage purposes.
How does rating valuation impact a property’s rates cost?
A change in a property’s CV will not necessarily mean the rates will be higher for an increased value, or lower for a decreased value. Properties with a valuation change higher or lower than the region’s average, will pay a higher or lower proportion of rates.
How a property’s CV compares to other properties in the region will determine whether a property’s rates increase from 1 July is more, or less, than the average residential rates increase of 5.8 per cent, which was set through the council’s budget process. The new CV will be used to calculate rates for the next rating year, which starts on 1 July 2025.
Do reduced property values mean lower rates?
Property values going up do not increase the total rates the council collects, and likewise downward values do not decrease the total rates the council collects. Valuations simply allow the amount of rates to be fairly shared.
How does rating valuation work for an average home?
For your average stand-alone home, the valuers would look at sales of comparable homes – similar land size, floor area, quality condition and location attributes, such as coastal properties.
Valuers analysed market sales in areas of Auckland around 1 May 2024, considering similar properties and locations. For example, renovated villas in Grey Lynn are compared with sales of other renovated villas in that immediate area.
So, a typical residential property would usually move in value along with other similar properties in the neighbourhood. But not all property values in an area will change in the same way – it depends on standalone houses, cross-leases, units and other home types.
Values are done by mass valuation, using information held by council and our valuation providers – not by individual inspection.
What should ratepayers do if they need support with paying rates?
Anyone concerned about paying their rates is encouraged to get in touch as we have a range of assistance available. These include:
- a government-funded rates rebate scheme
- a rates postponement scheme for residential properties
- flexible payment options, such as direct debits offering weekly, fortnightly, monthly, quarterly, and annual payment.
The rates rebate threshold for SuperGold card holders will increase from $31,510 to $45,000 from 1 July 2025. This will make more ratepayers who receive NZ superannuation eligible for a rates rebate.
This information can be found on the Auckland Council website and our rates invoices also detail the support available. We encourage ratepayers to consider their options.
For more information and frequently asked questions, visit the main Auckland Council website.
