
In the latest Auckland Council capital valuations (CVs), home values fell by an average of 9%. What does this mean for homeowners, and should you challenge your new CV?
CVs aren’t an accurate indication of market value
Released in June, the new Auckland CVs aim to put a value on your land and ‘improvements’. Does it provide a valuation for your property? No, and there are two main reasons for that.
First, your new CV is already outdated. CVs are based on a specific day, and this time that date is 1 May, 2024.
Second, the CV is based only on the information that the Council has at hand: sales data and your house’s basic details. The mass appraisal method the Council uses doesn’t know if your house has just had a kitchen and bathroom makeover – or that the house which just sold down the road has a front yard full of clapped-out cars.
CVs are more accurate if your home is closely comparable to neighbouring properties. For instance, it’s one of many similar homes in a subdivision or it’s one unit in a large apartment building.
Your CV will be less accurate if your home is hard to compare with others. It might be in unusually good (or poor) condition, have unusual features, or be the only seven-bedroom home in the area. And if you live in an area with very few property sales, that will also make it harder for the Council to produce an accurate CV.
Will your rates go up or down due to this change?
Rates in Auckland have increased by 5.8% on average.
Your rates will almost certainly go up, even if your CV has fallen quite substantially. Rates aren’t set by CVs, they just help the Council work out your share of the rates. For the average $1.3 million home, rates for the upcoming year will be $223 higher than the current year.
If your CV has dropped by more than the 9% average, your rates will increase less than 5.8%. If your CV is down by less than 9%, your increase will be larger.
How and why to challenge your CV
If you’re about to sell your house, you might be concerned that a lower CV will affect how much buyers think it’s worth. This is especially relevant if you made renovations or additions (before May 2024) that have added to the home’s value.
Alternatively, you might think that the CV is too high, which means your rates rise will be larger than necessary.
To object to your new CV, you will need to provide evidence that – on 1 May 2024 – your home had a different value.
You can do this via Auckland Council’s online tool.
You need to include:
- your reason for objecting
- your own estimated valuation
- evidence for your estimate. Evidence might include an appraisal from an agent or valuer, or photos and payments related to renovations, for instance.
The deadline for objections is 25 July 2025.
The last round of CV updates in 2021 saw around 9,000 objections, with around half of people saying their CV was too high and the other half saying it was too low.
It’s likely there will be even more objections this year. Auckland Council often takes months to process CV objections – your new rates may have already kicked in by the time you get an answer.
Outside Auckland, your capital (or ratings) valuation will be set by your local city or district council. It will be updated on that council’s schedule, typically every three years.
Objecting to your valuation can take different forms: some councils have an online form, others have a print-out to fill in and hand back, and some ask you to object via third-party provider QV.
Check with your council to find out when your ratings valuation will next be updated, and how and when to object.