Growth in the Auckland market over the past three years is reflected in the newly assessed rating valuation notifications that have been sent to Auckland property owners.
Approximately 548,000 residential properties across the Super City region received a new Rating Valuation (RV) in November following the tri-annual revaluation carried out by Auckland Council with the assistance of rating valuation service providers including Quotable Value (QV).
An RV is the estimated market value of a property on a particular date (not including chattels). For the Auckland Region the new RVs will be set as at the date of July 1, 2017. RVs are assessed by Auckland Council every three years.
On average, residential rating valuations across the Auckland Region rose 46 per cent in the three years.
Assessing rating values is a service QV performs for councils. We calculate these by analysing the councils' data on properties in your area.
Our valuers may inspect residential properties sold recently and those where building consents show work has recently been completed. We also compare similar properties using technology and experience to determine a property's updated RV.
The region-wide revaluation includes all properties in Auckland: industrial, commercial and rural properties and is a legal requirement that every council in New Zealand must carry out.
Rating values are independently audited by the Office of the Valuer General. Rigorous quality standards need to be met before a revaluation is confirmed.
The revaluation doesn't impact on the amount of rates collected by Auckland Council but it does help the council work out everyone's share of rates, which is based on Capital Value (CV) and this is what the council uses for rating purposes.
This can differ from council to council as in some other areas the Land Value (LV) is used for rating purposes.
The rating value of a property will reflect market value only at the time it is set — and for this reason a rating valuation should not be used as a guide to what your property will sell for on the market anytime thereafter as it is designed for rating purposes only. Under legislation a property value for rating purposes is made up of three components:
1) Capital Value (CV). This is what your property is likely to have sold for at the date of your local council's last general revaluation, excluding chattels. The CV is also known as Government Valuation (GV) or Rating Valuation (RV) for councils who use CV for rating purposes.
2) Land Value (LV). The most likely selling price of the bare land at the date of your local council's last general revaluation.
3) Value of Improvements (VI). This is the difference between the land value and capital value. It is important to note here it does not mean the replacement cost of buildings and services on a property or what it costs to build a home.
As part of the Auckland rating revaluation, property owners have the opportunity to object to a new Rating Valuation.
Objections close on January 16, 2018.