Auckland rates: Valuation up 29pc

Big increases in house prices and smaller increases in business property prices will lead to larger increases in residential rates. Photo / Janna Dixon

The average valuation increase for all Auckland properties is 29 per cent, but the new values won't be used to help set rates until July next year.

Councillor attended a finance committee this morning to discuss the impact on rates from the latest property valuations, following a confidential briefing on Monday.

Council valued Peter McKay said today the average increase for all properties was 29 per cent.

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This means that properties with a valuation above the average can expect a rates increase and those below the average a rates decrease.

Residential values increased by an average of 34 per cent, commercial 16.2 per cent, industrial 15.7 per cent, lifestyle 17.7 per cent and rural 4.6 per cent.

The new values will be published online at aucklandcouncil.govt.nz/revaluation from November 10, or owners can wait for their revaluation notice in the mail in mid-November. The Council said the new values won't be used to help set rates until 1 July 2015.

The council has previously released details about the rise in house prices, which have averaged 34 per cent since the last valuation in 2011, but kept silent about commercial property rises.

When asked on Monday what the average raise was for business properties and the impact on rates, a council spokesman said "all will be revealed at the finance and performance committee on Thursday".

The Herald understand commercial properties prices have risen by about 15 per cent on average.

The effect of this will be less rates collected from business and more rates collected by homeowners.

The council is currently reducing the rates burden on businesses, which pay more than households.

This year, the reduction in the business differential saw household rates rise from the average of 2.5 per cent to 3.7 per cent.

In July, Mr Brown said he was committed to reducing the business differential.

Following Monday's confidential briefing, councillor Cameron Brewer said "we very quickly came to the realisation that we will need to change and pull some serious levers if we are going to deliver on the mayor's promise of an average residential rates increase of 2.5 per cent given the latest valuations".