Auckland's CVs have skyrocketed by more than a third in the past three years as the heated housing market continues to surge.
Figures from the council's 2014 capital valuations, released today, are a double-edged sword for the city's homeowners - their biggest asset has grown markedly, but the likelihood of rates increases is the sting in the tail.
The new average CVs in every suburb reveal the shifting Auckland landscape. The biggest rises are in outlying suburbs as buyers have been priced out of central city areas.
SEE THE NEW CV FOR YOUR SUBURB: Scroll to end of article
That has meant surges in the North Shore, where Forrest Hill has seen a 55 per cent average increase, and in the south, where Mangere Bridge values have leapt 53 per cent.
It's a similar story in the west, where Waterview's proximity to new motorway infrastructure and the transport hub in neighbouring New Lynn help account for a 45 per cent increase in its average CV.
But Auckland's traditionally wealthy suburbs, such as Parnell, Herne Bay and Westmere, have still all seen jumps in value of more than a quarter.
Barfoot and Thompson managing director Peter Thompson described the figures as "frightening".
"I'm sorry to see it, but that's the reality. At the end of the day, the prices have gone up because people have been prepared to pay those prices," he said.
The council assessed 525,000 properties - 86 per cent of which are residential.
The average CV rise across the city since 2011 is 34 per cent, putting the total value of the property stock throughout the region at an eye-popping $474 billion.
Some 45 valuers from the council and from Quotable Value NZ have spent months assessing the properties, looking at sales data, type of property and renovations.
The huge rise across the region show that Reserve Bank efforts to curb growth have barely made a dent. The average house price in the city last month was a record high $738,876 - 23 per cent up on the previous year.
Property author and commentator Olly Newland said the country had not seen these sorts of property value hikes since the 1970s. "It is, I think, a permanent readjustment of prices and everybody's going to have to get used to it," he said.
"I think it will taper off over the next three years - I don't think these percentages will be repeated - but even if it drops to a quarter of what it is now it'll be a quarter of a much bigger number."
The council is at pains to point out that a large leap in the average CV in your suburb doesn't mean a corresponding rates jump for homeowners there, as a range of factors are used to determine rates, including policy and the 10-year Budget.
The rating policy is due for review next month. But the upsurge in values in all but a handful of 238 neighbourhoods means some will inevitably face higher rates demands.
Councillor Cameron Brewer said many of those suburbs that have inflated substantially over the past three years could now expect their rates increase next year to be well above Mayor Len Brown's proposed average increase of 2.5 per cent.
Values assessed in the latest revaluation will not be used for rating purposes until July next year. The council will begin mailing CVs to individual properties from November 10. These will also be available online.
Your questions answered
What is a Capital Value (CV)?
A council valuation of a property's likely selling price on July 1 this year. It includes buildings and other improvements on the land, but not chattels.
How are they calculated?
Several factors are taken into account, including what other properties in the neighbourhood are selling for, the type of property and changes that have been made since the last valuation in 2011.
When will I know my CV?
CVs for individual properties will be online from November 10 at aucklandcouncil.govt.nz/revaluations. Letters will be sent to homeowners after that date.
How will it affect my rates?
CVs are one factor in determining rates. A change in CV does not mean a corresponding change in rates.
What else affects rates?
Policy set by councillors; the 10-year Budget; the uniform annual charge set by councillors; targeted rates, eg some South Auckland households have chosen to pay for free swimming pool access for everyone via their rates.
If my rates are changing when will it happen?
The latest valuation will be used for rating purposes from July 1 next year.
Can I contest my new CV?
Written objections can be made to Auckland Council until December 19.