The council uses property values to allocate the rates it needs to collect between all ratepayers.
So some ratepayers, if their revaluation was lower than the average increase, will end up paying less than the average 8 per cent rates increase.
Last year valuations were prepared for 80,336 properties on behalf of the city council by Quotable Value (QV).
On average, the value of residential housing has increased 60.4 per cent since 2018 when valuations were last carried out.
The average house value now sits at $1,435,000, while the corresponding average land value has more than doubled to an average of $985,000.
QV area manager Paul McCorry said at the time demand for housing in the city has been extremely buoyant over the last three years.
"In 2018 we were exclaiming at the number of million-dollar suburbs in the city. In 2021 there is not a single location with an average value less than $1 million – in fact, Kelburn, Oriental Bay, Roseneath and Seatoun have now pushed over $2 million."
"A lot of the value increases have stemmed from pressure on land. The demand for vacant land has seen land values more than double in many suburbs."
When deciding on an average 8 per cent rates increase, Mayor Andy Foster said the council's budget had been a challenging process.
"We continue to face significant cost increases to deliver existing services, respond to earthquake and resilience issues, Let's Get Wellington Moving, and increased investment in our three-waters networks, Te Ngākau Civic Precinct and the Central Library. We also face issues related to interest and depreciation costs and increased inflation costs."
The rates rise was a balancing act to remain fiscally responsible and not put an "unbearable burden" on ratepayers, as well as to keep delivering services and maintain facilities to the expected level, he said.
