Although the latest QV House Price Index data shows residential property values across the Auckland region have increased by just 0.8 per cent over the past year, it's the growth the market has seen over the past three years that will be included in the new rating valuations all Auckland property owners will receive this month.
Around 540,000 residential properties across the Super City will receive a new Rating Valuation (RV) following the tri-annual revaluation which is being carried out by Auckland Council with the assistance of rating valuation service providers including Quotable Value (QV).
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 to determine a property's updated RV.
An RV is the estimated market value of a property on a particular date in time. 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 and were last set as at July 1, 2014.
The QV House Price Index figures show in that since the last revaluation in the Auckland Region the average value has risen 40 per cent from $720,426 in July 2014, to $1,044,303 in July 2017.
The new RVs will not include any changes in the market since July 1, 2017 and until they are reassessed in three years' time.
Something many people forget is that the RV of a property will only reflect market value 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 the on the market anytime thereafter as it is designed only for rating purposes only.
You can look up recent sales in your area on qv.co.nz at any time. For more information visit here.
The region-wide revaluation includes all properties in Auckland including industrial, commercial and rural properties and is a legal requirement that every council in New Zealand must carry out.
The revaluation process means that the increase or decrease in valuation of your property is taken into account with all the other properties in the Auckland Region, the values of which all move as well.
The revaluation doesn't impact on the total amount of rates collected by Auckland Council but it does help it work out everyone's share of rates, which is based on Capital Value (CV) and this is what the council uses for rating purpose.