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New property valuations hit mailboxes this week as Auckland Council prepares to update rates from July 1, 2025.
The rating valuations Auckland property owners receive are based on property market trends and recent sales activity as at May 1 2024. The council says the valuations are not intended to accurately reflect current market value, instead, the information will help enable rates to be fairly shared across Auckland’s 630,000 properties.
The new rating valuations have been prepared by two independent valuation providers, QV and Opteon.
The overall CV movements between June 2021 and May 2024, by property type for Auckland, are:
- Industrial +5%
- Lifestyle +4%
- Rural + 4%
- Commercial -5%
- Residential -9%.
Valuation movements over that period also varied across the Auckland region, the council said, with residential properties in centrally located local board areas tending to see bigger reductions than those further out.
Auckland Council chief economist Gary Blick said it is important to note that the last two Auckland rating valuations happened to coincide with markedly different stages of the recent economic cycle.
“At the time of the 2021 rating valuation, in June 2021, the Official Cash Rate (OCR) had been at an all-time low,” Blick said. “We saw exceptionally low mortgage rates and strong upward pressure on property prices. The 2021 rating valuation reflected those higher prices.
“In contrast, the rating valuation in May 2024 occurred when the OCR had been lifted to its recent high of 5.5 per cent. Higher interest rates cooled buyer demand, leading to a decline in property prices.
“Despite that fall, the median house price as at June 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today. The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations.”
The valuations do not change how much the council takes in rates – this is set annually following community consultation. For 2025/2026, the annual rates for an average residential property (CV $1.29 million) will be $4,069. The 5.8 per cent average increase for 2025/2026 will equate to $223 per year or around $4.30 per week.
The council says most Auckland ratepayers will see some degree of rates increase from July 1. However, how a residential property’s CV changes compares to other properties in the region will generally determine whether that property’s rates increase from July 1 is more, or less, than the 5.8 per cent average.
If your residential property value has reduced more than the average (-9 per cent) change between the two valuations, you can expect a smaller rates increase than the 5.8 per cent. Conversely, if your property value held up better than the average, then you can expect a larger rates increase.
You can object to your property valuation before Friday July 25, 2025. Anyone concerned about paying their rates is encouraged to get in touch with council for information on a range of assistance available.
This information can be found on the council website and rates notices.
Check your rates: www2.aucklandcouncil.govt.nz/property-rates-valuations/pages/find-property-rates-valuation.asp
