Fresh valuations could surprise clients
Auckland’s latest rating valuations are now live, revealing an average capital value (CV) drop of 9% for residential properties.
Auckland Council’s new data, based on market trends as of May 2024, may surprise clients reviewing their CVs today.
“If your residential property value has reduced more than the average (-9%) change between the two valuations, you can expect a smaller rates increase than the 5.8%,” Auckland Council chief financial officer Ross Tucker told 1News.
Industrial and rural assets outperform housing
While residential and commercial property values fell, industrial, lifestyle, and rural properties held firm or gained. Industrial property CVs rose 5%, and lifestyle and rural land values were up 4%. In contrast, commercial CVs dropped 5%, with residential down 9% overall.
City-fringe suburbs hardest hit
The largest CV drops occurred in inner-city suburbs like Albert-Eden, Maungakiekie-Tāmaki, Waitematā, Whau, and Puketāpapa, where values slumped 13-14%.
In comparison, outer areas like Franklin, Upper Harbour, and Hibiscus and Bays recorded minor CV declines of just 1-4%.
Why the CVs changed – interest rates at play
Auckland Council chief economist Gary Blick pointed to the rapid turnaround in monetary conditions.
“At the time of the 2021 rating valuation in June 2021, the official cash rate had been at an all-time low,” Blick told 1News. “In contrast, the 2024 rating valuation in May 2024, occurred when the OCR had been lifted to its recent high of 5.5%. Higher interest rates cooled buyer demand, leading to a decline in property prices.”
Despite the decline in Auckland – which remains “severely unaffordable,” according to the 2025 Demographia International Housing Affordability report – Blick said: “The median house price as at May 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today.”
Rates impact depends on relative CV shift
The updated CVs do not change the total rates collected, but they do determine how that cost is distributed.
“Most Auckland ratepayers will see some degree of rates increase from July 1,” said Tucker. “The average annual rates for a residential property valued at $1.29 million [will be] $4069 – an increase of $223 per year or about $4.30 weekly.”
For brokers: time to check client CVs
With valuations now live on the Auckland Council website and notices being mailed from Friday, brokers should encourage clients to check their CVs. Properties with smaller declines than the average 9% could face above-average rate hikes.
While rating valuations aren’t the same as market valuations, this is a valuable time to reconnect with clients who may be considering refinancing or reviewing equity for future borrowing. The shift in CVs offers a timely trigger for broader financial conversations.
