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Valuation

Introduction | 2008 general revaluation | Reasons for revaluing your property | How valuations affect your rates | Understanding your valuation notice | How values are assessed | Making an objection to property value | Changes to the valuation process | 2008 valuation changes by suburb

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How values are assessed

The process of revaluation reflects the changing nature of Auckland city, it's development as New Zealand's largest centre of commercial activity, and it's growing population. Properties are valued on a site by site basis and in context with other properties in the area and other suburbs.

The valuation process consists of the following main stages:

1. Property inspections

Before each three yearly revaluation we inspect approximately half of all residential properties from the roadside to check that our records are up to date.

Checking half the properties means that every property will receive an inspection each six years. In addition, we inspect between 5,000 and 6,000 properties annually as a result of building consent revaluations.

For each inspected property, we check the property classification (ie house, town house, apartment, factory or shop) to see that it is correct. We review improvements made to the property, including garages and pools, to see whether any have been made or removed since the previous valuation. We also review the quality and condition rating of improvements. Land attributes, such as view and contour, are checked for accuracy and consistency with surrounding properties.

2. Sales and rental analysis

Valuers review what properties are selling and renting for in your area.

We obtain information about residential and commercial rental levels from various sources (tenancy services, market surveys, real estate agents, property management companies).

3. Valuer General's audit

The Rating Valuations Act 1998 requires the Valuer General to audit revaluations before giving approval for the values to be published.

A rigorous audit process is carried out over a period of three weeks. This audit

• checks the processes used to prepare the revaluation
• carries out statistical analysis of sales to determine the accuracy of the assessed values
• may require random checks of properties.

4. Publishing of proposed values

Once the Valuer General approves the process and the values, we publish a public notice and send out a valuation notice for each separate rating unit to the owner of the property and the ratepayer, if different. The notice advises the new values and the closing date for objections.

5. An objection period

The Rating Valuations Regulations 1998 prescribes that objections must be lodged before the expiry of the date specified in the public notice. The objection period is 30 working days calculated from the date of the public notice for general revaluation and 20 working days for other valuations.

6. Property rates setting

We use finalised values for setting rates from 1 July of the year following their publication unless they have been amended as a result of an objection review or there has been a change to the property. We continue to use the published values for setting rates until the objection is finalised.

We use the annual value rating system, which means property values will be based on either:

• the amount a property might earn in one year if rented (the estimated gross less 20 per cent, or 10 per cent if there are no buildings on the land) or
• 5 per cent of the property's capital value

It is a requirement of the Rating Valuations Act 1998 that we use the highest figure of these two options to determine the rateable value of the property. This means that a sample of residential and commercial property owners will receive an enquiry requesting rental information.

Click here if you wish to know more about the background to these requests.

Updated October 2008