Revaluation and how it affects rates

Your Rating Valuation is made up of three components:

• Capital Value (CV) – this is what your property is likely to have sold for at the date of the council’s last general valuation, excluding chattels.

• Land Value (LV) – the most likely selling price of the bare land at the date of the council’s last general revaluation.

• Value of Improvements (VI) – this is essentially the difference between the land value and the capital value. This is not an estimate of the cost to rebuild your home and should not be used for insurance purposes.

Land values and capital values are assessed independently of each other — meaning the difference between the two is effectively the value of improvements. In situations where land values have increased at a significantly higher rate than capital values, the value of improvements (e.g. your house, other buildings, landscaping etc.) can sometimes fall.

Land values are based on bare land sales and sales of properties bought for redevelopment. For a property that has a house on it, the assessed capital value (i.e. the land and buildings) is based on comparison with sales of similar properties around the time of the revaluation.

So, if you subtract the value of the land (as if it had been vacant) from the Capital Value (estimated sale price of the property), you get the value of the improvement.

Please note: Queenstown Lakes District Council uses the capital value, not the land value, in setting rates.

No, the values were set as at 1 September 2024 — any changes to the market since then cannot be reflected in your latest rating valuation. Likewise any change to improvements that result in an amendment to the Rating Valuation (eg. A new dwelling) until the date the new Revaluations are made publicly available will be reflected at the previous Revaluation date of 01 July 2021.

Not necessarily. The objection decision value will be based on sales evidence around the revaluation date and may result in a value more, or less, than the contended value.

Yes, absolutely, this is one of the main reasons that people object. Add photos of these improvements to your objections, so our valuers can gain a good appreciation of what has been done.

Rating valuations are undertaken using mass appraisal valuation techniques and are intended to indicate the likely selling price (excluding chattels) of a property at a specific date — in this case 1 September 2024.

If you’re thinking of selling, it’s important to note that the property market may have changed since the 1 September 2024, and we would recommend that you seek professional advice from a valuer or real-estate agent prior to listing your property for sale.

If you do not agree with their rating valuation, you have a right to object through the objection process until 24 April.

https://www.qv.co.nz/about/about-rating-valuations/