Auckland Council has completed the latest round of property rating valuations, the first since the devastating weather events struck homes across the region in early 2023.
Property rating valuations happen every three years and help determine how much each property owner contributes in rates.
What impact has the 2023 storms had on property valuations?
The property market has changed since 2023, and buyers are more cautious since the Auckland Anniversary weekend floods and Cyclone Gabrielle. That shift in behaviour is being reflected in how homes in storm-affected areas are being bought and sold.
Generally, natural hazard information is having a growing influence on buyer decisions (which impact sales information) but it is different across different suburbs of Auckland.
Council’s valuers say it is difficult to quantify the effect of the 2023 storms across suburbs in flood plains or flood prone areas, but where there was evidence of flood hazards affecting buyer behaviour, property values have been adjusted to take this into account.
The valuers considered hazard information when valuing all properties, along with any other relevant information related to risks like flooding and coastal inundation.
For storm-affected properties, placard and categorisation data was also considered. This information was then compared with sales evidence in the area, along with other market information to understand how these risks affect what buyers are willing to pay.
How have storm-affected properties been valued?
All Auckland properties – including storm-affected ones – are valued using a mass valuation approach. That means valuers don’t inspect each home individually. Instead, they use a consistent method across Auckland to value properties based on sales trends and other data.
For storm-affected homes, valuers have considered how the real estate market has reacted following the storms, by looking at property sales in the area to identify any impact on house prices.
A range of data sources fed into the valuation work, including placard information, property categories (Category 2 or 3), council flood and coastal inundation maps, and Natural Hazards Commission (formerly EQC) claims data.
Some kerbside inspections were done by valuers, and where they’ve seen obvious damage to a property’s land or buildings, this will have been considered.
If you do not agree with the value of a property, you can object to it before the objection due date of 25 July 2025.
How have you valued storm-damaged properties that had a red or yellow placard?
The standard approach for valuations uses market sales and other known data, such as hazard information, to adjust the property value either up or down.
In the case of placarded properties, the valuer has considered what impact having a placard has had on house prices and this may be reflected in your property valuation.
In the case of properties that sustained damage but have completed consented repairs and received a Code Compliance Certificate (CCC), properties are valued based on market sales and the repairs you have done.
If the property repairs didn’t need council consent, you can still let us know about them. It’s important to share any extra information with us if you think something’s missing or incorrect in your valuation.
Will my new rating valuation affect the price I’m being offered for my Category 3 home?
No, the new rating valuation values will not be used in Category 3 buy-out offers. Buy-out offers will continue to use a pre-event valuation date of 26 January 2023. Information about the valuation methodology for the Category 3 buy-out is available in the Category 3 Handbook.
Will the 2024 CV be used for the Category 2P feasibility or grant calculations?
No, there’s no change to the Category 2P scheme because of the rating valuations. We will continue to use the 2021 CV to determine feasibility and your grant calculation.
To find out more about revaluations visit the Auckland Council website.
