Property valuations

No. The revaluation helps us work out individual ratepayers’ share of rates, but it doesn’t affect the amount of money Council collects from rates as a whole.  

The total amount of rates that Council needs to run the city is determined through the long-term plan and annual plan budgeting process. The three-yearly property revaluation does not change this. The valuations simply help determine how that money is divided across all ratepayers. 

As set in the 2024-2034 Long-Term Plan, a 15.5% average rates increase will apply from 1 July 2025.  

How your rates change will depend on how your property’s Capital Value has changed compared to the average for the property type.  

Residential property makes up about 91% of all properties throughout the city. 

Most residential properties’ capital values have decreased from the highs of 2021. The average decrease across all residential property is 12%  

Under Council's 2024–2034 Long-Term Plan, an average rates increase of 15.5% is proposed for the 2025/26 year.  

For most Hamiltonians, the change to their rates will be close to the average 15.5% increase.  

Properties with an above-average value change will experience higher rates rises, and properties with a below-average value change will see smaller rates rises.

Example  
To demonstrate how rates may change, the below example is based on the average capital value decrease of 12% across residential property throughout the city,   

Your rates won’t necessarily change by the same amount that your rating valuation has changed by.  

The revaluation helps us work out individual ratepayers’ share of rates, but it doesn't affect the amount of money Council collects from rates as a whole.   

As set in the 2024-2034 Long-Term Plan, Council has forecast a 15.5% average rates increase from 1 July 2025.

The updated rating valuations are based on property market trends and recent sales activity as at 1 September 2024. Therefore, the valuations are not intended to reflect today’s market value – instead, the information will help enable rates to be fairly shared across all Hamilton properties. 

Not all residential properties will have changed by the same amount.  This is because our valuers must consider property sales and other market information across different property types, characteristics, use, construction and location. 

If you need a current market valuation, you can purchase this from a registered valuer. Council is not involved in this, and it won’t affect your rating valuation.  

Land value: The value of just the land as if it had no buildings on it. This is based on its highest and best use for e.g. if the land can be developed.   

Capital value: The total value of your property including land and buildings. This is an estimate of what your property may have sold for on 1 September 2024 (excluding chattels).  

Value of improvements: The value of improvements is simply the difference between your capital value and land value. It does not represent the cost to build or the insurance value of buildings. 

Commercial and industrial properties are determined by the market and other factors such rental returns. They do not include chattels, nor do they include GST.

The value of improvements is a rating valuation figure and is determined in a different way to a traditional ‘market’ valuation. It may not necessarily align to the replacement value of the dwelling or structures. This is because it represents the difference between your property’s capital value (total value) and land value (value of the land alone). Sometimes, your land value may make a higher proportion of your total (capital) value, particularly if there is development potential, and buyer demand for similar land.  

A rating valuation must take into account the ‘highest and best use’ of the land. Often, large sections and corner sites suitable for development have a higher proportion of land value when compared to a smaller site. This is because further development of the land may be deemed as the ‘highest and best use’. This would be supported by sales evidence, particularly in a strong development market. If the land value has increased at a higher percent than the capital value, then the value of improvements must decrease, and vice versa.

Councils hold details on every property in New Zealand, including yours. Properties with similar attributes such as land area, and age of building, condition and location are grouped together.   

A value trend (determined by relevant sales) will then be applied to the group in which your property sits.

A house that has been newly built or renovated since the last revaluation will receive an updated rating value that reflects what it would have been worth if it existed on 1 September 2024.  

Having every property’s rating valuation based at the same time, ensures relativity in the rates calculations used across the city.