Wellington Rateable Values - Changes 2024

Wellington Rateable values (RVs) are required by law to be reviewed every three years. The last assessment for Wellington was 1 September 2021, the next one will be effective on 1 September 2024.

1.    How will the new Wellington Rateable Values affect my rates?

The new Wellington Rateable Values do not change the total amount of rates collected by the Council.  The Council prepares its budget each year based on its commitments and projects for the year.  Currently this is about 18% higher for the next financial year 2024/2025. This means an 18% increase in what it must collect from rate payers.  The total rates needed is calculated as a percentage of the total rateable value for the city.   This percentage is applied to the value of your property to determine the rates you must pay.

If the change in value of your property is the same as the average, your rates increase will be the same as the budgeted increase (18% currently).

2.    How have values changed since the last rateable value (RV) was assessed?

Wellington home values have declined since the 2021 review of rateable values, as shown in the graph below. 

In September 2021 the average market value for a Wellington house was $1,223,787.  Three years later it was $974,187, a $249,600 decline, or 20%.  This is indicative for most homes in Wellington but there is variation between; price levels, location, type of property and condition.

Figure 1  Based on the data published by Quotable Value for its Monthly House Price Index.

3.    What’s the difference between the rateable value and the price I get on sale?

Rateable values are legally defined as the market value as at the date of the assessment (1 September).  Market value is also legally defined as the price that would reasonably be paid by a willing buyer and willing seller, both well informed and neither party being under duress.  This is normally what a well-marketed property would sell for under normal conditions.  Sometimes there are unusual circumstances that cause the price paid to be above or below market value.

Property markets are changing all the time, and it doesn’t take long for market values to move away from rateable values.

4.    Does the RV include the upgrading and additions I have done?

Wellington Rateable Values are assessed by Quotable Value (QV).  They maintain a database of information on all properties and update this when building permits are issued and inspect the properties externally with the three yearly reviews.

Values are updated when changes are made to the property, and on application if internal improvements have been made.  QV will also update the valuation if requested by the owner.

5.    Why does the Council set the value of my property?

Rateable values are independently assessed by QV, and these are based on sales, and are required to be the market value at the date RV’s are revised.

Council is not involved in setting the values and has nothing to gain from the updated assessments other than the rating burden being more equitable.

6.    Does the RV affect the sale price of my home?

There is no direct link between your RV and the price it would sell for.  The RV does provide a reference for buyers and marketers of property, and it is generally accepted there is some variation, particularly if significant time has passed since it was published and when the market is changing a lot.

When there are big differences between asking price and RV it does concern some buyers.  If significant upgrades have been made, sellers can get QV to update the RV for a fee.

7.    What can I do if my RV is wrong?

Within six weeks of the RV being published this can be challenged.  To do this an objection form can be completed and lodged online.  A QV valuer will review the assessment and could involve reinspection and discussion with you.

To successfully change an assessment, you will need to establish why you think the assessment is not correct.  You will need to show there are changes to the property that may not have been included, that there is an irregularity in the information used, or there are sales of similar properties in the area that indicate values are higher or lower than your property.

Much of the information is available on-line, and a QV e-Report could provide much of the information needed.  Websites such as Homes.co.nz can provide information about your property and recent sales.

As valuers we can also provide and analyse sales and guide you through the objection process.

If QV does not agree to a revision and you still have significant concerns, an objection can be lodged with the Land Valuation Tribunal, that is part of the Justice Department.  This needs to be done within 20 days of receiving the decision from QV on your objection to them.  The Tribunal consists of a District Court Judge and two registered valuers.

Max Meyers & Co. specialise in Wellington residential property valuation.

Contact Max on email max@mmco.nz or call 0279 482 315.