Dunedin city rating valuations are due to be sent to city property owners in early February. 

The re-valuations were carried out for the Dunedin City Council by Quotable Value in July 2022, a practice required at least every three years under the Rating Valuations Act 1988. The last re-valuation was in July 2019. In previous years, valuation notices have been sent to owners around November of the re-valuation year. I understand this year the council was asked by Quotable Value for more time.  

It’s worth noting that these valuations are for rating purposes only and are not market value. Indeed, the council website recommends owners wanting valuations for mortgage or marketing purposes obtain a registered valuation from a professional valuer.  An alternative and free service is to seek a current market appraisal from a real estate salesperson, who will visit the property. Note that appraisals from salespeople should be in writing and should use comparable sales. Most salespeople will give a price range and comment on comparable sales and the market. Valuers tend to give a definite price. 

Council rating value, also called capital value, is assessed using mass appraisal techniques, including using relevant sales data and council information, such as notified building work. Properties are not normally visited. Unlike professional valuations or market appraisals, rating values do not include chattels. Rating values are made up of an assessment of land value and improvements. There is often a wide difference between rating value and market value. For a start, when rating values are received by owners they are already several months old. The market could have changed significantly in that time, up or down. And certainly, an owner should not rely on current rating values from 2019 as an indication of market value. I have pointed out in previous articles that two similar properties alongside each other might have the same rating value but be in very different states of repair. One could have been beautifully maintained while the other has been let go and in need of renovations. Obviously, the market values will reflect that. 

If you disagree with your new rating value, you can object either to the council or Quotable Value. Information on how to do this is on the council website. Try this link for further information: https://www.dunedin.govt.nz/services/rates-information/general-valuations

You will need to include the valuation reference number, the property address, contact details and the reasons for your objections. If, for example, there have been improvements that did not need consent and the council or QV were not aware of them, you might seek a higher valuation. You are also asked to estimate the correct value. The council is advising last day for objections is 16th March 2023. After this time, there is a fee for objecting to a valuation. 

Note also that a higher rating value does not necessarily mean you will pay more rates. Your rates are assessed on rating or capital value as well as fixed charges. Your rates will increase, all things being equal, only if your rating value increases above the average increase in the city’s capital values.