Property Valuation Tools: Understanding Government Valuations (GV), Rateable Value (RV), Capital Value (CV)

4 October, 2023 | Kandice Reilly

Article reviewed and updated 17 July 2025

When assessing the value of a property in New Zealand, there are various tools that you can use to help form your assessment. Property valuations provided by Local Councils are often considered an important factor in this.

“Priced below CV” or “Sold $200k above CV” are common phrases used in Real Estate advertising and media reporting. But how are these valuations calculated and how much weight should you give to them when considering how much a property is worth?

Capital Value (CV), Rateable Value (RV) and Government Valuation (GV)

CV, RV and GV all mean that same thing (the remainder of this article uses the terminology used by Auckland Council – CV – to avoid confusion) – They all refer to the value of the property set by the local authority/Council for the purpose of determining and allocating what the rates for the property will be.

• “Capital Value” is the term Auckland Council uses for property valuations when determining local government rates.
• “Rateable Value” refers to the fact that the valuation is used to help determine the rates for the property.
• “Government Value” highlights that the valuations are determined by the local Government.

Note: Sometimes people will refer to a registered valuation as an “RV”. It is important to note that a registered valuation is different to the rateable value. A registered valuation is conducted by a qualified and registered valuer and includes an in-person inspection of the property.

How is the property value calculated to determine the CV?

The CVis calculated using the data and information that Council has access to. This includes the property type, location, land size and topography, zoning regulations, floor area, consented work (renovations, newbuilds, subdivision etc) and data from comparable sales in the area.

The Council uses this information, together with computer models and algorithms to come up with an estimated market value. Each Council has their own method for calculating the market value. Some Councils will outsource this work to a valuation service provider (e.g. Quotable Value New Zealand aka QV).

The final property value is made up of:

• Capital Value: The Council estimates the CV as being the most likely selling price at the date of valuation.
• Land Value: The Council also estimates the Land Value (LV) which is the most likely selling price of the land without any buildings or improvements.
• Improvement Value: The Council estimates the Improvement Value (IV) to be the difference between the CV and the LV. The IV takes into account improvements to the land (e.g. buildings, driveways, services etc) but does not necessarily reflect the actual value or replacement costs of any buildings. The IV should not be used for determining how much you should insure your property for.

Can I rely on the CV when buying or selling a property?

As there is no in-person inspection included in the assessment of the property value, the factors used to assess the value are restricted to the limited information Council has access to. This means that the state of the property, the quality of the fixtures and chattels, any recent refurbishments etc are not included in the valuation assessment – two neighbouring houses that are the same size, but one very run down and one newly refurbished could receive the same CV.

Property valuations are only re-assessed by the Council every three years which means that the information used to determine the current CV of a property could be out of date.

In different markets, properties can sell significantly above or below CV. Because of this, it is important not to solely rely on the CV when determining how much to buy or sell a property for. The CV should be used in conjunction with other factors to help influence your personal view on how much a property is worth.

How to access the CV of a property

The CV of a property is available to everyone – you do not need to be the owner of the property to find it out. Most Councils have this information available on their websites.

To access this information for a property in the Auckland Council region, simply visit https://www.aucklandcouncil.govt.nz/property-rates-valuations/Pages/find-property-rates-valuation.aspx

Challenging the CV

You have the right to object to the CV for your property if you believe it is inaccurate or unfair. This can only be objected to by the ratepayer (owner of the property) and must be done before the cutoff date.

Making an objection can be a lengthy process and can result in an increase or decrease in the CV. There is no guarantee that the CV will be revised as a result of your objection.

Please enquire with your local Council for confirmation on when the cut-off date for filing an objection is and what information is required in your objection.

The access this information for a property in the Auckland Council region, simply visit https://www.aucklandcouncil.govt.nz/property-rates-valuations/our-valuation-of-your-property/object-property-valuation/Pages/default.aspx