New CVs are out - what does it mean for the value of your home?

Auckland Council has just released its long-awaited updated Capital Values (CVs), and there’s been a lot of talk about what they mean for homeowners. So—what does your new CV actually say about your property’s real value?

Take it with a grain of salt.

The average residential CV across Auckland has dropped by 9% since 2021, with central suburbs like Mt Eden, Ponsonby, and Avondale seeing declines of up to 14%. In contrast, outer suburbs and rural areas such as Rodney, Franklin, and Pukekohe held steady.

If you’re a seller, don’t worry about whether or not this will lower your property value. while it is still important to bear in mind that many buyers still treat CVs as a pricing guide, there is no strong factual link between CVs and actual sale prices.

These CVs reflect the market as at 1 May 2024, during a very different economic climate compared to 2021, when interest rates were at record lows and demand was booming. Today, with the OCR at 5.5%, property prices have naturally softened. So while the numbers may seem confronting, they simply mirror market cycles—not necessarily your home’s current market value.

And for buyers—keep in mind:

The CV is not a market appraisal. As Auckland Council’s CFO Ross Tucker stated, CVs are mainly a tool to fairly distribute rates—not to estimate what a home would sell for. In fact, Nick Goodall from CoreLogic called the new CVs “old news,” as they don't capture recent market momentum or specific property upgrades.

My take? Use your CV for rates—not real estate decisions.

If you’re thinking of selling, refinancing, or just want to understand what your home is really worth, I’d recommend a free, no-obligation market appraisal. It's the only way to get an accurate read of your home's true value—based on current buyer demand, not just a council algorithm.