Capital Value (CV)

Capital value (CV) is one of the three components of a council's rating valuation. It represents the total assessed value of the property — the land plus all buildings and improvements. The other two components are land value (the value of the bare land alone) and improvement value (the difference between capital value and land value).

Councils are required to revalue all properties in their district at least every three years. The valuations are carried out by registered valuers using mass-appraisal techniques — they look at recent sales data, property characteristics, and market trends to estimate values across the district.

Capital value is the figure most commonly quoted as the 'council valuation' or 'RV' (rating valuation). While it provides a useful reference point, it's a mass-appraisal estimate and may not reflect the true market value of a specific property. Properties regularly sell for more or less than their CV depending on condition, location, market conditions, and buyer demand.

Use the CV as a reference point, not a price guide. Compare the asking price to the CV to understand whether you're paying above or below the assessed value, and investigate the reasons for any significant difference.

The CV is also useful for estimating future rates — if the CV increases at the next revaluation, your rates will likely increase too. Understanding the CV helps you budget for ongoing ownership costs.

Capital values are publicly available from your local council's website, from QV (qv.co.nz), or on the LIM report. The real estate listing should also show the CV. Your council can provide details on when the last revaluation occurred and when the next is scheduled.