Why CV Changes Don’t Matter for Auckland’s Premium Property Market

The release of Auckland’s updated Council Valuations (CVs) in mid-June 2025 has sparked immediate interest from both buyers and sellers.

In areas like Remuera and coastal Rodney, sellers have been quick to ask whether perceived gains or losses reflect real market value, while some buyers - especially those new to the market - are questioning why listing prices and CVs don’t always line up.
 
But in the high-end and lifestyle sectors, CVs have never been a true measure of market value. Experienced buyers understand this. They tend to look past CVs, focusing instead on recent comparable sales, market activity and the unique features of each property. According to CoreLogic data, around 60% of Auckland property sales in Q2 2025 settled at least 10% above CV - a gap that is even wider in the high-end and lifestyle segments.

A steady and cautiously positive mood

The local market feels cautiously optimistic. According to Tony Alexander’s June 2025 Real Estate Agent Survey, a majority of agents report increased buyer interest compared to previous months, with around 55% noting growth in first-home buyers. This is supported by easing inflation and the Reserve Bank signalling a possible OCR cut later this year. In the Matakana and Omaha corridor, we’re seeing steady open home attendance and more off-market discussions.

Vendors are becoming more realistic about pricing, and buyers - especially those in the $3 million-plus bracket - remain engaged but considered in their approach.

CVs are only a small part of the premium market picture

When advising clients in the premium market, I treat CVs as only a small part of the overall value picture - and then only on a case-by-case basis.

Council valuations are generated en masse, are often 12 to 18 months out of date and don’t account for key factors like architectural quality, bespoke design, sea views, privacy or recent improvements. These are the things that can materially influence value in the high-end market.At NZSIR we rely on detailed market appraisals, recent comparable sales, local demand trends and data from a range of sources - including REINZ, CoreLogic, and Realestate.co.nz - to guide pricing. This offers a more accurate reflection of what the market is willing to pay right now.
 
While our advice to clients hasn’t changed following the CV updates, we have adjusted the way we communicate with sellers. Some online platforms now display CVs by default, and we make sure our clients are ready to address this if it comes up with buyers. The focus remains on market reality, not a council-assigned number.

Real sales reflect real value

A standout example from May 2025 illustrates the disconnect. We recently sold a coastal waterfront property for over double its CV. The result was driven by a sophisticated national and international campaign targeting high-net-worth offshore buyers who increasingly view New Zealand’s premium coastal property as exceptional value. This isn’t an anomaly. Interest.co.nz and other sources are reporting a growing divergence between CVs and actual sales in the luxury segment, especially post-COVID, where scarcity, lifestyle appeal, and global buyer interest are shaping demand.

CVs are a rating tool - not a market value

CVs were designed for rating purposes, not to set market value. They’re based on bulk modelling, not physical inspections and can’t reflect the nuance, rarity, or emotional pull of premium property. Nor do they capture off-market sales or unique design features - factors that often drive buying decisions at the upper end of the market.

What sellers should focus on

For owners of premium property, I recommend focusing on comparable sales from the past six to nine months, understanding current buyer demand - including offshore interest - and seeking a professional, tailored market appraisal that reflects the individuality of their home.

Early engagement with an agent who understands the high-end market is key.

It ensures that pricing and marketing decisions are based on real-time market insight - not on a council-generated figure designed for rating purposes. At NZSIR we rely on detailed market appraisals, recent comparable sales, local demand trends and data from a range of sources - including REINZ, CoreLogic, and Realestate.co.nz - to guide pricing. This offers a more accurate reflection of what the market is willing to pay right now.

 
While our advice to clients hasn’t changed following the CV updates, we have adjusted the way we communicate with sellers. Some online platforms now display CVs by default, and we make sure our clients are ready to address this if it comes up with buyers. The focus remains on market reality, not a council-assigned number.

Real sales reflect real value

A standout example from May 2025 illustrates the disconnect. We recently sold a coastal waterfront property for over double its CV. The result was driven by a sophisticated national and international campaign targeting high-net-worth offshore buyers who increasingly view New Zealand’s premium coastal property as exceptional value. This isn’t an anomaly. Interest.co.nz and other sources are reporting a growing divergence between CVs and actual sales in the luxury segment, especially post-COVID, where scarcity, lifestyle appeal, and global buyer interest are shaping demand.

The long-term view remains positive

Looking ahead, the outlook for Auckland’s premium property market remains strong. Supply of premium coastal and heritage homes is limited, and international buyer interest is growing - particularly post-election.

Auckland also offers relative value compared to cities like Sydney, Vancouver, and Los Angeles.

Since early 2024, we’ve seen a steady recovery in premium property values. Barring any major global shocks, I expect this growth to continue over the next three to five years, especially in tightly held coastal and heritage locations.

In summary

While CV updates generate plenty of talk, they have little bearing on what high-end property actually sells for. Real value is driven by a property’s uniqueness, market demand created through superb branding and quality marketing – not by a council valuation intended for rating purposes.

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Winston Kidd, Branch Manager - Auckland North

A long-standing expert with New Zealand Sotheby's International Realty, Winston's 25 years in luxury real estate means his guidance of the North Shore sales team ensures clients receive a world-class service and exceptional results.