Councils generally update a property's capital value (CV) every 3 years, however in some areas this can be slightly longer.   ​

 

A capital value consists of three separate values; Land value (LV) + Improvement Value (IV) = Capital value (CV).  The Land value (LV) represents the probable freehold price of the land on the council's valuation date, encompassing development work such as draining, excavation, and vegetation clearing. The Improvement Value (IV) is the difference between the CV and LV values. IV doesn’t mean the value of the actual building on the land. It’s just the difference between the CV and LV.  The Capital value (CV) assesses the probable sale price of a freehold property on the council's valuation date. It includes land value but excludes chattels, and other specific features for the property, with GST applied according to property type.

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A property's CV is generally reassessed on a mass appraisal basis by the council, properties are reassessed without a physical inspection and without identifying observable features or risks in the CV reassessment. Consequently, the CV of a property can be considerably higher or lower than a property’s true worth, and is not a good metric for assessing how much a home will sell for.

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How will an updated CV impact my property's HomesEstimate?

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Our estimate model uses multiple data points to generate a property estimate.  The impact of a new capital value on the estimate is based on the property's attributes, whether the property has had a valuation report loaded or sale recently as well as comparable property sales for the area.  For properties that have recently had a valuation report loaded or a recent sale, the impact of the capital value will be minimal.  Whereas for properties where there is limited data and where the property has not had a recent sale the impact of the CV update could see a quite dramatic change to the property's estimate.  Generally the estimate value will trend towards either an increase or a decrease value range depending on the previously calculated estimate value.

 

The accuracy of our our property estimates depends on the availability and accuracy of the data provided for that specific property.  Please refer to our help article on HomesEstimate accuracy and homeowner updates.