A rating valuation is the council's mass-appraisal value used to set rates. Why it's a poor guide to market value.
A rating valuation is the value a council assigns to a property in order to apportion rates. It's also called Capital Value (CV), Government Valuation (GV) or Rateable Value — the terms are used interchangeably.
By mass appraisal — computer modelling across a whole council area at once, using sales data and property attributes. There is usually no inspection, not even a drive-by. Revaluations typically happen about every three years.
The valuation is split into land value and improvements value, which together make the capital value.
Apportioning rates between properties. A council sets its total rates requirement and divides it across the ratings base — so what matters is your property's value relative to others, not the absolute figure.
RV is not market value and is not intended to be. It's a modelled figure that may be years old and was produced without anyone looking at the property. Properties routinely sell well above or below RV.
"Sold for X% above RV" is a weak comparison, particularly late in a revaluation cycle when every sale in the area is above RV. It says more about the age of the valuation than the quality of the deal.
Your rates don't rise just because your RV rose. If every property in the area rose similarly, your share of the total is unchanged. Rates rise when the council increases its total requirement, or when your value rose faster than the average.
Last reviewed: 1 August 2026 · ---
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