Does a Lower Capital Value Mean a Lower Sale Price in Tauranga? Not Necessarily.

How do lower CV's actually affect property sell prices?

Many Tauranga property owners have seen changes in their capital values (CVs) following the latest council revaluations. For some, that means a lower CV than expected—and with it, a concern: will this impact the sale price if they decide to sell?

Based on robust research out of Auckland, including a detailed study by Dr. Olga Filippova, the answer is clear: CVs have little to no influence on actual sale prices.

The study compared hundreds of property sales with increased, decreased, or unchanged CVs and found no statistical impact on the final selling price. In a dynamic market like Tauranga—shaped by school zones, lifestyle amenities, and evolving infrastructure—it’s the buyer experience and recent comparable sales that drive results.

What Matters More Than CV:

• How well the home presents to buyers

• Recent market activity in the neighbourhood

• Smart pricing and strategy

• Seasonal timing and buyer confidence

While CVs still play a role in rate calculations, they are not a reliable reflection of what your property might fetch on the open market. Tauranga sellers should treat CVs as one of many data points, not the definitive guide to value.

As property managers, we aim to keep our landlords informed—not just about tenancies, but about the market as a whole. Understanding the limits of CVs is key to making informed decisions over the long term.