Hamilton Council Valuations Issued: What Hamilton based Short Term Rental Hosts Need to Know

By Scott Mears - Aspire PRO Enterprises

Hamilton City Council has just released its 2024 property revaluations, based on market conditions as of 1 September 2024. 

Residential properties saw an average 12% drop in capital values since the 2021 peak, while commercial and industrial values rose by about 6.3% (hamilton.govt.nz, scoop.co.nz). 

These updated valuations will come into effect for rating purposes on 1 July 2025, as part of the Council’s Long-Term Plan—which also projects a 15.5% average rate increase for 2025/26 (hamilton.govt.nz).

Importantly, these valuations don’t reduce the total rates bill—they rebalance it. That means if your property’s value has fallen more than average, your rates rise may be less than 15.5%, while those with smaller declines, or even value increases, could see steeper hikes (hamilton.govt.nz). 

Property owners have until 8 August 2025 to lodge objections, should they feel their valuation is inaccurate (hamilton.govt.nz).

Impact on the Short Term Rental (STR) Market: Rates, Strategy & Cash Flow

1. Cost Adjustments – Location Matters

• STRs in neighborhoods with sharper CV drops may enjoy slightly lower rates increases, reducing operating costs.

• Properties in areas with smaller CV reductions, or flat CVs, will see full or above-average rate increases—pushing hosts to raise nightly rates to maintain margins.

2. Suburb-Level Strategy

• Central suburbs with steep CV falls might attract cost-sensitive tourists—hosts could adapt by offering mid-tier rates and targeting value travellers.

• Conversely, STRs in suburb zones like Rototuna, Flagstaff, or Hamilton East—where CVs have held firmer—must lean on premium branding and superior guest experience to offset rising rate bills.

3. Budget Forecasting

With rate swings now tied to valuation changes, STR owners should reassess cashflow models, ensuring profitability across different rate scenarios. This includes factoring in potential CV objection wins, and seeing how they buffer cost increases.

4. Local Regulatory Insight

A more gradual CV reduction offers Council wiggle room to smooth rate impacts—meaning no sudden spikes in rates. Still, proactive operators should check new rate notices in July, weigh objection options by August and lock in pricing plans early.

STR Host Checklist: Stay Ahead of the CV Curve

Task Why It Matters

Check your 2024 CV online Know your exact CV change to assess relative rate impact

Model rate scenarios (-12%, -8%, -5%) Adjust your nightly rates and cash flow accordingly

Consider lodging an objection If your CV drop exceeds average significantly

Segment guests by suburb value Offer value stays in higher CV-drop areas; premium in stable zones

Update your financial projections Reflect new rates in budgets and marketing plans

Bottom Line

The new Hamilton CVs create shifts in operating costs—but also unlock value opportunities. STR hosts who act now—by checking their CVs, lodging objections where applicable and adapting pricing by suburb—will stay profitable in the evolving market. 

If you'd like help assessing your property's STR potential, we’re here to help!