Property values in Hamilton have increased by 53 percent since 2018.
File image: House for sale Photo: RNZ / Maree Mahony
The average capital value of a residential property is now $922,000.
Land values are up 67 percent and commercial and industrial property has increased by 40 percent .
The city is now worth $71.4 billion.
Councils are required by law to assess rating valuation of every property to help calculate what rates will be paid for the following three years.
The Hamilton City Council said a revaluation doesn't mean council collects more rates, although it may change the way its budget is divided among ratepayers.
The new valuations represent the likely selling price if the property had sold in September last year.
The council said it is a snapshot in time and prices may have changed.
Its Financial Support Services Manager Matthew Bell said Hamilton's substantial growth in the past few years has been due to several factors including low interest rates and increases in both first home buyer and investor activity.
"Demand for housing has continued to drive infill development such as units and townhouses, increasing values in some of Hamilton's more established suburbs. Large blocks of land in the future development areas of Peacocke and Rotokauri have seen the larger increases driven by the demand for land across the city. Hamilton's industrial market has also seen high growth following nationwide trends."
Hamilton City Council is proposing a 4.9 percent average rates increase from July 2022. This will be confirmed by council in June 2022.