Research

City of Cape Town's General Valuation for 2015: Property value passes trillion Rand mark

The City’s latest general valuation shows that the total valuation of all rateable properties has increased from R911 billion in 2012 to R1 156 billion in 2015. Property owners would therefore be encouraged to see that their property investment is still increasing in value in most areas in Cape Town.

In total there are 845 764 rateable properties on the General Valuation Roll (GVR) for 2015. The largest portion of properties comprises residential properties (719 681). It also includes, among others, 31 296 commercial properties.

The General Valuation (GV) for 2015 was signed off by the Municipal Valuer on 29 January 2016. It will be published on 19 February 2016. Property owners will also be able to view the latest GVR for 2015 by visiting www.capetown.gov.za/propertyvaluations.

Property owners are encouraged to visit the City’s public inspection venues, of which there are 17, from 19 February 2016 for an opportunity to view their property valuation on the GVR for 2015 and to engage with staff on the information that the City has at its disposal, which includes the sales data for a particular area.

The City produces a GVR once every three years. The percentage increase (or decrease) on the value of a particular property or properties does, however, not necessarily equate to the percentage increase/decrease in future rates payments.

The rates adjustment will be tabled at the end of March at the start of the public participation process on the City’s budget.

“Property valuations are carried out regularly to ensure that property owners pay a fair share of the total rates income required to operate the City”.

“Property rates contribute to various municipal services which are to the benefit of all residents but which do not generate an income. This includes disaster management services, roads, traffic and street lights, and the maintenance of community facilities and public spaces. Property valuations are not done to chase a surplus or to make money out of ratepayers. The budget needed for these municipal services is carefully calculated and property rates contribute to this budget”.

“We are mindful that we have to provide top quality services and manage the City in a financially sustainable and responsible manner. We are especially conscious of the fact that our ratepayers are not immune to the macro-economic pressures and uncertainties of our country,” said the City’s Executive Deputy Mayor, Alderman Ian Neilson.

The City’s GVR is based entirely on the market value on 1 August 2015. The City Valuer makes use of a computer modelling programme called Computer-Assisted Mass Appraisal (CAMA) which uses sales data, aerial imagery and other property information (for example the property’s location, size, number of rooms, outbuildings, general quality and view) to determine the market value of a property.

The results are then reviewed by professional property valuers and adjusted if necessary. There is no involvement by politicians in the determination of property values, nor may they be involved in dealing with any objection to a valuation.

If a property owner disputes the valuation of their property, a well-motivated objection, in which the property owner must prove that the market valuation is incorrect, may be submitted by no later than 29 April 2016 to the City Valuer. Objections may also be lodged via the City’s e-services/resident’s portal.

As the City’s GVR is based entirely on the market value on 1 August 2015, for the purposes of any objection to a valuation, the percentage change from the last valuation is not relevant, nor is the impact on the rates bill. The only consideration is whether it is the market value or not.

Property rates based on the GV for 2015 will be billed from 1 July 2016. The proposed rate-in-the-rand will be tabled by the City’s Executive Mayor at the end of March 2016, and will be made available on the City’s website. As soon as the rate-in-the-rand has been tabled, property owners will be able to use the rates calculator on the website to determine the rates payable on their property as from 1 July 2016.