Cape Town - For the first time, the value of Cape Town’s rateable property, has surpassed a trillion rand.
The 2015 valuations, which will officially be published today, show the total value of Cape Town property has increased from R911 billion in 2012, to R1.1 trillion at present.
The city council produces a General Valuation Roll (GVR) once every three years, and adjustments are made annually until a new valuation is carried out.
The city council’s latest GVR is based on the market value of properties as at August 1, 2015.
Last year, 845 764 properties were valued, the majority of which - 719 691 - are residential.
The rest are commercial properties. Property owners will soon be receiving an official notice in the post or via e-mail informing them of the 2015 valuation of their property.
“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,” said deputy mayor Ian Neilson.
Neilson said property rates contributed to a range of municipal services from which the city council does not derive an income, including disaster management, 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,” said Neilson.
He said the percentage increase or decrease in the value of a particular property does not necessarily equate to a future increase or decrease in rates payments.
The proposed rates adjustment would be tabled at the end of next month when the city council tables its budget for the 2016/17 financial year.
Property owners will then be able to calculate the new rates which will be billed from July 1.
“We are mindful that we have to provide top quality services and manage the city council 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 Neilson.
The city council valuer makes use of a computer modelling programme called Computer-Assisted Mass Appraisal (Cama) to determine the market value of a property.
Cama uses sales data, aerial imagery and property information like the location, size, number of rooms and outbuildings to make a determination.
The results are reviewed by professional property valuers and adjustments made if necessary.
Property owners who wish to dispute the valuation of their property will have to supply a well-motivated objection, proving that the market valuation is incorrect.
Objections based on the percentage change from the last valuation will not be considered, nor the potential impact on the rates bill. Objections must reach the city council valuer by no later than April 29, and can also be lodged via the city council’s e-services residents’ portal.
Property owners can inspect the 2015 General Valuation Roll at 17 council buildings, and speak to city council staff about the sales data for a particular area.
The new valuations are also available on the city council’s website, www.capetown.gov.za/propertyvaluations .
CAPE ARGUS