Cape Town's property valuations rise by 17%, but ratepayers face increases of up to 140%

The City of Cape Town (CoCT) has unveiled a new set of property valuations, revealing an average increase of 17% for residential properties. However, the Cape Town Collective Ratepayers' Association (CTCRA), representing around 10% of the city’s residential properties and 60% of collected residential rates, claims that many of its members are facing valuation increases significantly higher than the reported average—ranging from 25% to a staggering 140%.

Alarmingly, these increases are being applied without any improvements to the affected properties, raising flags amidst an ongoing affordability crisis in Cape Town's housing market.

As residents grapple with these daunting property valuations, the City has released a statement branding the increases as “good news.” The CoCT aims to provide “relief” to ratepayers with a lowered “Rate-in-the-Rand” (RiR) for residential properties by 10.2%, alongside an increase in the “rates-free benefit” threshold for properties valued at R500,000, up from R450,000. Furthermore, the City has proposed extending this benefit to properties valued up to R8 million, an increase from the previous R7 million.

However, many are questioning the validity of the City's claims, asserting that the supposed relief is misleading. While the reduction in the RiR may soften the blow for certain ratepayers, it does not account for those whose properties have increased significantly in value. Properties that see a rise of more than 11% in valuation will still incur substantial rate increases. Given reports of valuation hikes reaching up to 140%, it is evident that these residents will face steep increases in their rates bills—on top of already significant rates seen over the past year.

Moreover, rates are only a fragment of the municipal bills tied to property values. In its 2025/2026 budget, the CoCT linked fixed charges for essential services, including water and sanitation, to property values. This strategy can add significant amounts to municipal bills, with these fixed charges sometimes accounting for one-third of non-consumptive charges. Alarmingly, the City has provided little clarity on how these fixed costs will change alongside the property valuations.

The CTCRA has condemned the CoCT for irresponsibly announcing substantial valuation increases without presenting a comprehensive overview of their effects on municipal bills. In a city where many residents are already battling financial strain, the timing and approach of these changes have prompted outrage. “It feels like a Black Friday sale,” one resident lamented. “The City hypes up these increases and then offers a small discount without being transparent about other charges.”

The controversial linking of fixed charges to property values is currently under judicial review, following a court challenge lodged by industry organisations like the South African Property Owners Association (SAPOA) and AfriForum, who claim the City acted unlawfully. The CTCRA has served as an amicus curiae in this matter, and with the judgment expected soon, the implications of these developments could be profound for Cape Town's homeowners.

In the wake of this turmoil, the CTCRA is urging all homeowners to review their new property valuations thoroughly. The association plans to support its members in submitting effective objections against valuations that they believe are unfairly inflated. The stakes for many Cape Town residents are higher than ever as they navigate the complexities of rising property expenses.