Capetonians about to find out what their properties are worth when it comes to rates

Property owners in Cape Town are about to receive the latest municipal valuation which will affect the rates they pay for the next five years.

Deputy mayor Ian Neilson said the objection period to the 2018 general valuation would open on February 21 and end on March 29 for those objecting in person. Online objections would be accepted until April 30.

The valuations of about 875,000 properties have been updated based on actual sales on or around July 2 2018.

Neilson said it was important to remember that the growth in a property's value since the 2015 general valuation would not equate to a rise in someone's rates bill.

"Property valuations are independent of the money required to fund services. Cape Town experienced positive growth in property value over the last three years," he said.

"This is advantageous to property owners. Although the year-on-year property growth in the first half of 2018 has, in some areas, been less substantial than in the recent past, the full three-year period between the valuation cycles should be considered to determine the trend."

An indication of rates payable based on new valuations would be ready by April, said Neilson. "This will be after the new rate-in-the-rand is determined by council, and this is subject to the city's budget requirements for the 2019-2020 financial year."

The first rates bills based on the new valuations will be sent out in July.

Neilson said Cape Town conducted a general valuation every three years, rather than the four years specified in legislation, to ease the impact of large fluctuations in property prices.

"The city valuer makes use of a computer modelling programme called computer-assisted mass appraisal, 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," he said.

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

A city council statement said those objecting to valuations should provide a motivation.

"It is advisable to use sales of comparable properties sold on or around the date of valuation," it said.

"A comparison with neighbouring properties on the valuation roll does not suffice as a motivation for an objection."

Notices will be sent to every ratepayer about their new valuation, and the new valuation roll will be available online from February 21 and at 32 venues across Cape Town.