Cape Town house prices up 34% in three years, says city council

21 February 2019 - 13:02 By Dave Chambers
Homes in Cape Town have increased in value by 34% in the past three years, says the city council.
Homes in Cape Town have increased in value by 34% in the past three years, says the city council.
Image: 123rf/delcreations

Homes in Cape Town are worth 34% more than they were three years ago.

The claim comes from the City of Cape Town, which on Thursday released its 2018 general valuation roll.

Deputy mayor Ian Neilson said residential property prices in Cape Town had grown “considerably above” the national trend since the last general valuation in 2015.

“This trend is even greater for certain sectional title schemes and residential vacant land,” he said.

“The five modelling categories that are based on market data and sales, and which are used by the city’s valuation office, show that the value of residential properties in Cape Town increased by an average of 34% in the three years.”

The higher valuations do not necessarily mean higher rates bills. Neilson said the rate in the rand, to be implemented from July 1, would be proposed in April.

He said the 34% average increase in the value of Cape Town’s 875,000 homes was good news for their owners because it reflected a solid return on their investment.

“Good growth has also been achieved in the lower end of the property market, unlocking asset values as a means of empowerment,” Neilson said.

“The growth in sectional title properties, especially residential estates and vacant land, is an indication of the enabling environment that this administration has established over the years to unlock investment and to make Cape Town a top destination in which to work, play, live and do business.

“It shows confidence in how the city is being run and what has been achieved over the past years.”

Objections to the 2018 valuation roll can be made until the end of April. The roll is available online and at 32 venues across Cape Town.