CoCT set to lower property rates formula by 10.2%

The City of Cape Town is set to propose a 10.2% rate-in-rand decrease in rates for residential properties following general property valuations for the previous year.

Cape Town Mayor Geordin Hill-Lewis said the city's rate-in-the-rand, the formula used to calculate property rates, was already the lowest in South Africa but it is set to drop even further after healthy property value growth in the latest valuation.

"With this decrease, it means that over 60% of Cape Town homeowners will experience a rates decrease or no change in rates following this general valuation," the mayor said.

The mayor said rates benefits were also on the cards for middle-class homes.

"Rates benefits will also be extended to more middle-class homes to shield the large majority of homeowners with very low rates increases, despite their property showing strong value growth," Hill-Lewis said.

He said the lower rate-in-the-rand was among several proposed measures to help keep property rates increases to a minimum for owners in Cape Town.