Cape Town ratepayers warn of 'rates shock' due to new property valuations

The Cape Town Collective Ratepayers' Association (CTCRA) has said the City of Cape Town's latest property valuations could drive steep rates increases, despite the metro touting relief measures.

The city has announced it is prepared to propose a 10.2 percent decrease in rates for residential properties, following general property valuations for the previous year.

Mayor Geordin Hill Lewis said their rate-in-rand, a formula used to calculate property rates, is set to be lower after healthy property value growth in the latest valuation.

The city of Cape Town said around 60 percent of homes can expect a decrease or no change in property rates.

However, the CTCRA, which represents 10 percent of property owners who cover 60 percent of residential rates in the city, says its members have already seen increases.

"On average, the Cape Town increases were 17 percent. However, our members are reporting increases which are significantly higher - 25 percent is not unusual and even going up to as high as 140 percent," said chairperson Bas Zuidberg.

The metro said that while the overall value of residential property increased by 17 percent, changes differ from home to home, with more details to be announced when the city’s draft budget is tabled later this month.