City of Cape Town to raise property rates and tariffs on 1 July
The new tariff structure introduces fixed charges for water, sanitation, and a city-wide cleaning fee, all scaled according to property values.
CapeTalk's John Maytham interviews property economist Dr François Viruly.
Listen below:
Cape Town homeowners are preparing to challenge the City’s proposed municipal tariff structure, set to take effect on 1 July.
Viruly explains that, under the new system, a household with a property valued at R750,000 will see a 5.97% increase in rates and taxes.
For properties valued around R3 million, the increase rises to 13.62%, while homes worth R6 million could face an approximate 23% hike.
"The average Capetonian will probably not see a big increase."
- Francios Viruly, Property economist
Currently, fixed charges for water and electricity connections are uniform across all households, regardless of property value.
Viruly notes that the significant shift lies in the City’s approach: higher-valued properties will now be expected to contribute more toward infrastructure costs.
However, he adds, this raises a point of debate as the cost of installing infrastructure, like a water pipe, doesn’t vary based on the value of the property it serves.
Scroll up to the audio player to listen to the interview.