Residential property prices in Cape Town have grown considerably past the national trend since 2015, with prices going even beyond this point in some title schemes and residential vacant land.
The five modelling categories that are based on market data and sales used by the City’s Valuation Office show that the value of residential properties in Cape Town has increased by an average of 34% in the three years between the property evaluation cycles. The year-on-year growth in some areas during the first half of 2018 was less substantial than in the past.
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.
This increase is a positive for property owners as it reflects a solid return on their investments. Good growth has also been achieved in the lower end of the property market, unlocking asset values as a means of empowerment.
The percentage growth in property value, however, does not determine the percentage of rates increases; these are determined by needed budget and the cent-in-the-Rand. Rate income is used to fund-share public services such as roads, street lights, parks, beaches, area cleansing, libraries, clinics, law enforcement, and fire services.
The General Valuation 2018 Roll (GV2018) contains some 875 000 registered properties in Cape Town.
An indication of the rates payable based on the GV2018 valuation and the rating category will be available on the City’s website in April 2019. 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 2019/20 financial year.
The GV2018 Roll will be implemented for the billing of rates with effect from July 1 2019.
