Homeowners in Cape Town are being warned to carefully review the latest municipal property valuations, as inaccurate assessments could leave them paying significantly more in rates for years to come.
The warning comes as the City prepares to roll out its 2025 General Valuation Roll (GV2025), which will determine property values – and ultimately municipal rates – from July 2026, as reported by BusinessTech.
According to property professionals, valuations that are not challenged in time could remain in place until 2029.
Storm MacLennan, head of sales for the southern suburbs at Jawitz Properties, said many homeowners underestimate the impact of automated valuations and miss the narrow objection window.
‘Property owners will have a very limited period to object to the valuations that will effectively lock in their rates bills for several years,’ the publication quoted MacLennan as saying in a recent interview.
From around 20 February, homeowners are expected to have roughly 60 days to lodge objections. Property data indicates that many homes appear to be overvalued, yet most owners fail to challenge the figures in time.
‘Those who don’t object could end up overpaying by hundreds of rands a month,’ MacLennan warned.
Concerns over automated valuations
Due to the scale of the metro, the City of Cape Town relies on a Computer-Assisted Mass Appraisal (CAMA) system to determine property values. While the system is intended to improve efficiency, MacLennan said it has clear limitations.
‘The idea behind the valuation process should actually make it more convenient for homeowners, but the problem is that it’s done by a computer and not by a person,’ the publication quoted him as saying.
According to MacLennan, human valuers are able to consider factors that automated systems cannot.
‘A person can take in the surroundings, the condition of the exterior, access to the property, surrounding noise and blocked views from new developments. A computer simply can’t see that,’ he said.
Automated valuations, by contrast, rely largely on data such as plot size, zoning, roof area and address, increasing the risk of inaccurate outcomes.
Despite the concerns, the publication noted that MacLennan does not believe the system is designed to deliberately inflate values.
‘I don’t think it’s a revenue-maximising exercise dressed up as automation,’ he said. ‘I think the goal is to maximise efficiency within the City of Cape Town’s systems, but unfortunately, it’s not taking enough into account to give a real-life accurate valuation.’
Risk for cash-strapped homeowners
MacLennan also cautioned that higher rates could place pressure on homeowners who are asset-rich but cash-poor, particularly in high-demand areas.
‘If an inaccurate valuation leads to a significantly higher rate account, they may not have the cash flow to stay in that home,’ he said.
Highlighting the impact of the valuation rollout, MacLennan added that many homeowners are focused on day-to-day survival and may not be aware when new valuation rolls are released.
‘People are busy with work and day-to-day life, trying to keep their heads above water,’ he said, adding that the short objection window increases the likelihood that inflated valuations will go unchallenged.
While Cape Town is widely regarded for strong municipal services and infrastructure, MacLennan said this does not justify flawed valuations.
‘People are flocking to Cape Town because of the infrastructure and how well the metro is run. But that doesn’t excuse a flawed valuation service. People still deserve realistic, honest and accurate valuations,’ he added.
Homeowners are encouraged to check the valuation roll as soon as it becomes available and gather supporting market evidence if they believe their property has been overvalued.
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