The City of Cape Town is preparing for the next general valuation of properties in the metropolitan area to ensure that the rates being charged on properties are up-to-date and fair.

Like all other municipalities in South Africa, the City of Cape Town derives part of its revenue from property rates, which are based on the value of a property.

In order to ensure that these rates are up-to-date and fair, general valuations of properties are carried out.

The City is preparing for the next general valuation of properties in the metropolitan area. The valuation of all properties will reflect the market value of the property concerned on 1 July 2009.

In terms of the Municipal Property Rates Act of 2004, the general basis of valuation is the market value of a property, which is defined as the amount the property would have realised if it was sold on the date of valuation, in the open market, by a willing seller to a willing buyer.

This general valuation will be implemented on 01 July 2010.
As the metropolitan area has over 780 000 properties, it is no longer feasible for registered property valuers to physically inspect each property.

Instead, Computer Assisted Mass Appraisal (CAMA) technology will be used. This is a more cost-efficient and resourceful approach to valuations, making it possible to carry out mass property valuations in a short period of time.

Most of the data required for this approach is already available on the City’s property database. Selected properties will be revisited and data collected.
The City will keep residents informed about its progress.

Meanwhile, the City has also mailed questionnaires to approximately 17 000 commercial and industrial property owners, to help it determine more accurate valuations of these properties, and therefore reduce the number of owner objections.

The City has urged all commercial and industrial property owners to return their completed questionnaires by no later than 19 June 2009.

The completed questionnaire can be returned via the enclosed self-addressed envelope, and can also be faxed to 021 425 4396, for the attention of Mr Llewellyn Louw, Head: Valuation Process & Methodology). Alternatively, e-mail the completed document to Mr Louw at valuations@capetown.gov.za