Real Estate: Ignore new valuations at your own risk

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The article is written by Antoinette Slabbert, published on 11 March 2026 on Maroela Media here.

The original article, which was published in Afrikaans, has been translated. The translation appears below.

More than 30 municipalities nationwide have recently revised the valuation of properties in their jurisdictions, and if owners of those properties ignore it, it could cost them dearly.

This warning comes from Ben Espach, director of valuations at Rates Watch, a company that helps individuals and businesses with objections and appeals against valuations that are too high.

Among the municipalities with new valuation rolls are Cape Town, eThekwini (Durban), Mangaung (Bloemfontein), Emalahleni (Witbank), Emfuleni (Vanderbijlpark), Saldanha Bay, Metsimaholo (Sasolburg), and Kannaland (Ladysmith).

In most cases, the deadlines for objections are in April.

Espach emphasizes that the new valuations form the basis for calculating property rates for the next few years, and once the deadline has passed, it is difficult to get an excessively high valuation reviewed.

In Cape Town, other charges such as household sanitation have also, since June last year, been determined on the basis of property value. The metro council wants to extend this to commercial property.

AfriForum and the South African Property Owners Association (Sapoa) challenged this practice in court last year, but judgment has not yet been delivered, and in the meantime the metro council is continuing with the practice.

Municipalities are legally required to notify each owner individually of the new valuation on their property, but Espach says it is better to check the council’s website early for the link to the roll. It should also be available at central locations such as public libraries.

When an owner studies their valuation, it is important to note the date of valuation. In terms of the law, the valuation must reflect the market value of the property on that date. If the date is, for example, 1 July 2025, market movements since then must not affect the valuation.

If the new valuation does not correspond with what a willing and bona fide buyer would have been prepared to pay for the property on that date, the owner may lodge an objection.

Espach points out, however, that a large increase in the property’s value is not in itself a valid basis for an objection. It may be the result of an undervaluation in the previous round that is now being corrected.

It is also very important to check the category allocated to the property. If an ordinary residential house, for example, has been categorised as commercial property, this can completely change the calculation of the account the owner ultimately has to pay, because the tariff is linked to the category. Property rates on residential property are, for example, significantly lower than on commercial property.

The categorisation is usually determined by the use of the property, not the zoning. A smallholding that is used, for example, to run a steel business, has the correct category of commercial, not agricultural, and the property rates are significantly higher.

Objections against either the value or the category must be submitted on the prescribed forms, which differ from one type of property to another. The municipal valuer considers the objection.

The law requires that owners be given 30 days to lodge an objection, and sometimes the municipality gives them longer. But once that deadline has passed without the owner submitting an objection, they will quite possibly be bound to the new value until a new valuation roll is implemented a few years later.

Finalising objections takes time, and in the meantime the municipality may implement the new valuation roll. Property rates are then calculated on the basis of the new valuation, and the owner must pay the account accordingly. If the objection is upheld, the municipality must adjust the account retrospectively.

If the objection fails, the owner may request the reasons for the decision and lodge an appeal. This is heard by an independent panel appointed by the provincial government and chaired by a jurist. At least one member of the appeal panel must be a qualified valuer.

The owner or their representative appears in person before the appeal board and must substantiate their objection with evidence.

If the owner is unsuccessful there as well, their only remaining option is to take the appeal board’s decision on review to the High Court.

Espach says that, in order to determine the amount the owner will see on their account when the valuation roll comes into effect, one must also consider the relevant municipality’s property rates policy and rates tariffs.

This policy and these tariffs are adjusted annually as part of the municipal budget process, and members of the public are given the opportunity to comment on them during the public participation process before they come into effect on 1 July each year together with the new tariffs in the budget.

The policy determines the requirements for a property to qualify for a specific category, as well as the extent of the rebates for certain groups of owners and certain categories of property.

The law provides, for example, that the first R15,000 of the valuation of residential properties is excluded from property rates. Municipalities can, however, increase this threshold or grant additional rebates for, for example, elderly people or low-value properties, in order to help the poor, says Espach.

He also points out that when property values in a new valuation roll rise significantly, municipalities often reduce the tariff to prevent price shocks. Geordin Hill-Lewis, mayor of Cape Town, for example, has given the assurance that the property rate in the metro council’s new budget will fall by about 10% because the strong demand for property in the Mother City drove property values sharply upward in the recent valuation roll.

This should keep the bill more or less at the same level for those whose valuations have also risen by around 10%, but where the increase is greater, owners will have to dig deeper into their pockets, says Espach.

See here whether your municipality has published a new valuation here.

Read the full article in Afrikaans on Maroela Media here.