Newsletter

In a significant ruling by the High Court of South Africa (Gauteng Division), the City of Johannesburg sought to overturn a Valuation Appeal Board decision regarding the categorisation of 24 residential units located in Melrose Square on Oaks. On 9 December 2021, the Appeal Board determined that these units should be categorised as “sectional title residential” with effect from 1 July 2013. This differed from the City’s prior categorisation of the units as “sectional title business”.

Property Rates on Second and Further Residential Properties Owned by the Same Entity

Section 17(1)(h) of the Municipal Property Rates Act 6 of 2004 (MPRA) provides that no rates may be levied on the first R15 000 of the market value of properties categorised as “Residential Properties”. This exclusion applies to all residential properties in South Africa.

At Rates Watch, we are always looking for ways to contribute meaningfully to the growth of South Africa’s valuation profession. That is why we were proud to support the academic journey of Thembi Jezile, who recently completed her BCom Honours in Valuation and Management at the University of Johannesburg — and who has now officially qualified as a professional valuer after passing her board exam in March.

Rates Watch continues to make progress with appeals across multiple municipalities, with several appeal outcomes now concluded and others still awaiting review. Here’s a snapshot of the latest developments across key metros.

Johannesburg has initiated legal action against a judgment by a valuation appeal board (VAB) concerning the categorisation of properties used for residential purposes developed on land where the use zone also allows business and commercial use.

Rates Watch has lodged a significant number of appeals in many municipalities across South Africa. Our latest update looks at those appeals that are still outstanding in each major metro.

The importance of informing owners of new valuations was confirmed in two recent cases.

A decision of a valuation appeal board is functus officio, meaning that a decision taken by a board is valid until it is reviewed by a higher authority.

We have compiled a convenient table of 2024/2025 tariff increases for property rates, electricity, water, sanitation, and refuse.

Rates Watch has lodged a significant number of appeals in many municipalities across South Africa. Our latest update looks at those appeals that are still outstanding in each major metro.

Rates Watch has lodged a significant number of appeals in many municipalities across South Africa. Our latest update looks at those appeals that are still outstanding in each major metro.

If any physical or legal changes are made to a property, the municipal valuer must perform a supplementary valuation as instructed by Section 78 of the Municipal Property Rates Act (MPRA). Values can also be amended if the property is over- or undervalued. Recently, we have encountered a number of such cases where values are being amended repeatedly and, we believe, frivolously.

More than 15 years ago, Clive Massel anticipated the difficulties that private municipal valuers would have in tendering for municipal valuation rolls. He came up with the idea of creating a valuation business model that would not be subjected to a tendering process where the tender is often not awarded to the best candidate.