While the 3.8% increase in property rates may appear reasonable, it originates from an already high base. When the new valuation roll was introduced in July 2023, property rates tariffs were expected to decrease, but instead, they were increased by 2%. Additionally, the rebate for residential properties was reduced from R335,000 to R285,000.
Another setback for residential properties is the implementation of a policy on July 1, 2024, which allows only one reduction (referred to as a threshold rebate in the rates policy) per owner.
According to Clause 6.3.5 of the 2024/25 Rates Policy: ‘Provided further that this threshold rebate referred to at 6.3.2 does not apply to the second and every other property owned by a single owner within the City.’
This new rule will increase financial pressures on tenants, particularly those renting lower-value apartments.
Media release below.