CAPE TOWN – On the eve of the publication of the General Valuation 2025 (GV2025), the City of Cape Town yesterday announced its intention to propose a 10.2% reduction in the rate-in-rand for residential properties for the 2026/2027 draft budget. The rate-in-rand is the formula used to calculate property rates. The City’s indicative residential rate-in-rand is 0.006428—down from 0.007159—pending draft budget finalisation in May.
A City spokesperson confirmed to TygerBurger that the 10.2% drop will apply to all 23 rating categories, including business, commercial, industrial, vacant land and other non-residential categories.
Cape Town Mayor Geordin Hill-Lewis says this is among several proposed measures to help keep property rates increases to a minimum for “most homeowners”, despite strong asset value growth for property owners in Cape Town.
The proposed 10.2% rate-in-rand decrease and extended rates benefits to more middle-class homes will shield the large majority of ratepayers.
Other proposed measures in the forthcoming draft Budget 2026/27 include raising the “rates-free benefit” to the first R500 000 of property value—up from R450 000—and extending this benefit to all properties up to R8 million—up from R7 million.
According to the City, these measures will ensure that 60% of residential properties will experience either a rates decrease or no change in rates, even though their property value has risen.
“The proposed 10.2% rate-in-rand decrease and extended rates benefits to more middle-class homes will shield the large majority of ratepayers—over 60% of all homes—with very low rates increases despite their property asset showing strong value growth, also increasing their family’s net worth,” the mayor says.
Activist raises concerns
However, civic activist Sandra Dickson, founder of STOP COCT, is inclined to believe that this 60% figure is far from clear-cut and should be treated with caution.
The difference between ‘not negatively impacted by valuation shifts’ and ‘not paying more’ is significant.
“The ‘60% not affected’ statement is financially conditional. What it really means is that 60% are not worse off relative to the metro’s average distribution shift. It does not automatically mean 60% will see no increase in their total rates bill. The difference between ‘not negatively impacted by valuation shifts’ and ‘not paying more’ is significant—and that distinction should be clearly stated publicly,” she tokld TygerBurger.
She adds that by her calculations, the rate-in-rand decrease will only make a possible difference if value growth is under 17.1%, while reports from homeowners received by STOP COCT thus far show property value increases of between 2.1% and 80%.
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Growth in personal wealth
Hill-Lewis says Cape Town offers the chance for property assets and personal wealth to grow in value.
“Cape Town is South Africa’s one city that works, offering the best services, SA-record infrastructure investments, the chance for your property assets and personal wealth to grow in value no matter who you are, and the lowest total monthly bills of SA’s metros, even when taking higher property values into account. This is the difference compared to other cities, where property values are declining even as rates rise and services sadly collapse.”
“The City will further deliver a balanced budget while keeping tariff increases to the minimum level needed to avoid severe service delivery cuts. Indigent relief thresholds will be raised, while property value bands for fixed charges will be altered to mitigate the number of properties moving between bands as far as possible.”
General Valuation 2025 at a glance
According to the City, the overall value of rated properties in Cape Town across all categories increased by 16.65% between GV2022 and GV2025, from R1.85 trillion to R2.158 trillion.
For residential properties in particular, the total rated value of all properties increased by 17.1% from R1.396 trillion to R1.634 trillion. The median rates increase for properties under R3 million ranges from R3 to R27 per month, with roughly a 0–2.5% rates increase for properties in the R1 million–R3 million range.
“Even in the worst case, 90% of properties under R3 million will avoid a rates increase in excess of around R100 resulting from the valuation. The median rates increase ranges roughly from R27–R200 monthly for properties valued R3 million–R6 million, a 2.5–6% increase, and from R200–R350 monthly for properties valued R6 million–R10 million,” the City states.
With higher property values in Cape Town, you’re still likely to pay less here, while living in a city that works.
Hill-Lewis emphasises that Cape Town’s residential rate-in-rand is currently the lowest of SA’s metros.
“Cape Town’s vastly lower rate-in-rand shows that it generally costs less to own a property asset here than it does anywhere else. This asset can also be expected to grow in value over time, increasing the net worth of families and personal wealth of ratepayers across the income and property value spectrum,” he says.
“At 0.009545, the next metro—Joburg—has a 48.5% higher rate-in-rand before even applying their increase for next year. This means that even with higher property values in Cape Town, you’re still likely to pay less here, while living in a city that works. Also, the higher your property value, the bigger your saving will be in Cape Town compared to property rates elsewhere for an asset of the same value, due to the big differences in the rate-in-rand.”
How to inspect and object
Should property owners wish to dispute valuations believed not to reflect the market value accurately as at 1 July 2025, an objection may be submitted from 20 February until 30 April 2026 on the legislated objection form that can be found on the City’s website, via e-Services and via the emailed objection form. Ratepayers may also obtain the relevant documents in person at any inspection venue.
Objections must be motivated and supported with market-related information at the valuation date of 1 July 2025. The City supplies verified and valid sales information on the website for use by property owners.
The City’s 2025 General Valuation Roll (GV2025) is available for public inspection on www.capetown.gov.za from 20 February 2026.
