CAPE TOWN – The Cape Town Collective Ratepayers’ Association (CTCRA) has raised concerns over the City of Cape Town’s latest General Valuation Roll for 2025, warning that many homeowners could face steep increases in their municipal bills despite assurances of relief from the City.
In a press statement released on Sunday 22 February, the CTCRA said that while the City has indicated an average residential property valuation increase of 17%, feedback from its members suggests significantly higher hikes in many cases, according to CTCRA and Noordhoek Ratepayers Association (NRA) chair, Bas Zuidberg.
Steep valuation increases
The association, which represents around 10% of residential properties in Cape Town and accounts for about 60% of collected residential rates, reports valuation increases ranging from 25% to as high as 140%.
“In most instances, these increases have been applied despite there being no improvements to the properties concerned. These new valuations will exacerbate the affordability crisis affecting Cape Town housing,” he said.
Relief claims disputed
CTCRA says the City has described the updated valuations as “good news”, pointing to a proposed 10.2% reduction in the residential Rate-in-the-Rand (RiR), as well as an increase in the rates-free threshold from R450 000 to R500 000. It has also proposed extending this benefit to properties valued up to R8 million.
Costs continue rising
However, the CTCRA argues that these measures will not sufficiently shield homeowners from higher costs.
“The 10.2% lower RiR will provide some relief for the rates portions of municipal bills. However, any property which increases by more than 11% in value will still see an increase in rates. With valuation increases of 25% to 140% rates, will increase substantially more than the increases CTCRA members saw in the past year, and these were already significant,” he said.
The association further highlighted that municipal rates are only one component of property-related costs.
In its 2025/2026 budget, the “City linked fixed charges for water, sanitation and “city wide cleaning” to property values. These charges resulted in further increases to municipal bills (in addition to a significant increase in rates), and new property valuations will exacerbate these increases. These fixed charges can constitute up to one third of the non-consumptive amounts on the municipal bill,” he said.
The City has “not provided any updates on how fixed water, fixed sewage and city-wide cleaning charges will change.” he added.
The ratepayers’ association claims the City has also ‘not provided any updates on the Rate-in-the-Rand for property categories other than residential, leaving owners of vacant, commercial, industrial and agricultural properties in the dark.’
Wynberg Residents’ and Ratepayers’ Association (WRRA) committee member, Marc Bernitz, says “property prices have risen sharply over the past three years due to high demand and limited housing supply; that increase also pushes up municipal rates.”
“Unfortunately, rates are not rising in line with salary growth for most middle- and lower-income households, placing homeowners under financial pressure. Although higher valuations mean assets are appreciating, it is not good for the average citizen’s monthly budget. This added strain on household finances will likely affect the broader economy as consumers cut back on spending,” Bernitz added.
“The CTCRA is of the view that the City has acted irresponsibly by announcing significant valuation increases without giving a complete picture of the effect these will have on municipal bills. The City knew how concerned ratepayers would be after last year’s increases, and should have updated the Municipal Rates Calculator simultaneously to show the effect of the changes,” he said.
Court ruling awaited
Meanwhile, the legality of linking fixed service charges to property values remains under scrutiny. The policy was challenged in court in late 2025 by the South African Property Owners Association and AfriForum, with the CTCRA participating as a friend of the court. Judgment in the case is still pending.
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The CTCRA has urged homeowners to review their property valuations carefully and indicated that it will assist members with lodging objections where necessary.
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