KwaDukuza homeowners cry foul over ‘hefty hikes’ to property values

Many residents are outraged following the release of KwaDukuza municipality’s latest valuation roll with claims of hefty hikes to the market value of their properties.

Despite the worst economic downturn in decades, many properties in the region are facing valuation increases of between 30% and 45%, which ratepayers say are inconsistent with market figures which predict house price growth of roughly between 2% and 3%.

The municipality released the 2021 roll on March 5 for the period July 1, 2021 to June 2026.

KDM spokesperson Sipho Mkhize urged property owners to inspect the roll and lodge objections if they felt the valuation was either too high or too low.

“The objections allow us to fine tune and refine any valuation errors, be it property descriptions, property category, property ownership details and property valuations,” he said.

Objections are handled by the Valuation Appeals Board (VAB) – an independent board appointed by Cooperative Governance and Traditional Affairs (CoGTA).

The onus is on the homeowner to object before the cutoff on April 30, or accept the valuation and pay revised property rates for the next four years.

Rates based on the new valuations will be charged from the new financial year beginning July 1 and these must be paid, regardless of whether a property owner has appealed.

However, Mkhize said the impact on the property rates increase as a result of the new valuations, was too premature to consider before the tabling of the 2021/22 draft budget at the end of March where the new rate randage structures, together with the new rebate structures will be announced.

“The percentage increase in property valuation will not mean that the property rates charged will increase by that same percentage.”

He said during previous general valuation rolls, Council either reduced the rates randage and/or allowed further rebates and rebate structures in order to cushion the impact of the new valuations.

“A similar process will be followed for the current valuation roll. The impact to the ratepayers will be made available at the tabling of the draft budget,” said Mkhize.

The number of objections may be considerable as irate ratepayers shared accounts of similar sized properties located in the same area that were assessed at vastly different rates.

Ballito resident PJ Mathee said the valuation roll reflected a 35% increase in the value of his property which he believes was over-valued and not a true indication of the current market-value.

“We bought our unit in April 2018 for R1.9 million. The municipal valuation has now increased to R2.1 million.

“In view of the fact that the property market has come down substantially since we purchased the unit less than 2 years ago, we have no idea how this increase is justified.

“Our unit is 179 square meters and the only one that does not have a sea-view but got valued at the highest municipal value.

“Should we be able to sell our unit, we doubt that we would even get this amount as a purchase price.”

Ballito property owner Mark White said he was shocked by the new proposed value of his property.

“Speaking to neighbours, the increases range from 20% to 375%. In 2016 the average house price in Ballito, according to data based on actual sales, was R2.9 million – this includes higher priced properties in the upmarket estates of Simbithi and Zimbali that push the average price up. In 2021 the price had increased marginally to R3.2 million, which equates to a 6.84% real valuation in house prices over the 5 year period.”

In extreme cases valuations have quadrupled and in many cases, valuations seem to be up around 30% to 50%.

On a community Facebook group, KwaDukuza Residents Forum, one Ballito resident said according to the roll her property valuation had been adjusted upwards by 309% while another home owner said the valuation roll reflected a 275% increase in the value of her property.

Some homeowners complained that there appeared to be no consistency in the percentage increases.

Explaining the methodology used to arrive at the valuations Mkhize said the municipal valuer worked closely with professional valuers, data collectors and statistical analysts.

The valuer also values the property through physical inspection as well as satellite photography and computer assisted mass appraisal techniques.

Inspections of properties were only done where considered necessary.

Mkhize said the objection process was also not the last resort and residents could appeal the outcome.

The Dolphin Coast Residents and Ratepayers Association (Docrra) have formed a task team to assist members with the objection process.

Docrra chairman, Deon Viljoen urged residents who were retired and a pensioner over 65, to apply for a pensioner’s rebate, which Docrra was happy to assist residents with if needed.

The general valuation roll is available on the KDM website together with the designated objection forms. Hard copies can be inspected at the municipal offices and libraries.

For a complete guide to the objections process ratepayers can visit Docrra’s dedicated webpage at docrra.co.za/property-re-evaluations.