Property owners shocked by valuation hikes

Residents of a security complex in Pretoria east were left stunned after receiving property valuation notices from the metro, reflecting sharp increases in their property values.

One homeowner, who has lived in his single residential house for two years, saw his property valuation rise from R1.25-million to R1.75-million – a staggering R500 000 increase!

“It doesn’t make sense! How can this be correct?” he said, after finding that his neighbours also faced similar hikes. Despite the houses being of similar size, approximately 360 square metres, their valuations varied significantly.

“My direct neighbour’s property, just two square metres bigger than mine, went from R1.45-million to R1.75-million. Another house in our complex, which is 427 square metres, jumped from R980 000 to R1.35-million,” he explained.

What frustrates residents most is the lack of transparency. No physical inspections were conducted, and no clear explanation was provided regarding the new valuations.

“It feels like the metro is punishing me for living in Pretoria,” the homeowner added.

A key concern raised is whether the new valuations truly reflect market conditions.

According to the Municipal Property Rates Amendment Act, valuations should be based on market conditions as of the valuation date.

“How can two nearly identical properties have such different valuations? How fair and equal is this valuation roll?” the resident questioned.

These valuations, plus the hike in proposed property rate tariffs will determine the property rates residents will be charged from July 1.

However, many homeowners are uncertain about their next steps to object as they claim there is a lack of information regarding the objection process.

Metro spokesperson Lindela Mashigo stated that the valuation process follows standard methods, including aerial photography and Computer-Assisted Mass Appraisal (CAMA) systems.

Residential property values were assessed based on comparable sales in the area near the valuation date of July 1, 2024.

Mashigo assured that all valuers involved are registered with the South African Council for the Property Valuers Profession (SACPVP) and that an external contractor compiled the Valuation Roll.

The current valuation roll, based on July 2019 values, is available on the metro’s website. Property owners can inspect the new valuation roll and submit objections until May 2.

“The Municipal Property Rates Act allows property owners to challenge incorrect valuations. If an objection is raised, the municipal valuer will review the evidence and determine if adjustments are needed,” Mashigo explained.

If the objection is rejected, homeowners can appeal to the Valuation Appeal Board (VAB), an independent tribunal.

The board will review all submitted evidence and make a binding decision, although legal recourse may still be available.

Former Tshwane Mayor Cilliers Brink criticised the valuation hikes, stating that the DA-led coalition government previously avoided excessive taxation.

“You cannot tax the city out of financial distress. Higher bills will only increase non-payment levels,” Brink said.

He accused the metro government led by Mayor Dr Nasiphi Moya of misleading the public, warning that the proposed tax increases could raise revenue of the metro by 25% rather than the metro-proclaimed 10%.

Brink urged Tshwane residents to reject new property tax proposals as part of the public participation process on the city’s budget.

“The city’s financial rescue is possible without breaking the backs of residents,” he said.

The metro’s draft budget, tabled at the end of March, proposes tariff increases that far exceed the inflation rate of 3.2%:

– Refuse removal: proposed 5% increase
– Electricity: proposed 12%
– Water: proposed 13%
– Sanitation: proposed 6%
– City cleaning levy (open stands): R194.37

The operating budget for the city stands at R52.3-billion, while the capital infrastructure investment budget is set at R2.4-billion.

Although the property tax tariff will decrease by a proposed 4%, opposition parties argue that this does not necessarily mean lower property taxes.

The Freedom Front Plus labelled the decrease a “gimmick” to mask rising property taxes due to inflated valuations.

“The draft budget projects an increase of R1-billion in property tax revenue. However, the valuation roll process is incomplete, so this projected revenue might not materialise,” said Peter Meijer of FF Plus.

To offer some relief, the property value zero-rating threshold is set to increase to R250 000, meaning the first R250 000 of a property’s value will not be taxed.

With the valuation roll now open for objections, opposition parties recommend that homeowners review their valuations carefully and compare them to similar properties. If discrepancies exist, they should submit objections with supporting evidence, such as recent sales data or independent valuation reports.

For those who remain unsatisfied after the objection process, an appeal to the Valuation Appeal Board is the next step.

As the city’s budget faces public scrutiny, residents are encouraged to participate in discussions to voice their concerns over rising property rates and tariff hikes.

For any enquiries related to the general valuation roll, objections or appeals, please contact prov@tshwane.gov.za.

The valuation roll is also accessible on the municipality’s public website, where an objection form is available for download https://propertyvaluations.tshwane.gov.za/

– Click here for more information on the do’s and don’ts of the valuation roll: https://www.youtube.com/live/kTTu8JvLAFg

Do you have more information about the story?

Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.

For free breaking and community news, visit Rekord’s websites: Rekord East

For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.