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Cape Town Property Revaluation and Rates Update for 2026

Written by Damian Clarke | Jul 21, 2025 2:33:55 PM

You’ve probably already heard murmurs of it: Cape Town property rates are going up again. But here’s what most homeowners don’t realize - the real cost hike might not be in the rates themselves, but in the new property valuation the City assigns to your home. And if that number is too high, it could lock you into years of inflated bills.

Maybe you’ve already received something from the City in the mail. Maybe you haven’t. Either way, this is one of those moments where doing nothing could quietly cost you thousands.

We get it - valuations, rates, and objection windows all sound like bureaucratic noise. But the City of Cape Town is currently revaluing every property in the metro, and those values will decide what you pay in monthly property rates starting July 2026.

In this article, you’ll learn what’s happening behind the scenes, how it could affect your household budget, and the smart steps you can take to make sure you’re not overpaying — especially if the City’s valuation turns out to be off the mark.

What’s Happening in 2025: General Valuation (GV2025) Explained

Every few years, the City of Cape Town reassesses the value of all properties across the metro. This isn’t random... it’s part of a scheduled process known as the General Valuation Roll (GV), which is used to update how much you pay in municipal property rates.

The latest version, GV2025, is currently being prepared. The values being calculated now — mid-2025 — will directly affect your rates from 1 July 2026.

Here’s how it works in plain terms:

  • The City uses a computer-aided mass appraisal system to estimate the market value of every registered property in Cape Town.
  • This valuation aims to reflect what your property could have sold for on a specific date - usually 1 July 2025.
  • Once finalized, the new values will be published early in 2026. At that point, every homeowner will be notified and given a chance to inspect and, if necessary, object to the valuation.

What’s important to understand is that your rates bill is directly linked to the value the City assigns to your property. If the valuation is too high - even by a small percentage - you could end up paying significantly more every month for years.

The City says this process keeps rates aligned with market conditions. And yes, that's true... but mass appraisal isn’t perfect. And when mistakes happen, the burden of fixing them is entirely on you.

How This Affects You: From 8% Average Increases to 20%+ Hikes for Higher-Value Properties

Here’s where things get real: the new valuations won’t just sit quietly in a database. They’ll feed straight into your monthly property rates bill, which is already set to rise across the board.

The City has confirmed an average rates increase of 7.96% for the 2025/2026 financial year. But that’s just the average. If your home is valued on the higher end... particularly above R7 million your increase could be closer to 15%, 20%, or even more.

Let’s break that down:

  • A property previously valued at R5 million and now revalued at R6 million could see a meaningful spike in monthly rates, even if the tariff structure remains the same.
  • Homes in the R7 million+ bracket are likely to shoulder the steepest increases as part of the City's broader goal to subsidise lower-income households and expand services.
  • These hikes come on top of other municipal charges, like water and sanitation tariffs, which are also being adjusted and in some cases tied more closely to your property's value.

So even if your home hasn’t changed, and even if the market feels flat in your area, a higher-than-expected municipal valuation could significantly raise your ongoing costs.

And remember... once these new rates kick in from 1 July 2026, they’ll apply until the next revaluation cycle, likely 3–4 years later. That’s a long time to be overpaying, especially if the number is wrong.

source: https://businesstech.co.za/news/government/822858/cape-town-responds-to-fury-over-20-rate-hikes

Where Errors Creep In: Why Your Valuation Might Not Be Accurate

The City’s revaluation process relies on what’s called mass appraisal. It’s efficient, but not perfect.

Here’s the short version: the City uses a system that estimates market value by comparing your property to others that recently sold in your area. But because it’s done by algorithms and bulk data — not physical inspections — the results can be rough.

That means your property could be:

  • Compared to homes that aren’t actually similar - maybe they’ve been renovated, are on larger plots, or have better views.
  • Assessed based on outdated or incomplete info, like incorrect erf size or zoning.
  • Valued without accounting for condition - the system doesn’t know if your roof leaks or your finishes are dated.

This isn’t about catching intentional errors. It’s about human oversight in a system that’s built for speed, not nuance.

In past cycles, many Cape Town homeowners were shocked by how far off the City’s estimates were from what they’d actually sell their homes for. And because the City doesn’t automatically correct these discrepancies, it’s up to you to challenge them... and to do so within a strict window of time.

The bottom line: don’t assume the City got it right just because it looks official. When valuations are mass-generated, margin for error is built in.

How to Object (Step-by-Step): A No-Nonsense Guide to Challenging Your Valuation

If you check your new valuation and something feels off -  too high, doesn’t reflect your property's true condition, or just doesn’t align with recent market trends — you can object. But there’s a process, and it’s important to get it right the first time.

Here’s how to do it, step by step:

1. Wait for the Official Notice

You’ll be notified when the General Valuation Roll (GV2025) is published - likely in early 2026. Once that happens, the City will give you a specific objection period (usually 60 days) to dispute your valuation.

Important: Once this window closes, you can’t object - no exceptions for late submissions.

2. Get the Official Objection Form

Objections must be submitted using the City’s official form - anything else won’t be accepted.

  • You’ll find the form on the City of Cape Town’s website or at designated municipal offices.
  • Each property needs its own form, with the unique reference number from your valuation notice.

3. Build a Strong Case

You need more than a gut feeling. The City wants you to prove that your valuation is too high based on market evidence as of 1 July 2025.

Your objection should include:

  • Recent comparable sales of similar homes in your area (not just your neighbour’s opinion).
  • A professional valuation report if you’ve had one done.
  • Any relevant details that might lower your value - like structural issues, unrenovated interiors, or legal limitations on the property.

Be specific. The more evidence you provide, the stronger your case.

4. Submit the Objection

Follow the City’s submission instructions exactly - this might be online, by post, or hand-delivered, depending on what they specify. Keep proof of submission.

Key tip: Double-check that your form is filled out correctly and completely. Incomplete forms are automatically rejected.

5. Track the Outcome and Appeal If Necessary

Once your objection is reviewed, the City will notify you of their decision.

If you’re not satisfied, you have 30 days to lodge an appeal with the Valuation Appeal Board (VAB). You’ll need to fill out a second, formal appeal form and possibly present your case at a hearing.

This sounds like admin...and yes, it is. But a few hours spent now could save you thousands over the next few years. It’s about protecting your wallet, not just ticking a box.

If you would like some assistance getting a fair and accurate valuation click here: 

 

Relief Measures You Might Miss: Rates Exemptions and Pensioner Support

The City of Cape Town does offer various relief measures that homeowners might overlook:

  • Rates Relief Expansion: The 'first R450,000 rates-free' threshold now applies to all residential properties valued up to R7 million (raised from R5 million). This means homes under this value benefit from not paying rates on their first R450,000 in property value, offering significant relief to many middle-income homeowners.
  • Pensioner Support: The income limit for pensioner rebates has been increased to R27,000 monthly per household, regardless of property value. This expanded criterion ensures broader coverage for vulnerable groups, allowing more pensioners to qualify for rebates ranging from 10% to 100%.
  • Reduced Service Tariffs: Fixed charges for water and cleaning services are being reduced for properties in certain value bands, with substantial reductions for properties valued below R20 million and additional rebates for pensioners.

It's vital to investigate and apply for any of these rebates or relief measures you may qualify for.

Smart Moves to Make Now: Actions to Take Before the Objection Window Opens

While the formal objection period for GV2025 is expected to open around February 2026, there are proactive steps you can take now:

  1. Monitor Your Property's Market Value: Keep an eye on recent sales of comparable properties in your area. This will give you a realistic idea of what your property might be valued at.
  2. Gather Property Information: Ensure you have accurate details about your property on hand – size, number of rooms, any recent renovations, and any factors that might negatively impact its value (e.g., proximity to a busy road, structural issues).
  3. Consider a Professional Assessment: As your local property experts, we can provide an obligation-free property assessment for Claremont residents. This can give you peace of mind or provide a solid basis to challenge the valuation when the time comes. This service is free of charge for Claremont residents.

Final Thought: Empowering Readers to Stay Informed, Not Caught Off Guard

The City of Cape Town's property revaluation for 2026 is an important process that directly impacts your finances. While the idea of navigating municipal processes can feel daunting, understanding what’s happening, why it matters, and what you can do puts you in control.

You shouldn't trust the city's valuation blindly – it's a mass appraisal, not a bespoke assessment of your unique home. You have the right to question it and ensure its accuracy. As your local property experts, we understand both the market nuances and the municipal procedures. We’re here to help you understand this process and avoid overpaying.

Bottom line, here’s exactly what you need to know: This valuation will directly impact your rates from July 2026. If your property is overvalued, you could be paying significantly more. Take pre-emptive action now by familiarizing yourself with the process and preparing to check your valuation and object if necessary.

Stay informed by tracking updates directly from the City of Cape Town’s Valuations portal. Your proactivity now can lead to significant savings next year.

If you would like some assistance getting a fair and accurate valuation click here: