A warning to property owners in Cape Town
Cape Town homeowners are being warned to make sure that the latest valuation poll accurately reflects the value of their properties or risk paying more in rates and taxes.
This is the message from Storm MacLennan, head of sales for the southern suburbs at Jawitz Properties.
He stressed in a recent interview that many owners may be caught off guard by computer-generated property valuations that could remain in place until 2029 if they are not challenged in time.
MacLennan noted that from around 20 February, property owners will have a narrow window to object to the new valuations.
“Property owners will have a very limited period to object to the valuations that will effectively lock in their rates bills for several years,” he said.
According to property data, many homes appear to be overvalued, but most homeowners miss the objection deadline. “Those who don’t object could end up overpaying by hundreds of rands a month,” he warned.
While the intention behind the automated valuation process is to make things more efficient, MacLennan said the system has a fundamental weakness.
“The idea behind the valuation process should actually make it more convenient for homeowners, but the problem is that it’s done by a computer and not by a person,” he explained.
He said human valuers are able to assess a wide range of factors that directly influence a property’s real market value.
“A person can take in the surroundings, the condition of the exterior, access to the property, surrounding noise, and blocked views from new developments. A computer simply can’t see that,” he said.
Instead, automated valuations rely on limited inputs. “It looks at plot size, zoning, roof area and the address,” MacLennan said, adding that this creates a risk of inaccurate outcomes.
However, he does not believe the system is designed to deliberately inflate valuations. “I don’t think it’s a revenue-maximising exercise dressed up as automation,” he said.
“I think the goal is to maximise efficiency within the City of Cape Town’s systems, but unfortunately, it’s not taking enough into account to give a real-life, accurate valuation.”
Vital to act within the deadline
Considering this, a major concern is the short objection window, which is typically around 60 days.
“Homeowners are focused on day-to-day life, the cost of living, and just keeping their heads above water,” MacLennan said.
“They’re not always aware of when new valuation rolls come out or how to access them, and 60 days is a very short timeline.”
He said this increases the risk that owners will miss their chance to challenge inflated valuations.
While MacLennan acknowledged that Cape Town delivers strong municipal services, he said this does not justify flawed valuations.
“I can’t deny that the city provides phenomenal services, and that’s reflected in property prices and the demand we’re seeing,” he said.
“People are flocking to Cape Town because of the infrastructure and how well the metro is run. But that doesn’t excuse a flawed valuation service. People still deserve realistic, honest and accurate valuations.”
The impact on property sales is also likely to be limited in high-demand areas such as the southern suburbs, but this could still put pressure on certain homeowners.
MacLennan explained that these homeowners may be asset-rich but cash-poor, and higher-rate bills could become unaffordable.
“If an inaccurate valuation leads to a significantly higher rate account, they may not have the cash flow to stay in that home,” he said.
He added that this is the first time such an automated system has been rolled out in the Western Cape, and while homeowners can gather market evidence themselves, timing is critical.
“If owners only realise two years down the line that their valuation was inflated, they’re legally locked in. They’ve missed the window and could be paying elevated rates for years, taking money straight out of their pockets.”
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