The City of Cape Town has implemented its latest General Valuation Roll (GV2025), Which will determine the municipal value of all rateable properties from 1 July 2026 to 30 June 2029. For many property owners, the newly published valuations differ significantly from market expectations, and in some cases may result in substantial increases in municipal rates. The objection window is limited. Property owners who fail to act within the prescribed period may be bound by their valuation for the next three financial years.
Overview of GV2025 and the Valuation Reset
Under the Municipal Property Rates Act, municipalities must periodically determine the market value of all properties within their jurisdiction. The GV2025 shall reflect each property’s estimate market value as of 1 July 2025, regardless of current market fluctuations. This valuation is a mass appraisal determined by municipal valuation models utilising sales data and computer-assisted systems.
These figures directly determine annual municipal rates, the category in which the property is placed, and the applicable rates tariff applied to the property. Even a moderate percentage increase in valuation can translate into significant additional rates liability over three years.
Why Many GV2025 Valuations May Be Incorrect
Municipal valuations are conducted on a large scale, using mass appraisal methodologies. While efficient, these systems cannot account for every individual factor affecting a property’s true market value. Common grounds for objection include:
Incorrect Market Value Assessment
The municipality may have:
- Relied on outdated or inappropriate comparable sales
- Failed to account for structural defects or property specific limitations
- Overestimated improvements or extensions
- Over-relied on unique over-priced sales which artificially increase the surrounding areas; and
- Based valuations on property value growth trends rather than the immediate value as at the date of valuation.
Incorrect Property Categorisation
A property’s category determines the tariff applied. Errors in categorisation can substantially increase rates liability.
Factual Errors in Property Description
Incorrect erf size, zoning information, building extent, or property use classification can materially affect valuation.
The Objection Period Is Strict and Time-Sensitive
The City has opened the formal objection window from 20 February to 30 April 2026. If no objection is lodged within this period:
- The valuation becomes final;
- Owners are generally bound by that valuation until the next roll cycle; and
- Future challenges become significantly more complex and limited.
It is therefore critical that property owners review their GV2025 valuation carefully and act without delay if discrepancies are identified. Werth & Partner is capable of identifying your property’s valuation on your behalf, if needed.
Why Professional Assistance Matters
Although the objection process is administrative in nature, it is fundamentally evidentiary and legal.
A successful objection requires:
- Proper interpretation of the Municipal Property Rates Act;
- Understanding of valuation methodology and objection procedure;
- Accurate comparable sales evidence as at the valuation date;
- Strategic drafting that aligns with statutory requirements; and
- Compliance with procedural rules and deadlines.
Poorly prepared objections are frequently dismissed, not necessarily because the valuation is correct, but because the objection lacks proper substantiation.
How Werth & Partner Inc. Attorneys Assists Property Owners
At Werth & Partner Inc. Attorneys, we assist residential owners, commercial landlords, developers, sectional title body corporates, and property investors in challenging incorrect municipal valuations.
Our services include:
- Confirmation of Property Valuation;
- Comprehensive Valuation Review;
- Strategic Preparation and Lodgement of Objections;
- Representation in Objection Hearings; and
- Financial Risk Assessment.
The Broader Context: Regulatory Shifts Affecting Property Owners
GV2025 forms part of a broader policy shift in Cape Town affecting property owners and investors. The City has also announced proposed changes relating to short-term rental properties, including potential reclassification and increased rates tariffs. Given the complexity and financial impact of those developments, we will address the Airbnb and short-term rental implications in a separate, detailed article.
For now, the immediate priority for all property owners is clear: Review your GV2025 valuation and act before the objection deadline expires.
Protect Your Investment
Municipal valuations directly affect your cash flow, yield, and long-term property strategy. A single inflated valuation can cost tens — or even hundreds — of thousands of rand over the valuation cycle. If you believe your property has been overvalued, incorrectly categorised, or inaccurately described in GV2025, contact Werth & Partner Inc. Attorneys for a consultation before the objection period closes. Your property is one of your most significant investments. Ensure it is lawfully and fairly valued.
