The City of Cape Town released the 2022 Property General Valuation (GV2022). This valuation significantly determines the Municipal Rates you will pay for your property for the next 3 years.
Whether you own or rent a property, this Property General Valuation (GV2022) is important to you. It applies to all properties in Cape Town: Commercial, Retail, Industrial, Residential and Leisure. Therefore, please check your property’s valuation:
- If you are a property owner – your municipal rates will likely be increasing – make sure it is fair and market-related.
- Also, If you are a tenant – most leases include a provision for tenants to pay for rate increases. Make sure the rates will be fair and market-related.
What do I need to do with the GV2022?
- Valuations are effective in July 2022. First, accumulate as much market-related information as possible on your property. Furthermore, speak to experts in your area. Also, gather documentation on recent sales.
- Every property owner and every tenant (in consultation with their landlord) needs to make sure the valuation on the GV2022 is fair and market-related. Importantly, check that the City’s new valuation is market-related.
- If the valuation is fair, that’s it, one needs to do nothing further.
- If the valuation is not market-related, the landlord must submit an objection to the City of Cape Town. The objection process will run from February 2023 until April 2023 (ie – not much time) and will be available to anyone who wishes to dispute any valuation on the GV2022 valuation roll.
The City of Cape Town outlines an objection period during which objections must be submitted.
Please get in touch with Epping Property to discuss your industrial property valuation. We only handle properties in Epping, WP Park and Thornton/Viking Park areas due to the extensive work and documentation required for a successful process. Epping Property can assist you at a small fee in supplying all the supporting documentation of the most comparable industrial property sales during 2022, as well as preparing your objection motivation.
City of Cape Town Property General Valuation
The Local Government’s legislation is the Municipal Property Rates Act, Act 6 of 2004, which states that all properties on the valuation roll must be valued at market value. Market value is “the amount the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer”.
Especially relevant, July 2022 is the date of valuation for the GV2022 roll. Also, all properties on the valuation roll are valued as of the valuation date to ensure fairness. Besides, actual property transactions (sales) supposedly base the City of Cape Town’s valuations. Specifically, deals have occurred in the open market around the valuation date. The valuations staff have been collecting and reviewing sales that have taken place around the date of valuation – July 2022. The sales data is used in Computer-assisted Mass Appraisal (CAMA) of properties. CAMA is a computer-aided analytical procedure used by trained professional valuers to value a large number of properties in Cape Town. Consequently, this programme makes valuation cheaper and faster but no less fair. Finally, an internationally recognised independent body will audit the GV2022 Roll – focusing on the City’s City’s compliance with international best practices.
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