Johannesburg homeowners need to be aware of inaccurate municipal property valuations

Every four years, a general valuation roll determines the municipal values of homes and effectively the property rates that should be paid, based on these values. The General Valuation Roll (GV2018) was certified mid-last year, following the City Council of Johannesburg working closely with professional valuers, data collectors and statistical analysts, to deliver on the project.

On 2 July last year, all 812 000 registered residential properties within the City of Johannesburg were valued using a computer-assisted mass appraisal (CAMA) system, which was done for the purpose of ensuring fairness. However, these valuations may not be entirely accurate.

“The problem with municipal valuations is that they may often result in over-valuing and are not a true indication of the market value of properties,” says Francois Venter, Sales Director of Jawitz Properties.

Property rates paid by homeowners provide the City of Johannesburg with income for the maintenance and building of roads, libraries, parks, clinics and other facilities that benefit all residents. 

“It is not possible to correctly value a property without seeing it. Properties in the same area can be completely different in size, layout and condition, meaning each property should have a personalised market value, which will certainly be different to the value determined by the City of Johannesburg’s blanket valuation approach.”

The City of Johannesburg was granted a 12-month extension by the MEC for Local Government meaning the current valuation roll was implemented four years ago. As a result of the extension, the City will implement its next general valuation roll on 1 July 2018.

“Homeowners may tend to think these valuations are conclusive and want to use them as a basis for determining the value of their homes. However, more often than not the Council valuation doesn’t reflect the true market value of a property. A higher valuation simply means paying higher property rates by homeowners.”

Homeowners are, however, able to object to the municipal valuations issued by the City of Johannesburg. The objection period is open from 20 February – 6 April 2018, allowing all homeowners 45 days to lodge an objection to the value of their property.

“While there is no guarantee Council will accept a property owner’s objection, it is definitely worthwhile to check that the valuation is accurate, before it is too late,” Venter says.

“Homeowners should consult with estate agents or independent valuers before the objection period closes. Failing to respond will mean that the given municipal valuation won’t change, and for the next four years, the revised property rates will have to be paid.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us