Real Estate Investor Magazine South Africa May 2013 | Page 34

STRATEGIES

“Poor data has resulted in valuations
that are not accurate or consistent.”
cities’ that have sprung up in areas all over
South Africa, sending the property values in
that particular area into a nosedive. While the
CAMA program works well in a homogenous
area, poor data has resulted in valuations that are
not accurate or consistent. One area in particular
is a prime example of this, a block of property
in Clovelly; Cape Town, has not undergone any
renovations or improvements since the date of
the previous valuation, and has had values go up
just under 3% to 58%. Dr Lesley Shackleton of
the Simon’s Town Civic Association says, “once
again we have incredible variations in one area

with some property valuations dropping, some
going up by 5 to 10%.”
The problem is not restricted to the Southern
Suburbs but is evident in the Cape Town City
Bowl as well. Seeff agents Michael Hauser and
Doris Rickettes issued a press release stating
that “the City’s valuation system still does
not work and the problems are getting worse.
There is simply no consistency in the percentage
increases. How is it possible that there can be
such disparity?” Ben Espatch of Rateswatch
explains: “ If the previous values were correct,

then one would expect consistent increases, but
if some of the properties were under valued, the
increase should be higher compared to those
that were previously valued correctly.”
Up to 3000 people have filed objections to
the City of Cape Town’s general valuation roll,
since it was published. The rates based on the
valuations will be billed from the 1 July, but
you have the right to object if you believe your
valuation is incorrect, within the allotted time
frame for your municipality. The results of the
objection could confirm, reduce or increase the
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