If you own property in Cape Town, you’ve likely heard the terms "General Valuation" (GV) and "Supplementary Valuation" (SV). Understanding these is crucial, as they directly determine how much you pay in property rates.
What is a General Valuation (GV)?
A General Valuation Roll (GV) is the City of Cape Town’s official list that assigns a market value to every single registered property within its boundaries. Think of it as a massive snapshot of the property market taken on a specific date (the "date of valuation").
- Why it happens: By law, the City must produce a new GV at least every four years. Cape Town does this every three years to keep values more current.
- Why it matters: Your property's municipal valuation is the primary factor used to calculate your monthly rates bill. A higher valuation means higher rates.
What is a Supplementary Valuation (SV)?
Property markets don’t stand still for three years. New homes are built, renovations are done, and properties are subdivided. This is where the Supplementary Valuation Roll (SV) comes in.
An SV is an annual update to the main GV. It ensures the roll stays accurate by capturing changes that have occurred since the last GV was published.
Common reasons a property is added to an SV include:
- New builds or major additions (e.g., adding a new dwelling or a significant extension).
- Subdividing one property into two.
- Consolidating multiple properties into one.
- Being accidentally omitted from the original GV.
If your property is added to an SV, the City will assign it a new value, and your rates will be adjusted accordingly, often with backdated implications.
Why This is So Important to You
Simply put, your property valuation is the foundation of your rates account. An inaccurate valuation—whether too high or too low—has a direct and lasting financial impact.
- An Overvaluation means you are paying more in rates than you should be, costing you money every month.
- The Right to Object: The City provides a limited window—usually just a few weeks—for property owners to object if they believe a valuation is incorrect. However, it is essential to only object if you have solid, evidence-based grounds (like comparable sales data from the valuation date), as the process could potentially lead to a further increase if the City's review justifies it.
Staying informed and checking your valuation when new rolls are published is not just administrative paperwork; it’s a key part of managing your investment and ensuring you are billed fairly.
