Have your say ... New Cape Town Tariff Proposals

The City of Cape Town has released its draft budget for the 2025/6 municipal financial year, which includes a notable overhaul of its tariff structure, set to take effect on 1 July 2025, with potentially significant cost implications for property owners.

The City is increasingly linking charges to property values, and the budget also includes a new Cleaning Tariff (for Roads, Beaches, Depots etc) which was previously cross-subsidised from the rates charge. This as well as other proposed tariff changes may have significant cost implications, especially on higher valued properties. Part of this aimed at providing greater relief to properties with lower values and indigent households.

The deadline for objections is Friday, the 2nd of May 2025. Submit your comments by:
Email: Budget.Comments@capetown.gov.za
Online: www.capetown.gov.za/collaborate
Verbal comments: Phone 0800 212 176

For more information on the new Budget and to see cost tables, see: capetown.gov.za

Key highlights of the new Tariff Structure include:

• City-Wide Cleaning Tariff - a new charge based on property value for city-wide cleaning services, could be as much as R477 (incl. VAT)/month for a property valued at R4.2M.
• Water Fixed Charges (old "pipe levy") - also now linked to property value, and could result in an increase of around 113% for some households.
• Sanitation Fixed Charges - also new for sewerage services, and based on property value., and could amount to an extra R157/month for a R4.2M property.
• Electricity Fixed Charges - also increasing, and a new City electricity tariff model is introduced, ring-fencing it from subsidizing other services.
• Property Rates - an average increase of 7.96%, although the City maintains it remains the lowest among major metros.
• Refuse Removal - also set to increase, potentially by around 7%.
• Various rebates are proposed for vulnerable households and pensioners.

Cost hikes could range from 6% to as much as 16% to over 20% for properties valued at around R9M according to a Moneyweb news report and property owners are urged to act immediately.

(Sources include: COCT website, news reports and Ratepayer Association communications.)

From a property market perspective, Seeff is pleased to report that the Cape property market remains ahead of most other areas, and with stock shortages in both properties for sale and to rent, there are ample opportunities for sellers and landlords.

Seeff Southern Suburbs continue to deliver market-leading services and results for our clients. Feel free to contact us for a free assessment of your property.

______

Make sure to follow us on Facebook, Instagram, and LinkedIn for the latest tips and trends in the property industry, as well as some of the most relevant news about the area you call home.