New property roll, but no rates relief for eThekwini

the ethekwini municipality released the second general property valuation roll yesterday, which seems to reflect the double digit decrease in property values over the past four years.

however, ratepayers should not breathe a sigh of relief just yet, because real estate head keith matthias had earlier indicated that a drop in property value would not necessarily translate into a rates decrease.

rates will be raised from the new roll from july 1, using an adjusted rate randage. the present rate is 0.861 cents in the rand. it rose by 0.009 last year - a 6.5 percent increase.

"the total value of all properties in the general valuation 2012 is r421 670 059 000," matthias said. he had earlier said the city's in-house real estate unit had used more than 8 500 sales to assess values.

dean macpherson, da councillor on economic development, said property values had dropped by 15 percent since 2007. he said he estimated the increase on the rates randage for the new financial year at 20 to 30 percent. "this would be to make up for the 15 percent, which further entrenches durban as the most expensive city to work and live in."

ethekweni municipality treasury head krish kumar had not responded to questions by the time of going to press.

durban estate agents said property prices had peaked and turned in 2007 and had devalued at between 5 and 15 percent, with higher priced properties in upmarket suburbs taking a greater knock.

maxprop general manager of franchises brenda liversage said property prices had dropped by five percent in pinetown and between 10 and 15 percent in westville, glenwood and on the berea.

remax broker manager for glenwood lorraine lafferty said parts of glenwood, umbilo and carrington heights had depreciated, but upper glenwood properties had held their prices.

pam golding durban north area principal carol reynolds said: "the drop in prices in the under r3 million price range has not been so much, but in properties over r3m we are noticing a drop. agents who have been in business for 50 years said 2011 was the worst year they have ever had and that we had our double dip in property prices last year."

the independent on saturday checked the valuations of a handful of properties on the roll yesterday and found decreases of between 11 percent an 33 percent. a property in westville dropped from r1.8m to r1.590m; a glenmore property decreased from r1.880m to r1.250m and an umkomaas property from r1.2m to r880 000. a property in umbilo held its value at r790 000.

combined ratepayers association chairwoman lilian develing said she had been able to check only one other property value yesterday, a flat in plantations in hillcrest, which had dropped 25 percent.

"we will be no better off, but at least they will be working on a true base and not on an inflated book," develing said.

develing said every ratepayer should check their valuation and object, if necessary, before the march 30 deadline.

shad nowbuth, chairman of isipingo ratepayers association, found yesterday that his property valued at r610 000 had held its valuation. his original valuation of r710 000 had been changed after he objected. he said he intended to object again because he lived near an informal settlement and the value of his home had dropped further.

secretary of afriforum's umdoni branch, fred stevenson, said in a statement that in many cases the city's valuers had not visited a property. he said the umdoni municipal valuations roll was expected to be released on february 21.

"when registering your objection you need to point out that you are objecting based on market value, as well as any inconsistency when compared to certain neighbouring properties. ask for all the information evaluations used to arrive at your property value," he said.

he said ratepayers should obtain estate agents valuations and take photographs of the property and negative influences such as overgrown vacant stands, derelict buildings and potholes, surrounding it before lodging an objection.

a general valuation is required to be undertaken at least once every four years in terms of the municipal property rates act. the first general valuation was released in february 2008 and has been effective for rating purposes since july 1, 2008.

the valuation roll can be searched on the city's website www.durban.gov.za, at sizakala customer centres and by calling 031 324 5000.