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Cape Town homeowners are threatening “to mobilise” over the City’s new municipal tariff structure, set to take effect on 1 July 2025.
The proposed budget introduces significant changes, including a new tariff system based on property values. These changes would see property rates rise by an average of 7.96%, with fixed charges for water, sanitation, and city cleaning services also linked to property valuations.
Currently, water and electricity connection fees are standardised across households.
Unlike many other South African metros, Cape Town property prices have surged in recent years, meaning homeowners, especially in high-value neighbourhoods, are facing steep increases. Some residents now fear municipal bills could jump by 20% to 40%, affecting not just the Atlantic Seaboard but also suburbs like Gardens and parts of the southern suburbs.
The proposal could mean serious trouble, especially for retirees and long-time homeowners.
Moneyweb quotes a resident of Oranjezicht as saying that he will now pay 35% more monthly on his municipal bill.
“This is ridiculous. We’re not going to accept it. We’re going to mobilise, and I will do everything in my power to make sure people protest [about] this.”
He added that many of the residents in Oranjezicht bought their properties “many years ago”.
“A lot of them are retired now. Their income will not increase by 30-40% per year. You are now going to force these people to sell their houses, and it will impact property prices.”
It does seem as if Cape Town is giving the finger to long-time residents in its desire to become the new Monaco.
The South African Property Owners’ Association (SAPOA) has also raised serious concerns, criticising the proposed above-inflation increases and questioning the legality of linking service charges to property value. SAPOA argues that fees should be proportional to service usage, as per legislation, and calls the new cleaning tariff “especially problematic.”
“SAPOA has been advised that the proposed tariff constitutes a tax, and that the municipality is not entitled to raise further taxes without the authorisation from the Minister of Finance, which has to be published in a regulation.”
While the City has kept electricity hikes below those permitted by NERSA, SAPOA maintains that other tariff changes lack a legal foundation.
The Cape Town Collective Ratepayers’ Association (CTCRA) has launched a petition opposing the draft budget, citing ongoing rate hikes and potential violations of the Municipal Systems Act.
In response, the City has defended its plans, noting it will invest over R30 billion in infrastructure over the next three years—more than Johannesburg’s R24.3 billion—and insists its property rates remain the lowest per R1 million among major metros.
Property owners have until 2 May to submit their feedback on the City’s draft budget for 2025/26.
[Source: Property Flash]
