General valuation: FAQ

The basis of the general valuation is the market value of the property.

The general valuation has started. Here are a few frequently asked questions to keep residents updated:

What is a valuation roll?

The value of residents’ properties are determined and monthly rates and taxes will reflect the likely increased value of the property.

A valuation roll is a legal document that consists of property information of all rateable properties within the boundaries of a municipality. A general valuation roll is compiled every four years, as stipulated by the Municipal Property Rates Act.

The City’s current valuation roll was implemented on 1 July 2013, and the date of valuation was 1 July 2012. The City of Johannesburg was granted a 12-month extension to implement the next valuation roll. The 2013 valuation will end 30 June next year, making way for the 2018 valuation roll on 1 July. The process has already started and the City is gathering relevant current property and market information as it is on 1 July.

What is the date of valuation and why is it important?

The date of valuation of the current valuation roll for the City is 2 July 2012. This means that all property values were determined as they were on that date. The valuation date for general valuation 2018 is 1 July. This means that all property values for general valuation 2018 will be determined as at this date.

What is the basis of valuation used by the City?

The basis of the valuation is the market value of the property. The market value of the property is the value if sold on the date of valuation in the open market by a willing seller to a willing buyer.

Do City valuers visit properties physically when valuing properties?

The City can physically inspect properties. But this mostly happens in cases where aerial photography and other imagery is not useable, such as when properties have a lot of foliage or high walls. A computer aided mass appraisal (Cama) system is used for this valuation. Valuers use building plans and oblique imagery, state of the art 3D aerial photography that show the properties from all angles.

For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and financial records of businesses.

How does the City establish the property market value?

When valuing the properties, the municipal valuer establishes the market conditions, as at the date of valuation. This is based on recent sales and market information activity in the various areas. Therefore this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy. Different valuation methodologies are used to value the different types of property.

What happens to properties that are built after the compilation of the general valuation roll?

The City will conduct supplementary valuations to reflect all changes on properties.

What is a supplementary valuation roll?

A supplementary valuation is done to update the general valuation roll. Supplementary valuations are performed during each financial year, according to the market conditions that applied as at the date of the valuation.

Why does the municipal market value differ from the estate agent’s value?

The date of valuation,1 July, is the date the market value of your property will be determined and it will remain the same until the next general valuation roll comes into effect. Unless there were changes done to the property after that date that may influence the market value, it stays the same. Estate agents determine the value of a property in the current market which might differ significantly from the market as at the previous date of valuation, 1 July 2012.

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Chantelle Fourie

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