Good news for Cape Town property owners: major rates relief announced!

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In response to widespread public concern, the City of Cape Town has introduced substantial rates relief measures to soften the blow of recent tariff increases. Originally, rate hikes of up to 8% were set to affect all residential, commercial, and industrial properties, with luxury homes facing increases of up to 20%. However, after significant resident pushback, the City has taken a more inclusive approach to financial relief, with the revised plan coming into effect from July 1st.

Cape Town's property market is currently under immense pressure due to ongoing housing shortages, driven by limited land availability, infrastructure backlogs, and sustained population growth. Demand continues to outstrip supply, pushing up property prices and squeezing affordability - especially for first-time buyers. Against this backdrop, the City's relief measures offer some breathing room to residents who are navigating a highly competitive and costly real estate environment.

Further relief comes in the form of enhanced support for pensioners and grant recipients. Monthly household income thresholds for rebates have been increased to R27,000 - the highest in the country - with a 100% rates rebate now available to households earning up to R10,000. Additionally, properties below the R20 million municipal valuation mark will benefit from reduced cleaning charges, and those within the R1-R25 million range will see lower fixed water tariffs. A municipal debt forgiveness program is also being introduced to assist residents with longstanding account arrears.

Despite these concessions, the City has affirmed that its ambitious service delivery goals remain on track. Key priorities include the deployment of 700 new neighbourhood policing officers and the implementation of a record R40 billion infrastructure investment over the next three years - focusing on upgrades to water, waste, energy, and roads.

While the City's new rates relief measures offer some welcome breathing room, Quay 1's Shared Value Brokering program goes a step further by actively helping buyers, sellers, landlords, and tenants unlock meaningful financial advantages. Through this innovative program, Quay 1 clients can save tens of thousands of rands when transacting.

Curious about how to unlock more value in your next property transaction? Complete the form below to connect with one of our area specialist brokers and discover how you can earn more on your next sale or lease.

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