Residents of Cape Town and civic groups state that the rising cost of property, municipal fees, and housing expenses is worsening the affordability of living. One civic organization warned that Cape Town taxpayers could face an average annual increase of about 10% due to growing City Council expenditures, increasing the burden on households.
This warning comes as residents confront increases in property valuations. The city has long boasted of ranking first in service provision among municipal governments according to Good Governance Africa’s 2024 Governance Performance Index. Although the municipality insists it has the lowest overall municipal expenditure among South Africa's major metropolises, civic organizations warn that the sharp rise in property values and tariff hikes create an unsustainable financial burden for households.
Average growth significantly outpaces municipal average
Bas Zuidenberg, chairman of the Cape Town Taxpayers' Collective Association (CTCRA), stated that the crisis of payment affordability is rapidly approaching. He noted that the situation is exacerbated by the Municipal Valuation Roll results, which cause serious concern in areas where the average growth significantly exceeds the municipal average.
According to him, unofficial data indicates that after the implementation of charges for the new financial year starting July 1st, many residents cannot afford property tax bills due to increased property valuations. Zuidenberg also expressed the view that the City is not paying enough attention to the issue of affordability.
He cites the fact that total expenditures are planned to increase by 20% over the next three years, with the taxpayer-funded share also rising from 68% to 72%. Since the number of households is expected to increase by no more than 5%, this effectively means that taxpayers should expect an average increase of about 10% annually, not accounting for the effect of another valuation round scheduled for 2029. Zuidenberg concluded that the mechanism by which the City moves forward with expenditure planning and then seeks ways to recoup those costs—increasingly through taxpayers—is unsustainable.
The Association and AfriForum recently filed a lawsuit against the City to challenge the use of property value in determining fixed municipal service charges. In April, the High Court of the Western Cape ruled that the City's fixed charges for water, sanitation, and city cleaning for 2025/26 were illegal and invalid, deeming it unconstitutional to link tariffs to property value rather than actual consumption.
Zuidenberg added that he would like to see the City make much greater visible efforts to reduce its expenses and shift the burden away from taxpayers. Only then can Cape Town truly become a 'city for all.'
The burden on middle-class households
Confirming these concerns, Donald Lewis, a resident of Ersten River who has owned his property for the last 10 years, reported that the rise in taxes is creating increasing pressure on households. He emphasized that the problem affects not only him but also the poor and the middle class, impacting the cost of living and budget planning. Lewis stated that his taxes and fees have risen so much that they account for almost 50% of his mortgage payment, and he believes the City is contributing to poverty and creating a situation where households cannot afford taxes and fees.
Siseko Mbandezi, a member of the Mayoral Committee (Mayco) for finance, defended the tariff structure of the City of Cape Town, stating that it offers 'the greatest rate reductions and widest benefits for pensioners and low-income earners' among the country's five largest metropolises. He specified that low-income households can claim a 100% discount on taxes, as well as free basic water and sanitation, while pensioners receiving up to R27,000 per month can receive tax discounts of up to 100% and electricity benefits. Mbandezi also noted that the City's overall municipal bill was the lowest when comparing various property values, taking into account charges for taxes, water, electricity, and waste removal. Based on his own comparisons, the City stated that households can save between R264 and R903 per month on an R800,000 home, and up to R9,657 per month on a R15 million property. He concluded his argument by stating that Cape Town offers the lowest property taxes with a much lower calculation formula (rate per rand) compared to other cities, meaning that even with higher property values in Cape Town, residents are likely to pay less while living in a functioning city.
