Low-value properties in several townships have had growth over the last 14 years. This emanated from an analysis of the values of residential properties within townships based on the latest valuation roll dataset. This was revealed by eThekwini Municipality’s Economic Development Unit’s Durban Edge Team.
The dataset shows that these residential properties have seen positive growths of 4 percent per annum on average inflation adjusted, between the period of 2008 and 2022. These are properties that existed since 2008. There are 191 000 residential properties with property values greater than R250 000 and less than R500 000. The areas that have seen growth include (uMlazi, Illovu, Waterloo, Mpumalanga, Inanda, and Ntuzuma).
According to the report, these are single residential properties in township areas. The increase in property values shows that the properties in these areas have been upgraded, renovated, and improved over the years resulting in the increase in property value.
However, the dataset also shows that areas that are declining in growth include the Central Business District, Point area, Molweni, Shallcross, and Clermont. These include both multiple residential and sectional title properties. These areas will benefit in upcoming property assessments through renovations, refurbishments, and improvements to the dwellings to prevent further declining property values.
There is also growth in properties with values of less than R250 000. The number of properties within this band is 98 000; a significant number considering that these properties don’t pay rates. This is also a concern and suggests the kind of population we are attracting as a City.
According to the Durban Edge it is necessary for the City to put strategies in place that will move low value properties above this threshold to both increase the City's rateable asset base and increase the value of surety for individuals needing access to economic capital.