If you’ve had a buyer spit out their coffee after finding out the rates and taxes of a property, you’re not alone. With homeowners in some major metros paying over R3,000 more per month than they would have if municipal costs had kept pace with inflation, ongoing bills are crashing the home-buying party. But high tariffs don't have to mean stalled sales.
In Prop Data’s latest poll, we uncovered the biggest challenges property practitioners face around municipal costs. Here’s how you can tackle the top three, guide clients through the total cost of ownership without the panic, and keep deals firmly on track.
1. Helping buyers make the numbers work
Topping the poll, 46.6% of property practitioners said reduced buyer affordability was the biggest challenge posed by rising municipal costs.
“When running costs outpace general inflation so drastically, buyer affordability drops across every sector,” says Anne Lütge, COO of Prop Data. “Practitioners can help by looking beyond the asking price and comparing the full monthly cost of ownership, including rates, utilities, levies, insurance, and maintenance. Encourage buyers to request recent municipal accounts and levy statements to get a clearer picture of ongoing expenses.”
If the numbers don't add up, it may be time to widen the search. A smaller property or a different area could potentially offer better value. Robert McInerney, Principal and Broker at Share-List Property, says he has “encouraged his clients to consider a more affordable area within his brokerage’s territory like Camperdown, which typically offers lower rates.”
McInerney also urges practitioners to help buyers look beyond the immediate costs and consider the long-term benefits of owning property. Building equity and potential property value growth can make buying worthwhile over time, depending on the buyer’s circumstances.
2. Putting a property’s value into perspective
Coming in second in the poll, 19.8% of property practitioners said rising municipal costs were making properties harder to sell. When buyers are watching their budgets, setting a realistic asking price becomes even more important. This is where reliable market data can help you guide sellers through their pricing decisions.
“Property practitioners will already be familiar with using CMA reports, but the quality of the data behind those reports matters, too,” says Lütge. “Using trusted Lightstone data, for example, can help practitioners make more informed recommendations and give sellers a clearer understanding of where their property stands in a market where rising municipal costs are affecting affordability.”
“This is backed by Lightstone’s Artificial Intelligence Valuation Model (AiVM), which analyses vast residential property datasets to provide valuable insights that practitioners can use to support their pricing recommendations,” she adds.
Beyond pricing, consider highlighting features that could help offset running costs, such as solar power, energy-efficient fittings, or water-saving measures. Where relevant, explain how these may reduce certain utility expenses, while being pragmatic about potential savings.
3. Giving buyers the confidence to move forward
Coming in third in the poll, 14.5% of property practitioners said rising municipal costs were making buyers more cautious.
When buyers hesitate, resist the urge to push for a decision. Instead, find out what's holding them back. Is it uncertainty about future expenses, concern about affordability, or fear of committing to a long-term financial responsibility? Understanding the sticking point helps you respond to what matters most to each buyer rather than offering generic reassurance.
“This is where property practitioners should take a proactive approach,” says Lütge. “That means being available to answer questions, explaining the steps involved in buying, and helping clients understand their options without pressuring them to proceed.”
If a buyer needs more certainty about financing, suggest speaking to a bond originator about their borrowing options before making an offer. Regular, helpful follow-ups can also keep communication open while they weigh up their decision.
What else can property practitioners do?
As well as guiding individual buyers and sellers through municipal cost pressures, property practitioners can play a direct role in pushing for change.
“While managing individual transactions is essential, industry-wide advocacy is where practitioners can help shape a fairer operating environment,” says Lütge. “By uniting through recognised property bodies, practitioners can challenge aggressive tariff structures and advocate for rate adjustments that protect both property values and market liquidity.”
“Lobby through organisations such as the South African Property Owners Association (SAPOA), local development associations, and the media for more affordable rates randages,” says McInerney. This kind of collective advocacy can help keep municipal costs in check and make property ownership more sustainable for buyers, sellers, and investors alike.