Johannesburg - The value of a property owned by the Gupta family in Johannesburg has dropped from R16.8 million to R490,000, the Saturday Star reported.

According to the latest municipal valuation roll the large 4,207 square metre Saxonwold property's value dropped lower that the price it was sold for in May 1994 -- when it was sold for R559,000.

The property, one of four adjacent stands bought by brothers Arti, Atul, Chetali, and Rajesh, was valued at R16.8m in the 2008 valuation but plummeted to R490,000 in the last valuation, the newspaper reported.

The decrease in the municipal value meant the rates would drop from about R7,844 a month to about R157.90.

According to the Saturday Star this drop went against the tide which saw increases of up to 48 percent in adjacent neighbourhoods.

The other properties on the land were valued at R7m, R10.1m, and R3.79m. All together, the 13,676 square metre property was valued at R21.38m.

According to the report this value was a low estimate due to renovations the Gupta's made including a helipad, a swimming pool and a cricket pitch. In a Sunday Times report in 2011 the newspaper valued the entire property at R52m.

Estate agents who operate in the area called the valuation "laughable" and "outrageous".

Jeanine Fincher of Chas Everitt said no property available in the area for R490,000 and called the low valuation "ridiculous".

Roger Proce of Lew Geffen said the average price in the area was R5.5m and the average stand was 2,000 square metres.

"You wouldn't find anything for that (R490,000)."

The Gupta family spokesman Gary Naidoo and the city of Johannesburg did not respond to requests for comment, the Saturday Star reported.

Sapa