select
|

Investment report shows confidence in Cape Town Central City

Approximately R16.232 billion of investment has, conservatively, been committed to the Cape Town Central City since 2012, spanning between that year and 2019. This is according to the latest edition of The State of Cape Town Central City Report: 2016 – A year in review, released this week.


| click on image for larger view
 
Published for the fifth year in a row by the Cape Town Central City Improvement District (CCID), the report (which annually reflects on the economic climate in the CBD across the previous year), details that between 2012 and the end of 2016, just under R4.486 billion in property investment was completed. There is also currently R4.32bn under construction, and another R7.426bn is either in planning or in proposal development phase.
 
Says Rob Kane, chairperson of the CCID: “We use the term ‘conservatively’ as we base our calculations only on developments for which we have been able to confirm investment values.  Sometimes the costs of developments announced have not yet been revealed by developers, and thus the numbers we publish in the report are only those that have appeared somewhere in the public domain.”
 
With the City of Cape Town’s official property valuation in the CCID footprint having reflected a nominal value of just under R23.725bn in 2014/15, the most recent valuations (2016/17) revealed that these now stood at just over R30.628bn.
 
This, notes Kane, could take values well beyond R42bn by 2019, taking all current construction and proposed projects into account – a 77% increase in property values in the CCID footprint within just a four-year period.
 
“We are, however, ourselves quite humbled to see the enormous confidence in the Central City that has been reflected in these reports since we published the first one five years ago. And of course, there are numerous other developments that are happening just on the boundaries of the Central City – in areas neighbouring directly onto the CBD – from the Culemborg area in the southeast to the V&A Waterfront in the northwest that also reflect the overall confidence in the development of the downtown region.”
 
There was also enormous anticipation around the City of Cape Town’s proposed Foreshore Freeway Precinct Project, in which it is hoped successful public-private partnerships will be formed to bring much needed affordable housing to the Central City.
 
Notes Kane: “We have a substantial CBD workforce that commutes many hours a day to get to work and spends up to 40% of their income just on transportation. The values of private property in the CBD, even of underutilised commercial buildings, are now such that it has become difficult for private developers to construct affordable housing, but a public-private partnership could very successfully enable this to finally occur.”
 
Adds Carola Koblitz, CCID communications manager and the editor of the report over the past five years: “We are very aware that for a downtown to succeed as both a business and residential node, it must be accessible to all economic groups if you are to create a truly vibrant downtown community. Because of this, we have also included in this year’s report extensive analysis on the four different ‘nodes’ or precincts that exist within the Central City footprint. We’ve researched everything from the value of developments since 2012, the breakdown of business sectors and the type and volume of retail that exists in each precinct to where educational institutes and residential complexes are located – and in terms of the latter, who’s living where and what their lifestyle preferences are.”

This has also been done to outline where new business or development opportunities may lie, says Koblitz: “For example, the nighttime or ‘after-hours’ economy of the Central City now has more to cater for than just the late-night, clubgoers. We estimate that there is currently a residential population nearing 7 000, which could well grow to a community of around 12 000 by 2019. There is also growing interest from call centres in the area – we currently have 37 just in the Central City alone. These are all people who could benefit enormously from expanded retail offerings and extended retail opening hours beyond 17h00 on a weekday.”
 
Commercial property trends outlined in the report also demonstrate confidence in the Central City. According to figures supplied by the South African Property Owners Association (SAPOA), commercial vacancy rates are down to 9.4% overall, from 10% in 2015, with the most significant drop occurring in the Premium grade where year-on-year vacancies have fallen from 25% (in 2015) to 13.8% (in 2016).
 
Retail occupancy rates have also held relatively firm, with a marginal decline overall from 95% in 2015 to 94% in 2016.
 
Residential continues to do extremely well, says Koblitz, with the average unit price

You can read the full report here 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    • 18 May 2018
      The need for large office spaces is slowly eroding as more and more employers choose to allow their staff to work remotely. As a result, the home business model has grown in popularity, with many new entrepreneurs choosing to start their business from home rather than in a business district. But, what are the legal implications of operating a business in a residential area?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK