Steady demand for city apartments

Recent announcements of extensive new investment in the Cape Town city centre are a welcome shot in the arm for the local property market.  So says Pam Golding Properties’ area manager for the City Bowl and Atlantic Seaboard, Basil Moraitis, who believes the billions of rand invested in new projects are already boosting positive sentiment.  The result is a steady demand for both the purchase and rental of apartments in the central city area.

“There has been a flurry of good news in recent months about extensive urban regeneration projects planned for this area,” says Moraitis.  “These range from plans to double the size of the Cape Town International Convention Centre by adding another 10 000sqm and linking it to the Artscape Theatre precinct, to plans to build a new hotel and shopping precinct around Cape Town station.  Another major project is the new development close to Parliament, which will include close to 10 000sqm of retail and parking space in its first phase, with residential elements aimed at young city workers and possibly MP’s to follow in the later phases.”

“Perhaps the most eye-catching of all,” Moraitis continues, “will be the new Portside building, which at 139m in height will be the tallest building in the city when it reaches completion.  Its 32 storeys will provide office space for some 3000 people, including the provincial headquarters for FNB/RMB/Wesbank.  This R1.6 billion investment by Old Mutual and FirstRand is a very visible indication of optimism in the future of Cape Town’s central city by two of the country’s most significant and credible organisations.  It is sure to draw more demand for accommodation in the central city, and particularly in the Foreshore financial district.”

Recent sales of apartments in the central city have been steady, with PGP reporting particular interest in Mutual Heights in Darling Street and Perspectives in Roeland Street. Buyers include predominantly young professionals working in the central city, for whom the ease of access to work is a major factor, as well as the vibrant lifestyle they can enjoy in the local coffee shops, restaurants, bars and boutiques.  “Communal facilities such as gyms, pools and 24-hour security only add to the appeal of these buildings,” says Moraitis.

Some of the notable sales concluded by PGP between May and July 2011 were:
  • R1.87 million for a 104sqm two-bedroomed apartment in Cartwright’s Corner, Adderley Street
  • R1.1 million for a 57sqm one-bedroomed unit in The Kendall on Wale Street
  • R960 000 for a 66sqm two-bedroomed apartment at Perspectives in Roeland Street

On the rental front, PGP’s rentals manager for the Cape region, Dexter Leite, says the highest demand at present is for long-term, unfurnished apartments.  “There is a serious shortage of stock in this category at present,” he says, “possibly as a long-term result of the World Cup last year.  Many owners furnished their apartments in the run-up to the event, so as to capitalise on renting them out to international visitors.  Now that the tournament is over, the result is an over-supply of furnished stock, and an under-supply of unfurnished units.  Owners would do well to consider removing the furnishings from their apartments and rather offering them for rental on an unfurnished basis, a segment where sustained high demand is shoring up rental pricing.”

Rentals in the city area currently start at around R3 800 per month for bachelor pads and R4 800 per month for one-bedroomed units, going up to around R6 000 in the very heart of the central business district.  Two bedroomed apartments can fetch anything from R6 500 per month to R12 000 per month, or even R15 000 per month for penthouses or those with exclusive finishes.

  Comment on this Article


Post to my facebook wall
Characters remaining

  • mariel.burger - posted 27 Oct 2011 09:17 AM                                    


Latest Property News
  • 23 Nov 2017
    The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
  • 23 Nov 2017
    If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
  • 22 Nov 2017
    Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
  • 22 Nov 2017
    While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
  • 22 Nov 2017
    The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
  • 21 Nov 2017
    The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
  • 21 Nov 2017
    When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
  • 21 Nov 2017
    As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
Subscribe to the MyProperty Newsletter

Last Name  
Email Address  
Email Frequency
Share this Page

For Sale Property
Rental Property
More Options
Connect with us