Demand for 3-in-1 lifestyle driving development in Cape Town
According to a survey conducted by Cape Town’s Central City Improvement District (CCID) in the last quarter of 2015 owner-occupied residential properties in the CBD has increased from 47% in 2014 to 52% in 2015, while 73% of the survey respondents lived within 3km of their work or place of study.
According to Rob Kane, chairperson of the CCID, the top reason for more owners opting to live in the CBD is being close to work. “Most city residents still fall primarily within the 25 to 34-year-old age group,” adds Kane. “There has, however, recently been a notable spike in interest from investors in the 35 to 44-year age bracket.”
This increased demand for residential developments that offer a “work-play-live” lifestyle means that the price point for properties in the CBD and City Bowl are almost in line with that of properties on the Atlantic Seaboard.
Chad Shapiro, Senior Commercial Broker for Lew Geffen Sotheby’s International Realty in the CBD, City Bowl and on the Atlantic Seaboard says that mixed-use developments are no longer an emerging trend in Cape Town. “We are now seeing more of these developments being built along the Atlantic Seaboard in Green Point, Sea Point and the V&A Waterfront as well as Vredehoek in the City Bowl.”
It is not just owner-occupiers that are driving the demand, according to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, the growth in the CBD and City Bowl is underpinned by a strong rental market. “The growing investor confidence is further evidenced by the fact that some developers are now renting out new fully furnished apartments,” says Geffen.
Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO believe that it is the great benefits mixed-use development offer that is driving the demand. “People want to live, work and play in one neighbourhood, they are no longer willing to spend hours in traffic.”
Two more developments are already in the planning stage and five new proposals are currently on the drawing board, indicating that the mixed-use developments are now an established feature of the Cape Town city landscape.
Top photo:The Verge in Sea Point is a successful synthesis of residential, commercial and hospitality components with a drive through-restaurant at ground level, long-term rental apartments on the first four floors and short term holiday accommodation on the top floors.