Studio apartments in Cape Town’s CBD rent for more than R10,000
This is according to the annual State of Cape Town Central City Report: 2016 which highlights investment into the node and reports between 2012 and the end of 2016, just under R4,486bn in property investment was completed; currently R4,32bn is under construction, and another R7,426bn is either in planning or in proposal development phase.
Back to the residential component, last year’s average unit price appreciation – though in healthy double digits – is showing signs of steadying.
“The year-on-year increase between 2014 and 2015 stood as high as 30.86%, but this also came off a very low base as the interest in the CBD as a residential node was really only revived from around 2014 onwards, following the burst of the financial market (and property with it) globally at the end of the 2000s,” said Carola Koblitz, Cape Town Central City Improvement District (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.”
The CBD has a substantial workforce that commutes many hours a day to get to work and spends up to 40% of its income just on transportation. This makes owning or renting a piece of the Central City such a hot ticket.
“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,” said Rob Kane, chairperson of the CCID.
For the full report, visit the CCID