The latest State of Cape Town Central City Report, says that between 2012 and 2016 there was investment worth in the region of R4,486 billion, with another R4,32 billion in current construction and R7,426 billion in the pipeline – taking the form of proposed development or projects in planning phases.
77% increase in property values
The CBD has seen a 77% increase in property values, according to the City of Cape Town’s official property valuations, from R23,7 billion in 2014/15 to R30,6 billion in 2016/17. The total valuation could reach R42 billion by 2019, taking the amount of current and proposed development into account.
Rob Kane, chairperson of the CCID believes that the confidence and continued development in the CBD also has knock-on effects for the immediate surrounds, such as the Culemborg area and V&A Waterfront, while the City’s Foreshore Freeway project has sparked excitement around the possibility of successful public-private partnerships and brings much-needed affordable housing to the central city.
Substantial workforce in the CBD
“We have a substantial workforce in the CBD 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.”
