Investments boost Cape Town’s property value

The city of Cape Town, as seen from the air. File picture: Matthew Jordaan

The city of Cape Town, as seen from the air. File picture: Matthew Jordaan

Published Nov 11, 2015

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Cape Town - The value of Cape Town’s property has increased four-fold from R6 billion in 2006 to R24bn this year. The Central City Improvement District (CCID) predicts further growth and investment for the CBD, with resident numbers growing from 750 to more than 7 000 over the past decade.

The CCID celebrated its 15th anniversary at the Fedisa fashion school in Church Street on Monday.

Its chairman, Rob Kane, said that the “caring” environment, safety and security measures and urban management programmes of the CCID had created “perfect conditions for investment”.

“The secondary effect of (the caring environment) has been an increase in property values for owners, and that obviously flows back into the city in terms of additional rates. In 2006, the rates base was R6bn, it now stands just under R24bn. That is an enormous amount of investment into the city centre,” Kane said.

He added that over the past several years, there had been “a lot” of investment in commercial property. He expected the “next wave” of investment to be in the residential sector.

Earlier this year, the city’s residential property market received a boost with a R1bn investment in the Radisson Blu Hotel and Residence – more than a decade after the property boom.

The CCID expects a further R7bn invested by 2020 as construction of the Cape Town International Convention Centre extension and the new Christiaan Barnard Memorial Hospital is completed.

Kane said the improvement district also maintained heritage sites such as the Bo-Kaap, which has a rich cultural history.

“If you were here in the city in 2000 when the CCID was formed and you take a look at most of those heritage buildings, they were all run-down, poorly tenanted and really in a bad state of repair.

“If you go to those same buildings now, you will see many of them have been upgraded and that upgrading has happened as a result of the fact that private individuals who own those buildings are seeing the benefits of the CCID and starting to invest in the city,” Kane said.

However, not all residents in the district are pleased with the rate of development. Last week, the Cape Argus reported that District Six land claimants marched to the offices of mayor Patricia de Lille to hand over a memorandum opposing developments in the city.

Kane said, apart from the investment in the city, crime levels had also fallen in the 15 years since the CCID was established.

“With regards to crime, 50 percent of our budget goes to safety and security – keeping the residents safe.

“ Our role is really facilitation and to up services. Crime has decreased enormously since the early 2000s.

“We attribute this to attention to detail, zero tolerance and closely working with the city and the police,” he said.

Some of the notable services delivered by the CCID in the past financial year include:

* Conducting 118 714 crime prevention initiatives.

* Arresting 1 798 people in conjunction with law enforcement partners.

* Dealing with 378 illegal traffic trading offences.

* Cleaning 19 792 municipal drains and replacing 270 drain covers

* Cleaning 9 012 storm water drains and channels to prevent flooding during winter.

* Helping 155 adults get into shelters.

* Finding shelter for 67 children and young adults and four mothers.

* Assisting 18 people with transport to health-care facilities

CAPE ARGUS

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