Cape Town - The Cape Town CBD is expected to get more crowded as 30 projects are in various stages of development, bringing smiles to a construction industry that’s generally in the doldrums.
Western Cape Property Development Forum chairperson Deon Van Zyl said: “We are very happy about the planned developments. It is a light at the end of a very dark tunnel for the development and construction industries.
“Although we are aware of many of the planned developments, many still need to obtain planning approvals which could still take a long time. In terms of the impact in the market, there is the saying that a rising tide lifts all ships. New development creates confidence and this confidence will assist the existing property market as well,” said Van Zyl.
According to the Cape Town Central City Improvement District (CCID) the influx of residents reflects the investor confidence in Cape Town’s CBD.
In a report published last year by the CCID, “State of Cape Town Central City Report 2019 – A year in review”, the estimated value of Central City property in 2019 was R44.1 billion. It also stated that there were numerous developments in the pipeline to address the growing demand for inner city living.
In 2019, the total value of property investment into the CBD was R13.8 million, and many of these investments were in residential or mixed-use developments. The report stated that construction projects worth at least R7.9 billion were either completed, under construction or in the planning or proposal phase.
Robshaw Property group’s Rob Vanlierde said: “A number of these developments are on sites with old, run-down buildings which don't look great and can be a security risk. These will be replaced with beautiful, modern buildings with upgraded security. Additionally, the developments will increase the amount of residential accommodation in the area and help keep prices at current levels, instead of rocketing upwards. The developments should also attract more consumers to the CBD and help restaurants and businesses in the area.”
Another planned development in the pipeline will be the Cullinan Square building on the Foreshore, opposite the Cape Town International Convention Centre (CTICC). The development is expected to tower over all other buildings at a height of 192 metres, taking over the title of the city’s tallest skyscraper, which is currently held by the 30-storey Portside Tower.
Mayco member for spatial planning and environment Marian Nieuwoudt said: “The land use application for Site D has been advertised and is now in assessment. The application will be the subject of a report to the Municipal Planning Tribunal. The report has not yet been finalised.”
Evo Properties managing director Emanuel Germanis said the CBD is showing potential growth among young professionals.
“There’s big demand from young professionals, men and women in their twenties, who work for the likes of Amazon or Woolworths Financial Services. Low interest rates, but also a demand for more privacy and space for them to work from home, is really driving demand,” he said.
Cape Argus