CCID Board chairperson Rob Kane said: “While the overall value of properties is likely to change with the adjudication of objections in the City of Cape Town's current round of updating the general valuation roll, we are heartened by the increase in gross valuation for the Cape Town Central Business District (CBD). Combined with the developments under way or proposed, the overall picture shows confidence in the development potential in the central city.”
In the CCID’s report titled the "State of Cape Town Central City Report 2018 - A Year in Review" it stated that vacancy rates for commercial office space rose in the last year, with 30000m² of new office space coming on to the market. However, Cape Town continues to have the lowest office vacancy rates of South Africa's five largest metropolitan centres.
“In 2018, the median price of apartments sold in the CBD was R2.1 million, slightly higher than the median of R2m in 2017. After cooling slightly in 2017, as activity levels in the housing market adjusted to prevailing economic conditions, the completion of two new residential developments saw unit sales increase to 361 units in 2018, up from 316 in 2017.” Kane said that prices have run ahead of economic realities in recent years.
“Deteriorating affordability has shifted conditions from a seller’s to a buyer’s market, in which buyers are willing to wait for value to return to the market while sellers are no longer dictating prices.” The report suggests a revealing trend in terms of home ownership.