R7.9bn in construction projects still on the cards for Cape Town CBD
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Cape Town - The Cape Town Central Improvement District (CCID) said multi-billion rand construction projects are still on the cards for the city despite the economic impact of the coronavirus pandemic.
On Wednesday, the CCID released the latest edition of the State of Cape Town Central City Report 2019 - A year in review (SCCR) report.
It said construction projects worth at least R7.9 billion were either completed, under construction or in the planning or proposal phase.
CCID board chairperson Rob Kane said: “Stakeholders and investors in the CBD have had to cope with the aftermath of the 2018 drought and subsequent water crisis, ongoing load-shedding and a tough economic climate. The Foreshore precinct has emerged as a key property investment node which is due, in part, to the expansion in 2018 of the Cape Town International Convention Centre (CTICC), which achieved a turnover of R277 million in 2018/19.”
The report indicates that, according to the City’s 2018/19 property evaluation, the value of central city property stands at R44.124bn, and that the total value of property investments in the central city - recently completed, under construction, proposed or planned - is R13.83bn.
The completed projects include The Signature Lux in Heerengracht, The Capetonian Hotel in Heerengracht, and the Halyard in Christian Barnard Street. Other planned developments include The Vogue in Buitengracht Street, 27 Lower Long and Beaufort House. There are seven developments currently under way.
Western Cape Property Forum chairperson Deon Van Zyl said: “The Covid-19 pandemic has had a very serious impact on the economy and therefore, by implication, on the property sector. The state of the property sector is a literal and very practical illustration of the state of the economy and confidence in economic recovery.
“At this stage, it is premature to say whether projects will be cancelled. We are, however, starting to see projects being delayed in anticipation of future economic recovery.”