Cape Town's rapid economic growth is partly responsible for increasing property prices and transport-related issues, but these create opportunities for solutions from innovative residents, says MEC for Economic Opportunities Alan Winde.
A recent report published by the Cape Town Central City Improvement District (CCID), showed that the city is the second-biggest contributor to South Africa’s GDP.
About R16.2 billion in investment has been pumped into the City since 2012 and just under R4.5bn in property investment was completed.
Currently R4.32bn is being bagged and another R7.43bn is either in planning or in proposal development phase.
Winde said yesterday that traffic congestion and other transport-related issues were putting the province under pressure, and increasing property prices were affecting access to accommodation.
The report’s editor, Carola Koblitz, said the average unit price across the central city had increased from R2.031m in 2015 to R2.337m last year - a rise of 15.06% year on year.
“These challenges, in turn, create opportunities for solutions from innovative residents. Through the work of the partnership (between) the government, the private sector and the people of Cape Town, we’ve seen incredible development in the CBD.
"These efforts are bearing fruit, creating opportunities for business, entrepreneurs and, importantly, jobs for residents,” Winde said.
CCID chairperson Rob Kane said commuters could spend up to 40% of their income on transportation and the values of private property in the CBD, even of underutilised commercial buildings, made it difficult for private developers to construct affordable housing.
“We are, however, quite humbled to see the enormous confidence in the central city that has been reflected in these reports since we published the first five years ago.
"There are numerous other developments on the boundaries of the central city, in areas neighbouring directly on to the CBD, that also reflect the overall confidence in the development of the downtown region,” Kane said.