Real Estate Investor Magazine South Africa Real Estate Investor Magazine - August 2017 | Page 35

Futureproofing a CBD
Central City Report. Explains the author of the
publication and communications manager for the
CCID, Carola Koblitz: “This guide has always looked
back at the economic climate of the CBD in terms of
being a ‘barometer’ for investors, but the extent of our
information gathering and the consequent analyses
we now do has begun to enable us to forecast areas of
potential growth and business opportunity.”
Although the report is only published once a year,
research and analysis is ongoing throughout the year.
Explains Koblitz: “For example, six months into 2017,
we know that commercial and retail vacancy rates are
still relatively stable, while the unprecedented year-
on-year increases we’ve seen in the prices of residential
property are beginning to show a stabilisation.
Having come off a low base a few years ago, when we
saw an escalation of 30.86% from 2014 to 2015, and
15.06% from 2015 to 2016, the first half of this year
has shown an escalation of 5.2%, with the average
R/m2 of R33  921 (December 2016) now sitting at
R35 700/m2.”
This bodes well, she believes, for ensuring that
residential property in the CBD remains within
realistic levels, and will hopefully also begin to
encourage developers to take cognisance of the need
for more affordable units that could accommodate
those in the CBD workforce who find themselves in
the “missing middle”.
Koblitz explains: “These are people who do not
qualify for government subsidies but who can spend
up to 40% of their income just on transportation.
For example: bank clerks, shop assistants, social
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workers, teachers or call centre staff. And it speaks to
a provision of more rental stock as well, and not just
sectional title units.”
The latest report, published in April this year and
looking back at 2016, also dissected the four precincts
that exist within the CCID’s boundaries with
regard to the businesses that base themselves in each
precinct, the type of retail and entertainment options
that exist, and the residential communities that make
each precinct their home.
“Again,” says Koblitz, “opportunities for the future
are quite evident when you layer these breakdowns
within a precinct.”
For example, the report revealed that the Foreshore
area of the CBD, which was also the home of the
Cape Town International Convention Centre, was the
most densely populated in terms of large residential
buildings, major hotels and many of the CBD’s
largest corporate offices, but yet had only 13% of the
CBD’s retail outlets and only 14% of all its eateries.
Likewise, the older East City area had many of the
CBD’s public access buildings and largest educational
institutes with huge student populations, but offered
very little daytime retail experiences when compared
to the volumes of daily visitors in and out of the area.
Concludes Evangelinos: “It’s time for us as a CBD,
to take a holistic view of our downtown strengths and
weaknesses and work out how we can create a strong
core to take us forward and create urban resilience
that stretches from our business communities to our
residential and visitor economies.”
AUGUST 2017 SA Real Estate Investor
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