SA Affordable Housing November / December 2017 // Issue: 67 - Page 31

CONTRIBUTOR Is property growth filling a gap in Cape Town? Statistics point to extraordinary growth in property prices in select suburbs of Cape Town, with experienced property commentators adding their collective views on the topic. By Gareth Griffiths Observatory Main Road on the Woodstock strip. Does the City encourage urban renewal? R ental costs have increased, reinforcing the general impression that Cape Town is a desirable and safe investment hub where the right kind of property purchase or new development can deliver handsome returns, even in the short term. According to Councillor Brett Herron, Mayoral committee member for Transport and Urban Development, City of Cape Town, “Cape Town is a city that works and this is partly why more and more South Africans opt to settle here. We are doing our best to make our city appealing to investors, businesses, and professionals to stimulate the economy and increase employment opportunities.” The population of Cape Town increased by 56% between 1996 and 2016 and the number of households has almost doubled in this period. This immense boost to local property has also presented planners with a dilemma: on the one side, investors and the wealthier end of the market are doing fine, but gaps are opening in the supply of housing and rental stock in the middle to lower income bracket housing sectors. “A free-market economy – supply and demand – determines prices of goods and services. The same principles apply to the property market. Areas close t WFW2bVVBB&WFW2rWrV&Ɩ0G&7'B&R7&V6vǒFVB( 62W'&PF֗G2FBB2FR"bFR6GF֗FvFRv7BG&VBvW&RFVG2BFW"&W6FVG2vfRƗfV@FV"VF&RƗfW27V'W&'2&RF&VFVVBvFF76VVB'7&V6r&W'G&6W2 F76VVBf"FW"&V62FR&WBb6W66W6r&VvR2g'W7G&Fvǒ6r'WBVgVǐFR6G( 22v6'Fǒ'&Vw&VB( FR&f6bff&F&RW6r'GVFW2B&VBFR6G6VG&RvG7F6B6B&fW v&RvB7F'B( R62FR&6F2V"FR6GGf6VBG22F&f6BFvfW&VBFFV6&RFRVF&P6RFv&W7G'V7GW&rRF26VBVƖ֖FR&W7G&7FFR6G( 0FVFF7VVBWFRFVƗfW'bff&F&RW6p'GVFW2W'&6vVFvW2FBG&7'Bf v&rW'62Ɨfrff&F&RW6r'GVFW02( VvF&^( ( vRF7&VFR&RFVw&FV@B6W6fR6GvW&R&W6FVG2fRWV66W72F'GVFW2( RFW24TtBDRԔDDPV&ǒCRb6RFv( 2VF&W6FRFPWG&6WFV7BFVw&FR4TF22R`FRvW7BFV6FW2FR6G( 2&fRVG2( 2@dd$D$P4U4pdT$U"DT4T$U"#p#