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 .
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
IMAGE COURTESY GARETH GRIFFITHS
Observatory Main Road on the Woodstock strip . Does the City encourage urban renewal ?
Rental 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 to key nodes of employment , and routes along new public transport , are increasingly in demand ,” says Herron . He admits that it is the job of the City to mitigate against a trend where tenants and other residents who have lived their entire lives in suburbs are threatened with displacement by increasing property prices or displacement for other reasons . The roll out of a complex social housing regime is frustratingly slow , but hopefully the City ’ s plans will shortly break ground .
“ The provision of affordable housing opportunities in and around the city centre , in Woodstock and Salt River will be a good start ,” he says .
Late in March this year , the City advised its plans to provincial and national government to declare the entire Cape Town a restructuring zone .
This should eliminate any restriction on the City ’ s intention to speed up the delivery of affordable housing opportunities . Herron acknowledges that transport for working persons living in affordable housing opportunities is ‘ non-negotiable ’. “ We aim to create a more integrated and inclusive city where residents have equal access to opportunities ,” he notes .
CAUGHT IN THE MIDDLE
Nearly 40 % of Cape Town ’ s population reside in the metro-south east integration zone ( MSEIZ ). This has one of the highest densities in the city – above 100 units / ha – and
AFFORDABLE
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