The Cape Town Central City Improvement District (CCID) has released a report showing that the property market in the city has soared by 40% in just one year.
In 2016/17, the value was estimated at R30,628 billion, while in 2018/19, the value is estimated at R42,860bn. That is partly due to 39 new developments.
“While the overall value of properties is likely to change with the adjudication of objections in the City of Cape Town’s current round of updating the general valuation roll, we are heartened by the increase in gross valuation for the Cape Town Central Business District (CBD). Combined with the developments under way or proposed, the overall picture shows confidence in the development potential in the central city.” CCID Board chairperson Rob Kane noted.
But even with the rising value, the vacancy rate for commercial space recorded an increase, with 30000m² of new office space coming into the market.
However, Cape Town is still at a better place than other South African cities, recording the lowest vacancy rate among the top 5 cities.
“In 2018, the median price of apartments sold in the CBD was R2.1 million, slightly higher than the median of R2m in 2017. After cooling slightly in 2017, as activity levels in the housing market adjusted to prevailing economic conditions, the completion of two new residential developments saw unit sales increase to 361 units in 2018, up from 316 in 2017.”
