{"id":626690,"date":"2022-09-19T16:47:14","date_gmt":"2022-09-19T14:47:14","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=626690"},"modified":"2022-09-19T16:47:14","modified_gmt":"2022-09-19T14:47:14","slug":"massive-changes-for-cape-towns-inner-city-and-financial-district","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/626690\/massive-changes-for-cape-towns-inner-city-and-financial-district\/","title":{"rendered":"Massive changes for Cape Town’s inner city and financial district"},"content":{"rendered":"

The Cape Town Central City Improvement District (CCID) has published its latest State of Cape Town Central City report, highlighting strong investment growth into new and future developments in the Mother City.<\/p>\n

A total of 13 property developments or redevelopments valued at more than R2.5 billion were completed in the Cape Town CBD during 2021, despite rolling lockdown restrictions prompted by the pandemic, it said.<\/p>\n

The 13 projects are part of a total of 28 property investments that came on stream in Cape Town Central City in 2021 \u2013 either completed, under construction or in the planning phase \u2013 valued collectively and conservatively at R5.717 billion.<\/p>\n

The value of developments under construction in 2021 is R1.732 billion, while those in the planning phase are conservatively estimated to be worth more than R1.5 billion.<\/p>\n

These are some of the key findings of the latest State of Cape Town Central City Report \u2013 A Year in Review (SCCR), published by the CCID.<\/p>\n

Data in the annual report \u2013 which is a sought-after investment tool that is indispensable to investors, developers and retailers seeking to invest in the most successful and dynamic city centre in South Africa \u2013shows sustained confidence in the development and business investment potential of the Central City, said CCID board chairman and CEO of Boxwood Property Fund, Rob Kane.<\/p>\n

\u201cWith the overall value of all Cape Town Central City property set at R43.8 billion according to the City of Cape Town\u2019s 2018\/2019 property evaluation, it is clear that the Cape Town CBD remains one of the country\u2019s top property investment destinations,” said Kane.<\/p>\n

New developments and redevelopments completed in 2021 include five hotels\/aparthotels \u2013 The Rockefeller, Hotel Sky, BlackBrick Cape Town, The Capital 15 on Orange and Old Bank Hotel \u2013 valued at more than R1 billion, all of which opened last year.<\/p>\n

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Also completed were three residential developments worth more than R895 million, including the residential complex 16 on Bree (R860 million), and three mixed-use developments worth more than R523 million, including Foreshore Place (R373 million).<\/p>\n

\u201cThe myriad residential and mixed-use properties coming onto the CBD property market indicate that agile developers \u2013 many of whom reconfigured commercial space to accommodate a changing inner-city property climate \u2013 are confident that there is a market for buyers,\u201d said Kane.<\/p>\n

According to the report, the stand-out property trend in 2021 continued to be the conversion of office blocks into mixed-use developments to provide both commercial and residential space and offer buyers flexible living options as well as optimising on the co-living, co-working trend.<\/p>\n

Two key mixed-use developments in 2021 that were under construction were The Rubik (R500 million) and One Thibault (R500 million).<\/p>\n

Connected living, a trend that emerged in 2020, was still prevalent in 2021, with Neighbourgood, a neighbourhood-centric property development company setting the trend.<\/p>\n

Neighbourgood is responsible for two Central City developments, namely the conversion of the old Townhouse Hotel into Neighbourgood East City (R80 million) \u2013 offering fully furnished units with flexible letting options, convenience and exceptional amenities \u2013 and Neighbourgood Reserve (R75 million), which has studio units, office space and a conference venue.<\/p>\n

All units are for rent only, with \u201cmembers\u201d able to access communal spaces and attend events at other Neighbourgood properties in greater Cape Town.<\/p>\n

According to the report, residential property rebounded in the CBD last year, with the number of residential buildings increasing from 69 in 2020 to 77 in 2021. The median price of apartments increased by 32.8%, from R1.28 million in 2020 to R1.7 million in 2021.<\/p>\n

Harbour Arch, the R16 billion Amdec Group development in the Cape Town CBD falls just outside the CCID\u2019s geographical footprint and is therefore excluded from the total value of new property investment in the inner city during 2021. All data contained in the SCCR 2021 pertains to property and business in the CCID\u2019s 1.6 square kilometre footprint.<\/p>\n

Cape Town approves R14 billion Foreshore development – despite objections<\/a><\/p><\/blockquote>\n