Cape Town – The value of property in the CBD will increase to over R30bn within the next five years, according to the Cape Town Central City Improvement District (CCID).
Speaking at the launch of the 2014 State of Cape Town Central City Report, CCID chairperson Rob Kane said the previous report showed that the City’s official property valuations for the 2013/14 financial year stood at about R24bn.
“It was also noted at the time that, in addition to this R24bn and the R1.6bn Portside building that had just opened, there was approximately another R3.4bn in the pipeline somewhere between construction and planning to come on line within the next five years,” he said.
“However, while compiling the latest report [presented on Thursday], the CCID’s research team documented a further R1.46bn worth of development under way or on the cards.
“And astonishingly, between the release of the 2014 report and today, we now have conservatively seen another R1.95bn of investment that has been announced in just the past three months,” he said. “I say ‘conservatively’ as there are some investments and refurbishment figures which have not yet been revealed by developers.”
The new confirmed investments included:
– A R70m upgrade by the Department of Public Works to the Master of the High Court building in Albertus Street.
– A new R200m residential development called The Sentinel on the corner of Loop and Leeuwen Streets being developed by the Dogon GroupDogon Group in association with the Dogon Group.
– Tsogo Sun’s development of the SunSquare and StayEasy hotels on the site of the old Tulip Hotel in Bree Street, totalling R680m.
– The transformation of the old Triangle House in Riebeek Street into a R1bn residential and hotel development, a collaboration announced by Radisson and Signatura just last week, to be opened by September next year.
New residential wave
“A year ago, we predicted that residential property would be the new wave of development, and we are thrilled in particular to see this happening as demand has now significantly outstripped supply in the central city,” said Kane.
“We think that people wanting to live here and be closer to their places of work and play is the biggest thumbs up any CBD can receive in terms of catalysing a downtown area.
“Add to this the growing accolades we are receiving as a city in which to do business, and we are reminded how important a strong CBD is for the metropole as a whole,” he said.
The success in drawing investment has been 15 years in the making. “In November this year, the CCID will celebrate 15 years in operation, while its next five-year business plan begins on July 1,” he said.