Tag Archive for: Affordable Housing

Andrew Stegmann
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2019 State of Cape Town Central City Report Launched

Published recently, by the Cape Town Central City Improvement District (CCID), the report noted that the Central City “held its own quite remarkably” in the year under review, despite 2019 being “incredibly difficult”, according to CCID board chairperson Rob Kane.

Says Kane: “Stakeholders and investors in the CBD have had to cope with the aftermath of the 2018 drought and subsequent water crisis, ongoing load shedding and a tough economic climate.”

Five-part section on on ‘Surviving Covid-19’

Though the coronavirus pandemic falls beyond the ambit of the SCCR report, a five-part section of the report is devoted to reflections on “Surviving Covid-19” by Wesgro CEO Tim Harris, Economic Development Partnership CEO Andrew Boraine, HTI Consulting CEO Wayne Troughton and economist Brian Kantor of Investec Wealth and Investment and Arthur Kamp, chief economist, Sanlam Investments.

Kane acknowledges the “global devastation” Covid-19 has caused, noting that it “has damaged the Central City’s economy”, but its economic performance means the Central City is well-placed to navigate a path to recovery.

Property evaluation

The SCCR report shows that, according to the City of Cape Town’s 2018/2019 property evaluation, the value of Central City property stands at R44.124bn, and that the total value of property investments in the Central City – recently completed, under construction, proposed or planned – is R13.83bn.

This is broken down into:

  • R1,045,000,000 – A conservative estimate of the value of property completed in the Central City during 2019 but which still has to be officially assessed by the City of Cape Town (seven projects);
  • R3,730,000,000 – The value of property, conservatively estimated, that is under construction (14 projects);
  • R5,196,000,000 – The value of property, conservatively estimated, that is currently in the planning phase (11 projects); and
  • R3,860,000,000 – The value of property, conservatively estimated, that is currently proposed and is expected to begin construction within the next two years (six projects).

The Foreshore precinct has emerged as a key property investment node which is due, in part, to the expansion in 2018 of the Cape Town International Convention Centre (CTICC), which achieved a turnover of R277m in 2018/2019. “This world-class venue, which contributed R4.5bn to the Western Cape GGP, was a key driver in 2019 of the Central City’s visitor economy as well as its knowledge and eventing economy, all of which continued to expand in 2019.”

The eighth edition of the SCCR reflects on the bigger picture of the economy of the Central City, looking at property trends, occupancy rates of commercial and residential buildings, retail vacancies, the prominent economies of the Central City and trends in commercial and residential markets.

Among other key findings in the report are that:

For the third consecutive year, Cape Town had the lowest overall vacancy rate of 7. % of the country’s five largest metros. According to the SAPOA Office Vacancy Report (Q4 2019), the city’s vacancy rate compares very favourably to that of Johannesburg (12.5%) and is well below the national office vacancy rate of 11%.

The Central City vacancy rate has continued its gradual decline from a peak of 11.8% at the end of 2018 to 10.8% at the end of 2019 – a decline of 15,127m2 of space available for rent. This is at least partially attributable to the reduction in office space due to redevelopment during 2019.

A new urbanism trend gained traction in South Africa in 2019 in spite of a sluggish housing market, increasing demand for downtown living in the Central City. This has prompted the re-imagining of precincts in the Central City by developers into spaces where homeowners can live, work and play in areas that provide a safe and secure environment with easy access to work. With affordability a major issue for many young professionals, developers are responding with a growing number of studio apartments and co-living units within mixed-use developments. In 2019, small apartments with shared amenities officially became hot property, giving first-time buyers the opportunity to enter the housing market in a desirable city centre.

In 2019, the Central City residential market finally felt the effects of the economic and political headwinds which have dampened activity in the national and regional housing markets in recent years. The distribution of sales across the various price bands was similar to that seen in 2018, with the largest number of sales recorded in the R30,000 – R39,000/m2 category. No sales were recorded in the top price bracket (more than R60,000/m2) last year, while two sales were recorded in 2018.

The report includes separate sections providing a detailed look at key elements of the Central City economy, including:

  • The Art Economy: With Cape Town firmly established as the art capital of Africa, the financial contribution of the creative sector to the Central City economy is undeniable;
  • The Visitor Economy: With three new hotels opening in the Central City in 2019, several mixed-use developments and aparthotels either being constructed or in the pipeline, the CBD’s multi-layered visitor economy continued to expand in spite of a tight economy;
  • The Night-time Economy: There is growing awareness of the potential of the Central City’s night-time economy, but it remains an unexplored resource. A recent research partnership between the City of Cape Town, the CCID and the University of Cape Town will provide a better understanding of the night-time economy of the Central City and how to better use the night as a resource for social and economic development; and
  • The Knowledge and Eventing Economy: The Central City’s knowledge and eventing economy continues to expand every year, driving business into the region as local and international visitors and business tourists stream into the CBD to attend official events and conventions in and around the public spaces in downtown Cape Town.

The report also features a detailed analysis of residential and commercial rentals, and highlights from the CCID’s residential and retail surveys.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Trendy, Affordable Apartments for Sale in First Fully Integrated Community in Cape Town (Conradie Park)

Conradie Park offers affordable housing while integrating mixed-income earners.

A range of trendy apartments, ranging from studios through to duplexes, are now for sale in SA’s first fully integrated, mixed-income, mixed-use development, near Cape Town’s CBD. Conradie Park is virtually a self-contained town, comprising residential, commercial and retail elements, a business hotel and an emphasis on community and connection. The development includes extensive green spaces, sports and recreational facilities and an urban gym.

Foot and cycling paths are part of a non-motorized transport plan to promote “active streets” where families can walk safely and play freely. The pet-friendly campus includes two schools and three daycare centers. Studio apartments start from R950,000, including transfer costs, while one- and two-bedroom units and duplexes are among 99 properties for sale in the first phase of construction of a block called Kirstenbosch, named after the iconic Cape Town botanical gardens due to its emphasis on green spaces.

Green technology has been applied to energy, water and waste management, while integrated solar heating is also part of a sustainability focus. Basement parking, fiber-ready internet, an integrated camera network and 24-hour security are among the attractions. Other features include trendy finishes, vinyl flooring, oven hobs and extractors, engineered stone kitchen counter tops, track lighting, aluminium windows and internal elevators.

The revolutionary 22ha community comprises more than 3,500 homes – some subsidized or grant funded. “This is a connected, multicultural community marked by affordability, sustainability and security,” says Toni Enderli, founder of Realtor of Excellence.

Conradie’s head of sales, Wayne Lawson, said public excitement was high, adding that 25% of the first phase had been snapped up during the launch weekend. Construction starts in May 2020 and occupation is set for mid-2021. The project is a partnership between developers, Concor, and the Western Cape government, described as one of seven provincial “game changers”, providing affordable housing close to jobs while integrating mixed-income families. Concor project leader, Mark Schonrock, said the model showed how state-owned land could be unlocked to boost economic growth in an attractive and affordable mixed-income neighborhood.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Cape Town Back-yarders Urged to Register on Housing Database

An increase in urbanization is the leading factor in Cape Town’s housing crisis.

With only one in three registered on the city of Cape Town’s housing database, the city has encouraged more people in this sector to register.

The city said in a statement recently that almost 70% of informal back-yarders in the metro would not be eligible for a housing opportunity because they were not registered for subsidized housing.

The city says increased urbanization across South Africa over the past decade has resulted in a steady growth of backyard dwellings on publicly- and privately-owned land.

“The great need for affordable housing and services in and near urban centers especially means that we must ensure that we work in a planned, systematic and fair manner.

“It is really important for backyard dwellers to apply to register on the housing database. Back-yarders who are not registered on the database cannot be considered for housing opportunities created for them by the city and Western Cape Government. “

The city said that all qualifying beneficiaries and especially backyard dwellers should ensure that they were registered and that their details were correct and up to date.

“We also continue to focus on enhanced service delivery especially to back-yarders residing on council-owned properties. Cape Town was the first city in South Africa to introduce basic services to back-yarders residing on Council-owned properties.

“The back-yarder program started in 2014 and entails the provision of one-to-one water, refuse and electricity services to back-yarders residing on Council-owned property, such as rental units.

“The Municipal Finance Management Act determines that public money may not be used for enhancing private properties. Therefore, much work still needs to be done to see how back-yarder services will be rolled out to those residing on private properties within the framework of the law.

How to register on the housing database

The city said that urbanization was a challenge that all tiers of government, as well as the private sector and civil society organisations should deal with.

We “must work together and ensure that we are ahead of the curve with our plans to address rapid urbanization. We must bring our communities on board with the alternatives on offer”, the city’s member of the mayoral committee for human settlements, councilor Malusi Booi, said.

He also explained that the service was free and that there was no payment for registration.

Applicants can register on the housing database online, at city housing offices, MyEstate mobile offices that comes to various areas and at the Parow or Wale Street walk-in centers.

Applicants need a certified copy of their IDs and their spouses’ IDs, a completed housing assistance form, copies of their children’s birth certificates, marriage or divorce certificates, details of special needs where applicable, as well as supporting documents such as medical records and proof of address (FICA).

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

City of Johannesburg Identifies Sites for Affordable Housing Conversions

The City of Johannesburg says it has identified 37 abandoned factories in the city that it plans to expropriate in order to convert into low-cost affordable housing.

Johannesburg mayor Herman Mashaba said this came after the council’s resolution last year to make 84 city-owned properties available for the purpose of creating quality low-income housing within the inner city.

Mashaba said the 84 buildings would generate an expected R21bn in investment, 11,000 construction sector jobs and over 6,000 affordable housing units.

“Following on this success in the inner city, the multi-party government has now identified 37 abandoned factories across the city, specifically those located in areas in desperate need of housing opportunities.

“Arising from their large stand sizes, the yield of these properties will offer nearly 3,000 housing opportunities in multi-storey buildings,” Mashaba said in a statement.

He said the abandoned factories that had been identified were located in Kew, Devland, Rabie Ridge, Doornfontein, Booysens and Nancefield.

Johannesburg Mayor Herman Mashaba.

Mashaba said 16 of the buildings were in close proximity to Alexandra, offering a much-needed opportunity to reduce the density of settlement in this under-developed township.

He said the municipality would prepare a proposal to council in August, which would allow the city to begin the legal proceedings to expropriate these properties as abandoned buildings.

Mashaba said these buildings would be expropriated within the existing legal framework of the constitution.

“For this we will utilise the fact that they are abandoned, owners are untraceable and monies owing on these properties exceed their value.“

Mashaba said once the expropriations were approved by council, the city would be able to put these properties out to the private sector and award them on the criteria that achieved the largest number of residential units, the lowest rentals, the highest job creation and investment.

Mashaba said the City of Johannesburg had previously sought to tackle the housing backlog with a reliance upon RDP housing each year. However, the RDP housing could never begin to reduce the housing shortage, he said.

“Our residents cannot wait for dreams of new cities to materialise in the distant future, if at all,” Mashaba said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], Jacques Nel [2].