Year-on-year comparative sales in the Cape Town Central City1 continue to show a steady rise in residential interest and a downtown lifestyle.
DOWNTOWN ON THE UP While the R/m2 value continues to climb steadily overall against the demand for Central City units, and well above the average growth rates seen in South Africa as a whole, the year-on-year increases of average sales prices have slowed somewhat as the CBD market stabilises, particularly when comparing these to the low base of the market back in 2013, and in particular the significant escalation in averages from 2014 to 2015. Prior to 2013, values in the Central City had stagnated for many years, following a developers’ boom in the mid-2000s and rapid uptake by leveraging investors hoping for short-term and highly profitable turnarounds, many of whom were then struck by the same burst
TOTAL VALUE OF ALL RESIDENTIAL UNITS SOLD 2013: 2014: 2015: 2016:
R249m across 163 units R296m across 191 units R376m across 185 units R533m across 228 units
of the property bubble felt across the The comparative selling price of units globe. It has, therefore, only really been against what they originally listed for is also since 2014 that erstwhile downtown decreasing (-2.5% in 2016 versus -4.8% “pioneers” looking for an urban lifestyle in 2015), although the average number have begun to see the CBD as a true of days that units spent on the market live/work/play has risen marginally destination and, most (47 days in 2016 versus The placement of residential importantly, a long45 in 2015). complexes across the term investment. The year also saw CBD can be found in the What is significant, breakdowns of each individual a significant increase however, is that in the numbers of units precinct – see Section 3. the average unit sold (228 in 2016 against size is becoming 185 in 2015) due to the significantly smaller2 than those built in transfer of many of the 169 residential units that make up the commercial property-tothe mid-2000s, following the international residential conversion, by Signatura, of the trend towards smaller units in popular old Triangle House in Riebeek Street into the urban areas – and again showing Radisson Blu Hotel & Residence complex. stabilisation against global standards.
OVERALL AVERAGE SALE PRICE 2013: 2014: 2015: 2016:
R1.428m R1.552m R2.031m R2.337m
YEAR-ON-YEAR % INCREASE IN AVERAGE SELLING PRICE 2013 to 2014: 8.68% 2014 to 2015: 30.86% 2015 to 2016: 15.06%
Published on Apr 20, 2017
Published on Apr 20, 2017
Looking back at 2016 in terms of the economic and investment climate of the Cape Town CBD.