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Tuesday Apr 12, 2016

Cape Town property values continue to grow

The value of residential property in the central city continues to grow, with demand outstripping supply. The average price per dwelling last year was R2.013 million - a more than R500 000 increase compared with 2014.

"It is understandable, therefore, that the increase in property prices over the past few years has led to speculation around affordability," said the State of Cape Town Central City Report.

From only about 750 people living in the central city's 1.6km2 footprint 10 years ago, it's estimated that there are now about 7 000 people living in the city.

Last year, 185 units were sold in the central city, with a total value of R376m. This is slightly less than the 191 units sold in the previous year, with a value of R296m.

The report said central city property still remains cheaper than areas to its east and southwest. "These are also the areas where the greatest opportunities lie to bring more affordable accommodation options to the overall area."

The author of the report, the CCID's communication manager Carola Koblitz, said the property prices in the inner city had created the perception of "exclusivity". The CCID would be lobbying for more affordable housing options in the city in the coming year, Koblitz added.

"There are opportunities that exist where government land is under-utilised. But it's going to take a lot of lobbying. We also need incentives for developers to get involved in affordable housing."

The average size of a unit sold in the inner city last year was 82.97m2 at an average price of R24 483 a m2, up from R19 227 a m2 in 2014. But inner city property is still cheaper on average than its immediate neighbours.

By comparison, the price per square metre last year of property in the V&A Waterfront was R67 444, Sea Point R32 199, Green Point R31 138, De Waterkant/Foreshore R30 257.

Property in Zonnebloem, District Six and Woodstock averaged R16 210 a m2 last year, while the rest of the City Bowl outside the Central City was R28 612 a m2.

The CCID found there was an increasing demand for rental properties in the central city - not only from people who work in the CBD, but from the approximate 12 000 students studying at training institutions in the vicinity.

Last year, the price of rentals was R10 375 for a studio, R15 860 for one bedroom, R20 120 for two bedrooms and R36 000 for three.

Cape Argus

 
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