In the area 2 – Cape Town

The hottest address in CT

There is no time like the present to invest in Cape Town city centre living. Due to a weak South African property market there are a number of extremely affordable options currently on the market in central Cape Town, ranging from studio apartments to luxurious penthouses. When the market turns, however, expect values in the Central Business District (CBD) to skyrocket.

Safe, clean city living

Cape Town's city centre has famously regenerated and offers an unparalleled lifestyle to its trendy residents. It is a very different story today from five years ago, says Pam Golding Properties MD for the Western Cape metro region, Laurie Wener. "In the past five years crime in the CBD has dropped by 60 percent and the area has undergone a significant facelift," she says. "Billions of Rands have been invested in residential densification and there have been huge improvements in the overall cleanliness of the city. Plans are now underway to improve the internal transport network within the Central City including the upgrade of Cape Town station, the introduction of the new Bus Rapid Transport System and decentralised multi-storey parking garages allowing for a park and ride system as well as investment in pedestrian and cycling zones throughout the city. Money is also being spent upgrading public spaces such as the Grand Parade and Church Square and updating the Golden Acre shopping centre.

"The chief executive of the Cape Town Partnership, Andrew Boraine, indicated late last year that there was between R28-billion and R30-billion worth of new private and public sector investments planned for the Central City over the next three to five years. All these projects will have a significant impact on the area and can only improve the prospects for capital growth for property owners."

Electric, cosmopolitan atmosphere

The Central City area is now home to over 30 residential developments including apartments, townhouses, penthouses and smaller studios. It also boasts an eclectic collection of fashionable restaurants, coffee shops, internet cafes and designer boutiques scattered among its modern office blocks and historical facades. Buyers in this area to date have included a mix of full-time city residents, Gauteng-based commuters and some foreigners and the result is a character-filled environment with an electric, cosmopolitan atmosphere – the perfect place for young professionals to live, work and play.

PGP’s area manager for the Atlantic Seaboard and City Bowl, Basil Moraitis, says entry level prices in the Central City now stand at their most affordable level in years. "Current prices represent great opportunities for young professionals wishing to live close to work and close to the buzzing city nightlife," says Moraitis, "and also for investors wishing to take advantage of the slowdown in the market and buy at the most affordable levels in years, then earn rental income. There is a strong and consistent demand for rental properties in the city, both on long- and short-term lets, and from a variety of sources. For example, we see parents of students seeking rentals (and purchases) in the affordable buildings close to the Cape University of Technology campus while businesspeople tend to prefer the developments situated close to the Cape Town International Convention Centre and key office buildings. For tourists, proximity to the V&A Waterfront is a key factor as well as ease of access to transport and other leading tourist attractions. Investment buyers can also opt to purchase an apartment and rent it out, furnished, on a daily basis via the many developments offering a rental pool such as Fountains Suites, Icon, Circa and Mandela Rhodes Place. Our City Centre rental agent is exceptionally busy at the moment letting both furnished and unfurnished apartments in the city, many of them to foreign visitors. With the depreciation of the Rand we are definitely seeing renewed foreign interest in this market."

Article by: www.iafrica.com