Investment shows no signs of slowing down in Cape Town’s CBD
The city’s CBD is bucking the country's economic slump with property in the city centre now valued collectively at more than R30 billion.
CAPE TOWN - Cape Town's CBD is bucking the country's economic slump with property in the city centre now valued collectively at more than R30 billion.
Chairman of the Central City Improvement District (CCID) Rob Kane says investment in the city shows no signs of slowing down and it's bringing with it much-needed jobs, especially for young people.
The CCID released its fifth annual State of the Central City Report on Thursday.
At least R16 billion has been invested in Cape Town's CBD since 2012 and up until 2019. Currently, R12 billion in construction is either underway or in the pipeline.
Kane says the economic climate in the city is healthy and shows no signs of abating.
There are now 37 call centres in the CBD and the area is also becoming a hub for e-commerce.
“Companies want to locate where young people want to be. There’s no doubt that Cape Town is attracting those sorts of people. The number of IT and start-ups in the city is extraordinary.”
Kane says investors continue to show faith in bringing development to the city, with the metropole accounting for 25% of the city's entire economy and over 30% of its workforce.
Kane says the value of private property in the inner city, is making it difficult for private developers to build affordable housing.
Thirty percent of the city's workforce works in the Central Business District and many spend up to 40% of their income on travel costs.
It's estimated that around 7,000 people currently live in the city centre and this number is expected to grow to 12,000 by 2019.
But the city is still faced with the challenge of building affordable housing for those who work in the city.
According to the latest State of the Cape Town Central City Report, the average rental price of a studio apartment in the inner city is now more than R10,000 a month.
Kane said: “If we could redress some of the legacy issues we have spatially and get people within walking distance of their workplace, I think that would be hugely successful.”
Kane says he believes the Foreshore Precinct is well suited for this purpose.
Kane adds he hopes that the city's Foreshore Freeway Precinct Project will be successful in creating a public-private partnership to bring affordable housing to the city.
(Edited by Shimoney Regter and Zamangwane Shange)