'Cape Town affordability crisis forcing middle-income residents to leave'

Africa Melane interviews Victor Ngomane, a luxury property expert.

Listen below.

Cape Town's property market is trapped in a complex cycle of high demand, limited supply, and escalating prices, making it increasingly difficult for locals to compete with foreign investors and digital nomads attracted by a weakening rand.

According to Ngomane, this has led to an 'affordability crisis', forcing many middle- and lower-income residents to relocate to the outskirts or even leave the city altogether.

Ngomane warns that this trend is breaking down established communities and exacerbating the city's economic inequality.

He questions why, as a country with the largest wage gap and one of the highest levels of inequality, South Africa would fail to address this issue by regulating short-term rentals, enforcing property rental controls, and providing more support for low-income earners.

In his view, the government's lack of action on this issue is concerning.

"Not only are you disrupting community structures, but you are increasing commuting times for locals who are actually working to contribute to the growth of the city... You are also further widening the economic inequalities."

- Victor Ngomane, luxury property expert

To tackle the housing crisis, Ngomane proposes several solutions:

Tourism-generated revenue could be redirected to fund affordable housing and community development projects within and around the city.
Local stakeholders should be more actively involved in shaping both housing and tourism policies.
Policies should be implemented that support tourism and protect the availability of affordable housing for residents.

Ngomane believes that a balanced approach is necessary to safeguard the needs of local communities while also managing the economic impact of tourism and foreign investment.

"It's all about balancing the scale."

- Victor Ngomane, luxury property expert

Scroll up to the audio player to listen to the interview.

'Cape Town affordability crisis forcing middle-income residents to leave' – property expert

Victor Ngomane warns that this trend breaks down established communities and exacerbates the city's economic inequality.