The City of Cape Town has released a further 41 vacant and improved properties and 3 council-owned lease properties for auction to the private sector early October, 2024. The real estate going under High Street Auctions’ hammer at the DHL Stadium in Green Point on 2 October spans the length and breadth of the Peninsula – from Goodwood in the north to Fish Hoek in the south; and Somerset West to Atlantis.
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High Street Auctions Director Greg Dart says this bumper Cape Town auction comprises a mix of both lease and sale lots across the spectrum from prime N1-adjacent industrial land, through beachfront commercial leasehold, to “hen’s teeth scarce” adjoining lots in Constantia “that are ripe for redevelopment”.
“We’ve been inundated with queries from potential buyers wanting to register to bid,” says Dart.
Simply phenomenal!
“It is arguably the most exciting auction High Street has hosted on behalf of the City of Cape Town in three years. The properties on offer in October are simply phenomenal.
“The selection includes three adjoining properties in Constantia, together totalling around 4 340m², with opening bids ranging between R1.5 million and R3m. The properties run along Klein Constantia Road and Aloe Lane and all are improved with heritage listed residential homes.
“That said, interest from developers has been overwhelming, because triple-lot sales like this just don’t happen anymore in Constantia.”
Fish Hoek beachfront
Dart says the lease auction of a commercial site on the Fish Hoek beachfront is also generating substantial interest from investors.
“After this 20-year lease was put on the block late last year, the City exercised its right not to conclude the agreement, and has requested that we re-offer this phenomenal property to interested commercial enterprises.
“We therefore have the restaurant site under the hammer again next week and several interested parties already sitting down at the table.”
What’s also available
High Street Associate Director Shawn van Jaarsveld says besides those sites, dozens of other incredible City properties are featured in the catalogue, including:
- Two City Bowl properties – within walking distance of the offices, vibey restaurants and nightlife of the CBD – both ripe for renovation or redevelopment; one in Gardens and the other in Tamboerskloof.
- A large corner residential property in Maitland just down the block from Garden Village Primary School.
- A two-bedroom, one bathroom renovation property ideally located across the road from the Checkers centre in Plumstead.
- A GR2-zoned renovation property on a large (approximately 400m²) site in Plein Street, Woodstock – a suburb seeing rapid regeneration and upward trending property values.
- A rare development lot in sought-after Newlands, a suburb that feeds into some of the best schools in South Africa. The SR1 site covers a massive 609m² in Bisset Road and will eventually be the location of the highest bidder’s dream home.
- Two properties in Somerset West, one of them a massive 1 864m² GR2-zoned site within walking distance of both the Somerset West station and Somerset West Primary School.
Wynland Industrial Park
Van Jaarsveld says the amazing array of properties on auction are too numerous to mention, but there is one in particular that has City officials abuzz.
The City’s Economic Growth Directorate says it’s gearing up for the sale of a prime 9.2-hectare industrial property in the well-established and growing Wynland Industrial Park in Kraaifontein.
With the sale of this strategically located site adjacent to the N1, the City hopes to stimulate economic growth by unlocking private sector-led development opportunities and job creation in the area, which will benefit surrounding communities such as Wallacedene and Bloekombos, as well as broader Cape Town, according Alderman James Vos, Mayoral Committee Member for Economic Growth, who says auctions are a key part of the City’s strategy to release land for private sector development.
“Previous auctions led to successful transactions, and it’s an exciting way to spark further development across the city. This sale and lease auction of the various properties represents a catalyst for substantial economic growth.
“No government, including the City, should be a Land Bank. The City aims to continually look for smart, innovative ways to release land and assets for new investment that maximises the value and use of our assets, ensuring they contribute to economic development.
“By unlocking land and assets for commercial and residential use, we help business [expansion], create jobs, and boost economic activities essential for growth.
“The money generated will be reinvested into service delivery, ensuring lasting benefits for our communities. This approach maximises under-used land, driving long-term economic sustainability,” says Alderman Vos.
The Kraaifontein industrial site on auction.
Van Jaarsveld says the City of Cape Town’s ongoing real estate auctions deliver other tangible benefits to the community, including:
- Revenue generation: Auctioning unused properties generates immediate income for municipalities. This revenue can be used to fund public projects, infrastructure improvements or community services.
- Cost savings: Holding unused real estate can be costly due to maintenance, security, insurance, and property rates. Selling these properties reduces ongoing expenses, freeing up municipal budgets for other priorities.
- Increased tax revenue: Once private buyers develop or use the formerly unused property, the City benefits from new rates income. This boosts the local tax base and provides a sustainable future income stream.
- Improved community aesthetics: Unused or vacant properties can often be eyesores, leading to neglect or even attracting crime. Selling such properties allows for development or renovation, improving the surrounding suburb’s overall appearance and quality of life for residents.
- Encouraging efficient land use: Auctioning off unused municipal real estate encourages better land utilisation, ensuring that properties contribute to the local economy rather than sitting idle. This aligns with urban planning goals and helps meet housing or commercial space demands.
- Mitigating liability risks: Municipalities face liability risks when they own vacant or deteriorating properties, which could lead to accidents or illegal activity. Selling these properties reduces liability exposure.
- Fostering public-private partnerships: Auctions can attract developers or businesses interested in partnering with the City to revitalise or redevelop areas. These partnerships can bring resources and expertise to transform underutilised spaces into community assets.
Live and virtual online auction
“By auctioning unused property, the City of Cape Town is taking giant steps towards realising fiscal, economic and community benefits that align with the council’s long-term development goals,” says Van Jaarsveld.
Dart says the live and virtual online auction starts at noon sharp at the DHL Stadium, Business Lounge G on Level 4, with parking on Level 1 accessed through Foyer G. The stadium is located on Fritz Sonnenberg Road, Green Point in Cape Town.
For information on all the City of Cape Town properties on auction, visit www.highstreetauctions.com
Adjoining Constantia lots on auction.
