WORDS: DEBBIE LOOTS :: PHOTOS: SUPPLIED
An overview of Cape Town CBD’s thriving residential development sector including a quick look at neighbouring Vredehoek
The latest edition of the State of Cape Town Central City Report 2022 – A Year in Review (SCCR) brings good news concerning new residential property developments in the Mother City.
Published annually by the Cape Town Central City Improvement District (CCID), this 11th edition of the report shows that eight of the 22 property developments under construction in 2022 are residential builds estimated to be worth about R1.65bn.
The total of 22 new developments with a net worth of R3.555bn adds to the overall value of all property in the CBD, which is set at R42.9bn according to the City of Cape Town’s 2022 property evaluation.
CCID chairperson and CEO of specialist property developer Boxwood Property Fund Rob Kane says the new developments add to the ongoing vibrancy and economic stability of the Cape Town CBD, which continued to open its doors to an increasing number of national and international visitors, including digital nomads, solo travellers and semigrants from other provinces.
The Barracks
Inner-city boost
Increased competition in the CBD sees residential developments kitted out with top-of-the-range fixtures and fittings. Services prioritise proximity and convenience, while interiors offer high-quality fixtures and fittings, all accompanied by eco-credentials. Additionally, for investors, the abundance of flexible leasing choices and co-working amenities across various developments leaves them spoilt for choice.
Once complete, these new developments will add thousands of homes to the CBD. In 2022, the number of residential units here was 6,827, up from 5,791 recorded at the end of 2021 and 4,954 at the end of 2020.
Last year, Neighbourgood Reserve – a R75m development offering fully furnished loft apartments, co-living and co-working amenities in a community-centric environment – was completed, while four others, with a total value of R1.48bn, were under construction. These include the R60m Vida d’Chette on the Foreshore, which offers flexible and shared letting, and The Tokyo (R150m) and The Carrington (R70m), both on Loop Street.
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- The Fynbos
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- The Carrington
Moreover, the R1.2bn The Fynbos in upper Bree Street is garnering a lot of excitement. Set to become Africa’s first biophilic building, its façade will include 30 types of trees and 20 types of shrubs, offering resident a unique “garden experience”.
Says Kane: “These new residential builds have the potential to change the character of inner-city precincts and will not only boost the retail economy in town but also prompt new business opportunities in the area as footfall increases.”
Mixing work and pleasure
The pandemic’s impact on office space demand led Cape Town developers to transform commercial buildings into mixed-use properties (combining residential, retail or commercial aspects).
In 2022, three such projects were under way:
• One Thibault: A transformation of the old Standard Bank building on Thibault Square, valued at R500bn. It successfully converted into a mixed-use space, integrating aparthotel and Airbnb-style accommodation within its residential section.
• The Barracks on Bree Street: This R150m redevelopment of a historic CBD landmark, formerly a warehouse and military barracks from the 18th century, is introducing a modern extension featuring 70 micro-units.
• The Rubik: Valued at R600m, this mixed-use development combines premium residential units with more than 5,000m² of top-notch office space in an elegant skyscraper.
One Thibault
One tower at a time
Amdec Group’s Harbour Arch, a sustainable mixed-use development, is being built on the 5.8ha Culemborg site near the N1 and N2 highways. Valued at R15bn, it encompasses 200,000m² of usable space and features about 2,500 apartments across six towers. The development is set to unfold over the next five to 10 years.
“We don’t want to flood the market with units. We are on track with our master plan for Harbour Arch,” says Amdec Group CEO James Wilson. “In the best-case scenario, Harbour Arch will be completed in the next five years. In the worst case, it will be completed in the next 10.”
Its first tower valued at about R2.4bn was launched early this year and includes 80,000m² of built form, 560 residential apartments, restaurants, high-end vehicle retailers and about 1,200 parking bays.
The apartments are priced from R2.1m to about R8m each. Similar to Amdec’s sustainable development, Melrose Arch in Johannesburg, Harbour Arch also embraces green practices. Numerous buy-to-let investors have bought as many as five units for rental purposes. Construction will begin on Tower Two once Tower One has been fully let.
In November last year, Wilson said: “The Amdec Group is deeply committed to redressing the injustices of the past, which is why we voluntarily elected to incorporate affordable housing at our Harbour Arch mixed-use development.”
Harbour Arch
Curve appeal
Construction in progress on The Vera
Horizon Capital’s residential development The Vera in Vredehoek in the City Bowl is nearing completion. Designed with curved shapes and large windows to allow in views and light, The Vera is a modern take on the art deco style predominant around the suburb, thus respecting and supporting the character of the area and community.
The Vera is also designed considering responsible environmental practices, which make it easy for residents to recycle waste, save electricity and so minimise their environmental impact. Custom workspaces are also designed for each apartment and uninterrupted power supply and fibre internet connectivity make for the perfect work-from-home space. State-of -the-art security and parking are also part of the deal.
Comprising 15 units, only two are still available for sale – a north-facing, two-bedroomed unit at R4.295m and a south-facing, two-bedroomed unit at R4.625m. Horizon Capital’s newest two developments in Vredehoek, The Poplar and The Holly, offer the same quality and considerate design. The estimated completion date of The Vera is December 2023, The Poplar, December 2024 and The Holly, March 2025.
City sales performance
According to the SCCR, the greater Cape Town residential market performed strongly in 2022, even with the rise in interest rates. Remarkably, the CBD managed to maintain its stability amid declining sales and prices, recording more sales than before the pandemic began.
The median price of sectional title properties in the CBD experienced a dip from R1.71m in 2021 to R1.47m in 2022, marking a decrease of 13.8%. While the 648 units sold in the CBD during 2022 were fewer than the 750 units sold in 2021 – a reflection of the market rebound after pandemic-driven activity – this still represents a notable level of sales compared to the pre-Covid-19 period.
Rental market boom
At the close of 2022, Property24.com listed 57 rental apartments in the central city. This number is significantly lower than the 217 units listed at the end of 2021 and the 475 units listed at the peak of the pandemic in 2020. Most of these units were listed as fully or partially furnished.
