Ob­serv­ing growth, ur­ban re­newal

Weekend Argus (Saturday Edition) - - PROPERTY -

THE WESTERN Cape prop­erty mar­ket main­tains its high­erthan-av­er­age rate of prop­erty price in­fla­tion de­spite a gloomy out­look for most of the rest of the coun­try.

“The num­bers show that the Western Cape’s con­struc­tion sec­tor is out­per­form­ing na­tional fig­ures. In this re­gion, the rolling av­er­age dur­ing 2014 found that the num­ber of square me­tres ap­proved for res­i­den­tial build­ing plans in­creased by 22.5 per­cent, com­pared to the na­tional fig­ure of 9.2 per­cent. Over the same pe­riod, the num­ber of square me­tres ap­proved for non-res­i­den­tial build­ing plans in­creased by 15.5 per­cent, com­pared to the na­tional slow­down of 1.7 per­cent,” says Alan Winde, Western Cape Min­is­ter for Eco­nomic Op­por­tu­ni­ties.

“Cape Town has cer­tainly be­come a place to work, play and stay, and the city con­tin­ues to sup­port this by cre­at­ing an en­abling en­vi­ron­ment,” says Coun­cil­lor Gareth Bloor of the City of Cape Town.

“The growth in prop­erty prices and in new build­ing projects in the Western Cape peaks in the south­ern suburbs, the At­lantic seaboard and in cer­tain of the fast- grow­ing CBD fringe ar­eas in the metropole,” says Carl Nortje, man­ag­ing direc­tor of Raw­son Prop­erty De­vel­op­ers.

“Over­all, the Western Cape has been the coun­try’s shin­ing prop­erty star with a 12 per­cent year-on-year rise to the first quar­ter 2016 as de­ter­mined by IHS Global In­sight, one of the world’s largest data­bases of global eco­nomic, fi­nan­cial and in­dus­try data.”

Ac­cord­ing to Light­stone Prop­erty, in April 2016 the an­nual na­tional house price in­fla­tion was 5.23 per­cent. How­ever, just over 10.7 per­cent was recorded on av­er­age across all pric­ing bands in the Cape Town Metropole.

Raw­son and other de­vel­op­ers have pur­sued the com­pact and con­ve­nient hous­ing op­por­tu­nity, es­pe­cially in the Ob­ser­va­tory precinct, which has been at the cen­tre of ur­ban re­newal ini­tia­tives by the Ob­ser­va­tory Im­prove­ment District, the Ob­ser­va­tory Civic As­so­ci­a­tion, and cer­tain com­mer­cial de­vel­op­ers.

“We ac­quired a cou­ple of run­down ware­houses di­rectly across the road from Groote Schuur Hospi­tal and the UCT Med­i­cal Cam­pus with the in­ten­tion of pro­vid­ing at­trac­tive, se­cure and eas­ily ac­ces­si­ble apart­ment liv­ing for young pro­fes­sion­als and stu­dents,” says Nortje.

“Ninety per­cent of our first pro­ject, the Paragon, is al­ready sold. Our con­struc­tion teams are on the ground and we are aim­ing for com­ple­tion and first oc­cu­pancy by May 2017. Sig­nif­i­cant num­bers of in­vestors from Cape Town and Gaut­eng have spot­ted the value in the Ob­ser­va­tory Main Road area – up to 50 per­cent of our buy­ers so far.”

“The ur­ban de­vel­op­ment zone (UDZ) sta­tus of the sub­urb al­lows at­trac­tive in­come tax sav­ings to in­vestors over a fixed num­ber of years. Sup­port­ing this at­trac­tive tax op­por­tu­nity, the rental mar­ket is look­ing strong. This is one pos­i­tive spinoff of the in­creas­ing costs of prop­erty own­er­ship, caused by ris­ing in­ter­est rates,” says Nortje.

He says Raw­son’s lat­est Main Road Ob­ser­va­tory de­vel­op­ment, Madi­son Place, will shortly break ground. Lo­cated along Trill Road, it is ex­pected to ap­peal to own­ers and ten­ants.

Artist’s im­pres­sion of Madi­son Place, Raw­son Prop­erty De­vel­op­ers’ lat­est Ob­ser­va­tory de­vel­op­ment.

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