In addition to a diverse property market in a prime central location, Mediterranean climate and cosmopolitan population. Cape Town is Africa's third main economic hub city, SA’s second main economic centre, as well as the main economic centre of the Western Cape, where living costs come at a price.
What service costs currently await city residents?
Proposed tariff hikes announced by Mayor Patricia de Lille of above inflation (5.9%), of property rates on average by 6.1 percent, electricity increasing by 7.86 percent, water by 9.53 percent, sanitation by 9.53 percent, refuse removal by 6.32 percent and refuse disposal by 7.06 percent.
Cape Town’s population growth as illustrated in the 2011 Census:
Population growth of 29.3% from 2 892 243 in 2001 to 3 740 025 in 2011
Household growth of 37.5% from 777 389 households in 2001 to 1 068 572 in 2011
Average household size declined from 3.72 in 2001 to 3.50 in 2011.
Population key results:
Predominantly Coloured (42%) and Black African (39%)
46% of those aged 20 years and older have completed Grade 12 or higher
76% of the labour force aged 15 to 64 is employed.
Household information:
47% have a monthly income of R3 200 or less
78% live in formal dwellings
87% have access to piped water in dwellings or inside yards
88% have access to a flush toilet connected to the city’s public sewer system
94% have refuse removals at least once a week
94% use electricity for lighting in dwellings
What is driving ongoing growth in the city?
Transparent planning and implementation strategies. The city’s progressive approach toward rapid urban growth by facilitating the integration of planned maintenance and infrastructure schemes.
What are the benefits to property owners and tenants across all market sectors?
Long term investment opportunities luring investment houses, listed property funds, and developers, supported and facilitated by the City’s Integrated Development Plan (IDP) which after public participation is implemented over the next five years.
Cape Town’s top ranking municipal performance:
Out of 120 municipalities measured countrywide, across 33 categories of assessment, as reported in the Western Cape Provincial Department of Economic Development and Tourism.
Increased demand for housing is supported:
Through development opportunities across all markets in the city’s four major commercial nodes, from the Central Business District northward to Century City, Bellville, and Tyger Valley areas to Claremont in the southern suburbs.
A first for Cape Town’s Zoning Scheme:
As part of the Cape Town’s Spatial Development Framework awarded by the SA Planning Institute (SAPI) Planning Award for Best Municipal Project implemented in February. This scheme sets uniform standards and simplified and equitable rules for land use and development across the city.
Investor confidence:
Large investment houses such as Nedbank Corporate Property Finance Affordable Housing’s recent signing of loan agreements, with reputable Cape Town developers in excess of R500 million to finance 5 500 housing opportunities in the city.
Economic strategies to finance infrastructure projects:
The city’s recent R2.4 billion loan credit facility agreement by French development bank L'Agence Française de Développement (AFD), for the building of clinics, parks, and libraries in previously disadvantaged communities.
While Cape Town might attract wealthy buyers from upcountry and abroad, economists and real estate players are urging city buyers to bear in mind gloomy market predictions for the 2013. They also advise the wisdom of patience, through extensive property searches across different ends of the market that will lead to select areas offering good long term opportunities.