Economic development

5 new residential developments in Cape Town

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Even though year-on-year growth of property prices has dropped from 14.5% in 2016 to 14.1% in 2017, Cape Town remains a hotspot for investment – something that is clear to see from the many cranes towering over the city at this very moment.

In their most recent State of Cape Town Central City Report, the CCID listed 33 property investment opportunities of various kinds – commercial, retail, residential, government, entertainment etc – in various phases – completed, underway, planned and proposed –  throughout the CBD, which altogether could translate into a massive investment value of R12.086 billion between 2016 and 2020.

Among these development opportunities, residential seems to be offering a particularly promising gap in the market, as the number of units has grown from only 63 available in the city in 2015 to 116 by the end of 2016, with many more to follow within the next three years.

Here’s a quick snapshot of five new residential developments too keep tabs on in the CBD.

FORTYONL by Blok Raw 

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Location: Lion Street, Bo-Kaap

Concept: Aware of just how difficult it is for middle-income earners to invest in Cape Town’s CBD these days, Blok has come up with an 80:20 concept by which they hope to provide inner-city homes for a more diverse range of incomes. Blok has launched a new product called Blok Raw which brings a new aesthetic to a new market at a new price band and secondly through the introduction of a new development model for this site specifically, called the 80:20 model. Blok will be pioneering this development model in an effort to challenge the role of the urban developer in bringing a more diverse product to the market in urban centres. The first lot to say 80% of the development will comprise apartments sold at market-related prices and 20% will be subsidised by the 80 and sold at more affordable prices.

FORTYONL will be the first Blok Raw property, with a number of apartments already up for sale. Prices start at about R1.9m for a one-bedroom. But before you get too upset about this being way out of range for the average middle-income salary, Blok sales and marketing manager, Lior van Embden explains it as follows:  “[these] represent 80% of the apartments in the planned scheme. The 20% remaining apartments are the more affordable, inclusionary ones. These prices will be made public once the bulk departure that will allow Blok to develop them, is approved by the City.” She adds that these apartments will be sold using an independently audited open draw system. Read more about the concept here.

Number of apartments: 54 apartments, comprising 17 one-bedroom units, 24 two-bedroom, 10 three-bedroom units and two penthouses.

Ballpark price: Between R1 975 000 and R5 100 000

More information: Check out the Blok website

16 on Bree

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Location: Bree Street, Foreshore

Concept: With 36 storeys, 16 on Bree is set to be Cape Town’s tallest residential tower. Just for perspective’s sake – the infamous Disa Park towers in Vredehoek are only 17 storeys each, while Portside (a close commercial neighbour of 16 on Bree) comprises 32 storeys. In keeping with the heritage grading of the HHO and Felderman buildings on the site, the development has been designed to include historical elements in the facade. Meanwhile, the street level design will reflect the urban landscape seen elsewhere on Bree Street and the double-volume colonnade along Prestwich Street will be for pedestrian access only. Demolition and construction work is expected to commence in October 2017 and will be complete by December 2019.

Number of apartments: 370

Ballpark price: Studio apartments from R1.5m, one bedroom units from R1.9m, two bedroom units from R3.3m and three bedroom units from R7m. The penthouse apartments with four bedrooms start at R13.9m.

More information: Check out the 16 on Bree website

Zero2One

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Location: Corner of Adderley and Strand, across from the train station

Concept: 16 on Bree will, however, only have a couple of months to bask in the glow of being the tallest residential tower in Cape Town before Zero2One takes over with its whopping 42 storeys. Construction on what is expected to be a truly iconic addition to the Mother City’s skyline and a gateway statement is expected to start in August 2017, with completion set for March 2020. The apartments start at +/- 36m above ground level which will allow for unobstructed 360 views, while the ground level will be dedicated to retail.

Number of apartments: 624 apartments

Ballpark price: Most of these units were expected to be sold out by May 2017, but sales enquiries may be directed to davewj@fwjk.co.za nonetheless.

More information: Check out the FWJK website

Urban on Bree

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Location: 220 Loop Street

Concept: The buzz of the streets, the pulse of inner-city life and the urban explorers who find themselves at home here – these are the inspirations behind Urban on Bree. Adding onto the existing 220Loop building, the development comprises 28 luxury studio and one-bedroom apartments, which would appeal to young and affluent jet-setters, who like to call many different cities home. These apartments are within walking distance from trendy Kloof Street and Long Street’s legendary nightlife.

Number of apartments: 28

Ballpark price: R1.8m to R3m

More information: Check out the UrbanOn website

Radisson Blu Hotel & Residences

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Location: 22 Riebeeck Street

Concept: A luxury mixed-use development, including hotel rooms and apartments. Once known as Safmarine House, the Radisson Blu Hotel & Residences is located right in the heart of Cape Town’s CBD and also offers investors an Urban Development Zone tax incentive.

Number of apartments: 166

Ballpark price: R3.25m to R40m

More information: Check out the Signatura website.

 

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