The City’s smart real estate approach to get the best economic and social value from our assets is evident in the volumes and value of property disposals and leases being processed by the Property Management Department as well as Council’s approvals. Going forward, there are also plans to resume virtual auctions to make City property transactions more accessible to the public.
Over the last three financial years, 155 properties were sold and transferred with a total sales value of R220,8 million (R220 868 694).
Over the same period, a total of 480 leases were concluded by the City’s Property Management Department, with a value of approximately R2,3 million a month (R2 357 706).
Most recently, in January, Council gave the green light to the following property transactions:
- Six sites were approved for final transfer, which demonstrates the City’s commitment to release under-utilised land for its most appropriate use. This will unlock an extension to an existing retirement village in Bellville, two sites for community use in Mitchells Plain and Retreat, as well as a general business site in Khayelitsha and two single residential opportunities in Parow and Brackenfell.
- 12 residential properties were approved, for in-principle disposal, in areas ranging from Fish Hoek and Grassy Park to Khayelitsha. Each site is less than 500m2 and ideally, lends itself for purchase by home owners looking to build their own homes.
I would like to commend the efforts of our City officials from the Property Management Department who have applied themselves diligently through the COVID-19 pandemic to manage and process the necessary property transactions where applicable.
Going forward, there are plans to resume property disposals by way of virtual public auctions, which is very exciting. This method will allow both the once-off and established property developers to attend and bid transparently and equitably. When this resumes, details of auctions will be advertised on the City’s website and in the media.
Through smart real estate transactions, the City has the opportunity to make a real contribution towards our economic recovery, putting our assets to good use, and into the hands of those who will benefit the most.
I can confidently say the City will continue to establish pipelines of land disposals and leases that will unlock social and commercial benefits for our residents, and make business sense.
The Economic Opportunities and Asset Management Directorate is dubbed the ‘growth’ directorate. Its intention is to build on the economic successes of Cape Town’s economy and this is especially true for the post-COVID-19 recovery period.
The unique combination of the Enterprise and Investment Department and Asset Management Department, which fall under this directorate, allows the City to find important synergies and levers in driving economic growth in Cape Town.
Real estate underpins so many elements of our economic recovery. It creates jobs through construction and generates revenue for municipal service delivery.
Land is required to construct factories and industries to create jobs and is required to build houses for people.
Furthermore, I am pleased to hear that Cape Town has been earmarked as a city that is predicted to have a prosperous prime real estate market in 2021.
This is according to research by Knight Frank (a leading independent real estate consultancy in South Africa), which estimates that the prime forecasts will grow by 5% in this coming year. This may seem insignificant in terms of the economic challenges we face, however, these property management transactions will help us on the road to economic recovery and help us create jobs.
The City has further established a dedicated Investment Facilitation Unit to help attract businesses and investors.
Finally, as a part of our business retention and expansion efforts, the City’s Enterprise and Investment Department is rolling out surveys with the businesses in each of Cape Town’s 26 industrial areas. I have joined the officials in the field to learn about the needs, concerns, suggestions and perceptions of local businesses. With this information, we intend to address any issues within our control that might be holding back the growth of these businesses to get our economy going full steam ahead.