Letter from the CEO & chairperson of the Board

LETTER

FROM THE CEO + CHAIRPERSON OF THE BOARD

ROB KANE

Chairperson: Cape Town CCID + CEO: Boxwood Property Fund

TASSO EVANGELINOS

CEO: Cape Town CCID

It gives us great pleasure to welcome you to this special edition of the Cape Town Central City Improvement District’s annual economic review, State of Cape Town Central City Report 2021 – A year in review. This is our biggest issue to date, and it marks a decade of consistent research and reporting on the Central City. This award-winning publication has become a sought-after investment tool and remains a leader in its field in South Africa, an achievement of which we are extremely proud.

Researching and recording the economic performance, property trends and key indicators that shaped 2021 was, at times, challenging due to the limits set by Covid-19 restrictions as lockdown levels fluctuated. But the resounding message remains positive: the Central City once again proved itself resilient in the face of economic uncertainty.

In the year under review, new property investment in the CBD was impressive: our conservative estimate stands at R5.717 billion, which includes 13 completed developments and redevelopments, 12 that were under construction and three in the planning phase (pp. 20-21). Of these, key developments delivered in 2021 include the residential complex 16 on Bree (R860 million), the hotel /aparthotel The Rockefeller (R500 million), and Hotel Sky (R400 million). With the overall value of all Central City property set at R43.8 billion according to the City of Cape Town’s 2018/19 property evaluation, it is clear that the CBD remains one of the country’s top property investment destinations.

The myriad residential and mixed-use properties coming onto the CBD property market indicate that agile developers – many of whom reconfigured commercial space to accommodate a changing inner city property climate – are confident that there is a market for buyers. Residential property in the CBD rebounded last year, with the number of residential buildings increasing from 69 in 2020 to 77 in 2021, with the median selling price of apartments increasing by 32.8 %, from R1.28 million in 2020 to R1.7 million in 2021 (pp. 34-36).

Commercial landlords continued to work hard to attract and retain tenants, and to lure office workers back to a more welcoming working environment (pp. 28-29). Within the Cape metropole, the Central City accounts for the largest share of office space and offers the most competitively priced premium grade office space.

While the CBD experienced a stable year, the global economic difficulties experienced in 2021 (now still prevalent in 2022) were felt in various CBD economic sectors.

Retail was one sector that suffered a few knocks – but it rebounded in 2021. This was illustrated by the way in which courageous business owners approached punitive lockdown restrictions to ensure business success. What’s more, they remained buoyant throughout the second year of Covid curveballs. The results of our Business Confidence Index (pp. 44-45) paint a positive picture, as do those of our annual Residential Survey (p. 37), which indicate that inner city living remains popular and rewarding.

As we emerge from the pandemic, we remain confident in our downtown’s fighting spirit and economic resilience.