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CIVIC CENTRE IZIKO LOLUNTU BURGERSENTRUM 12 HERTZOG BOULEVARD CAPE TOWN 8001 P O BOX 298 CAPE TOWN 8000 Making Progress Possible

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CIVIC CENTRE IZIKO LOLUNTU BURGERSENTRUM 12 HERTZOG BOULEVARD CAPE TOWN 8001 P O BOX 298 CAPE TOWN 8000 Making Progress Possible ASSETS AND FACILITIES MANAGEMENT PROPERTY MANAGEMENT Siraaj Slamang Professional Valuer T: 021 400 3281 F: 086 202 9500 E: [email protected] Ref: 6135 2017-08-04 DATE Transport and Urban Development Authority TO Gail Eddy ATTENTION VALUATION REPORT MARKET RESEARCH: RESIDENTIAL PROPERTY MARKET WITHIN WOODSTOCK, ZONNEBLOEM AND SALT RIVER 1. Brief and Background We refer to your request for information regarding the residential property market within Woodstock, Zonnebloem and Salt River. One of the key challenges Cape Town faces is the current population growth, which shows no signs of slowing down. Combined with the fact that affordable housing in Cape Town tends to be located far away from economic opportunities, social facilities and public transport infrastructure, which reinforces inequality and inhibits efficient functioning of the city. When affordable housing is not available to low-income households, family resources needed for food, medical or dental care and other necessities are diverted to housing costs or transport. The City of Cape Town is committed to provide social/affordable housing within its municipal area as part of the integrated development planning, to take all reasonable steps to facilitate and encourage development of new social/affordable housing. The suburbs of Woodstock/Zonnebloem/Salt River have been identified as an integrated development planning area, ideally located to promote social/affordable housing. We have been tasked with providing information regarding sectionalised residential units, which includes sale prices and market rentals. Our research focus will be on the average 2-bedroom unit, 1 bathroom and parking bay measuring ±60m² in extent. 2. Date of Valuation 2017-08-31 3. Caveat This report is for internal Council requirements only and must not be made available to the public without prior consent of the Head: Market Valuations. All values exclude VAT unless otherwise stated. CIVIC CENTRE IZIKO LOLUNTU BURGERSENTRUM 12 HERTZOG BOULEVARD CAPE TOWN 8001 P O BOX 298 CAPE TOWN 8000 www.capetown.gov.za Making progress possible. Together. 2 4. Location With regard to the location, it was requested that information close to the following properties be sourced for comparative purposes: 1) Fruit and Veg site, Zonnebloem 2) New Market Street, Zonnebloem 3) Pine Road, Dillon Lane, Woodstock Hospital and Woodstock Park 4) Pickwick Road, Salt River 5) Salt River Market, Salt River 5. Findings Sales The following sales have been recorded for comparative purposes, the sales comprise 2- bedroom units, 1 bathroom with a parking bay unless otherwise stated, refer Table 1: Table 1: Sales transactions researched Sales information Section Name No Description Extent Date of Comment & Number R R/m² m² Sale 1 Erf 115714, Cape Town, 60 Six 2017-03 1 750 000 29 167 Fairly recent 64 Sir Lowry road, 313 development, Zonnebloem well located to the CBD 2 Erf 132277, Cape Town, 63 Centreville 2017-04 1 450 000 23 016 Block more Constitution Street, 43 than 20 years Zonnebloem old 3 Erf 115750, Cape Town, 1 63 Skyways 2017-05 1 350 000 21 429 Block more Drury Street Zonnebloem 287 than 20 years old 4 Erf 14109, Cape Town, 31 54 Upper East 2017-02 1 500 000 27 778 Fairly recent Brickfield Road, Salt River Side development, 1 1412 bedroom only 5 Erf 16337,Cape Town, 267 58 Durham 2017-01 1 425 000 24 569 Block 20 years Victoria Road, Salt River Square old, 1 bedroom 310 only 6 Erf 13842, Cape Town, 15 63 Maraville 2017-02 1 520 000 24 127 Property in the The Avenue, Salt River 24 region of 60 years old 7 Erf 16195, Cape Town, 97 68 Swift Studios 2017-02 1 801 200 26 488 Constructed in Cecil Road, Salt River 7 2016 Additional Sales Information A new development (completion expected 2019), Erf 141664, Cape Town, known as Chapel Towers are selling 2 bedroom flats including VAT/transfer measuring between 46m² - 65m² for ±R1 800 000 – ±R2 900 000 depending on extent and location and demand. The properties facing towards the harbour are selling at a higher price, this equates roughly to ±R39 000/m² - R44 000/m². It is noted that this property is on the periphery of the Cape Town CBD within walking distance. There are also many amenities like laundry, pool etc. http://cityteams.capetown.gov.za/sites/finpropmanpi/valuations/Users/siraaj.slamang/2017/Woodstock/0808_WoodstockSaltRiver_Precint_ResidentialSales_LD.docx 3 Various developments in Rondebosch, Observatory, Kenilworth etc. have been developed in the past few years by Rawson Developers and sold/currently selling well in excess of ±R40 000/m². The Onyx, redevelopment of the iconic Nedbank Building, located in the heart of Cape Town just 10 minutes’ walk from the V&A Waterfront offers residents a host of compelling lifestyle attractions within easy pedestrian reach. Most of the units have sold, studio/bachelor apartments measuring ±40m² selling for ±R1 925 00 (R47 500/m²) while a 2-bedroom unit measuring 80m² is selling for R3 825 000 (±R47 000/m²) including VAT. A development called Forty on Lion, Lion Street, Bo-Kaap is selling a variety of units, prices listed below including VAT: 1-bedroom, measuring 61m² selling for R2 900 000 or R47 540/m² 2-bedroom, measuring 100m² selling for R4 500 000 or R45 000/m² 3-bedroom, measuring 125m² selling for R5 750 000 or R46 000/m² Based on the evidence, a ±60m² unit, 2-bedrooms, 1 bathroom and parking within a modern block generally sells in the region of R40 000/m² - R45 000/m² while older blocks sell in the region of R25 000/m² -R30 000/m². Rentals Generally, properties that are let in the greater Woodstock, Zonnebloem and Salt River are let for R6 500 – R8 500 per month for 1 bedroom units while 2 bedroom units generally are in the region of R9 000 – R15 000 per month depending on the quality of finishes on offer. These rentals generally include the monthly levy and rates while electricity is for the account of the lessee. 6. Conclusion Although the properties are located geographically in close proximity, Salt River is considered to be marginally inferiorly located to Woodstock and Zonnebloem, more specifically in the location of Salt River Market due to traffic congestion. Based on the Evidence, we deem the following for Woodtsock and Zonnebloem: Based on the evidence we deem a modern apartment unit to be in the region of R2 000 000 – R2 400 000 (R33 333/m² – R40 000/m²) inclusive of VAT while markets rental in the region of R12 000 – R15 000 per month is considered reasonable. This equates to a 7% yield. Based on the Evidence, we deem the following for Salt River: Based on the evidence we deem a modern apartment unit to be in the region of R1 600 000 – R1 800 000 (R26 333/m² – R30 000/m²) inclusive of VAT while markets rental in the region of R9 500 – R10 500 per month is considered reasonable. This equates to a 7% yield. http://cityteams.capetown.gov.za/sites/finpropmanpi/valuations/Users/siraaj.slamang/2017/Woodstock/0808_WoodstockSaltRiver_Precint_ResidentialSales_LD.docx 4 Siraaj Slamang Paul Pendlebury Professional Valuer (Reg. no. 7321/5) Head: Market Valuations 2017-08-22 http://cityteams.capetown.gov.za/sites/finpropmanpi/valuations/Users/siraaj.slamang/2017/Woodstock/0808_WoodstockSaltRiver_Precint_ResidentialSales_LD.docx .
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