Property Report

WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19 This report is brought to you by WESGRO, trade and investment promotion initiatives, the official tourism, trade and investment and facilitate the links between business and promotion agency for Cape Town and the government decision makers. Western Cape. To this end, we are often the first port of Our overall mandate is to promote economic call for foreign buyers, local exporters and all activity and facilitate job creation by marketing investors looking towards the ever-growing Cape Town and the Western Cape as potential of our region. a competitive business and leisure destination This publication is produced by the Research globally. We do this by attracting and retaining as well as the Marketing and Communications foreign direct investment, landing film and media divisions within Wesgro as an analytical introduction productions, growing exports, and ensuring more into the opportunities to be found in the Western business and leisure tourists visit our province. Cape across the commercial, retail, industrial and And we do this by facilitating important dialogues residential property sectors. between the private and public sectors in our region and beyond. For the full range of research and documentation We look to align the Western Cape with produced by Wesgro, and for further information national priorities in terms of economic growth, on our organisation, please visit www.wesgro.co.za

02 Forewords THE CAPE WINELANDS DISTRICT: 51 More good reasons to invest in 04 Welcome to this report STELLENBOSCH, PAARL Saldanha Bay and Vredenberg 05 A guide to the research & FRANSCHHOEK 52 Commercial property 40 Introducing the Cape Winelands 53 Industrial property THE CITY OF CAPE TOWN District 54 Residential property 06 Introducing the City of Cape Town 41 Spotlight on economic sectors 07 Spotlight on economic sectors 41 More good reasons to invest THE GARDEN ROUTE DISTRICT: 07 More good reasons to invest in the Cape Winelands GEORGE in Cape Town 42 Commercial property 58 Introducing the Garden Route 09 Introduction to the City of Cape 45 Industrial property District and George Municipality Town property market 46 Residential property 59 Spotlight on economic sectors 10 Commercial property 59 More good reasons to invest 23 Industrial property THE WEST COAST DISTRICT: in George 31 Residential property SALDANHA BAY & VREDENBURG 60 Commercial property 50 Introducing the West Coast District 61 Industrial property 50 Understanding the Industrial 62 Residential property Development Zone (IDZ)

CONTENTS 51 Spotlight on economic sectors Acknowledgements and credits WELCOME

Forewords FOREWORD BY the private and public sector in determining MINISTER DAVID MAYNIER future investments as well as the building of MEC for Finance & Economic Opportunities infrastructure, and will play a significant role as in the Western Cape the Western Cape moves towards its vision for The growth of the Western Cape economy sustainable economic growth in our province. and the all-important creation of more jobs is the engine that drives the work of the Western Cape Government. But that engine FOREWORD BY requires a physical space; a place to set up ALDERMAN JAMES VOS shop; to provide offices and factory space; Mayoral Committee Member for Economic on which to build homes for its employees. Opportunities and Asset Management, This physical space is property, and it is City of Cape Town often the foundation, quite literally, on which Making up the most significant contribution to this investment is built. publication, are the property values to be found The Ministry for Finance & Economic within the City of Cape Town, demonstrating not Opportunities therefore welcomes the first only the diversity of commercial, retail, industrial edition of Wesgro’s Property Report on the and residential opportunities to be found in our Western Cape. It is the first publication of metropole, but its contribution to the economy of its kind in South Africa that brings together the Western Cape as a whole. statistical information and analysis on We look forward, as a City, to the value this a number of districts, across all property publication will add to the many other initiatives sectors within those districts. It will therefore, which drive investment into our municipality, and no doubt, be an invaluable tool for both have no doubt that it will strengthen the work of

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our own Invest Cape Town Initiative to build fluctuations in our national economy, our our city’s brand. region nevertheless remains an investment There are many reasons why Cape Town has destination which will continue to appreciate clocked up the accolades that have come its steadily. There are few destinations in the way, and one of the reasons is that it is often world to rival ours on its geographic, economic the first with innovative projects that set a and natural qualities. standard for other cities and provinces – in A property industry also requires the highest South Africa and beyond – to follow. This levels of co-operation between government publication is one such example, and we and the private sector. To ensure investment, congratulate Wesgro on another research this also requires co-operation in terms of milestone attained. the collection and sharing of data – facts and figures that enable investors to make educated decisions. FOREWORD BY The WCPDF therefore applauds Wesgro DEON VAN ZYL for taking the initiative in producing this Chairperson, Western Cape Property publication, both to attract investment to the Development Forum province, and to reassure current property A country’s property market reflects the state owners across all property sectors that of a country’s economy, and confidence and fixed capital investment is receiving serious security in this market sector reflects investor attention. The WCPDF looks forward to this confidence in the future. publication becoming an annual investment To this end, while Cape Town and report that reflects the state of the Western the Western Cape are not immune to Cape’s growth-economy.

3 WELCOME

Welcome to the first edition of our Property Report on the Western Cape LOCATION, LOCATION, LOCATION Vredenburg which form part of the West A primary objective of Wesgro is to provide Coast District. The map opposite indicates research and data, customised for the Western where these are to be found in the Western Cape, to assist both current and future Cape province. investors to make key decisions around the various markets and sectors in our region. For each of these areas, we have divided However, we believe these markets and our research into: sectors have a common denominator in the A brief overview of the area, the key value of property – the fixed capital asset economic sectors to be found in it, and that the lion’s share of investors will require a variety of good reasons to consider it to make their investment visions a reality, for investment whether that asset falls into commercial, Property values for the 2018/19 financial retail, industrial or residential property. year in terms of In other words, we believe that property is Vacant land for sale (commercial and a key driver of investment into any region, and industrial) often the first consideration that investors will Commercial properties values, for sale make when deciding on their locale. Just as it and to rent is true for property across the globe location Retail property values, for sale and to rent really does count, and the Western Cape offers Industrial property values, for sale and some of the best locations in the world. to rent To this end, we bring you the inaugural edition An overview of the residential property of what will become our annual Western Cape market. Property Report, focusing our attention this year on the City of Cape Town, the Municipality of A BUYER’S MARKET George located in the Garden Route District, While the phrase is usually used most the three towns of Stellenbosch, Paarl and commonly to describe a point in time in a Franschhoek that fall within the Cape residential property cycle, in the case of this Winelands District, and Saldanha Bay and publication we believe that the Western Cape Sam Fourie courtesy of Western Cape Property Developement Forum Cape Property PHOTOGRAPH Sam Fourie courtesy of Western WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

A GUIDE TO THE RESEARCH The following outlines the primary sources that have been used through this report.

WEST In terms of municipal data on each region: COAST Apart from data provided by Wesgro’s own Vredenberg Saldanha Research division, information has been sourced Bay Paarl from the Municipal Economic Review and Outlook (MERO), 2018 produced by the Western Franschhoek Stellenbosch GARDEN ROUTE Cape Provincial Government; the South African George Economic Indicators Database, Quantec EasyData CITY OF CAPE WINELANDS CAPE and the Economic Performance Indicators for Cape TOWN Town (EPIC), 2018 (Q3 and Q4), produced by the City of Cape Town. Other secondary sources of data are credited in the publication as per the footnotes provided. right now is in a buyer’s market across all its property nodes, making it a highly attractive In terms of property values for all Commercial, option for those looking to make fixed capital Retail and Industrial properties: investments for the first time, or for those The data accumulated and analysed in terms of expanding on their existing investments. properties for sale or to rent were as at what was After many years of high property price available on the market at the time the research growth, due in no small part to the desirability was conducted during the period January to April of the Western Cape, along with strong semi- 2019, and as per the asking prices loaded onto gration trends from other parts of the country, the Property.24 website by real estate agencies property values are stabilising throughout the and commercial/industrial property brokers. province, but particularly in and around the The exception to this was in terms of commercial metropole of Cape Town. These are offering (office) rental and vacancy rates in the areas opportunities that we have no doubt will of Bellville, the Cape Town CBD, Century continue to appreciate in value above any City, Claremont, Central (being Pinelands and others in the rest of the country, albeit it at surrounds), Rondebosch/Newlands and the V&A a more reasonable rate than experienced Waterfront – all of which fall into the City of Cape particularly over the past decade. Town. For these seven nodes, the most recent There is much information to be digested in quarterly Office Vacancy Report produced prior to this publication, which covers a sampling of publication by the South African Property Owners four important economic growth nodes in our Association (SAPOA) has been utilised. province, and we have no doubt it will become In addition to the above, for analytical a very valuable resource for comparative purposes, use was also made of the Rode’s Report analysis as it grows year-on-year. on the South African Property Market, produced quarterly by Rode & Associates in Cape Town.

TIM HARRIS In terms of Residential properties: CHIEF EXECUTIVE OFFICER All information on the market values and analytics WESGRO of sold properties (ie: market stock, age profiles of buyers, price performance and activity) has been sourced from Lightstone Property. Information on rentals prices has been sourced from Property24.com, and the analyses of these are based on rentals being asked and stock availability as listed by real estate agencies, at the time research was conducted (from January to April 2019). WEST COAST CENTRAL THE CITY OF KAROO

CAPE WINELANDS GARDEN ROUTE CITY OF CAPE CAPE TOWN TOWN OVERBERG Making progress possible While it is arguably one of the most beautiful cities in the world and high on the tourism agenda, there is much more to Cape Town than just its natural beauty. Through the provision of world-class infrastructure, it is a city that is not only a gateway to the African continent, but one where both business and lifestyle options score top marks.

Cape Town has a highly diverse economy with In January 2019, of growth include real estate, property a number of flourishing sectors. the City of Cape development and construction, as well as It is South Africa’s second largest economic Town received its dynamic enterprises involved in boat building, centre and second most-populated city after 15th consecutive clothing and textiles, electronics, renewable Johannesburg. It is also home to one of the unqualified1 energy and growing the green economy. busiest container ports in the country as well audit from the Cape Town experienced an unprecedented as the second busiest airport. Furthermore, it auditor general. drought in 2017 and 2018, with severe water is the second-most important contributor to restrictions imposed at the time. This resulted national employment and plays a crucial role in the City establishing its Water Resilience in job creation in South Africa. Strategy that not only turned Cape Town The strategic sectors that it has positioned away from the brink of disaster, but also put for growth include manufacturing, financial measures in place in the short-, medium- and services, agri-business, tourism, film and longterm to prevent the situation arising again media, digitech and business process in the future, and strengthening its overall outsourcing. Within these, particular nodes resilience.

1 An unqualified audit is an independent auditor’s judgment that a company’s financial statements are fairly and appropriately presented, without any identified exceptions, and in compliance with generally accepted accounting principles.

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SPOTLIGHT ON ECONOMIC SECTORS2 The six largest economic sectors in of Old Mutual Africa, Santam, Direct Other economic sectors that play Cape Town by value in 2018 were Axis, Metropolitan and Sanlam. an important role in Cape Town finance, insurance, real estate and In terms of the business services are construction (R21.99bn); food, business services (contributing an sector, business process outsourcing beverages and tobacco (R18.52bn); estimated R115.69 billion or 27.33% (BPO) and information technology electricity, gas and water (R12.89bn); of gross value added, or GVA); (IT) were the largest contributors to petroleum products, chemicals, wholesale and retail trade catering and employment growth in Cape Town rubber and plastic (R12.34bn); and accommodation (R72.39bn or 17.10% between 2006 and 2016. A research communication (R43m).6 7 of GVA); manufacturing (R63.34bn or report4 released in 2018, commissioned Of particular interest in terms of the 14.96% of GVA); general government by the Cape Innovation and Technology latter is that Cape Town is also South (R52.93bn or 12.50% of GVA); Initiative (CiTi), Wesgo and the Allan Africa’s “new media” hub8, with 57% of transport, storage and communication Gray Orbis Foundation, found that over all South African gaming studios located (R48.24bn or 11.40% of GVA); and 40 000 people are now employed in in the city, as well as a large proportion community, social and personal the Cape Town tech industry – twice as of the country’s animation studios. services (R28.88bn or 6.82% of GVA).3 many as in Johannesburg. Cape Town’s boat building economy With Cape Town emerging as a key Cape Town has indeed emerged as is also proving its worth, with more financial services hub in South Africa, a significant tech and innovation hub, than R1bn in export revenue9 now a large portion of private investment with the largest telecommunications generated annually, according to the and asset management services, as market and the most venture capital office of the Mayor of Cape Town. well as insurance companies, are activity in South Africa, according to located here, including the head offices Invest Cape Town5.

MORE GOOD REASONS TO Cape Town International Airport was voted INVEST IN CAPE TOWN Africa’s Leading Airport for the second The City of Cape Town is involved in a number of initiatives aimed at attracting investors consecutive year at the 25th World Travel Awards through the expansion of infrastructure and Africa & Indian Ocean in October 2018. It was easing the path towards doing business. also voted Best Airport in Africa at the 2019

CAPE TOWN INTERNATIONAL Skytrax World Airport Awards – the fourth year 1 AIRPORT EXPANSION running that it has secured this award. Cape Town International Airport is set to undergo extensive upgrades and expansions to the tune of R7bn over the next four years. Construction, which is expected to commence INVEST CAPE TOWN is Cape Town’s business brand dedicated in early 2020, is set to be completed by 2023. to celebrating a dynamic city economy and creating awareness The planned upgrades and expansions include among the public and investors about the attractiveness and the building of a new runway as well as new competitiveness of Cape Town as a place to do business. Invest international and domestic departure lounges to Cape Town’s purpose is to build and maintain a strong brand meet the ever-growing demand on the facility. reputation for Cape Town and contribute to the city’s global In parallel, new flights are continuously being competitiveness. The City of Cape Town launched the brand to added, thanks to the phenomenal success of enable the future development of Cape Town and to achieve the the Cape Town Air Access (CTAA) initiative – city’s vision of becoming a high-performance African business a powerful collaboration and combined effort hub that supports big ideas and innovation. For more info, visit between the City of Cape Town, the Western www.investcapetown.com Cape Government, Airports Company South Africa, Cape Town Tourism, Wesgro, South African Tourism and the private sector. The primary mandate of the Air Access team is to

2 Invest in Cape Town 2017/18, Regional Market Analysis and Intelligence, Wesgro; IHS Markit 2017. 3 Quantec EasyData, 2019. 4 Evaluation & Network Analysis of the Cape Town-Stellenbosch Tech Sector, Endeavour Insight, 2018. 5 www.investcapetown.com. 6 All 2018 figures are estimates. 7 Quantec EasyData, 2019. 8 Invest in Cape Town 2017/18, Regional Market Analysis and Intelligence, Wesgro. 9 www.iol.co.za/personal-finance/investments/local-luxury-boat-exports-contributes-r1bn-to-economy-17255461.

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promote, develop and maintain air routes in CREATING A SMART CITY THROUGH ABOUT and out of Cape Town International Airport 3 THE CITY OF CAPE TOWN BROADBAND CAPE TOWN through: route retention (ensuring the success PROJECT MUNICIPALITY10 of existing routes); route expansion (increasing The objective of the City’s Broadband Project11 Stretching from frequencies and capacity on existing routes); is to create a high-speed, high-capacity Gordon’s Bay in the and new route establishment (facilitating the municipal telecommunications network – south to Atlantis establishment of new routes). the Metro Area Network (MAN) – which will in the north, the Since inception in 2015, the initiative extend throughout the greater Cape Town City of Cape Town has launched 15 new routes and facilitated area. This is designed primarily to meet the incorporates 21 route expansions. This has doubled seat needs of the City, as well as to provide services 2 446km² and has capacity at Cape Town International Airport, to both the general public and private sectors. 294km of coastline. adding 1.5 million two-way seats to the A Telecoms Networks Strategy positions the With an estimated Cape Town network, contributing an estimated MAN as the carrier for a number of networks population of R6bn in direct tourism spend since July 2015. and services. As at June 2018, core network 4 322 031, the construction had already installed 750km of City contributed 2 STREAMLINING BUSINESS optic fibre cabling within the metro and, by around 71.74% InvestSA is a one-stop shop based in the heart completion of the project (scheduled for of the provincial of the Cape Town CBD at the Cape Investor June 2021), 1 317km will have been installed. economy and had Centre, which was launched in 2018. Operated Of the 95 switching facilities that will an estimated GDPR by Wesgro and the Western Cape Government, ultimately be in service, 31 are already of R423.34 billion it is a multi-faceted collaboration between operational. The network will connect 736 in 2018. national, provincial and local government to City buildings and approximately 300 private As at 2018, the cut the “red tape” for investors wishing to set buildings. Since its 2009 inception, the capital City of Cape Town up or expand their business interests in South spend on the Broadband Project sits at R1.3bn accounted for Africa. This initiative clusters key government (as at June 2018), with a remaining R805m still 62.74% of all job departments and agencies under one roof to to be spent. opportunities provide investors with a single point of service According to Invest Cape Town, 848km of created in the to aspects such as regulatory compliance, fibre-optic cable have been installed thus far Western Cape, enhancing regulatory and legal processes and in greater Cape Town (with 1 827km planned). providing improving approval turnaround timeframes. A total of 475 buildings have been connected employment for It also provides information on incentives on the MAN while free Wi-Fi has been installed 1.60 million people. (eg: tax, land, training and free-trade zones) at 715 access points at 225 locations12. as well as on both pre-approvals (eg: market data, costs, incentives, project approval 4 POSITIONING CAPE TOWN AS and local partners) and post approvals THE GREEN ECONOMY HUB OF (eg: facilitation of permit approvals, SOUTH AFRICA information relating to import of equipment As the Western Cape has positioned itself as and raw materials, and central bank profit the Green Economy hub for South Africa, this repatriation to investors). This collaboration is of particular importance and relevance to follows the launch by the City of the targeted the City of Cape Town. A number of renewable Invest Cape Town initiative in 2017. energy companies have already made Cape Town their home across the spectrum of solar photovoltaic manufacturing, electrical

Top international companies that have invested in Cape Town over the past 10 years include Amazon, Hisense, GlaxoSmithKline, Kimberley- Clark, IBM, Harvard University, Airbus, Oracle, Juwi and Wind Prospect.

10 Economic Performance Indicators for Cape Town, 2018: Q3 (July-September), City of Cape Town; Municipal Economic Review & Outlook 2018, Western Cape Government Provincial Treasury. 11 City of Cape Town, Speech by Alderman JP Smith given at SA Innovation Summit CEO event, 13 September 2018. 12 Invest in Cape Town 2017/18, Regional Market Analysis and Intelligence, Wesgro.

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manufacturing, fuel supply, professional TOP MICE services and supporting bodies. Cape Town’s DESTINATION TIMELINES FOR BUSINESS three universities13 also actively contribute PROCESSES14 towards research and development in the field IN AFRICA The time it takes to obtain a business In 2018, Cape Town was of renewable energy. In turn, the City of Cape licence from the City of Cape Town varies, named the number- Town has established the Atlantis Greentech and depends on the type of business an one city in Africa for Special Economic Zone (SEZ), making tracts operator wishes to establish. While a hawker’s the MICE (meetings, of land available at low cost for purchase or licence can be obtained in 15 days, a food incentives, conferences lease by greentech companies through an sale licence can take up to 40 days, and an and exhibitions) sector accelerated land disposal process. A number of entertainment business licence can take by the International other financial and non-financial incentives are between eight and 11 months. Rezoning Congress and also available, including discounted electricity of land and building plan approvals are Convention Association and rapid turnaround on development highly dependent on the type of application (ICCA). This was the 10th applications. being made, but the City has stated that consecutive year for the former is estimated, theoretically, to be which Cape Town had For more information, visit approximately 90 days and the latter 60 days. achieved this accolade. www.investcapetown.com/wp-content/ uploads/2019/04/Green-Economy-Info-Page.pdf

INTRODUCTION TO THE CITY OF CAPE TOWN PROPERTY MARKET On a quarterly basis, the national South African PERIOD OF THE SAMPLING OF AREAS FOR Property Owners Association (SAPOA) publish, RESEARCH COMMERCIAL, RETAIL (INCLUDING among other figures, office rental and vacancy It is important to stress LEISURE) AND INDUSTRIAL statistics for a number of key commercial nodes that the property data PROPERTIES: across South Africa, including seven nodes in in this report reflects In addition to the seven SAPOA nodes, these the Western Cape – all of which lie within the “a point in time”– the areas include: Airport Industrial, Atlantis, City of Cape Town’s municipal boundaries. These period January to Blackheath, Brackenfell, Elsies River, Epping, nodes are Bellville, the Cape Town CBD, Century April 2019 – during Killarney Gardens, Montague Gardens, Ndabeni, City, Claremont, Central (being Pinelands and which research was Paarden Eiland, Parow, Salt River, Somerset West surrounds), Rondebosch/Newlands and the undertaken. Therefore, and Woodstock. V&A Waterfront. The SAPOA rental and vacancy during this period, statistics for these seven nodes appear in the there may not have THE SAMPLING OF AREAS FOR box on pg 10, and reflect SAPOA’s Q1 (as at the been properties RESIDENTIAL PROPERTIES: end of April 2019), to coincide with the period available in certain Again, in addition to the seven SAPOA nodes, the during which the rest of the property data categories in certain authors have also looked at residential property in research in this report was undertaken. areas, either in terms a sampling of areas that fall in close proximity to However, because the City of Cape Town is of rentals or sales. the larger commercial nodes, as well as Somerset so vast, the authors of this publication believe This does not mean, West – with the latter included due to the rapid there are many other important nodes across however, that there growth seen in this area across all property sectors. the metropole, over and above the seven nodes are never properties Therefore, residential property analysis covered by SAPOA. Accordingly, independent in these categories includes: Bellville, the Cape Town CBD (and areas research has been conducted to complement available in these areas in close proximity, i.e., Gardens and Oranjezicht and extend the SAPOA findings to include – it simply means there in the City Bowl area, and Green Point and Sea other primary areas across the spectrum of were none available at Point on the Atlantic Seaboard), Century City, commercial, retail, industrial and residential the time. Claremont, Newlands, Pinelands, Rondebosch, properties, and in terms of properties both for Somerset West and the V&A Waterfront. sale as well as to rent.

13 Namely, the University of Cape Town, the University of the Western Cape and the Cape Peninsula University of Technology. 14 Source: Municipal Economic Review & Outlook 2018, Western Cape Government Provincial Treasury.

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COMMERCIAL PROPERTY15

SUBURB Grade* Total rentable Area available Vacancy rate Median asking area (m²) for rental (m²) rental (per m²) SAPOA’S OFFICE VACANCIES & P 10 600 1 363 12.9% R180 BELLVILLE RENTALS A 375 497 9 585 2.6% R140 The statistics to the left for the seven B 161 641 17 164 10.6% R115 nodes covered by C 15 078 4 783 31.7% R75 SAPOA in the City of Cape Town have OVERALL 562 816 32 895 5.6% been taken from CAPE TOWN CBD P 52 000 3 480 6.7% R185 the organisation’s A 382 383 43 182 11.3% R150 Research Office Vacancy Report, B 519 786 58 915 11.3% R116 Q1:2019. C 108 244 14 646 13.5% R100

OVERALL 1 062 413 120 223 11.3%

CENTRAL A 272 975 4 798 1.8% R158 B 36 741 2 991 8.1% R105

OVERALL 309 716 7 789 2.5%

CENTURY CITY P 62 480 5 000 8% R200 A 250 928 27 105 10.8% R150 Across all the B 41 931 3 421 8.2% R140 nodes surveyed OVERALL 355 339 35 526 10% by SAPOA P 6 000 0 0% N/A CLAREMONT countrywide, A 62 636 922 1.5% R220 the seven nodes B 45 286 2 254 5% R148 surveyed in the C 9 679 1 047 10.8% R110 City of Cape OVERALL 123 601 4 223 3.4% Town collectively

RONDEBOSCH/ A 71 654 872 1.2% R225 average the lowest

NEWLANDS B 30 877 562 1.8% R167 vacancy rate in

OVERALL 102 531 1 434 1.4% South Africa, with an aggregate of V&A WATERFRONT P 51 000 306 2.3% R220 7.8% overall. A 72 455 3 837 1.9% R200 For more B 6 298 0 0% N/A information, visit OVERALL 129 753 4 143 3.2% www.sapoa.org.za

*SAPOA OFFICE GRADE DEFINITIONS: P GRADE (PRIME GRADE): A GRADE: B GRADE: C GRADE: Top-quality, modern space Buildings not older than Generally older buildings Buildings in a fair condition usually considered iconic and 15 years and which have but with accommodation but with older style finishes, a flagship in its market as well undergone refurbishments and finishes close to modern services and building systems. as a pace setter in establishing featuring high-quality modern standards. Air conditioning May or may not have air rentals. To be considered P finishes and amenities, such as and on-site parking still conditioning or on-site grade, an office should at least air conditioning and adequate considered essential. parking. be a 4-star Green Certified on-site parking. building.

15 With the exception of the figures credited in the box above to SAPOA, all other figures in this Commercial section have been sourced from Property24.com.The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

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AIRPORT INDUSTRIA COMMERCIAL LAND, OFFICES AND RETAIL FOR SALE: There were neither vacant commercial stands nor office or retail properties for sale.

COMMERCIAL OFFICE PROPERTY TO RENT: There were seven properties for rent suitable for offices, representing 3 152m² under roof. There were no properties suitable for retail or leisure to rent.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall p/m asking Rental R72 704 R13 978 R13 978 R38 880 R72 704 R13 978

Size 1 024m² 90m² 90m² 864² 1 024m² 90m² R36 750 R71/m² 245m² R/m² R71/m² R155/m² R155/m² R45/m² R71/m² R155/m²

ATLANTIS COMMERCIAL LAND, OFFICES AND RETAIL FOR SALE: There were neither vacant COMMERCIAL stands nor OFFICE BUILDINGS for sale. There were, however, two RETAIL properties for sale representing 1 650m² under roof.

PRICE RANGE SIZE RANGE

Highest Lowest Median Highest Lowest Median Largest8 Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking

Price R3.2m R2.95m R3.2m R2.95m R2.95m R3.2m

Size 700m² 950m² 700m² 950m² 950m² 700m² R3.075m R3 838/m² 825m² R/m² R4 571/m² R3 105/m² R4 571/m² R3 105/m² R3 105/m² R4 571/m²

COMMERCIAL RETAIL AND OFFICES TO RENT: There were no properties suitable for RETAIL or leisure to rent. There was one COMMERCIAL OFFICE property to rent, representing 125m² under roof. The monthly rental was R5 625 at R45/m².

BELLVILLE COMMERCIAL LAND FOR SALE: There were three vacant stands suitable for commercial development representing 1 918m².

PRICE RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R5m R3m R5m R3m R3m R5m

Size 419m² 1 010m² 419m² 1 010m² 1 010m² 419m² R5m R10 225/m² 489m² R/m² R11 933/m² R2 970/m² R11 933/m² R2 970/m² R2 970/m² R11 933/m²

COMMERCIAL OFFICES FOR SALE: There were 22 properties for sale suitable for offices representing 10 544m² under roof.

Size 3 822m² 73m² 160m² 1 282m² 3 822m² 73m² R3.705m R11 890/m² 277m² R/m² R25 210/m² R8 151/m² R26 250/m² R2 808/m² R25 210/m² R8 151/m² THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

COMMERCIAL RETAIL FOR SALE: There were nine properties for sale suitable for retail or leisure representing 5 605m² under roof.

Size 2 147m² 17m² 17m² 729m² 2 147m² 17m² R5.5m R11 838/m² 684m² R/m² R8 903/m² R27 353/m² R27 353/m² R7 545/m² R8 903/m² R27 353/m²

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in Bellville, as per SAPOA, Q1: 2019. In terms of RETAIL, there were 48 properties to rent suitable for retail or leisure representing 18 854m² under roof.

Size 4 640m² 40m² 30m² 200m² 4 640m² 30m² R25 000 150/m² 188m² R/m² R123/m² R100/m² R334/m² R82/m² R123/m² R334/m²

BLACKHEATH COMMERCIAL LAND FOR SALE: There was one vacant stand of 2.23ha for sale by auction (POA), suitable for commercial development.

COMMERCIAL OFFICES FOR SALE: There were three properties for sale suitable for offices representing 5 040m² under roof.

Size 3 000m² 260m² 3 000m² 1 780m² 3 000m² 260m² R7.8m R5 769/m² 1 780m² R/m² R6 650/m² R5 769/m² R6 650/m² R4 382/m² R6 650/m² R5 769/m²

COMMERCIAL RETAIL FOR SALE: There was one property for sale suitable for retail or leisure representing 1 027m² under roof. The asking price was R7.6m at R7 400/m².

COMMERCIAL OFFICES AND RETAIL TO RENT: There was one COMMERCIAL property to rent suitable for offices representing 75m² under roof. The monthly rental was R5 134 at R75/m². There were no premises suitable for RETAIL or leisure available to rent.

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BRACKENFELL COMMERCIAL LAND FOR SALE: There were no vacant stands available for commercial development.

COMMERCIAL OFFICES FOR SALE: There were four properties for sale suitable for offices representing 3 563m² under roof.

Size 1 413m² 350m² 350m² 1 658m² 1 658m² 142m² R5.575m R6 490/m² 882m² R/m² R5 945/m² R7 857/m² R7 857/m² R5 066/m² R5 066/m² R7 035/m²

COMMERCIAL RETAIL FOR SALE: There were two properties for sale suitable for retail or leisure representing 2 204m² under roof; however, both properties were POA, so R/m² is unknown.

COMMERCIAL OFFICES AND RETAIL TO RENT: There were no COMMERCIAL offices available to rent. In terms of RETAIL or leisure, there were 10 suitable properties to rent representing 1 253m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE

Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall p/m asking Rental R48 812 R13 870 R13 870 R19 000 R48 812 R13 870

Size 217m² 38m² 38m² 130m² 217m² 38m² R24 998 R232/m² 122m² R/m² R225/m² R365/m² R365/m² R146/m² R225/m² R365/m²

CAPE TOWN CBD COMMERCIAL LAND FOR SALE: There were no vacant stands for sale suitable for commercial development.

COMMERCIAL OFFICES FOR SALE: There were 32 properties for sale suitable for offices representing 13 900m² under roof.

Size 1 600m² 109m² 295m² 693m² 1 600m² 105m² R7.975m R20 923/m² 375m² R/m² R20 000/m² R21 101/m² R32 203/m² R12 843/m² R20 000/m² R22 857/m²

COMMERCIAL RETAIL FOR SALE: There were 11 properties for sale suitable for retail or leisure representing 9 279m² under roof.

Size 1 376m² 22m² 22m² 3 333m² 3 333m² 22m² R11.9m R23 471/m² 507m² R/m² R20 712/m² R54 500/m² R54 500/m² R6 421/m² R6 421/m² R54 500/m²

13 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in the Cape Town CBD, as per SAPOA, Q1:2019. In terms of RETAIL or leisure, there were 72 properties to rent representing 19 485m² under roof.

Size 2 354m² 44m² 50m² 685m² 2 354m² 44m² R39 750 R238/m² 170m² R/m² R110/m² R200/m² R546/m² R95/m² R110/m² R200/m²

CENTURY CITY COMMERCIAL LAND FOR SALE: There were no vacant stands for sale suitable for commercial development.

COMMERCIAL OFFICES FOR SALE: There were 20 properties for sale suitable for offices representing 11 237m² under roof.

Size 2 100m² 56m² 200m² 672m² 2 122m² 56m² R8.52m R21 402/m² 423m² R/m² R21 402/m² R22 000/m² R30 000/m² R15 000/m² R15 080/m² R22 000/m²

COMMERCIAL RETAIL FOR SALE: There were four properties for sale suitable for retail or leisure representing 1 768m² under roof.

Size 776m² 106m² 110m² 776m² 776m² 106m² R8.2m R27 029/m² 443m² R/m² R21 134/m² R32 925/m² R38 182/m² R15 722/m² R18 428/m² R32 925/m²

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in Century City as per SAPOA, Q1:2019. In terms of RETAIL or leisure, there were eight properties to rent representing 6 009m² under roof.

Size 3 807m² 106m² 193m² 789m² 3 807m² 78m² R42 858 R165/m² 217m² R/m² R130/m² R113/m² R200/m² R100/m² R130/m² R160/m²

14 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

CLAREMONT COMMERCIAL LAND FOR SALE: There were no vacant stands for sale suitable for commercial development.

COMMERCIAL OFFICES FOR SALE: There was one property for sale suitable for offices representing 86m² under roof. It had an asking price of R2.1m or R24 419/m².

COMMERCIAL RETAIL FOR SALE: There were three properties for sale suitable for retail or leisure representing 726m² under roof.

Size 287m² 110m² 110m² 329m² 329m² 110m² R6.2m R27 875/m² 287m² R/m² R27 875/m² R40 000/m² R40 000/m² R18 845/m² R18 845/m² R40 000/m²

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in Claremont as per SAPOA, Q1:2019. In terms of RETAIL or leisure, there were 20 properties to rent suitable for retail or leisure representing 7 372m² under roof.

Size 3 241m² 56m² 65m² 389m² 3 241m² 56m² R34 050 R181/m² 176m² R/m² R160/m² R120/m² R530/m² R85/m² R160/m² R120/m²

ELSIES RIVER COMMERCIAL LAND AND OFFICES FOR SALE: There were neither vacant stands nor buildings suitable for commercial development for sale.

COMMERCIAL RETAIL FOR SALE: There were two properties for sale suitable for retail or leisure representing 1 146m² under roof.

Size 833m² 313m² 313m² 833m² 833m² 313m² R3.225m R6 365/m² 573m² R/m² R4 742/m² R7 987/m² R7 987/m² R4 742/m² R4 742/m² R7 987/m²

COMMERCIAL RETAIL AND OFFICES TO RENT: There were no RETAIL or leisure properties to rent. There were four COMMERCIAL properties to rent suitable for offices representing 1 159m² under roof.

Size 634m² 92m² 634m² 143m² 634m² 92m² R10 110 R45/m² 217m² R/m² R50/m² R40/m² R50/m² R40/m² R50/m² R40/m²

15 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

EPPING COMMERCIAL LAND, OFFICES AND RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for commercial or retail for sale.

COMMERCIAL RETAIL AND OFFICES TO RENT: There were no RETAIL or leisure properties to rent. There were six COMMERCIAL properties suitable for offices to rent representing 1 282m² under roof.

Size 492m² 15m² 15m² 492m² 492m² 15m² R9 848 R59/m² 152m² R/m² R45/m² R167/m² R167/m² R45/m² R45/m² R167/m²

KILLARNEY GARDENS COMMERCIAL LAND, OFFICES AND RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for commercial or retail for sale.

COMMERCIAL OFFICES TO RENT: There were seven properties to rent suitable for offices representing 3 394m² under roof.

Size 1 200m² 59m² 1 200m² 255m² 1 200m² 59m² R34 080 R120/m² 284m² R/m² R150/m² R95/m² R150/m² R95/m² R150/m² R95/m²

COMMERCIAL RETAIL TO RENT: There were two properties to rent suitable for retail or leisure representing 2 550m² under roof.

Size 2 000m² 550m² 2 000m² 550m² 2 000m² 550m² R95 625 R75/m² 1 275m² R/m² R75/m² R75/m² R75/m² R75/m² R75/m² R75/m²

16 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

MONTAGUE GARDENS COMMERCIAL LAND AND RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for retail for sale.

COMMERCIAL OFFICES FOR SALE: There were three properties for sale suitable for offices representing 6 074m² under roof.

Size 2 106m² 1 975m² 2 106m² 1 975m² 2 106m² 1 975m² R36.475m R17 744/m² 1 993m² R/m² R21 842/m² R13 646/m² R21 842/m² R13 646/m² R21 842/m² R13 646/m²

COMMERCIAL OFFICES TO RENT: There were 40 properties to rent suitable for offices representing 11 597m² under roof.

Size 1 410m² 15m² 15m² 389m² 1 410m² 15m² R17 850 R95/m² 202m² R/m² R160/m² R333/m² R333/m² R55/m² R160/m² R333/m²

COMMERCIAL RETAIL TO RENT: There were 10 properties to rent suitable for retail or leisure representing 4 940m² under roof.

Size 2 019m² 102m² 180m² 213m² 2 019m² 102m² R29 783 R98/m² 266m² R/m² R85/m² R85/m² R139/m² R59/m² R85/m² R85/m²

NDABENI COMMERCIAL LAND, OFFICES AND RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for COMMERCIAL for sale. There was one property for sale suitable for RETAIL or leisure representing 200m² under roof at an asking price of R4.95m or R24 750/m².

COMMERCIAL RETAIL AND OFFICES TO RENT: There was one property to rent suitable for RETAIL or leisure representing 72m² under roof at a monthly rental of R8 280 or R115/m². There were nine properties to rent suitable for COMMERCIAL offices representing 2 658m² under roof.

Size 570m² 14m² 14m² 341m² 570m² 14m² R20 473 R85/m² 283m² R/m² R84/m² R143/m² R143/m² R60/m² R84/m² R143/m²

17 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

NEWLANDS/RONDEBOSCH COMMERCIAL LAND, OFFICES & RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for offices or retail for sale in Newlands. Rondebosch had neither vacant stands nor retail properties for sale, but it did have one office building on the market representing 657m² under roof. This had an asking price of R11.995m or R18 257/m².

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in Newlands/Rondebosch, as per SAPOA, Q1:2019. In terms of RETAIL or leisure premises, there was one property to rent in Newlands representing 200m² under roof. The monthly rental was R24 000 or R120/m². In terms of Rondebosch, there were 14 properties available to rent suitable for RETAIL representing 1 643m² under roof.

Size 218m² 52m² 82m² 52m² 218m² 52m² R23 900 R245/m² 101m² R/m² R255/m² R180/m² R288/m² R180/m² R255/m² R180/m²

PAARDEN EILAND COMMERCIAL LAND, OFFICES & RETAIL FOR SALE: There were neither vacant stands nor buildings suitable for RETAIL or leisure for sale. There was one COMMERCIAL OFFICE building for sale representing 94m² under roof. This has an asking price of R1.4m or R14 894/m².

COMMERCIAL OFFICES TO RENT: There were 29 properties to rent suitable for offices representing 7 561m² under roof.

Size 1 069m² 36m² 20m² 530m² 1 069m² 36m² R17 500 R95/m² 194m² R/m² R95/m² R60/m² R225/m² R52/m² R95/m² R60/m²

COMMERCIAL RETAIL TO RENT: There were 20 properties to rent suitable for retail representing 20 482m² under roof.

Size 2 700m² 110m² 422m² 172m² 3 441m² 110m² R82 820 R85/m² 905m² R/m² R110/m² R65/m² R142/m² R58/m² R65/m² R65/m²

18 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

PAROW COMMERCIAL LAND FOR SALE: There were no vacant stands suitable for offices, retail or leisure for sale.

COMMERCIAL OFFICES FOR SALE: There were nine properties for sale suitable for offices representing 7 682m² under roof.

Size 2 546m² 65m² 65m² 1 970m² 2 546m² 65m² R3.995m R9 975/m² 350m² R/m² R12 372/m² R16 154/m² R16 154/m² R3 858/m² R12 372/m² R16 154/m²

COMMERCIAL RETAIL FOR SALE: There were 14 properties for sale suitable for retail or leisure representing 14 234m² under roof.

Size 2 049m² 288m² 495m² 735m² 2 697m² 288m² R6.3m R8 584/m² 779m² R/m² R12 478/m² R9 201/m² R22 222/m² R3 801/m² R8 528/m² R9 201/m²

COMMERCIAL OFFICES TO RENT: There were 34 properties to rent suitable for offices representing 16 504m² under roof.

Size 2 626m² 64m² 209m² 1 044m² 2 626m² 64m² R36 225 R145/m² 309m² R/m² R120/m² R93/m² R223/m² R40/m² R120/m² R93/m²

COMMERCIAL RETAIL TO RENT: There were 12 properties to rent suitable for retail or leisure representing 7 311m² under roof.

Size 3 145m² 41m² 36m² 760m² 3 145m² 36m² R29 360 R103/m² 332m² R/m² R60/m² R120/m² R270/m² R56/m² R60/m² R270/m²

19 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

PINELANDS (ALSO KNOWN AS CENTRAL AS PER SAPOA) COMMERCIAL LAND FOR SALE: There were no vacant stands suitable for offices, retail or leisure for sale.

COMMERCIAL OFFICES AND RETAIL FOR SALE: There was only one COMMERCIAL OFFICE property for sale representing 185m² under roof. The asking price was R2.55m or R13 784/m². There was also one property suitable for RETAIL or leisure for sale: a 12-bedroom guesthouse representing 1 644m². The asking price was R8.995m or R5 471/m².

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in Central (incorporating Pinelands), as per SAPOA, Q1:2019. There were no properties to rent suitable for RETAIL or leisure.

SALT RIVER COMMERCIAL LAND FOR SALE: There were no vacant stands for sale.

COMMERCIAL OFFICES FOR SALE: There were 12 office properties for sale representing 5 850m² under roof.

Size 1 486m² 172m² 1 486m² 492m² 1 486m² 172m² R3.885m R12 323/m² 779m² R/m² R14 805/m² R12 355/m² R14 805/m² R9 146/m² R14 805/m² R12 355/m²

COMMERCIAL RETAIL FOR SALE: There were two properties for sale suitable for retail or leisure representing 4 530m² under roof.

Size 3 400m² 1 130m² 1 130m² 3 400m² 3 400m² 1 130m² R24.75m R11 268/m² 2 265m² R/m² R10 588/m² R11 947/m² R11 947/m² R10 588/m² R10 588/m² R11 947/m²

COMMERCIAL OFFICES TO RENT: There were 65 properties to rent suitable for offices representing 19 688m² under roof.

Size 1 600m² 38m² 16m² 750m² 1 600m² 16m² R15 750 R114/m² 160m² R/m² R125/m² R109/m² R379/m² R40/m² R125/m² R379/m²

COMMERCIAL RETAIL TO RENT: There were 26 properties to rent suitable for retail or leisure representing 7 585m² under roof.

Size 596m² 119m² 301m² 119m² 596m² 100m² R28 750 R120/m² 263m² R/m² R107/m² R75/m² R150/m² R75/m² R107/m² R120/m² WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

SOMERSET WEST COMMERCIAL LAND FOR SALE: There were three vacant stands for sale suitable for office, retail or leisure representing 8 344m².

Size 2 000m² 3 594m² 2 000m² 3 594m² 3 594m² 2 000m² R5.95m R2 164/m² 2 750m² R/m² R3 500/m² R684/m² R3 500/m² R684/m² R684/m² R3 500/m²

COMMERCIAL OFFICES FOR SALE: There were 30 properties for sale suitable for offices representing 9 579m² under roof.

Size 1 000m² 60m² 84m² 580m² 1 210m² 60m² R3.05m R22 615/m² 154m² R/m² R28 500/m² R22 167/m² R36 310/m² R5 000/m² R10 537/m² R22 167/m²

COMMERCIAL RETAIL FOR SALE: There were 15 properties for sale suitable for retail or leisure representing 16 941m² under roof.

Size 2 604m² 111m² 250m² 3 016m² 6 120m² 71m² R5.95m R8 739/m² 520m² R/m² R16 222/m² R8 739/m² R23 800/m² R2 288/m² R2 614/m² R21 113/m²

COMMERCIAL OFFICES TO RENT: There were 94 properties to rent suitable for offices representing 17 010m² under roof.

Size 1 000m² 50m² 15m² 50m² 1 538m² 14m² R16 450 R145/m² 119m² R/m² R180/m² R50/m² R1 000/m² R50/m² R85/m² R479/m²

COMMERCIAL RETAIL TO RENT: There were 48 properties to rent suitable for retail or leisure representing 8 800m² under roof.

Size 1 500m² 44m² 70m² 375m² 1 500m² 24m² R14 100 R120/m² 85m² R/m² R115/m² R100/m² R255/m² R53/m² R115/m² R250/m² THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

WOODSTOCK COMMERCIAL LAND FOR SALE: There were no vacant stands suitable for offices, retail or leisure for sale.

COMMERCIAL OFFICES FOR SALE: There were 11 properties for sale suitable for offices representing 6 669m² under roof.

Size 1 200m² 178m² 340m² 880m² 1 200m² 178m² R7m R15 346/m² 594m² R/m² R11 250/m² R16 573/m² R19 853/m² R7 955/m² R11 250/m² R16 573/m²

COMMERCIAL RETAIL FOR SALE: There were seven properties suitable for retail or leisure for sale representing 2 148m² under roof.

Size 302m² 61m² 161m² 560m² 673m² 61m² R5.4m R24 188/m² 200m² R/m² R29 470/m² R26 230/m² R37 267/m² R8 571/m² R12 630/m² R26 230/m²

COMMERCIAL OFFICES TO RENT: There were 200 properties to rent suitable for offices representing 65 778m² under roof.

Size 2 373m² 40m² 20m² 1 160m² 2 373m² 20m² R25 000 R120/m² 220m² R/m² R140/m² R65/m² R300/m² R50/m² R140/m² R300/m²

COMMERCIAL RETAIL TO RENT: There were 45 properties to rent suitable for retail or leisure representing 13 429m² under roof.

Size 2 903m² 55m² 90m² 655m² 2 903m² 48m² R20 217 R132/m² 180m² R/m² R165/m² R109/m² R183/m² R31/m² R165/m² R133/m²

22 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

V&A WATERFRONT COMMERCIAL LAND, OFFICES & RETAIL FOR SALE: There were no vacant stands for sale, nor any COMMERCIAL or RETAIL buildings for sale.

COMMERCIAL OFFICES AND RETAIL TO RENT: Please see pg 10 for COMMERCIAL OFFICE rentals and vacancies in the V&A Waterfront, as per SAPOA, Q1:2019. In terms of RETAIL or leisure, there was one property to rent representing 793m² under roof. The monthly rental was R174 460 or R220/m².

INDUSTRIAL PROPERTY16 Certain areas contained in the COMMERCIAL CBD, Century City, Claremont, Newlands/ breakdown for the City of Cape Town are Rondebosch, Pinelands (also known as Central not included in this section as they have in terms of SAPOA listings) and the V&A no industrial property zones within their Waterfront. boundaries. These include the Cape Town

AIRPORT INDUSTRIA VACANT LAND FOR SALE: There were no vacant stands for sale suitable for development.

INDUSTRIAL BUILDINGS FOR SALE: There were 12 properties for sale representing 10 954m² under roof.

Size 4 100m² 186m² 185m² 1 015m² 4 100m² 185m² R5.6m R8 763/m² 631m² R/m² R8 537/m² R8 973/m² R9 459/m² R5 616/m² R8 537/m² R9 459/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 90 properties for rent representing 88 990m² under roof.

Size 9 138m² 187m² 1 345m² 187m² 9 138m² 150m² R29 770 R65/m² 444m² R/m² R59/m² R42/m² R80/m² R42/m² R59/m² R60/m²

16 All figures in this Industrial section have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

23 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

ATLANTIS VACANT LAND FOR SALE: There were 10 vacant stands for sale representing 240 995m².

Size 201 400m² 395m² 395m² 10 000m² 201 400m² 395m² R1.2m R544/m² 2 206m² R/m² R149/m² R886/m² R886/m² R100/m² R149/m² R886/m²

INDUSTRIAL BUILDINGS FOR SALE: There were five properties for sale representing 10 160m² under roof.

Size 5 310m² 900m² 200m² 1 050m² 5 310m² 200m² R4.89m R4 520/m² 1 050m² R/m² R4 520/m² R3 100/m² R24 450/m² R2 667/m² R4 520/m² R24 450/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 12 properties for rent representing 34 013m² under roof.

Size 6 000m² 900m² 593m² 900m² 6 000m² 593m² R82 000 R33/m² 2 050m² R/m² R35/m² R25/m² R40/m² R25/m² R35/m² R40/m²

BELLVILLE VACANT LAND FOR SALE: There were 11 vacant stands for sale representing 113 553m².

Size 25 637m² 1 296m² 6 334m² 9 228m² 25 637m² 1 296m² R15.161m R1 539/m² 11 101m² R/m² R1 677/m² R2 100/m² R2 500/m² R722/m² R1 677/m² R2 100/m²

INDUSTRIAL BUILDINGS FOR SALE: There were 24 properties for sale representing 20 659m² under roof.

Size 2 700m² 247m² 189m² 1 225m² 2 700m² 189m² R5.227m R8 995/m² 644m² R/m² R10 741/m² R6 377/m² R13 026/m² R4 082/m² R10 741/m² R13 026/m²

24 PHOTOGRAPH Sam Fourie courtesy of Western Cape Property Developement Forum INDUSTRIAL BUILDINGSFORSALE:There were 13properties forsalerepresenting 18870m²underroof. INDUSTRIAL BUILDINGSFORRENT: There were 125properties forrent representing 144376m²underroof. VACANT LANDFORSALE: BLACKHEATH INDUSTRIAL BUILDINGSFORRENT: There were 161properties forrent representing 185523m²underroof. Price PRICE RANGE R/m² Size Rental Price Rental R/m² Size MONTHLY RENTAL RANGE PRICE RANGE MONTHLY RENTAL RANGE R/m² Size R/m² Size R350 000 R582 400 R6 650/m² R19.95m 66 851m² R40.11m 3 000m² Highest 6 300m² 8 320m² Highest Highest Highest R600/m² overall overall overall overall asking R70/m² R56/m² asking asking asking R5 600/m² R1.579m R797/m² 1 982m² R1.58m Lowest There were fourvacantstandsforsalerepresenting 110097m². Lowest Lowest Lowest overall R6 585 R3 300 R15/m² R92/m² overall overall overall asking 282m² asking asking asking 439m² 36m² R17.882m Median R24 732 R32 215 R7.59m Median Median Median asking asking asking asking p/m p/m R7 872/m² R1 000/m² R19.264m 19 264m² R121 500 R101/m² 2 439m² Highest 1 200m² Highest Highest Highest R15 000 R19.2m R96/m² 157m² R/m² R/m² R/m² R/m² 25 R4 264/m² 66 851m² R40.11m 1 780m² R600/m² 3 000m² 2 804m² R30 000 R88 326 Lowest R7.59m R32/m² R10/m² Lowest Lowest Lowest THE WESTERN CAPE PROPERTY REPORT 2018/19 REPORT WESGRO THEWESTERNCAPEPROPERTY R/m² R/m² R/m² R/m² R6 330/m² Median R774/m² Median Median Median R45/m² asking R52/m² asking asking asking R/m² R/m² R/m² R/m² SIZE RANGE SIZE RANGE SIZE RANGE SIZE RANGE R4 938/m² 16 000m² 66 851m² R240 000 R582 400 3 200m² R40.11m 8 320m² R600/m² Largest Largest Largest Largest R15.8m R70/m² R15/m² in size in size in size in size R6 890/m² Smallest R1.723m Smallest Smallest Smallest 1 982m² R797/m² R1.58m R92/m² R71/m² 250m² R8 236 R3 300 in size 116m² in size in size in size 36m²

20 632m² 1 454m² Median Median Median Median 560m² 580m² size size size size THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

BRACKENFELL VACANT LAND FOR SALE: There was one vacant stand for sale representing 1 624m². The asking price was R3.65m or R2 250/m².

INDUSTRIAL BUILDINGS FOR SALE: There were 12 properties for sale representing 11 493m² under roof.

Size 3 100m² 147m² 752m² 1 500m² 3 100m² 147m² R6.171m R7 271/m² 776m² R/m² R6 774/m² R7 585/m² R9 100/m² R5 933/m² R6 774/m² R7 585/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 83 properties for rent representing 491 079m² under roof.

Size 39 599m² 118m² 681m² 300m² 39 599m² 118m² R23 888 R70/m² 384m² R/m² R75/m² R55/m² R106/m² R47/m² R75/m² R55/m²

ELSIES RIVER VACANT LAND FOR SALE: There were no vacant stands for sale.

INDUSTRIAL BUILDINGS FOR SALE: There were nine properties for sale representing 10 336m² under roof.

Size 2 400m² 290m² 1 423m² 1 180m² 2 400m² 290m² R3.5m R4 600/m² 1 180m² R/m² R3 954/m² R5 500/m² R5 973/m² R2 966/m² R3 954/m² R5 500/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 11 properties for rent representing 36 019m² under roof.

Size 14 290m² 207m² 500m² 1 180m² 14 290m² 207m² R41 400 R46/m² 1 180m² R/m² R40/m² R29/m² R55/m² R25/m² R40/m² R29/m²

26 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

EPPING VACANT LAND FOR SALE: There were no vacant stands for sale.

INDUSTRIAL BUILDINGS FOR SALE: There were five properties for sale representing 24 774m² under roof.

Size 11 000m² 1 950m² 1 950m² 5 800m² 11 000m² 1 950m² R19.5m R5 400/m² 3 524m² R/m² R4 773/m² R6 410/m² R6 410/m² R4 138/m² R4 773/m² R6 410/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 119 properties for rent representing 302 947m² under roof.

Size 16 220m² 120m² 750m² 8 900m² 16 220m² 100m² R38 728 R50/m² 750m² R/m² R60/m² R45/m² R80/m² R11/m² R60/m² R77/m²

KILLARNEY GARDENS VACANT LAND FOR SALE: There were no vacant stands for sale.

INDUSTRIAL BUILDINGS FOR SALE: There were seven properties for sale representing 4 273m² under roof.

PRICE RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Rental R8.5m R1.6m R1.6m R2.09m R8.5m R2.15m

Size 1 213m² 172m² 172m² 330m² 1 213m² 240m² R5m R7 340/m² 614m² R/m² R7 007/m² R9 302/m² R9 302/m² R6 333/m² R7 007/m² R8 958/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 85 properties for rent representing 72 719m² under roof.

Size 5 742m² 95m² 284m² 420m² 5 742m² 95m² R26 650 R50/m² 464m² R/m² R67/m² R90/m² R100/m² R39/m² R67/m² R90/m²

27 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

MONTAGUE GARDENS VACANT LAND FOR SALE: There was one vacant plot-and-plan stand available for sale representing 2 000m². The asking price was not listed (POA).

INDUSTRIAL BUILDINGS FOR SALE: There were 38 properties for sale representing 40 556m² under roof.

Size 5 400m² 125m² 1 975m² 5 400m² 5 400m² 100m² R5.5m R7 746/m² 720m² R/m² R5 370/m² R8 400/m² R13 671/m² R5 370/m² R5 370/m² R10 750/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 349 properties for rent representing 479 647m² under roof.

Size 20 400m² 76m² 15m² 1 100m² 20 400m² 15m² R28 000 R60/m² 500m² R/m² R70/m² R65/m² R333/m² R28/m² R70/m² R333/m²

NDABENI

VACANT LAND FOR SALE: There were no vacant stands for sale. INDUSTRIAL BUILDINGS FOR SALE: There were two properties for sale representing 8 214m² under roof.

Size 7 888m² 326m² 326m² 7 888m² 7 888m² 326m² R25.3m R7 030/m² 4 107m² R/m² R6 085/m² R7 975m² R7 975/m² R6 085/m² R6 085/m² R7 975/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 15 properties for rent representing 23 380m² under roof.

Size 7 888m² 200m² 200m² 900m² 7 888m² 200m² R81 780 R60/m² 1 350m² R/m² R55/m² R75/m² R75/m² R47/m² R55/m² R75/m²

28 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

PAARDEN EILAND VACANT LAND FOR SALE: There were no vacant stands for sale.

INDUSTRIAL BUILDINGS FOR SALE: There were eight properties for sale representing 13 074m² under roof.

Size 3 350m² 235m² 1 300m² 2 468m² 3 350m² 235m² R15.25m R8 781/m² 1 392m² R/m² R7 463/m² R10 638m² R11 932/m² R7 293/m² R7 463/m² R10 638/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 86 properties for rent representing 121 048m² under roof.

Size 8 045m² 18m² 440m² 450m² 8 272m² 18m² R71 375 R65/m² 931m² R/m² R65/m² R100/m² R125/m² R26/m² R54/m² R100/m²

PAROW VACANT LAND FOR SALE: There was one vacant stand for sale at an asking price of R3.8m. Size unknown.

INDUSTRIAL BUILDINGS FOR SALE: There were 10 properties for sale representing 24 695m² under roof.

Size 3 400m² 321m² 321m² 3 810m² 5 020m² 321m² R10.614m R4 450/m² 2 545m² R/m² R6 176/m² R6 231m² R6 231/m² R3 806/m² R3 984/m² R6 231/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 77 properties for rent representing 132 375m² under roof.

Size 10 548m² 115m² 575m² 3 145m² 10 548m² 115m² R47 151 R49/m² 934m² R/m² R50/m² R55/m² R100/m² R30/m² R50/m² R55/m²

29 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

SALT RIVER VACANT LAND FOR SALE: There were no vacant stands for sale.

INDUSTRIAL BUILDINGS FOR SALE: There were four properties for sale representing 2 086m² under roof.

Size 804m² 311m² 804m² 481m² 804m² 311m² R5.798m R13 365/m² 486m² R/m² R22 388/m² R12 862m² R22 388/m² R9 979/m² R22 388/m² R12 862/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 27 properties for rent representing 22 891m² under roof.

Size 4 542m² 120m² 224m² 1 450m² 4 542m² 120m² R33 670 R85/m² 596m² R/m² R69/m² R50/m² R115/m² R25/m² R69/m² R50/m²

SOMERSET WEST VACANT LAND FOR SALE: There were 22 vacant stands for sale representing 106 869m².

Size 19 521m² 1 885m² 2 750m² 19 521m² 19 521m² 1 885m² R3.022m R995/m² 2 784m² R/m² R850/m² R1 150m² R2 182/m² R850/m² R850/m² R1 150/m²

INDUSTRIAL BUILDINGS FOR SALE: There were 13 properties for sale representing 15 704m² under roof.

Size 725m² 70m² 725m² 2 149m² 3 798m² 70m² R3.470m R7 000/m² 625m² R/m² R9 186/m² R8 214m² R9 186/m² R1 250/m² R1 250/m² R8 214/m²

INDUSTRIAL BUILDINGS FOR RENT: There were 29 properties for rent representing 14 665m² under roof.

Size 3 496m² 140m² 83m² 900m² 3 496m² 68m² R20 460 R60/m² 346m² R/m² R57/m² R44/m² R118/m² R43/m² R57/m² R100/m² WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

WOODSTOCK VACANT LAND AND INDUSTRIAL BUILDINGS FOR SALE: There were no vacant stands for sale. In terms of Industrial buildings, there was one property for sale, representing 490m² under roof. The asking price was R6.8m or R13 878/m².

INDUSTRIAL BUILDINGS FOR RENT: There were 34 properties for rent representing 24 024m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Rental R172 150 R12 420 R52 500 R52 200 R172 150 R12 420

Size 3 140m² 108m² 350m² 1 160m² 3 140m² 108m² R45 000 R75/m² 500m² R/m² R55/m² R115/m² R150/m² R45/m² R55/m² R115/m²

RESIDENTIAL PROPERTY17 To deal as effectively as possible with the Atlantic Seaboard: Green Point, Sea Point, residential information that follows, spread V&A Waterfront across a total of 13 sample Cape Town suburbs, Southern Suburbs: Claremont Upper, the authors of this report have grouped these Newlands, Pinelands, Rondebosch suburbs into the main areas as follows: Northern Suburbs & Helderberg: Bellville, City Bowl: Cape Town CBD, Gardens, Oranjezicht Century City, Somerset West.

MARKET STOCK Area Total housing Number Percentage Percentage Percentage Percentage who units of adults freehold sectional title of units have owned their housed in properties properties located properties for these units in estates 11 years or more ATLANTIC SEABOARD Green Point 3 122 3 866 22.5% 77.5% 0 45%

Sea Point 6 963 10 065 12.5% 87.5% 0.6% 49% V&A Waterfront 615 832 1.5% 98.5% 88% 28%

CITY BOWL Cape Town CBD 2 968 4 024 4.8% 95.2% 0 37% Gardens 3 617 5 596 28.4% 71.6% 2% 52% Oranjezicht 2 089 2 767 36.6% 63.4% 2.3% 59%

SOUTHERN SUBURBS Claremont Upper 3 438 5 393 37.3% 62.7% 3.3% 41% Newlands 2 391 4 298 69.1% 30.9% 4.4% 50% Pinelands 4 247 10 881 73.1% 26.9% 24.7% 56% Rondebosch 5 756 10 708 50.3% 49.7% 4.4% 49%

NORTHERN SUBURBS & HELDERBERG Bellville 29 617 84 058 70.2% 29.8% 13.6% 57% Century City 3 572 4 770 18.1% 81.9% 66.6% 29% Somerset West 20 256 39 366 71.7% 28.3% 39% 40%

17 All figures in this Residential section (prices, rentals and number of units available) have been sourced from Lightstone Property, apart from the rental figures which have been sourced from Property24.com. All information provided was as at the time in which research for this publication was undertaken (between January and April 2019).

31 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

AGE PROFILE OF OWNERS (DURING THE PERIOD AGE (IN YEARS) AND OWNER GROUPS DEFINED: FEBRUARY 2018 – JANUARY 2019) Young adult: 18-35 The following graphs refer to property owners’ age groups on a suburb-by- Middle age: 36-49 suburb basis (grouped together as outlined on pg 31) during the period under Mature: 50-65 review, and reflect the age profiles of both stable owners and recent buyers. Pensioner (retiree): over 65 The graphs also indicate whether a suburb is attractive to a particular type Stable owner: has owned home for longer than a year of buyer – e.g. a first-time buyer – or if it has a more broad-based appeal. Recent buyer: bought in the last 12 months.

60% ATLANTIC SEABOARD 49% Green Point Sea Point V&A Waterfront 50% 45% 44% 40% 37% 38% 32% 34% 30% 31% 30% 30% 29% 30% 26% 26% 24% 20% 15% 16% 16% 16% 10% 8% 7% 6% 6% 5% 0% Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner

PENSIONERS (65+ YEARS) MATURE (50-64 YEARS) MIDDLE AGE (36-49 YEARS) YOUNG ADULTS (18-35 YEARS)

GREEN POINT This suburb appears to mature category and more middle-aged retirees and 31% mature homeowners). have broader appeal than neighbouring owners than retirees. V&A WATERFRONT Almost half of Sea Point, with nearly a third of all SEA POINT Nearly half (45%) of recent current stable owners are mature recent buyers spread across young buyers were young adults, while with a further 30% retirees. Somewhat adults (34%), middle aged (30%) or a further 14% were middle aged, surprisingly (given the median price mature (30%). Stable owners are overall highlighting the relatively young age of of homes in this suburb), Lightstone younger than in Sea Point, with the recent buyers. In contrast, the profile of estimates that 44% of recent buyers largest age cohort falling into the stable owners is noticeably older (37% were young adults.

CITY BOWL Cape Town CBD Gardens Oranjezicht 70% 64% 60%

50% 41% 38% 38% 40% 36% 36%35% 32% 31% 31% 30% 28% 28% 30% 24% 21% 20% 20% 14% 14% 11% 10% 7% 9% 7% 2% 3% 0% Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner

PENSIONERS (65+ YEARS) MATURE (50-64 YEARS) MIDDLE AGE (36-49 YEARS) YOUNG ADULTS (18-35 YEARS)

CAPE TOWN CBD While nearly a third that the area appeals to first-time between retirees, mature and middle- of recent buyers were young adults, a buyers (a median price of R2.2m for aged owners, while recent buyers are slightly larger percentage was middle a Gardens apartment is far more predominantly middle aged, young aged, perhaps reflecting the rise in prices affordable than R3.75m in Sea Point on adults and mature. The slightly lower in recent years beyond the affordability the Atlantic Seaboard). percentage of young-adult buyers could of potential first-time buyers. ORANJEZICHT This suburb appeals to be attributed to the lower percentage of GARDENS Nearly two thirds of recent a broad range of homeowners, with sectional title properties to be found in buyers were young adults suggesting stable owners fairly evenly spread this suburb.

32 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

SOUTHERN SUBURBS Claremont Upper Newlands Pinelands Rondebosch 50% 45% 45% 43% 39% 40% 38%37% 38% 35% 36% 36% 36% 35% 32% 30% 31% 30% 29% 26% 27% 27% 27% 26% 25% 24% 25% 22% 20% 18% 16% 15% 10% 9% 10% 10% 7% 7% 5% 6% 5% 4% 0% Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner

PENSIONERS (65+ YEARS) MATURE (50-64 YEARS) MIDDLE AGE (36-49 YEARS) YOUNG ADULTS (18-35 YEARS)

CLAREMONT UPPER Over 40% of recent buyers recently, given the median price attracted by the lifestyle and access to buyers were young adults. The majority of homes in the suburb. There is also good schools nearby. of homes in this suburb are sectional a significant older age profile of stable RONDEBOSCH Nearly 40% of recent title (generally favoured by first-time owners with an unusually high level of buyers were young adults (presumably buyers) and are conveniently located retirees (35%). first-time buyers). This could be near the flourishing business hub of PINELANDS Nearly a third of recent attributed to the fact that nearly half Claremont, making it an appealing first buyers were young adults – many of all housing units in the suburb are rung on the property ladder. presumably first-time buyers. However, sectional title properties (often favoured NEWLANDS There have been a the largest age cohort of recent buyers by first-time buyers) as being more surprisingly large number of young were middle aged, presumably families affordable than freehold property).

NORTHERN SUBURBS Bellville Century City Somerset West & HELDERBERG 45% 39% 40% 37% 38% 35% 37% 36% 35% 34% 34% 31% 32% 30% 26% 25% 27% 25% 24% 22% 21% 22% 20% 19% 15% 17% 15% 10% 10% 7% 6% 5% 5% 0% Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner

PENSIONERS (65+ YEARS) MATURE (50-64 YEARS) MIDDLE AGE (36-49 YEARS) YOUNG ADULTS (18-35 YEARS)

BELLVILLE This suburb is attracting a adults (presumably including many SOMERSET WEST The largest age cohort large number of middle-aged and young first-time buyers), there is a fairly of stable owners is retirees, followed buyers (the latter likely to be first- even spread across the other three age closely by mature homeowners. In time buyers, attracted by the relative categories. This suggests that the area contrast, the largest age group of recent affordability of homes with the median has broad appeal. It is also noted that buyers was young adults (presumably price of sectional title being below R1m. nearly a quarter of current owners and largely first-time buyers), as recent CENTURY CITY While the largest just over a fifth of recent buyers were large-scale developments in this area category of recent buyers was young retirees. clearly appeal to young buyers.

33 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

PRICE PERFORMANCE The time periods below span 10 years and, wherever possible (see the graphs which follow), also include sale price performances to date for 2019.

GREEN POINT SEA POINT V&A WATERFRONT ATLANTIC SEABOARD Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant title land Title land title land Median price 2018 R5.3m R2.85m 0 R8m R3.75 0 0 R14.5m 0 5 years % year- on-year growth +27.7% +90% 0 +79.7% +111.6% 0 0 +131% 0 (2013-2018)

10 years % year- on-year growth +89.3% +165.1% 0 +300% +200% 0 0 +141.7% 0 (2008-2018)

CAPE TOWN CBD GARDENS ORANJEZICHT

CITY BOWL Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant title land Title land title land Median price 2018 R5.7m R1.99m 0 R3.782m R2.2m 0 R5.95m R2.171m 0 5 years % year- on-year growth +32.6% +75.4% 0 +0.6% +57.1% 0 +11.2% +75.4% 0 (2013-2018)

10 years % year- on-year growth +35.2% +90.4% 0 +56% +120% 0 +76.3% +128% 0 (2008-2018)

CLAREMONT UPPER NEWLANDS PINELANDS RONDEBOSCH SOUTHERN SUBURBS Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant title land title land title land title land

Median price R7.5m R2.2m 0 R6.188m R2.75m 0 R3.45m R1.15m R1.3m R4.7m R1.885m R925 000 2018

5 years % year- on-year growth +92.3% +79.7% 0 +67.2% +61.8% 0 +64.3% +76.9% -49% +58% +79.5% 0 (2013-2018)

10 years % year-on-year +167.9% +116.7% 0 +107.7% +103.7% 0 +107.6% +109.1% -14.8% +106.1% +179.3% +15.6% growth (2008-2018)

NORTHERN BELLVILLE CENTURY CITY SOMERSET WEST SUBURBS & Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant HELDERBERG title land Title land title land Median price 2018 R1.9m R870 000 R700 000 R3.25m R3.15m 0 R2.6m R1.3m R1.282m 5 years % year- on-year growth +49.6% +42.6% +47.4% +66.7% +131.6% 0 +52.9% +44.4% +139.6% (2013-2018)

10 years % year- on-year growth +90% +45.2% +100% +133% +152% 0 +73.3% +71.1% +101.6% (2008-2018)

34 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

GREEN POINT SEA POINT V&A WATERFRONT

9 9 16.0 8 8 14.0 7 7 12.0 6 6 freehold freehold 10.0 5 5 sectional title 8.0 4 4 6.0 3 3

(Rm, median prices) 2 2 4.0 sectional title sectional title 1 1 2.0 0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

GREEN POINT Freehold prices SEA POINT After a brief pause in V&A WATERFRONT The median declined sharply over the past year, while 2018, both freehold and sectional sectional title price in the Waterfront a softening in sectional title prices has title prices began rising again in soared by 141.7% over the past already been occurring over the past two 2019. Freehold started strengthening decade, particularly since 2013. More years. Growth in prices over the past five significantly from 2013 onwards. This significantly, prices rose from and 10 years in general has also been strengthening was also seen to a a median of R9.5m in 2017 to R14.7m far more muted in Green Point than in lesser extent in sectional title. in 2018 (across only 26 sales).

ATLANTIC SEABOARD SEABOARD ATLANTIC neighbouring Sea Point.

CAPE TOWN CBD GARDENS ORANJEZICHT

2.5 7 10 9 6 2.0 8 5 7 freehold freehold 1.5 sectional title 4 6 5 1.0 3 4 2 3 sectional title 0.5 sectional title 2 1 1 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CAPE TOWN CBD Less than 5% of all increases in recent years have caused a in 2019, and a more muted slowdown homes in the greater CBD are freehold deterioration in affordability, weakening in recent years in sectional title prices. (Rm, median prices) and are therefore excluded here. In demand and causing prices to soften. contrast, sectional title prices have ORANJEZICHT While housing market soared by 75.4% over the past five years GARDENS The performance of activity has been slowing for several and by 90.4% over the past decade. The median prices in Gardens is fairly years, freehold prices rebounded in softening in 2018 reflects the dominant similar to Green Point along the 2018 before slowing in early 2019. trend in neighbouring suburbs overall Atlantic Seaboard, with a marked Sectional title sales have shown a more

CITY BOWL CITY BOWL (eg. the Atlantic Seaboard), where rapid slowdown in freehold prices seen so far modest slowdown in 2019. THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

CLAREMONT UPPER NEWLANDS PINELANDS RONDEBOSCH 5.0 8.0 7.0 4.0 4.5 7.0 6.0 3.5 4.0 6.0 3.0 3.5 freehold 5.0 freehold 5.0 freehold 2.5 3.0 4.0 freehold 2.5 4.0 2.0 3.0 2.0 3.0 1.5 1.5 2.0 2.0 1.0 1.0 sectional title sectional title 1.0 1.0 0.5 sectional title sectional title 0.5 0 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CLAREMONT UPPER the periphery of the CBD in smaller PINELANDS Freehold prices soared in 2018 while developments (often built on a piece Median prices of both freehold and sectional title prices stabilised, possibly of land on which a freehold property sectional title properties continued reflecting the sharp increase in new has been demolished). These sectional to strengthen in 2018. Pinelands is developments reaching the market. title properties are more expensive and one of the suburbs benefiting from its (Rm, median prices) Homes in security estates enjoy a large have some of the highest R/m² in the proximity to the Cape Town CBD and price premium. During the period Southern Suburbs. the relative affordability of homes. under review, seven homes were sold in security estates for an average price NEWLANDS RONDEBOSCH of R13.2m while the 37 freehold homes Both freehold and sectional title Both freehold and sectional title prices sold outside estates, fetched an average property prices have shown strong continued to strengthen in 2018, price of R7.28m. Initially, sectional growth over the past decade, with bucking the trend in much of the title properties in Claremont Upper prices more than doubling. Much of Southern Suburbs. Both property types were typically found in large mixed- that growth has occurred during the have seen median prices more than use developments in the Claremont past five years (a trend evident across double since 2008, with sectional title CBD. However, more recently, new much of the Cape metro as semi- developments starting to follow a trend

SOUTHERN SUBURBS SUBURBS SOUTHERN sectional title properties are found on gration accelerated). similar to Claremont Upper.

BELLVILLE CENTURY CITY SOMERSET WEST

2.5 4.0 3.0 3.5 2.0 2.5 3.0 freehold 2.0 1.5 freehold 2.5 freehold 2.0 1.5 1.0 1.5 sectional title 1.0 1.0 sectional title 0.5 sectional title 0.5 0.5 0 0 0

(Rm, median prices) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

BELLVILLE both the past five and ten years, with lifestyle appeal of Century City as Freehold and sectional title (as well as sectional title prices up 152% over the a mixed-use precinct with good access vacant plots, not shown here) prices past decade. As seen overall in Cape to public transport (eg: MyCiTi) and have all shown solid growth over the Town, prices accelerated from 2013 proximity to the Cape Town CBD. past five years, with freehold prices onwards as the semi-gration trend having risen by 90%. gained momentum. However, unlike SOMERSET WEST the prime Atlantic Seaboard, City Bowl Freehold prices reflect the key trend CENTURY CITY and Southern Suburbs markets, prices overall in Cape Town, ie: an accelerated Both freehold and sectional title of sectional title properties continued increase in median prices followed by

NORTHERN SUBURBS SUBURBS NORTHERN properties have performed well over to strengthen last year, reflecting the a softening in the past two years. WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

MARKET ACTIVITY NUMBER OF UNITS SOLD (2009-2018) Green Point Sea Point V&A Waterfront

500 472 446 432 371 370

400 364 330 303 303 300 335 227 215 197 200 192

200 177 136 129 122 111

100 77 61 61 58 43 49 47 37 37 45 44 42 44 39 41 35 38 44 40 37 37 25 34 33 27 26 31 29 21 19

0 Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title Freehold Sectional title

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

GREENPOINT Both freehold and SEA POINT Activity in the dominant V&A WATERFRONT Sales slowed sectional title sales have slowed sectional title market has slowed sharply last year, registering the lowest noticeably over the past two years, sharply in recent years. number of sales seen during the past

ATLANTIC SEABOARD ATLANTIC after a peak in 2016. 10-year period.

Cape Town CBD Gardens Oranjezicht 500 410 400 346 321

300 282 257 255 247

200 193 166 168 167 163 152 158 144 146 118 116 113 96 82 100 86 69 66 60 66 58 53 58 52 48 43 56 50 49 44 41 44 47 35 44 40 40 35 38 33 34 32 35 27

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In general, the City Bowl housing CAPE TOWN CBD Again, because GARDENS Activity in both the freehold market started slowing before that of freehold only accounts for 5% of sales and sectional title markets has been the Atlantic Seaboard and Southern on average, only sectional title properties slowing steadily in recent years, following Suburbs, and was indeed the first are tracked here. The softening in prices a peak in 2014. Indeed, activity seems to area to show signs of the slowdown has been accompanied by a marked have been slowing for far longer than in which would ultimately be manifested slowdown in activity in the Cape Town many other Cape Town suburbs. through much of the City of Cape CBD sectional title market during the Town’s housing market. past two years as conditions cycle from ORANJEZICHT Much like Gardens,

CITY BOWL a sellers’ to a buyers’ market. activity in Oranjezicht peaked in 2014 and has slowed since. In fact, freehold sales peaked in 2012. Claremont Newlands Pinelands Rondebosch 400 299

300 281 258 242 244 209 203 205 204

200 173 167 168 165 165 163 159 153 150 145 144 143 144 143 145 135 129 135 130 132 128 128 126 124 123 122 113 110 112 97 105 100 100 100 95 87 86 89 87 84 86 86 76 82 71 72 79 74 76 69 73 70

100 72 67 65 69 61 60 58 57 58 48 50 43 47 44 40 39 36 35 19

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CLAREMONT Activity has slowed significantly below the median price for freehold and sectional title properties, sharply in recent years, in line with the the 2018/19 year as a whole. yet a significantly larger number of trend evident in much of the Southern sectional title properties are sold in Suburbs as Cape Town’s housing PINELANDS While activity in both Rondebosch each year (possibly due market cools down. freehold and sectional title markets both to the turnover in student housing slowed in 2017, it rebounded modestly as well as new developments in recent NEWLANDS Activity has slowed steadily in 2018 – bucking the trend in other years). Sectional title activity on the since peaking in 2014, perhaps due Cape Town areas. whole, however, has slowed sharply in to affordability. During the period recent years while freehold sales have researched, three new freehold homes RONDEBOSCH Housing stock in this remained fairly stable for much of the

SOUTHERN SUBURBS SOUTHERN were sold at an average price of R4.6m, suburb is fairly evenly split between past decade.

Bellville Century City Somerset West

1200 1138 991 976 1000 967 934 909 896 896 896 873 853 840 828 818 785

800 757 697 679 671 677 660 651 625 604 594 569 600 566 499 493 493 454 430 425 404 377 400 365 338 328 324 282 275 257 243 237 233 235 208 201 193 200 172 52 50 50 36 53 50 34 31 28 23

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

BELLVILLE Activity has slowed SOMERSET WEST While freehold sales 2019, there were 444 repeat sales in moderately in recent years. have slowed sharply since a 2014 estates while just 326 freehold units peak, sectional title sales continue were sold outside estates and 450 CENTURY CITY Activity in the limited to rise, reflecting Somerset West’s sectional title sales were sold outside freehold market in Century City has transformation from a retirement estates. There were also 37 new housing been declining since 2010 while the destination to a decentralised business units – 21 units in estates, 15 freehold sectional title market has cooled node, with many new developments, units outside estates and one sectional sharply in recent years (although 2018 which appeal to younger buyers. title unit outside an estate. NORTHERN SUBURBS & HELDERBERG & SUBURBS NORTHERN showed stronger growth than 2017). Between February 2018 and January

38 MONTHLY RESIDENTIAL RENTALS At the time of publication, the following units (and median monthly rental costs) were available to rent in a selection of suburbs that correspond with or lie in very close proximity to the same commercial nodes surveyed quarterly by SAPOA (see page 10). In addition and as with the rest of the Cape Town Residential section, monthly rentals in Somerset West (which is experiencing a rapid pace of development across all property sectors) have also been included.

HOUSES TOWNHOUSES APARTMENTS

Total Highest Lowest Median Total Highest Lowest Median Total Highest Lowest Median Units (R/m) (R/m) (R/m) Units (R/m) (R/m) (R/m) Units (R/m) (R/m) (R/m)

ATLANTIC SEABOARD

Green 24 R150 000 R16 500 R25 000 3 R28 000 R24 000 R26 000 182 R60 000 R7 500 R19 250 Point 4 beds 2 beds 3 beds 2 beds 4 beds studio

Sea Point 20 R60 000 R13 000 R26 000 5 R35 000 R18 500 R28 000 522 R75 000 R6 500 R19 500 4 beds 1 bed 3 beds 2 beds 3 beds studio

V&A Wa- 0 0 68 R185 000 R8 700 R45 000 terfront 3 beds studio

CITY BOWL

Cape 0 0 0 0 0 0 0 0 314 R130 000 R5 500 R13 500 Town CBD 3 beds studio

Oranjezicht 13 R70 000 R18 000 R31 000 1 R33 000 R33 000 R33 000 43 R50 000 R6 750 R14 500 6 beds 2 beds 2 beds 2 beds 2 beds 3 beds studio

Gardens 19 R85 000 R16 000 R25 000 1 R17 000 R17 000 R17 000 95 R26 500 R7 750 R13 500 4 beds 2 beds 2 beds 2 beds 2 beds 1 bed

SOUTHERN SUBURBS

Claremont 63 R38 500 R7 000 R16 250 9 R34 000 R8 995 R14 500 132 R32 000 R6 495 R11 000 5 beds 1 bed 3 beds 3 beds 2 beds 1 bed

Newlands 54 R80 000 R9 500 R25 500 11 R35 000 R16 000 R22 500 43 R39 000 R7 500 R12 500 4 beds 2 beds 3 beds 3 beds 4 beds 1 bed

Pinelands 15 R22 000 R5 500 R16 000 6 R15 900 R9 500 R12 500 24 R16 500 R5 200 R9 100 4 beds 1 bed 3 beds 2 beds 3 beds studio

Rondebosch 41 R47 000 R7 950 R20 000 1 R14 000 R14 000 R14 000 165 R28 000 R6 190 R11 000 5 beds 1 bed 2 beds 2 beds 4 beds 1 bed

NORTHERN SUBURBS & HELDERBERG

Bellville 87 R40 000 R4 600 R15 500 21 R20 000 R7 500 R12 000 139 R19 500 R4 300 R8 500 5 beds 1 bed 3 beds 3 beds

Century 9 R38 000 R15 900 R18 500 0 0 0 0 188 R45 000 R8 000 R15 000 City 4 beds 3 beds 3 beds 1 bed

Somerset 253 R60 000 R5 500 R18 000 43 R21 000 R6 900 R11 000 275 R21 900 R4 750 R9 500 West 6 beds 2 beds 3 beds 2 beds 3 beds 1 bed

39 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE CAPE

WEST WINELANDS COAST CENTRAL Witzenberg KAROO CAPE A unified region WINELANDS Paarl Franschhoek GARDEN ROUTE CITY Stellenbosch Langeberg OF CAPE of excellence for TOWN OVERBERG sustainable development Stellenbosch, Paarl and Franschhoek lie in the heart of the Western Cape’s wine industry, where they play important roles in the South African tourism sector, with Stellenbosch also being a renowned university town.

These towns form part of the Cape Winelands District made up of five municipalities, namely 22 309km² Drakenstein (including Paarl), Stellenbosch Size of District. The Cape Winelands District (including Franschhoek), Witzenberg, Breede produces nearly 70% of South Valley and Langeberg. Africa’s wines. With agriculture In an area over 22 309km² and with 895 529 a population of 895 529 people, this District The number of forming the backbone is the second-most populous in the Western people living here. of its economy, there are Cape, after the City of Cape Town, and accounts for 13.4% of the province’s population1. It is approximately 94 545 hectares estimated to have grown by an annual average of cultivated and irrigated areas rate of 2.38% between 2013 and 20172. 13.4% The percentage dedicated to the production In 2018, the District contributed R67.7 billion to the Western Cape economy, with the largest of the province’s of table and wine grapes, as contributions made by Drakenstein (R22.1bn) population found well as deciduous fruit and and Stellenbosch (R16.2bn). in this District. The District's own commitment to its growth vegetables. More than one- can be seen in its infrastructural development third of all agricultural products plans, which currently focus on roads and 2.38% in the Western Cape are human settlement. The recent drought has Average annual also resulted in a significant increase in capital growth between produced within this District. allocations for water management systems. 2013 and 2017.

1 Quantec EasyData 2019. 2 Municipal Economic Review and Outlook, 2018, Western Cape Government Provincial Treasury.

40 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

MORE GOOD REASONS TO SPOTLIGHT ON INVEST IN THE WINELANDS ECONOMIC SECTORS Paarl (Drakenstein municipality) WORKING TOWARDS AN ENABLING BUSINESS Dissected by one of South Africa’s main 1 ENVIRONMENT transit routes, namely the N1, Paarl is the The municipalities in this District are all similarly aligned in their primary service centre of the Drakenstein business processes. While land rezoning is still time consuming, municipality. The largest economy in the local business chambers have commented positively on building Cape Winelands District, this municipality plan approval turnarounds, particularly where electronic systems contributes 32.6% towards the District’s are in place. In terms of Drakenstein (into which Paarl falls), GDPR and 28.5% to employment (based business licences take an average of 20 to 25 days, building plan on 2018 figures). approvals take 21 days, but rezoning can take between eight and The municipality’s economy is heavily 12 months. Stellenbosch (into which Franschhoek falls) reports reliant on the finance, insurance, that approvals for business licences take one day, building plans real estate and business services 30 days and land rezoning four months3. sector; the wholesale and retail trade, catering and accommodation sector; THE IMPORTANCE OF AGRI-TOURISM and the manufacturing sector which 2 AND AGRO-PROCESSING predominantly produces goods in the This District is a very popular tourism destination, renowned food and beverages sector. These sectors particularly for its wine farms. In terms of agri-tourism activities collectively contributed 54.4% to the and facilities, Stellenbosch boasts a collective total of 1 557 economy of the municipality in 20186. followed by 877 in the broader Drakenstein municipal area. The The availability of semi-skilled and wine industry is serviced and promoted extensively through the skilled workers has attracted numerous non-profit company Vinpro, based in Paarl, which represents 2 500 “big brand” companies to this municipality South African wine producers, cellars and industry stakeholders. including the Rhodes Food Group, The District has a large number of agro-processing plants Imperial Cargo, Douglas Green Bottling, (705), particularly in its main wine producing areas (including KWV Holdings, BKB, Monis, Nampak and Drakenstein and Stellenbosch)4. The large numbers of nurseries, Coca Cola, as well as the large residential pack houses, tunnels and shade-net facilities also reiterate the estates of Val de Vie and Pearl Valley. area’s importance as a well-established fruit and vegetable- producing region, with a well-developed value chain. Stellenbosch municipality (including Franschhoek) 3 STELLENBOSCH INNOVATION DISTRICT The second-oldest town in South Africa, Stellenbosch University is pioneering a non-profit entity and home to internationally renowned seeking to position the town as an innovation district focused Stellenbosch University, this municipality has on developing entrepreneurs and enterprises. Known as the the second-largest economy in the District, Stellenbosch Innovation District Management Organisation contributing 23.9% to its GDPR and 19.8% (SIDMO), its function is to transition Stellenbosch by 2020 into to employment (based on 2018 figures). a showcase SMART5 and sustainable town providing innovation It is driven by the finance, insurance, real support and incentives. In addition to SIDMO, a public-private estate and business services sector; the partnership between the municipality and social media network wholesale and retail trade sector; and the MXit has been established to provide free Wi-Fi hotspots to manufacturing sector (16.4%) – with food, promote learning and communication for residents. beverages and tobacco making up 38% of this sector’s production. Collectively, these UPGRADES TO PAARL CBD AND PROPOSED sectors contributed 58.5% to the municipal 4 WATERFRONT DEVELOPMENT GDPR in 20187. The growth of Paarl has resulted in the implementation of The tourism industry, along with the a project focused on upgrading its CBD to facilitate increasing many job opportunities it creates, is also economic opportunities. In addition, a project has also been of huge importance in this municipality, identified to boost its tourism sector through the creation of contributing 10% to the local economy. a waterfront development on the Berg River. This will be Major businesses located here include a mixed-used project that will include, among other facilities Simonsberg Cheese, Parmalat, The and amenities, a hotel, restaurants, office blocks and a sports Rembrandt Group, Mediclinic Corporate science institute. Office and Distell.

3 Municipal Economic Review and Outlook, 2018, Western Cape Government Provincial Treasury. 4 Municipal Economic Review and Outlook, 2018, Western Cape Government Provincial Treasury. 5 SMART cities have been defined as urban cities/areas that are using data and technology to create efficiencies, improve sustainability, create economic development and enhance quality of life for all who live and work in the area. 6 Municipal Economic Review and Outlook, 2018, Western Cape Government Provincial Treasury. 7 Quantec EasyData 2019.

41 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

COMMERCIAL PROPERTY8

VACANT LAND FOR SALE In terms of commercial development, there were no vacant stands available in either PAARL or FRANSCHHOEK. In STELLENBOSCH, there were two stands representing 6 841m².

Size 5 001m² 1 840m² 1 840m2 5 001 5 001m² 1 840m² R6.243m R2 022/m² 3 421m² R/m² R1 597/m² R2 446/m² R2 446/m² R1 597/m² R1 597/m² R2 446/m²

OFFICES FOR SALE STELLENBOSCH: There were four properties for sale representing 3 969m² under roof.

Size 1 883m² 850m² 436m² 850m² 1 883m² 436m² R11.425m R15 232/m² 825m² R/m² R14 339/m² R7 059/m² R22 821/m² R7 059/m² R14 339/m² R22 821/m²

PAARL: There were 32 properties for sale representing 50 484m² under roof.

Size 1 720m² 48m² 137m² 24 000m² 24 000m² 30m² R4.542m R10 108/m² 395m² R/m² R17 442/m² R3 125/m² R32 304/m2 R375/m² R375/m² R10 677/m²

FRANSCHHOEK: There were two properties for sale representing 707m² under roof.

Size 462m² 245m² 245m² 462m² 462m² 245m² R9.938m R29 538/m² 354m² R/m² R24 892/m² R34 184/m² R34 184/m2 R24 892/m2 R24 892/m² R34 184/m²

8 All figures in this Commercial section have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

42 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

OFFICES FOR RENT STELLENBOSCH: There were 125 properties for rent representing 37 531m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R676 459 R5 850 R26 840 R13 140 R306 600 R5 850

Size 2 357m² 30m² 88m² 219m² 2 920m² 30m² R26 000 R166/m² 200m² R/m² R287/m² R195/m² R305/m² R60/m² R105/m² R195/m²

PAARL: There were 45 properties for rent representing 9 738m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R129 975 R2 000 R6 500 R8 000 R129 975 R2 000

Size 1 733m² 20m² 21m² 200m² 1 733m² 20m² R15 750 R125/m² 138m² R/m² R75/m² R100/m² R309/m² R40/m² R75/m² R100/m²

FRANSCHHOEK: There were no commercial office properties to rent in Franschhoek.

RETAIL FOR SALE STELLENBOSCH: There were three retail properties for sale representing 336m² under roof.

Size 271m² 20m² 25m² 271m² 271m² 20m² R1.325m R40 000/m² 25m² R/m² R33 948/m² R40 000/m² R53 000/m² R33 948/m² R33 948/m² R40 000/m²

PAARL: There were 6 retail properties for sale representing 1 835m² under roof.

Size 275m² 200m² 275m² 400m² 460m² 200m² R3.35m R8 192/m² 275m² R/m² R20 727/m² R6 000/m² R20 727/m² R5 500/m² R9 783/m² R6 000/m²

43 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

RETAIL FOR SALE (continued) FRANSCHHOEK: There were 11 retail properties for sale representing 4 528m² under roof.

Size 962m² 25m² 28m² 1 597m² 1 597m² 25m² R1.999m R27 764/m² 72m² R/m² R17 568/m² R30 000/m² R107 143/m² R8 140/m² R8 140/m² R30 000/m²

RETAIL FOR RENT STELLENBOSCH: There were 15 properties for rent representing 1 921m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R60 000 R5 495 R25 840 R33 930 R33 930 R5 495

Size 320m² 16m² 76m² 522m² 522m² 16m² R19 200 R236/m² 85m² R/m² R188/m² R250/m² R340/m² R65/m² R65/m² R250/m²

PAARL: There were five properties for rent representing 766m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R36 240 R4 950 R29 700 R14 500 R14 500 R4 950

Size 200m² 50m² 152m² 214m² 214m² 50m² R14 500 R99/m² 152m² R/m² R181/m² R99/m² R195/m² R68/m² R68/m² R99/m²

FRANSCHHOEK: There were two properties for rent representing 444m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R65 000 R13 000 R13 000 R65 000 R65 000 R13 000

Size 400m² 44m² 44m² 400m² 400m² 44m² R39 000 R229/m² 222m² R/m² R163/m² R295/m² R295/m² R163/m² R163/m² R295/m² WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

INDUSTRIAL PROPERTY9 VACANT LAND FOR SALE STELLENBOSCH: There were two stands suitable for industrial development representing 7 045m².

Size 2 545m² 4 500m² 2 545m² 4 500m² 4 500m² 2 545m² R2.95m R1 014/m² 3 523m² R/m² R1 650/m² R378/m² R1 650/m² R378/m² R378/m² R1 650/m²

PAARL: There were nine stands suitable for industrial development representing 104 048m².

Size 22 045m² 750m² 3 746m² 10 000m² 23 000m² 750m² R13.490m R870/m² 13 000m² R/m² R1 066/m² R760/m² R1 535/m² R700/m² R870/m² R760/m²

FRANSCHHOEK: There were no industrial stands for sale in Franschhoek.

INDUSTRIAL BUILDINGS FOR SALE STELLENBOSCH: There were four industrial properties for sale representing 1 880m² under roof.

Size 667m² 150m² 150m² 627m² 667m² 150m² R3.163m R6 384/m² 532m² R/m² R6 747/m² R7 300/m² R7 300/m² R5 901/m² R6 747/m² R7 300/m²

PAARL: There were 14 industrial properties for sale representing 133 086m² under roof.

Size 22 405m² 676m² 650m² 40 000m² 40 000m² 140m² R5.975m R1 180/m² 2 801m² R/m² R1 183/m² R1 176/m² R12 308/m² R225/m² R225/m² R5 714/m²

FRANSCHHOEK: At the time of publication, there were no industrial buildings for sale in Franschhoek.

9 All figures in this Industrial section have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

45 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

INDUSTRIAL BUILDINGS FOR RENT STELLENBOSCH: There were 19 properties for rent representing 9 427m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R148 320 R7 500 R18 630 R16 000 R148 320 R7 500

Size 2 060m² 100m² 138m² 342m² 2 060m² 100m² R16 940 R72/m² 285m² R/m² R72/m² R75/m² R135/m² R47/m² R72/m² R75/m²

PAARL: There were 14 properties for rent representing 30 017m² under roof.

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R204 320 R13 095 R87 099 R67 000 R204 320 R13 095

Size 5 108m² 291m² 1 184m² 3 744m² 5 108m² 291m² R75 619 R40/m² 1 600m² R/m² R40/m² R45/m² R74/m² R18/m² R40/m² R45/m²

FRANSCHHOEK: There were no industrial buildings to rent in Franschhoek.

RESIDENTIAL PROPERTY10 MARKET STOCK

STELLENBOSCH PAARL FRANSCHHOEK Total housing units 16 719 22 791 2 488 Number of adults housed in these units 63 690 109 169 12 046 Percentage freehold properties 66.6%11 93.3% 91.2% Percentage of units located in estates 17.6% 8.8% 18.7%

Percentage who have owned their properties 51% – this is around 61% – suggesting 60% – suggesting for 11 years or more the national norm stable homeownership stable homeownership above the norm above the norm

50 AGE PROFILE OF OWNERS (DURING THE PERIOD FEBRUARY 2018 TO JANUARY 2019) Stellenbosch 45 43% 41% 41% 41% Paarl 39% 40 Franschhoek 36% 35% 35 30% 30% 30 28% 29% 29% 25% 25% 26% 26% 25 24%

15 14% 10% 10% 10 8% 5% 5 4% 3%

0 Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner Stable owner Recent owner

PENSIONERS (65+ YEARS) MATURE (50-64 YEARS) MIDDLE AGE (36-49 YEARS) YOUNG ADULTS (18-35 YEARS)

10 All figures in this Residential section (prices, rentals and number of units available) have been sourced from Lightstone Property, apart from the rental figures which have been sourced from Property24.com. All information provided was as at the time in which research for this publication was undertaken (between January and April 2019). 11 Central Stellenbosch has predominantly sectional title properties, with a high proportion being used as student housing.

46 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

STELLENBOSCH There was a strong PAARL 29% of buyers were “young FRANSCHHOEK With an older demand (35%) from “young adults” adults” (18-35 years), with many likely profile of buyer (more than likely to (18-35 years), with many likely to have to have been first-time buyers. Largest do with the prices of properties in been first-time buyers, followed closely age cohort (39%) of recent buyers was Franschhoek) the largest groups of (30%) by “middle age” (36-49 years), “middle age” (36-49 years) suggesting buyers fell into the age categories of suggesting families. families. 36 years upwards. Largest age cohort (41%) of recent buyers was “middle age” (36-49 years) suggesting families.

PRICE PERFORMANCE

STELLENBOSCH PAARL FRANSCHHOEK Freehold Sectional Vacant Freehold Sectional Vacant Freehold Sectional Vacant title land Title land title land Median price 2018 R1.65m R1.47m R421 000 R260 000 R622 000 R375 000 R4.303m R2.5m R138 000 5 years % year- on-year growth -10.3% +70.9% -59.9% -73.9% -1.3% +50.0% +74.9% +122.2% -85.5% (2013-2018)

10 years % year- on-year growth +15.8% +64.2% +68.4% -42.2% +38.2% +53.7% +53.7% +127.3% -83.6% (2008-2018)

STELLENBOSCH: PRICES (Rm/median) STELLENBOSCH 2.5 The median price of Stellenbosch freehold homes has been distorted from time-to-time by the construction of a large number 2.0 of affordable homes. For example, between February 2018 and freehold January 2019, 58 new freehold homes were sold at an average price 1.5 of R44 000. In contrast, 188 repeat sales of freehold homes registered

1.0 during the same period had an average price of R3.2m. Against this, sectional title prices have experienced steady growth sectional title 0.5 during the past five years (in line with the trend evident in the broader Cape metro housing market). 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

PAARL: PRICES (Rm/median) PAARL 1.4 Like Stellenbosch, median freehold property prices in Paarl have been 1.2 distorted by the construction of affordable housing. For example, over freehold 1.0 the 12-month period under review (February 2018 to January 2019), 431 new homes were sold at an average price of R60 000. 0.8 During the same period, 356 repeat sales of freehold homes were 0.6 recorded at an average price of R1.6m while 115 repeat sales in estates 0.4 at R2.7m were also registered. The freehold sales were fairly evenly sectional title 0.2 distributed across all price bands – revealing an unusually diverse housing market. 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FRANSCHHOEK: PRICES (Rm/median) FRANSCHHOEK 5 Once again, median freehold prices (across the 12-month period 4.5 of February 2018 to January 2019) have been distorted by the large 4.0 number of affordable homes sold. For example, 121 new freehold 3.5 homes were sold at an average price of R56 000. 3.0 freehold During the same period, 33 repeat sales were recorded within 2.5 estates at an average price of R5.1m while a further 26 repeat sales 2.0 of freehold homes were registered at an average price of R4.2m. 1.5 1.0 sectional title 0.5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

MARKET ACTIVITY Stellenbosch FREEHOLD AND SECTIONAL TITLE UNITS SOLD Paarl Franschhoek

1400 1370

1200 1023 1000 999

800 689 643 630 620 580 567 565 600 556 520 519 507 499 488 466 448 445 432 425 433 393 365 368 358 356 352 400 345 321 315 298 274 184 164

200 143 127 118 106 104 97 95 81 77 85 77 66 65 78 71 64 67 47 37 49 50 30 34 28 26 23 16 9 19 13 13

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

STELLENBOSCH There has been a clear numbers of new affordable homes of people moving here from the Cape slowdown in unit sales in recent years. reaching the market. There has been a metro area. slow, but steady increase in the number PAARL 2015, 2016 and 2018 saw both of sectional title properties sold in FRANSCHHOEK While freehold sales high unit sales in Paarl and unusually Paarl over the past decade, a factor have slowed sharply since 2016, low median prices – suggesting large which could be attributed to an influx sectional title sales rebounded last year.

VACANT PLOTS SOLD Stellenbosch STELLENBOSCH Plots sales have slowed since Paarl 2011, with a marginal increase in recent years.

200 Franschhoek 194 With Stellenbosch hemmed in by a mountain range as well as surrounded by historic wine

150 farms, limited new land is available. 112

107 PAARL Demand for vacant plots has been 100 94 91

88 increasing slowly but steadily since a low in 82 77 75 74

67 2010. However, the market remains buoyant, 63

47 suggesting possible future housing activity.

50 45 37 37 34 33 32 31 29 22 20 16 14 12 11

6 Demand for vacant plots grew 4 5 4 FRANSCHHOEK 0 1 significantly from 2016 to 2017, but there was 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a marked drop off in 2018.

48 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

RESIDENTIAL RENTALS The following units were available to rent.

TOTAL NO OF UNITS: 385 HOUSES: 126 TOWNHOUSES: 58 APARTMENTS: 201

Breakdown of units 6 or more bedrooms: 2 4 or more bedrooms: 3 4 or more bedrooms: 2 available for rent 5 bedrooms: 3 3 bedrooms: 32 3 bedrooms: 19 4 bedrooms: 43 2 bedrooms: 23 2 bedrooms: 116 3 bedrooms: 66 1 bedroom: 0 1 bedroom: 41 2 bedrooms: 10 Bachelor/studio: 23 1 bedroom: 2

Highest monthly rental R55 000 R17 500 R25 500 4 bedrooms in De Zalze 3 bedrooms in Nooitgedacht 2 bedrooms in Stellenbosch Winelands Golf Estate Estate CBD

R7 700 R7 800 R4 300 Lowest monthly rental 1 bedroom cottage in 1 bedroom in La Colline 1 bedroom in Uniepark Stellenbosch Rural

Median rental per month R19 000 R13 000 R8 750 STELLENBOSCH

TOTAL NO OF UNITS: 343 HOUSES: 213 TOWNHOUSES: 27 APARTMENTS: 103

Breakdown of units 6 or more bedrooms: 1 4 or more bedrooms: 0 4 or more bedrooms: 1 available for rent 5 bedrooms: 7 3 bedrooms: 17 3 bedrooms: 10 4 bedrooms: 72 2 bedrooms: 10 2 bedrooms: 60 3 bedrooms: 120 1 bedroom: 0 1 bedroom: 31 2 bedrooms: 13 Bachelor/studio: 1 1 bedroom: 0

Highest monthly rental R70 000 R18 000 R35 000 4 bedrooms in Val de Vie Estate 3 bedrooms in Boschenmeer 4 bedrooms in Val de Vie Golf & Country Estate Estate

Lowest monthly rental R5 500 R8 000 R4 250 1 bedroom cottage in Mountain 1 bedroom in Paarl North in La Vie Estate Ridge Estate

Median rental per month R25 000 R9 500 R7 500 PAARL

TOTAL NO OF UNITS: 39 HOUSES: 26 TOWNHOUSES: 0 APARTMENTS: 13

Breakdown of units 6 or more bedrooms: 1 4 or more bedrooms: 0 available for rent 5 bedrooms: 1 3 bedrooms: 0 4 bedrooms: 3 2 bedrooms: 12 3 bedrooms: 16 1 bedroom: 1 2 bedrooms: 5 Bachelor/studio: 0 1 bedroom: 0

Highest monthly rental R65 000 R18 000 3 bedrooms in Franschhoek CBD 2 beds in Franschhoek CBD

R16 500 R6 500 Lowest monthly rental 3 bedrooms in Franschhoek CBD 1 bed in Franschhoek Central

FRANSCHHOEK Median rental per month R25 000 R15 000

49 SALDANHA BAY & VREDENBURG A regional engine for

development in the Cederberg WEST COAST CENTRAL Bergrivier Vredenburg KAROO Western Cape Saldanha Bay Swartland CAPE Saldanha Bay and Vredenburg fall into the West Coast WINELANDS GARDEN ROUTE CITY District of the Western Cape Province, and plans OF CAPE are on track for these two towns to be part of one TOWN OVERBERG of National Government’s special economic zones.1

Lying 139km from Cape Town, and with the ABOUT SALDANHA National Park (tourism). In turn, Namakwa largest economy in the West Coast District, BAY MUNICIPALITY Sands (manufacturing – steel), is located in Saldanha Bay is known for its naturally- Covering 2 015km², Vredenburg. sheltered harbour which has enabled the the Saldanha Bay development of a working port, extensive municipality is the UNDERSTANDING THE IDZ steel operations and a planned Industrial largest economy in Launched in 2013, the Saldanha Bay IDZ is Development Zone (IDZ). Together, these the West Coast District. part of the National Department of Trade & attributes will see the town become a strategic This economy grew Industry’s (dti) programme to establish special offshore and maritime hub. It is also home by an estimated 3.8% economic zones countrywide. Its purpose is to to 27% of the District’s entire population of in 2017 – above the create an Oil & Gas, marine repair engineering 440 6982, as well as the SAS Saldanha – South five-year (2013-2017) and logistics complex for upstream exploration Africa’s largest naval training base. average growth rate of and production services companies operating The town of Vredenburg (just 12km further 2.3% and higher than in the oil and gas fields in Sub-Saharan Africa. inland) is the seat of the municipality and the the province growth To date, a commitment of R3 billion has largest commercial centre in the West Coast rate of 1.8% during been made towards the Saldanha Bay IDZ District. It has an airport with basic facilities the same period. via eight signed investors, five of whom are that enable private charter jets to land. foreign (from the UK, Europe, Middle East and Of the 13 major businesses located on Africa). The total investor pipeline includes the West Coast, seven are in Saldanha over 40 interested companies in various Bay, namely Sea Harvest (agriculture – fish stages of engagement. Investment will be processing), Spoornet (transport), the National directed towards fabrication workshops Ports Authority (transport), Saldanha Steel for steel and other metals, equipment and and Dufero (both manufacturing – steel), marine repair facilities, oil lubricant and fuel and the Shelly Point Resort and West Coast plants, and specialised engineering services.

1 Information contained in this overview of the Saldanha Bay municipality has been sourced from the Municipal Economic Review and Outlook, 2018, produced by the Western Cape Government Provincial Treasury, as well as the West Coast District municipality, 2018, unless stated otherwise. 2 Quantec EasyData 2019.

50 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

It is anticipated that construction will be EMPLOYMENT completed during 2020. IN THE DISTRICT SPOTLIGHT ON The IDZ designation will also enable In 2016, the West Coast ECONOMIC SECTORS Saldanha Bay to offer a contiguous customs- District’s GDPR was Saldanha Bay’s economy is among the free area. The Saldanha Bay Industrial measured at R27.2bn, fastest growing in the province, with a Development Zone Licensing Company and the local economy growth rate of 3.8% in 2017 compared (SBIDZ LiCo) is the implementing vehicle of employed 177 604 to a provincial growth rate of just 1.0%. this particular IDZ, and is responsible for people. Together with the Provincial iron ore exports and crude oil the provision of infrastructure, promotion, Swartland municipal area, imports take place exclusively through the management and marketing of the IDZ. Saldanha Bay provides Saldanha Bay port. the most employment The largest economic sectors in this opportunities in municipal area include manufacturing this District, jointly (21.5% of GDPR); agriculture, forestry and contributing 53.2% fishing (16.9%); finance, insurance, real The main exports from the area of total employment estate and business services (14.8%); and are products from iron and steel, opportunities. The wholesale and retail trade, catering and unemployment rate in accommodation (14.7%). Collectively, these highlighting the importance of the District is also lower contributed 67.8% to the R8.3 billion GDPR developments such as the IDZ. (at 11.1%) than that of of the municipal area in 2016. the province (at 18.2%).

MORE GOOD REASONS TO INVEST IN SALDANHA BAY & VREDENBURG

INFRASTRUCTURE SPEND in Saldanha Bay takes approximately be a basic service delivery utility 1 BY PROVINCE 14 days, rezoning of land three to for all its residents, and enable fair Between the 2018/19 and 2020/21 four months, and building plan competition among private sector financial years, the total provincial approvals between 15 and 30 days. service providers. The project is infrastructure allocation will a joint initiative, through the amount to R829 million across ONGOING UPGRADES Saldanha Bay Innovation Helix the Medium Term Revenue and 3 TO THE HARBOUR4 programme, with Stellenbosch Expenditure Framework (MTREF)3, Saldanha Bay Port, which will University and the private sector. with the immediate focus being support the growing gas and oil on Health (R60.6m, including a industry on the west coast of Africa, AQUACULTURE R54.4m upgrade to the Vredenburg has been a centre of activity for 5 DEVELOPMENT ZONE Hospital) and Roads (R156m). Roads, the past three years as extensive Aquaculture has been practiced in particular, have far-reaching development and upgrading of in Saldanha Bay since the 1980s, benefits for the West Coast, creating facilities takes place. It is envisaged and is one of the primary locations infrastructure via the IDZ that could that a 2015 commitment by the for the culture of key commercial connect this municipality to others, Transnet National Ports Authority cold-water species such as oysters, such as to the agricultural sector in of R9.65bn towards infrastructure mussels and salmon. The proposed Swartland and the manufacturing projects will improve the port’s sea-based 884ha (about 10% of the sector in Bergrivier. ability to serve the offshore oil and bay) Aquaculture Development gas industry. This will ultimately Zone (ADZ) will enhance and FAVOURABLE BUSINESS create an estimated 6 300 new expand sustainable aquaculture in 2 ENVIRONMENT direct jobs and 25 200 new indirect Saldanha Bay. Contributing towards There are a number of factors that jobs, contributing R4.74bn to GDP. the goals of the Operation Phakisa: contribute to a favourable business It will also create opportunities for Oceans Economy initiative, 15 of environment in the Saldanha Bay/ property investors, both in terms of the initiative’s 35 projects are to Vredenburg areas, including the industrial land as well as housing. date located in Saldanha Bay, with infrastructure capacity of business the majority run by SMMEs. The and industrial areas, service FIBRE ROLLOUT initiative has the potential to create charges and the relationships 4 Through its Baobab project, 2 500 permanent jobs and increase between public and private sectors. Saldanha Bay intends to deliver direct revenue of around R800m per The processing of business licences a municipal fibre network that will annum into the area.

3 Medium Term Revenue and Expenditure Framework, National Treasury. 4 Invest in Cape Town and the Western Cape, www.investwesterncape.com.

51 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

COMMERCIAL PROPERTY5

VACANT LAND FOR SALE: There was only one stand for sale in SALDANHA BAY suitable for commercial development, representing 3 585m². This was for sale at an asking price of R2.5m or R697/m². In VREDENBURG, there were no vacant stands of land available for commercial development.

OFFICES FOR SALE: There was only one property suitable for offices for sale in SALDANHA BAY (in the CBD), representing 2 789m² under roof. The asking price for this property was R15m or R5 378/m². In VREDENBURG, four commercial properties were for sale representing 3 780m² under roof as follows:

Size 604m² 743m² 604m² 1 391m² 1 391m² 604m² R5.95m R6 246/m² 893m² R/m² R19 868/m² R3 903/m² R19 868/m² R2 121/m² R2 121/m² R19 868/m²

OFFICES FOR RENT: There was only one office building for rent inSALDANHA BAY representing 175m² under roof. This was available for a monthly rental of R9 500/month or R111/m². In VREDENBURG, there were six properties for rent representing 701m² under roof as follows:

Size 158² 40m² 158m² 180m² 180m² 40m² R8 200 R73/m² 117m² R/m² R114/m² R100/m² R114/m² R53/m² R53/m² R100/m²

RETAIL FOR SALE: There were three retail properties for sale in SALDANHA BAY representing 1 838m² under roof as follows:

Size 1 000m² 496m² 1 000m² 496m² 1 000m² 342m² R1.85m R5 409/m² 496m² R/m² R6 500/m² R2 571/m² R6 500/m² R2 571/m² R6 500/m² R5 409/m²

5 All figures in this Commercial section have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

52 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

There were two retail properties for sale in VREDENBERG representing 1 412m² under roof as follows:

PRICE RANGE

Highest asking price overall, Lowest asking price overall, Median Median Median largest in size and highest R/m² smallest in size, and lowest R/m² asking R/m² size price Price R5.495m R1.65m

Size 1 012m² 400m² R3.573m R4 778/m² 706m² R/m² R5 430/m² R4 125/m²

RETAIL FOR RENT: There was no retail for rent in SALDANHA BAY. In VREDENBURG, there were eight properties for rent representing 3 462m² under roof as follows:

MONTHLY RENTAL RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking Price R33 000 R3 500 R25 650 R21 250 R21 250 R3 500

Size 450m² 50m² 270m² 1 300m² 1 300m² 50m² R22 703 R66/m² 340m² R/m² R73/m² R70/m² R95/m² R16/m² R16/m² R70/m²

DEVELOPMENT OF THE SALDANHA BAY PORT CITY Strategically located between the IDZ and the town of Saldanha, is the proposed Karmaprop project, a 315ha parcel of land earmarked as the future Saldanha Bay port city. Although in the early planning stage, this mixed-use development will offer commercial, retail and residential property that will serve the economic growth generated by the IDZ, and will accommodate in excess of 3 200 000m² of bulk (development density), once fully developed.

INDUSTRIAL PROPERTY6 VACANT LAND FOR SALE: There were 32 stands suitable for industrial development in SALDANHA BAY, representing 289 527m², as follows:

Size 12 564m² 990m² 1 000m² 116 000m² 116 000m² 990m² R2.97m R780/m² 3 402m² R/m² R645/m² R1 106/m² R1 980/m² R43/m² R43/m² R1 106/m²

6 All figures in this Industrial section have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

53 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

There were 24 stands suitable for industrial development in VREDENBURG representing 55 369m², as follows:

Size 5 044m² 590m² 3 188m² 122 000m² 122 000m² 590m² R1.975m R840/m² 3 035m² R/m² R1 447/m² R644/m² R1 674/m² R35/m² R35/m² R644/m²

INDUSTRIAL BUILDINGS FOR SALE: There were no industrial buildings for sale in SALDANHA BAY. In VREDENBURG, there were six properties for sale representing 4 173m² under roof7, as follows:

Size 1 000m² 753m² 600m² 753m² 1 000m² 500m² R2.95m R4 250/m² 660m² R/m² R4 100/m² R2 203/m² R6 167/m² R2 203/m² R4 100/m² R4 400/m²

INDUSTRIAL BUILDINGS FOR RENT: There were no industrial buildings to rent in SALDANHA BAY. In VREDENBURG, there were 17 properties for rent representing 7 099m² under roof as follows:

Size 840m² 100m² 494m² 410m² 1 000m² 100m² R17 950 R50/m² 380m² R/m² R53/m² R62/m² R70/m² R25/m² R25/m² R65/m²

HARBOUR VIEW INDUSTRIAL PARK This newly-released industrial development lies adjacent to the IDZ and, with the on-going expansion of the Saldanha Bay port, is ideally situated for suppliers to the marine and oil sectors as well as the steel industry. Opportunities also exist to develop a multi-unit complex providing premises to smaller and medium- sized businesses, particularly as there has been a scarcity of premises in the 200m² to 500m² range.

RESIDENTIAL PROPERTY7 Situated 110km north of Cape Town, local nature reserves. Residential areas include SALDANHA BAY lies on the northern shore of Saldanha Central, White City (adjacent to Langebaan Lagoon. Its inhabitants enjoy a full the SAS Saldanha Naval Base), the small range of attractions and activities, from water beachfront neighbourhoods of Parkersdorp sports to the natural flora and fauna beauty of and Blue Water Bay, and the Hoogland

7 All figures in this Residential section (prices, rentals and number of units available) have been sourced from Lightstone Property, apart from the rental figures which have been sourced from Property24.com. All information provided was as at the time in which research for this publication was undertaken (between January and April 2019).

54 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

security estate overlooking Saldanha Bay with AGE PROFILE OF OWNERS spectacular views, and a number of residential 238km With 238km of stands still available. SALDANHA BAY coastline, the Regarded as the transportation and commercial 28% of buyers were “young adults” (18-35 years), municipality hub of the West Coast, VREDENBURG offers many with many likely to have been first-time buyers. is home to amenities that are seeing it grow in popularity Largest age cohort (39%) of recent buyers were from a residential perspective, including a a number of “middle-aged” (36-49 years), suggesting families. number of public and private schools, the popular tourist substantial West Coast Mall and two hospitals – towns including SALDANHA: AGE PROFILE OF HOMEOWNERS Paternoster, one public and one private. 45 St Helena Bay, 40 39% 39% 35 Jacobsbaai, 32% 28% 30 26% MARKET STOCK and Langebaan. 25 23% Inland, the town 20 15 of Hopefield SALDANHA BAY VREDENBURG 10 7% 6% services farmers 5 Total housing in the area. 0 6 106 7 961 PENSIONER MATURE MIDDLE YOUNG units: AGED ADULT stable owner recent buyer Percentage freehold 98.6% 99.6% properties:

Percentage VREDENBURG located in 9.4% 2.05% Vredenburg appeals to young homebuyers, estates: with nearly 40% of recent buyers falling into the category of “young adult” (18-35 years) – many of Home to 22 757 28 766 whom were probably first-time buyers. (number of) A further 38% were “middle-aged” (36-50 years). adults: adults adults

VREDENBURG: AGE PROFILE OF HOMEOWNERS 45 Percentage 40 38% 38%38% 39% of existing 63% 67% 35 suggesting suggesting homeowners 30 who have a very stable a very stable 25 20 17% housing housing 17% owned their 15 properties market. market. 10 6% 7% for 11 or 5 more years: 0 PENSIONER MATURE MIDDLE YOUNG AGED ADULT stable owner recent buyer

PRICE PERFORMANCE

SALDANHA BAY VREDENBURG

TYPE OF Median price FIVE YEARS TEN YEARS Median price FIVE YEARS TEN YEARS PROPERTY 2018 year-on-year year-on-year 2018 year-on-year year-on-year growth % growth % growth % growth (2013-2018) (2008-2018) (2013-2018) (2008-2018) Freehold R450 000 -14.9% +28.9% R380 000 -37.0% +26.3% Sectional title R660 000 +26.1% +50.5% R540 000 +54.3% - Vacant land R180 000 +25.0% -41.7 R280 000 +52.9% +25.0% THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

SALDANHA BAY VREDENBURG Median freehold prices appear to have been distorted Freehold property prices showed limited growth over the past by the large number of affordable homes brought to decade and declined (in nominal terms) over the past five the market in recent years. For example, over the period years. The sharp drop in 2016 is presumably attributable to January to December 2018, 71 new freehold homes were large numbers of affordable homes coming onto the market sold at an average price of R110 000. that year. The tiny sectional title market appears to have performed Sectional-title sales are limited to five or less each year, so far better – with a slow but steady increase in median have not been included in this analysis. prices over the past decade. The median price of vacant plots has shown better growth than freehold properties over the past five years, and has SALDANHA: PRICES (Rm/median) only marginally underperformed over the past decade. 1.2 VREDENBURG: PRICES (Rm/median) 1.0 1.0 0.8 0.9 sectional title 0.8 0.6 0.7 freehold freehold 0.6 0.4 0.5 0.2 0.4 0.3 0 0.2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0.1 vacant land 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MARKET ACTIVITY (UNITS SOLD) SALDANHA BAY VREDENBURG The influx of more affordable homes (which weighed on Other than the 524 units sold in 2016 (the result of the large numbers of median sales prices in recent years) is visible in the surge affordable homes mentioned in regards to the previous graph), freehold in unit sales from 2015 to 2018. sales have risen gradually since the 2008 recession.

SALDANHA: UNITS SOLD VREDENBURG: UNITS SOLD 500 600 freehold freehold 450 524 sectional title 445 vacant plots 400 500 350 400 300 291 289 250 300 240 248 200 202 237 200 217 150 166 195 189 191 124 151 138 167 100 126 113 80 101 99 100 50 4 1 7 3 2 2 8 10 6 12 6 65 36 31 30 28 29 59 51 81 70 59 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

There has been a steady increase in vacant plots sold While vacant plot sales peaked in 2016, the subsequent during the past decade, suggesting further activity in the slowdown has been modest and, at current levels, vacant plot town’s housing market as new homes are constructed. sales remain elevated compared to the preceding decade.

SALDANHA: VACANT PLOTS SOLD VREDENBURG: VACANT PLOTS SOLD 120 120 107 100 96 93 100 81 80 80 68 75 65 70 60 60 59 59 47 47 49 51 40 40 35 37 36 31 30 28 29 20 19 20

0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

56 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

RESIDENTIAL RENTALS The following units were available to rent.

SALDANHA BAY TOTAL NO OF RENTAL UNITS: 31 HOUSES: 17 TOWNHOUSES: 5 APARTMENTS: 9 Breakdown of units 6 or more bedrooms: 4 3 bedrooms: 5 2 bedrooms: 1 available for rent 5 bedrooms: 2 1 bedroom: 6 4 bedrooms: 3 Bachelor/studio: 2 3 bedrooms: 7 2 bedrooms: 1

Highest monthly rental R50 000 R14 495 R7 400 18 bedrooms in White City 3 bedrooms in Bluewater Bay 2 bedrooms in Bluewater Bay

Lowest monthly rental R9 000 R7 800 R3 500 3 bedrooms in Bluewater Bay 2 bedrooms in Saldanha Bay 1 bedroom in Saldanha Bay Central Central

Median rental per month R12 500 R11 300 R4 700

VREDENBURG TOTAL RENTAL UNITS: 24 HOUSES: 18 TOWNHOUSES: 0 APARTMENTS: 6 NO OF Breakdown of units 8 bedrooms: 1 At the time of going to print, 1 bedroom: 6 available for rent 6 bedrooms: 1 there were no townhouses 4 bedrooms: 5 on the market to rent in 3 bedrooms: 10 Vredenburg. 2 bedrooms: 1

Highest monthly rental R20 000 R4 950 6 bedrooms in Vredenburg 1 bedroom in Vredenburg Central Central

Lowest monthly rental R5 800 R3 500 3 bedrooms in Louwville 1 bedroom in Vredenburg Central

Median rental per month R9 750 R4 160 WEST COAST CENTRAL KAROO

CAPE Kannaland Oudtshoorn WINELANDS GARDEN George Bitou CITY ROUTE Mossel Knysna GEORGE OF Bay CAPE Hessequa The city for all reasons TOWN OVERBERG As the largest economy in the scenic Garden Route – and the third largest municipality in the Western Cape – George is uniquely poised for significant growth in the future and is successfully utilising its economies of scale to grow faster than the broader region in which it is situated.

Located in the Garden Route District of the ABOUT GEORGE (see pages 6 to 39) and Drakenstein in the Western Cape, George is a city with many MUNICIPALITY Cape Winelands (see pages 40 to 49). It is advantages when it comes to investment, At just over 5 180km², also the second largest city in the province particularly for prime economic activities such the municipality into after Cape Town.The city is a crucial logistics as manufacturing, logistics, warehousing and which George falls and transport hub situated along the N2, tourism. With its numerous lifestyle estates, services 212 120 people connecting the port cities of Cape Town to the strong growth in residential property values in 62 722 households2, south and Port Elizabeth in the east. George is and excellent facilities such as educational and includes: also home to an airport that has experienced institutions, the City has become a highly The City of George just over 9% growth per year over the past popular destination in which to live. The coastal areas of five years. With multiple daily flights to and Kleinkrantz, Wilderness, from Johannesburg and Cape Town – the main GROWTH, RESILIENCE Victoria Bay, Herolds economic hubs of South Africa – George is fast & CONNECTIVITY Bay and Gwaing, and becoming a desired semi-gration3 destination. As the Garden Route’s main economic hub, The rural areas of George has enjoyed higher than average growth Herold, Uniondale GOOD GOVERNANCE rates over the past five years, with the City’s Waboomskraal, With a no-tolerance approach to fraud and GDPR (estimated to be R17.2bn in 2017) growing Rondevlei, Haarlem, corruption, George municipality is regularly by an average of 2.25% between 2013 and Geelhoutboom and acknowledged for its sound fiscal management, 2017 – 0.7 percentage points higher than the Hansmoeskraal. with Good Governance Africa4 in 2016 having national economy during the same period1. affirmed the city’s position as the 18th best Of the 25 municipalities in the province, performing local municipality out of 234 in the George municipality is the fourth FREE WI-FI South Africa. The city has also recently achieved most-important contributor in terms of Free Wi-Fi has its fifth consecutive clean audit report. employment. It has also consistently recorded been installed in higher economic growth rates than the district, 27 wards of George provincial or national economies over the past by the Western Cape George Airport is able to five years, demonstrating its resilience through Government, making accommodate the landing tough economic times. it the second largest George is the third largest municipality Wi-Fi hotspot cluster of airplanes as large as in the province after the City of Cape Town in the province. the Boeing 747.

1 Invest in George, 2018/2019, Wesgro. 2 Population and household numbers from Statistics South Africa, 2017. 3 Semi-gration is the relocation of older, more affluent homeowners from South Africa’s interior provinces to the coastal regions, notably the Western Cape and KwaZulu-Natal.

58 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

MORE GOOD REASONS TO INVEST IN GEORGE George has several initiatives aimed at expanding its functionality, efficiency and overall attractiveness for investment. These include:

1 GO GEORGE This is an integrated public transport network rolling out a fleet of buses to make safe, reliable, accessible, affordable and scheduled public transport a reality for all who work and live in George. It is a partnership between George Municipality, Western Cape Government, the National Department of Transport, as well as local taxi and bus operators.

2 GEORGE AIRPORT EXPANSION In January 2019, the Airports Company of South Africa (Acsa) announced a R100-million upgrade to George Airport over the next five years, including an expansion of the terminal as well as more parking and better traffic flow around the airport area. With upgrades to commence in 2020/21, this will increase passenger capacity from 800 000 people to 1.2 million. SPOTLIGHT ON ECONOMIC SECTORS 3 GROWING EDUCATIONAL RESOURCES The main economic sectors in the George George is home to 51 public and private schools and numerous tertiary municipal area are finance, insurance, education institutes. These include the George Campus of the Nelson real estate and business services. Mandela University, which is embarking on extensive expansions to the This is followed by transport, storage, number of degrees being offered at this satellite campus. manufacturing and communication services. 4 FINANCIAL INCENTIVES Business services contributed Through its #InvestGeorge initiative, George provides financial incentives, approximately 24% to the tertiary sector including discounts on rates and services to approved investors on the in 2017, while finance and insurance lease or sale of council-owned land. (In March 2018, 7.5 million hectares of contributed 14%. Between 2013 and incentivised, municipal-owned land was available for development.) It also 2017, the finance, insurance, real estate offers rebates on building plan approvals (50% discount for designated and business services sectors grew at developments and 25% for non-designated developments), and capital almost doubt the rate (+4.0%) as the contributions phased in with payment over five years. overall George economy (+2.3%), and employed 20% of the total skilled local 5 FUTURE PLANNING workforce5. At a Garden Route Investment Conference held in 2018, future initiatives As a result, a number of private were also announced. These included: investment and asset management A Garden Route International Convention Centre services, as well as insurance and personal A new precinct focused on light industry, warehousing and logistics service companies have relocated to The development of the Silicon Park Science and Technology project George. Top insurance companies have The establishment of a hub for business process outsourcing branches here, as do all of the major An ICT incubator and broadband expansion banks as well as renowned investment and The establishment of an Agri park and the creation of the Destiny financial consultancies. Africa Ecosphere Project tourism and business hub, and Of the major business processing The establishment of a resort for tourists at the Gwaing River mouth, outsourcing (BPO) operations in the 10km from George. Western Cape (a major sector for the province), 11% are located in George, 6 TOTAL'S GAS FIND OFF MOSSEL BAY and include international companies In February 2019, French oil major, Total, discovered a world-class oil and such as Merchants, Solluco and Oakhurst gas reservoir in the Outeniqua Basin off the coast of Mossel Bay, 46km from Insurance. George, which could conservatively deliver over R1 trillion to the South To promote growth in the BPO sector, African economy over the next 20 years. The growth that this could bring to the George municipality supports the Garden Route District is significant, boosting job opportunities as well as infrastructure required for high-speed demand for infrastructure and housing, the latter of which, in particular, could internet connectivity. There is also a drive also boost George’s already diverse and well-developed property market. to encourage highly skilled and innovative For more information visit https://invest.edendm.gov.za/wp-content/ IT technicians to consider George as a uploads/2018/03/Investment-Prospects-George.pdf place in which to settle.

4 Established in 2012, Good Governance Africa (GGA) is an independent research and advocacy non-profit organisation with centres across Africa focused solely on improving governance across the continent. https://gga.org. 5 Municipal Economic Review and Outlook 2018, Western Cape Government Provincial Treasury.

59 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

COMMERCIAL PROPERTY6

George has evolved into a business Overall, the city has seen a marked rise in services destination, with the total value 1 761 new property development in recent years, of property in the city’s CBD amounting The city approved with new malls being built and the relocation to over R1 billion7. With economic activity 1 761 building of the MediClinic Hospital. A new state-of- predominantly concentrated in the tertiary plans from January the-art private hospital valued at more than sector, this has resulted in an increase in to October 2018, R500m is also envisaged for Kraaibosch, demand for office and other commercial with the majority north east of the Garden Route Mall, which space. While the short term could see of plans being will provide for the fast-growing demand for a revitalisation of existing office space, approved within medical services in George and the Southern there appears to be a need to create 30 days of Cape. It will incorporate the Geneva Clinic, new office space in the medium term. submission. as well as a separate doctors’ block.

VACANT LAND FOR SALE: There were seven stands available for commercial development representing 114 416m².

Size 70 000m² 4 276m² 800m² 30 000m² 70 000m² 800m² R4.2m R1 467/m² 4 206m² R/m² R242/m² R514/m² R5 000/m² R133/m² R242/m² R5 000/m²

OFFICES FOR SALE: There were 27 properties for sale representing 11 917m² under roof.

Size 1 334m² 140m² 220m² 1 675m² 1 675m² 120m² R2.16m R6 792/m² 280m² R/m² R3 898/m² R7 821/m² R12 227/m² R1 612/m² R1 612/m² R11 167/m²

OFFICES FOR RENT: There were 15 properties for rent representing 3 963m² under roof.

Size 1 160m² 46m² 66m² 553m² 1 160m² 46m² R15 000 R91/m² 160m² R/m² R60/m² R72/m² R160/m² R45/m² R60/m² R72/m²

6 All figures have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019). 7 Value as according to the George Central and George South, Municipal General Valuation, 2018.

60 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

There is a demand for small, medium- density A-grade offices located in or close OFFICE GRADING IN GEORGE to the George CBD (York Road vicinity), Market rental rates for office buildings are recorded in rands per rentable m² per month (gross leases with the space demand estimated, in 2018, 2 2 excluding VAT). The average rates for different to be between 5 900m and 8 900m gross grades are shown in the table below. leasable area (GLA).

A+ A B C George R143/m² R120/m² 80/m² R63/m² Central

George R110/m² R100/m² 80/m² – Decentralised Rode’s Report on the South African Rode’s Source: Market, 2018:3 Property

RETAIL FOR SALE: At the time of publication, there were 19 retail properties for sale representing 17 417m² under roof.

PRICE RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest8 Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking

Price R9.5m R950 000 R2.85m R9.5m R9.5m R1.9m

Size 3 991m² 365m² 150m² 3 991m² 3 991m² 133m² R3.3m R4 959/m² 740m² R/m² R2 380/m² R2 603/m² R19 000/m² R2 380/m² R2 380/m² R14 286/m²

RETAIL FOR RENT: At the time of publication, there were nine properties for rent representing 879m² under roof.

Size 268m² 23m² 64m² 23m² 268m² 23m² R10 280 R107/m² 64m² R/m² R77/m² R55/m² R288/m² R55/m² R77/m² R55/m²

INDUSTRIAL PROPERTY9

George has a number of diversified and vibrant proposed for George). industrial areas, the dominant of which is Other industrial areas include George Pacaltsdorp Industria, which offers 59 hectares Industria, Steinhoff Industrial Park and Tamsui of municipal-owned land for industrial zone 1 Pacaltsdorp Industria. Additional industrial areas to be light and general use. Close to the N2 highway Industria offers developed include the Western Gateway area, and with easy access to the airport, this area 59 hectares of as well as a new sub-regional commercial also includes a zone for noxious industry. It municipal-owned node near the N2 and the airport. The latter is has also been identified for the creation of a land for industrial aimed at South Cape manufacturing, freight, hub for manufacturing green technologies zone 1 light and logistics and service industries that will (one of the catalytic projects that have been general use. support airport usage.

8 Three extra-large properties have been removed for the purposes of these calculations, all in George Rural. They are a game reserve of 9.8ha selling at R23.1m, an eco resort of 63.6ha selling at R21.6m, and a conference centre with chalets of 9.2ha selling at R5.4m. 9 All figures have been sourced from Property24.com. The number of properties indicated as available were as at the time that research for this publication was undertaken (between January and April 2019).

61 THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

VACANT LAND FOR SALE: There were 26 stands suitable for industrial development representing 154 087m².

Size 13 406m² 2 153m² 3 005m² 9 949m² 15 305m² 2 153m² R2.32m R421/m² 4 815m² R/m² R643/m² R358/m² R778/m² R231/m² R284/m² R358/m²

INDUSTRIAL BUILDINGS FOR SALE: There were 28 properties for sale representing 39 145m² under roof.

PRICE RANGE SIZE RANGE Highest Lowest Median Highest Lowest Median Largest10 Smallest Median asking asking asking R/m² R/m² R/m² in size in size size overall overall asking

Price R10m R1.65 R7.5m R2.8m R10m R2.05m

Size 3 542m² 415m² 600m² 2 125m² 3 542m² 282m² R4.91m R4 413/m² 1 136m² R/m² R2 823/m² R3 976/m² R12 500/m² R1 318/m² R2 823/m² R7 270/m²

INDUSTRIAL BUILDINGS FOR RENT: There were nine properties for rent representing 3 608m² under roof.

Size 925m² 130m² 315m² 217m² 925m² 130m² R12 500 R40/m² 300m² R/m² R40/m² R31/m² R56/m² R28/m² R40/m² R31/m²

RESIDENTIAL PROPERTY11 In addition to being situated in one of South MARKET STOCK Africa’s most scenic and popular tourist According to property research company destinations, the Garden Route, George Lightstone: offers a vibrant lifestyle in a diverse city with There are a total of 32 939 homes in favourable real estate values. In terms of total 1 George, with just over 14% of these located cost of living, it is also 21% cheaper than Cape in security estates (mostly freehold). Town and 9% cheaper than Port Elizabeth, Overall, the vast majority (95%) of all according to Wesgro12. homes in George are freehold.

10 As at the time of publication, the largest industrial industrial property for sale in George is a 10 000m2 storage facility for sale, with 274 rental storage units for sale at R3.75m. This has been removed from the calculations in order to determine more accurate median pricing in terms of warehousing/factory size. 11 All figures in this Residential section (prices, rentals and number of units available) have been sourced from Lightstone Property, apart from the rental figures which have been sourced from Property24.com. All information provided was as at the time in which research for this publication was undertaken (between January and April 2019).

62 WESGRO THE WESTERN CAPE PROPERTY REPORT 2018/19

It is estimated that the housing market GEORGE: PRICES (Rm/median) 2 in George is home to 120 066 adults. 1.4 1.2 freehold 59% of existing homeowners have owned 1.0 their properties for 11 or more years – an 3 0.8 unusually high percentage (nationally, the norm is around 50%). 0.6 sectional title 21% 0.4 In terms of 0.2 AGE PROFILE OF OWNERS total cost 0 The largest age cohort of stable homeowners of living, 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 in George is “mature” (50-64 years), followed by retirees (65 years and older). While often George is perceived as a retirement destination, also 21% The very low median prices recorded in 2009, George today is attracting young /first-time cheaper 2010 and 2011 in the graph above presumably buyers with 32% of recent buyers (February reflect the sale of numerous affordable homes than Cape 2018-January 2019) being between the ages of during these three years. 18 and 35 years. Town. Homes in security estates appear to enjoy a noticeable price premium over homes located outside estates. During a 12-month GEORGE: AGE PROFILE OF HOMEOWNERS period (February 2018-January 2019), a total 45 40% of 290 homes (repeat sales) were recorded in 40 security estates in George at an average price 35 32% 30 28% 28% 28%29% of R2.19m. 25 In comparison, the 626 freehold homes 20 15 located outside estates registered an average 11% 10 sales price of R1.13m. 5 3% 0 The most popular price band within security PENSIONER MATURE MIDDLE YOUNG estates during this period was R1.5m-R3m AGED ADULT while the most popular price band for freehold stable owner recent buyer homes outside estates was R800 000-R1.5m. A total of 111 new homes were sold during this period, with 44 located within security estates and 67 freehold outside estates. No new sectional title properties located outside PRICE PERFORMANCE estates were sold during the same period. Freehold properties, which account for the Sectional title properties registered the lowest vast majority of housing stock in the George sales during this period, with just 153 units market, have shown strong growth in median sold (repeat sales) and no new properties sold. prices over the past decade. A total of 563 vacant plots were sold during this time, 71% of which were located within estates. These plots enjoyed a price premium TYPE OF Freehold Sectional Vacant over vacant plots sold outside estates. PROPERTY title land

Median price R1.30m R660 000 R500 000 (2018) THE RISE OF RESIDENTIAL HOUSING Five years ESTATES IN GEORGE % year-on- A number of housing estates have been completed in George over year growth +65.6 +20.0 +244.8 the years, among them the well-known Fancourt development, (2013-18) which incorporates residential holiday accommodation and a hotel with three golf courses. The Kingswood Golf Estate is another premier estate in George, while newer estates have been built on Ten years the eastern edge of the city, including the Kraaibosch Country Estate % year-on- and the Blue Mountain Lifestyle Estate. year growth +204.4 +11.1 +63.9 (2008-18)

12 Invest in George, 2018/2019, Wesgro. THE CITY OF CAPE TOWN | CAPE WINELANDS | SALDANHA BAY/VREDENBURG | GEORGE

MARKET ACTIVITY Vacant plot sales have risen steadily over the past decade, with (UNITS SOLD) the three highest sales level during this period registered from Activity in George’s housing market remains brisk, with a very 2016 to 2018. Looking at sales for 2018, the majority of the new modest slowdown in recent years (following the sale of many and repeat plots sold have been located within a security estate units in 2010 when numerous affordable homes were sold). – showing a preference for homes located within these estates.

GEORGE: UNIT SALES GEORGE: VACANT PLOT SALES

1 600 700 1 437 freehold 638 1 400 sectional title 578 600 547 1 200 1 101 500 470 1 001 994 979 1 000 923 911 405 903 400 795 328 800 745 708 300 271 274 233 600 214 207 200 400 215 200 155 172 179 100 118 130 131 77 85 105 116 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

RESIDENTIAL RENTALS The following units were available to rent in George at the time that research was undertaken (between January and April 2019).

TOTAL NO OF RENTAL UNITS: 78 HOUSES: 58 TOWNHOUSES: 5 APARTMENTS: 15 Breakdown of units 4 or more bedrooms: 18 3 bedrooms: 3 3 bedrooms: 1 available for rent 3 bedrooms: 33 2 bedrooms: 2 2 bedrooms: 8 2 bedrooms: 6 1 bedroom: 5 1 bedroom (cottage): 1 Bachelor/studio: 1

Highest monthly rental R31 500 R11 000 R15 000 4 bedrooms in Kingswood 2 bedrooms in Dormehls Drift 2 bedrooms in Oubaai Golf Estate Gold Estate

Lowest monthly rental R2 800 R8 000 R2 800 1 bedroom cottage in Bergsig 2 bedrooms in Blue Mountain 1 bedroom in George East Village

Median rental per month R15 600 R9 950 R7 800

DENSIFYING GEORGE To meet the demand for this type of The city of George supports the concept of accommodation, particularly for people who residential densification within the CBD and along want to live, work and play within the CBD, major transport corridors. To this end, its Local the municipality supports developers in their Spatial Development Framework (LSDF) indicates applications for higher density projects. that – at densities of 80 units/ha – an additional Restructuring sites have been identified in 4 000 households can be accommodated over the 4 000 the CBD where partially subsidised high-density Over the next next 15 years, leading up to 28 000 households in developments will be established to bring workers 15 years, the City the longterm. A range of housing types are to be closer to places of employment, and a range of accommodated, including government-led social of George plans incentives are offered for development in this housing and private sector delivery of to accommodate area. These include, among others, building plan gap housing. an additional approvals within a shorter period, lower parking 4 000 households. ratios and financial incentives.

64 Acknowledgements & credits City of Cape Town, Economic Performance Invest in Cape Town and the Western Cape, Indicators for Cape Town, 2018: Q3 accessed @ www.investwesterncape.com (July-September) Lightstone Property, accessed City of Cape Town, speech by Alderman @ www.lightstoneproperty.co.za JP Smith, SA Innovation Summit CEO event, Property24.com, accessed 12 September 2018 @ www.property24.com Endeavour Insight, 2018, Evaluation & Analysis of Quantec EasyData, 2019 the Cape Town-Stellenbosch Tech Sector South African Government National Treasury, George Municipality, George Central and George Medium Term Revenue and Expenditure South, Municipal General Valuation, 2018 Framework, 2018/19 Good Governance Africa (GGA), accessed South African Property Owners Association @ https://gga.org (SAPOA), IHS Markit 2017 Statistics South Africa, 2017, accessed Independent Online, 28 September 2018, @ www.statssa.gov.za Local luxury boat exports contributes R1bn to Wesgro, Invest in Cape Town, 2017/18, economy, accessed @ www.iol.co.za/personal- Regional Market Analysis and Intelligence finance/investments Wesgro, Invest in George, 2018/2019 Invest Cape Town, accessed Western Cape Government Provincial Treasury, @ www.investcapetown.com Municipal Economic Review and Outlook 2018

EDITORIAL TEAM This publication is produced by the Research Editor & author Carola Koblitz and Marketing & Communications Divisions Researchers Carola Koblitz & Sandra Gordon of Wesgro: Art director Sean Robertson Chief Communication Officer Russel Brueton Repro Grant Mashonga Chief Research Officer Cornelis van de Waal Printer TBC Head of Marketing Jean Scheltema Economist Janine Botha “The property development and construction sector in the Western Cape is one of the primary enablers that will allow the Western Cape Government to create the future province that we all want to see.” ALAN WINDE, PREMIER OF THE WESTERN CAPE

“The growth of the Western Cape economy and the all-important creation of more jobs is the engine that drives the work of the Western Cape Government. But that engine requires a physical space; a place to set up shop; to provide offices and factory space; on which to build homes for its employees. This physical space is property, and it is often the foundation, quite literally, on which investment is built.” DAVID MAYNIER, MEC FOR FINANCE & ECONOMIC OPPORTUNITIES IN THE WESTERN CAPE

P +27 21 487 8600 E [email protected] 60 St Georges Mall, SA Reserve Bank Building, 18th Floor, Cape Town, South Africa, 8001