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Affordable Accommodation AFFORDABLE ACCOMMODATION AN INVESTMENT CASE FOR THE TYGERBERG AREA Cape Town City Centre The Greater Tygerberg Area Bellville MESSAGE FROM THE GTP CEO South African cities are grappling with the The Western Cape Government and the double dilemma of trying to redress their City of Cape Town have created a matrix segregated past while also planning for a of policies, frameworks and development more urbanised future. Cape Town is no incentives designed to address spatial different. inequality and facilitate the construction of affordable accommodation. These If a society is to thrive, its people need to mechanisms need to be married with sound be empowered to find work. They need investments from committed developers, to be able to access safe, reliable public investors and institutions who have the transport. And they need to live in decent visionary will to create safe and sustainable, accommodation that they can afford. For accessible and affordable neighbourhoods years, the city’s spatial segregation, a legacy in our city centres, close to transport, work of apartheid planning, has excluded the opportunities and social amenity. majority of the population from accessing convenient work opportunities and We have created this guide as a tool affordable accommodation. for developers seeking to maximise the opportunity for building affordable housing Affordable and inclusionary housing, in Bellville and the Greater Tygerberg area. developed around transit hubs in active The details contained in here should be economic centres, is the key. used to inform development decisions that will build on the existing potential of our We have a vision for an economically vibrant, city, and drive the growth of a prosperous, connected community that lives, works and economically active urban centre. plays in a quality, safe and accessible 24-hour urban environment. Sustainable, intelligent We look forward to building future Bellville densification targeted at creating affordable, with you. decent accommodation is one of the most important elements that will support the - Warren Hewitt society we envisage. 1 CONTENT MESSAGE FROM THE GTP CEO...............................................................1 MAJOR INVESTMENTS............................................................................26 CONTENT Ideal location Employment.............................................................29 OVERVIEW Schools......................................................................29 Investment at a glance................................................................3 Amenities and Services The Urban African opportunity..................................................4 Public spaces............................................................30 The South African urban challenge..........................................4 Health.......................................................................32 Libraries....................................................................32 WHY AFFORDABLE ACCOMMODATION ? Retail and shopping................................................32 Why invest in affordable accommodation in the Greater FINANCE AND FUNDING OPPORTUNITIES.......................................33 Tygerberg Area?.........................................................................6 What is affordable accommodation?.......................................7 HOW TO INVEST.......................................................................................36 Why invest in affordable accommodation?.............................8 KEY CONTACTS........................................................................................37 WHY THE GREATER TYGERBERG AREA? Residential investment and development trends...................9 Development Readiness Availability of land ready for development............11 Zoning......................................................................14 Development incentives.........................................14 Planning priority.......................................................19 Infrastructure Transport..................................................................20 Bulk infrastructure...................................................25 2 OVERVIEW Invest in affordable accommodation in the Greater Tygerberg Area s one of Cape Town and South Africa’s priority areas for investment and development, the A Greater Tygerberg Area provides an outstanding mix of opportunities for new investment in affordable accommodation. With its enviable location close to a high concentration of jobs, schools and amenities, several sites from Goodwood to Bellville are ready to be unlocked to house integrated future communities. INVESTMENT AT A GLANCE Growing confidence in the last decade with over R4 billion public and private property investment, along with stable property value growth Advanced planning stage for the release of land across five major precincts with supportive zoning, particularly along the Voortrekker Road Corridor Tax incentives and heritage exemptions in place, with further incentives being considered The delivery of major new transport infrastructure, along with significant bulk infrastructure expansion High levels of accessibility to schools, tertiary institutions, parks and public spaces and health facilities National, regional and city level planning priority status A growing list of financing opportunities through funds, banks and partnerships 3 It is estimated that over 900 million people, mostly youth, will move into African cities in the THE URBAN coming few decades. This represents significant urban growth at a rate outpacing that of Asia and the rest of the developing world. While this presents a major challenge for housing provision, infrastructure, amenities and social and cultural cohesion, it also represents AFRICAN a major opportunity. OPPORTUNITY The opportunity arises when cities and countries tap into the energy, ingenuity of the younger and creative population, while leapfrogging the developed world to a more sustainable, inclusive and resilient future. reduced the possibility and accessibility Studies also show that cities thrive both THE SOUTH of well-located affordable housing. This economically and culturally when they are entrenches class division and racial denser and have a mix of uses. Despite these segregation, forcing the poor to spend an challenges, Cape Town is still considered AFRICAN unsustainable amount of time and money on a major investment opportunity, with PwC transport. These factors have contributed to ranking it as Africa’s top city of opportunity CHALLENGE South Africa having the highest income Gini in 2018. coefficient in the world. outh African cities, and Cape Town in Sparticular, are struggling with a shortage Excluding MyCiti bus trips, which still form a of well-located affordable housing. This small minority of total trips, data from 2015 is part of a larger housing backlog that is shows that average travel time for trips to growing annually. work on public transport range from 53 to 63 minutes and 19 to 23kms. This means that The legacy of Apartheid planning means the average resident is spending around two affordable housing, particularly low-income hours making a 40km return trip every day. housing, is largely located far from jobs and other facilities like healthcare, quality The average direct transport cost for the education and recreational offerings. This low-income public transport user group trend has continued post-1994, with a low has risen to 43.1% of monthly household supply of government housing stock in well- income — almost four times the national located areas, and little to no contribution objective of 10%.1 from the private sector. Increasing land values, particularly in Cape Town, has further 1 National Land Strategic Framework 2015 4 BELLVILLE AS A SECONDARY CITY WHAT IS A SECONDARY CITY? ellville and the Greater Tygerberg Area is a Bdiverse financial, medical and educational In a functional system of cities each major city (primary urban centre that plays an important role and secondary) has a unique and complementary as a highly connected hub at the heart of role. The primary city may well have an international the metropole. It can be considered as the Secondary City of the metropolitan region outlook, while secondary cities complement it which has an important role to play in by hosting activities that require the lower costs supporting the primary city. associated with smaller size or proximity to inputs such as agriculture or natural resources. Like most major urban centres, Cape Town is facing pressure from growing urbanisation, characterised by increasing congestion, rising Regional links and corridors influence the division accommodation costs and limited space for of functions among cities and the inter-city transport inclusive development. As a key node, given networks. Links to international and regional markets the City of Cape Town’s strategy to bring people closer to their workplaces, Bellville are an important component of such a system, has an important role in supporting Cape which requires internationally coordinated policies Town, by shifting towards a mixed-use centre and investments to establish the right supportive with well-connected, multi-modal transport environment.1 linkages and well-established service infrastructure. 1 2017 United Nations, Economic Report on Africa 2017: Urbanization and Industrialization for Africa’s Transformation 5 WHY AFFORDABLE ACCOMMODATION? population growth and the viability
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