Purchasing property in the city centre is becoming increasingly popular, but does have its drawbacks.
In Cape Town, which is renowned for traffic congestion, a perk of living closer to town is a shorter commute, says Neil Viljoen of Re/Max Living, who operates in the city bowl and surrounds.
“Being surrounded by mountains on one side and the Atlantic on the other, there are few solutions to this problem in an ever-expanding city. Living in the city buys you time and the convenience of being within walking distance or a fiveminute drive to shops, offices, restaurants and outdoor activities.”
The downside is cost as entry-level units in the CBD start from R1.5 million for a studio or one-bedroom unit. More luxurious units typically start from R2.5m and range upwards to around R10m for top-end penthouses.
“There is constant demand for property within the CBD, from locals to foreign investors and ‘swallows’ chasing summer across the globe. You will pay about 30% more for a CBD property compared to outskirt suburbs.”
Another upside is that buyers will benefit from a substantially higher rate of capital growth, given the strong demand and limited supply.
“They also stand to gain higher investment yields on travellers looking for short-term lets who are willing to pay more to be city-based. This affects rate per night and increases occupancy rates.”
For those tempted to tap into this market, Viljoen advises they buy easily managed sectional title properties in good developments with healthy body corporate financials.