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Urban Renewal Trends
BY WAYNE VAN DER VENT
There’ s a burst of urban renewal stimulating economic growth and business innovation. This movement is also enhancing property values and creating profitable opportunities for commercial and retail property developers and traders.
Major South African cities are seeing their urban spaces reclaimed, abandoned, dilapidated buildings restored to their former glory, and their skylines transformed through innovative developments with contemporary architecture.
Central business districts in Cape Town, Johannesburg and Durban are being refurbished with urban renewal trends. This urban renewal improves both business sentiment and perceptions, encourages a sense of civic pride, lowers crime as well as attracts investment and new businesses. The South African CBDs’ concentrated regeneration is also a clear sign that the country’ s urban population is expanding.“ Urban renewal leads to a substantial increase in overall property values( including commercial, retail and residential), while urban population growth places an increased demand on infrastructure and transport structures,” says Wayne van der Vent, cofounder of Quoin Online, an online property trading portal.
In Johannesburg, the CBD, Braamfontein and Newtown nodes show clear evidence of inner-city renewal, while much of Jozi’ s downtown has been upgraded, boasting a medley of arts, entertainment,
food and shopping venues. The South African Property Owners Association( SAPOA) says the Johannesburg office market last year showed the highest development pipeline ever recorded, with various flagship developments scheduled for completion over the next two years. Durban is also undergoing major regeneration with reports indicating future projects including the reclamation of areas such as Albert Park, the CBD and Victoria Embankment. In Cape Town, the CBD is changing its entire footprint. According to The State of Cape Town Central City Report 2015, published by the Cape Town Central City Improvement District( CCID), downtown Cape Town’ s official valuation was almost R24 billion in the 2014 / 2015 financial year, an impressive growth from just over R6.1 billion in 2006. The overall decline in commercial vacancies is expected to continue this year with vacant commercial space in the CBD decreasing considerably to 10 % by the final quarter of 2015, from 13.4 % in the same quarter of 2014. Retail has also been faring well, with an overall occupancy rate of 95 % during 2015, up from 93 % in 2014, says the CCID’ s report. Eight out of 10 businesses are likely to remain in the CBD, with one in every three still likely to expand. SAPOA says that major financial institutions continue to establish a financial district in Cape Town, making the city appealing to both local and international tenants who view the city as a strategic location.
46 OCTOBER 2016 SA Real Estate Investor www. reimag. co. za