NEWS
Western Cape ripe with affordable housing potential
By TUHF
The TUHF Western Cape regional team believes that even though Covid has had an impact on the property market , there are still significant opportunities for savvy investors looking to enter the affordable residential sector as new areas for development become available .
Even though the residential property sector in the Western Cape has not been spared by the impacts the pandemic , it has shown a higher level of resilience when compared with other nodes in South Africa . This can partly be attributed to the region ’ s ability to recover quicker and provide buyers and tenants with a solid selection of affordable units , says the TUHF Western Cape regional team who maintain there are still significant opportunities to be had for investors .
“ Historically , the residential bubble in Cape Town has been well-documented . The areas of demand have been guided by the tourism industry and the international travel and work sector . Our focus area , the Voortrekker Corridor , was growing significantly leading up to pandemic last year . This was driven by the need for quality and affordable residential accommodation ,” says Paul Nel , Western Cape based Portfolio Manager at TUHF .
However , with the hard lockdown hitting South Africa in March 2020 , he says the Cape Town ’ s City Bowl transformed into a ghost town for six-months with restaurants and hotels having to close .
“ While we have seen a gradual recovery with the sector re-establishing itself with entrepreneurs , the scope of the property market has started to change . Much of the focus turned to the kitchen and service market where more than one kitchen would share a larger space / kitchen or even shared space to produce takeaway food for delivery ,” says Nel .
The impact on the student accommodation sector can also not be ignored . According to Nel , the University of Cape Town ( UCT ) supported a mandate for 5000 units to be developed
TUHF
TUHF Western Cape regional team . From left : Nomfundo Molemohi , DIU Portfolio Manager ; Sanet Badenhorst , Operations Administrator ; Anne Meiring , Credit Analyst ; Paul Nel , Portfolio Manager ; Dihedile Mphachoe , Portfolio Manager ; Londeka Dlamuka , uMaStandi Operations Administrator ; and Khulasande Naku , Operations Co-ordinator .
6 JULY - AUGUST 2021 SAAffordHousing saaffordablehousingmag SA Affordable Housing www . saaffordablehousing . co . za