»
Sep 10, 2007:
While numerous developments in recent years have aimed at transforming central Cape Town from a crime and grime hot-spot to a viable residential and business destination, the full benefits of the higher numbers of inner-city residents seem to be evading retailers.
Following years of decay, efforts began in 1999 to spring clean the city centre with the aim of encouraging inner-city living and business growth under the auspices of the Cape Town Partnership.
Founder member and a director of the Cape Town Inner City Improvement District, Theodore Yach, said since the beginning of the process almost 3,000 new residential apartments had been made available by different property developers in the central city district.
Sold at an average price of R1m, 75% of the apartments were intended for owner occupation while 25% were to be leased to tenants, said Yach.
But a July 2007 study conducted by Life Residential, a property company focusing on the inner city, noted that although the study group upon which their research was based was relatively small (43 respondents), 58,1% were tenants while 41,9% were owner/occupiers, and over 20% of the respondents said they do not use their apartment throughout the month.
Additionally, out of 1200 surveys distributed throughout 18 residential buildings, only 43 were returned. One might deduce from the unusually low number of returns that some of the units remained untenanted.
Steer and Company portfolio manager Rose Frank said although inner-city living was becoming more popular, it was still establishing itself, and upgraded apartments, business and office buildings were very costly to rent or buy, meaning only well-established businesses and young professionals could afford to live in the inner city.
A canvas of inner city business owners approached for their opinion on the success of the revitalisation effort produced predominantly dim views.
Long Street bookshop owner Graham Leigh said the expected increase in business he expected from the thousands of new residents has not materialised.
However, Leigh said there had been an increase in the number of tourists visiting the CBD as they felt safer and therefore prolonged their stay in the city centre.
The owner of the Da Capol restaurant and bar in Shortmarket Street, in the heart of the inner city, who was only willing to give his first name, Michael, said he doubted if the new residential apartments were occupied.
He said a lot of restaurants and coffee shops were forced to close at 5pm as there were no people in the CBD thereafter. "The number of people in the CBD is not enough."
Those who were resident, he said, seemed to shop in malls rather than the city centre.
He said a lot of the inner city buyers were investors who perhaps did not live in their apartments for most of the year.
However, coffee shop owner Bev Brown said the upgrading and increased security in the inner city had made businesses more secure and led to a "tremendous" flow of customers through her shop.
Permanent Trust Property Group portfolio manager Derek de Reuch said all 50 new residential units in the Adderley sectional title building he managed had been sold, 75% of which were occupied by the owner or tenanted.
This, he said, indicated that there were more people living in the inner city.
On the commercial side, he said: "There is better quality tenancy going into the retail shops and that's a sign that there is overall growth in the city centre." – Peter Luhanga, West Cape News
