The City Of Cape Town will launch virtual public auctions to make available to the public some of its under-utilised properties not needed for municipal services.
Resuming virtual public auctions will allow both once-off and established property developers to attend and bid transparently and equitably, says Mayoral committee member for economic opportunities and asset management, James Vos.
Vos says the City is committed to continuing establishing pipelines of land disposals and leases to unlock social and commercial benefits for residents, and that also makes business sense.
Surplus properties will be offered for purchase and or lease through a competitive process, once Council has agreed to the disposal, he says.
Read the latest Property360 digital magazine below
Vos says over the past three financial years the City sold and transferred 155 properties, driving over R220m in Smart real estate transactions.
The City’s smart real estate approach is to get the best economic and social value from their assets, he says.
Over the same period, a total of 480 leases were concluded by the City’s Property Management Department, with a value of approximately R2,3 million a month (R2 357 706).
Most recently, in January, Council gave the green light to the following property transactions:
- Six sites were approved for final transfer. This will unlock an extension to an existing retirement village in Bellville, two sites for community use in Mitchells Plain and Retreat, as well as a general business site in Khayelitsha and two single residential opportunities in Parow and Brackenfell.
- 12 residential properties were approved, for in-principle disposal, in areas ranging from Fish Hoek and Grassy Park to Khayelitsha. Each site is less than 500m² and ideally, lends itself for purchase by homeowners looking to build their own homes.
“Through smart real estate transactions, the City has the opportunity to make a real contribution towards our economic recovery, putting our assets to good use, and into the hands of those who will benefit the most.“
“Real estate underpins so many elements of our economic recovery. It creates jobs through construction and generates revenue for municipal service delivery.
“Land is required to construct factories and industries to create jobs and is required to build houses for people.
“Furthermore, I am pleased to hear that Cape Town has been earmarked as a city that is predicted to have a prosperous prime real estate market in 2021.”
This is according to research by Knight Frank, which estimates that the prime forecasts will grow by 5% in this coming year. “This may seem insignificant in terms of the economic challenges we face, however, these property management transactions will help us on the road to economic recovery and help us create jobs,” says Vos.
The City has further established a dedicated Investment Facilitation Unit to help attract businesses and investors.
“Finally, as a part of our business retention and expansion efforts, the City’s Enterprise and Investment Department is rolling out surveys with the businesses in each of Cape Town’s 26 industrial areas. I have joined the officials in the field to learn about the needs, concerns, suggestions and perceptions of local businesses. With this information, we intend to address any issues within our control that might be holding back the growth of these businesses to get our economy going full steam ahead.”
Related Topics: