Cape Town CBD boasts 12 museums, three libraries, 209 eateries, 96 medical practices, 69 bars and clubs, four theatres, 627 retail outlets, 25 places of worship and 40 health facilities.
However, middle income earners, many of whom work in the area, aren’t able to make full use of these facilities outside of working hours, according to a new report by PropertyWheel.
“This is because this demographic cannot afford to own homes in or nearby the City, which means that additional trips to and from the CBD are both costly and time consuming,” it said.
A report by the Central City Improvement District – a private–public partnership formed by CBD property owners – shows that the average price of an apartment within the 57 residential complexes in the Central City is R2.34 million.
“With middle income earners making between R15, 000 and R50, 000 per month (based on figures from the Unilever Institute of Strategic Marketing at UCT), they can only afford a maximum home purchase price of R 1.5 million – leaving them without an entry point into the CBD property market.”
PropertyWheel also cited Property24’s Property Trends and Statistics for the Cape Town City Centre showing that the average asking price for a studio apartment is R2.64 million, R2.8 million for a one-bed and R5.3 million for a two-bed.
“Without access to more affordable homes in well-located areas of the City, many of those in the middle income bracket are forced to purchase property on its outskirts.”
“Therefore, it is not surprising that research contained in Standard Bank’s Consumer Expenditure Trends Report found that this market tends to spend between 15% and 19% of their budget on transport,” it said.
However with the petrol price is set to increase by up to seven cents a litre, it is soon unlikely that they would be able to shell out even more money to travel to the City Centre to experience its after hour’s offerings, said PropertyWheel.