Century City is getting younger
In less than 20 years, Century City has succeeded in its quest for expansion and continues to evolve into a world-renowned precinct of Cape Town.
Its pursuit of innovative approaches to urbanism and commitment to environmental sustainability ensures that the node continues to attract high-end occupiers and investors alike.
Century City has development rights in excess of 1.25 million square metres, of which approximately 250,000 square metres remains to be developed. This includes the planned redevelopment of Ratanga Junction as well as Century Village which is currently under construction.
With Century Village on track for completion in August this year, its anchor tenant being Spar as well as various lifestyle stores, there's very little this new neighbourhood wouldn't be able to provide.
Century City has development rights in excess of 1.25 million square metres, of which approximately 250,000 square metres remains to be developed. This includes the planned redevelopment of Ratanga Junction as well as Century Village which is currently under construction.
With Century Village on track for completion in August this year, its anchor tenant being Spar as well as various lifestyle stores, there's very little this new neighbourhood wouldn't be able to provide.
Century City residential property's largest target market is under 35 years old
Over the past decade, Century City has been growing into a CBD of its own, which is perhaps one of the reasons why we've been seeing a vast influx of young professional buyers, mainly between the ages of 18-35.
With that said, over the past year, the Cape Town property market has as a whole continued on a downward price trend and Century City sectional title properties have been no exception.
According to Property24, the average apartment sale price has decreased by approximately 20% from R3 150 000 in 2018, to R2 450 000 in 2019. With a younger demographic migrating towards Century City, one must consider the affordability of property in this area.
Decreasing average sales prices in 2019 can be partly accredited to first and second-time purchasers' affordability constraints and sellers needing to adjust their prices to meet the realities of these purchasers.
According to Property24, the average apartment sale price has decreased by approximately 20% from R3 150 000 in 2018, to R2 450 000 in 2019. With a younger demographic migrating towards Century City, one must consider the affordability of property in this area.
Decreasing average sales prices in 2019 can be partly accredited to first and second-time purchasers' affordability constraints and sellers needing to adjust their prices to meet the realities of these purchasers.
It is interesting to note that according to Property24 there are currently over one hundred more properties being marketed for sale this year than the same time last year. This phenomenon goes on to suggest that the Century City property investors are finding greater returns elsewhere as they are placing their properties on the market to sell, rather than competing in the rental market for pedestrian yields.
Since the 2019 elections, we have seen buyer interest in the Century City precinct show decent improvement, however, prices remain under pressure.
The redevelopment of Ratanga Junction promises the construction of sixteen new building developments. Of those sixteen, it has not been determined how many will be residential developments, however, it has been confirmed that there most definitely will be.
With the market already in an oversupply situation combined with the promise of more properties to be developed, those anticipating the market to buck the current 'corrective trend' and start rallying again in the short to medium term may be waiting longer than they perhaps expect.
With the market already in an oversupply situation combined with the promise of more properties to be developed, those anticipating the market to buck the current 'corrective trend' and start rallying again in the short to medium term may be waiting longer than they perhaps expect.
The good news for savvy investors is that the current market presents an exciting opportunity to achieve a good return while there still is healthy appetite for second-hand Century City apartments, before the release of new development stock onto the market in the coming months.
26 Jun 2019
Author Greeff
