AFFORDABLE HOUSING IN THE BELLVILLE AND TYGERBERG AREA - INVESTMENT PROSPECTUS - The Greater Tygerberg Partnership
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INVESTMENT
PROSPECTUS
AFFORDABLE HOUSING
IN THE BELLVILLE AND TYGERBERG AREA
MESSAGE FROM THE GTP CEO
South African cities are grappling with the The Western Cape Government and the
double dilemma of trying to redress their City of Cape Town have created a matrix
segregated past while also planning for a of policies, frameworks and development
more urbanised future. Cape Town is incentives designed to address spatial
no different. inequality and facilitate the construction
of affordable housing. These mechanisms
If a society is to thrive, its people need to need to be married with sound investments
be empowered to find work. They need from committed developers, investors and
to be able to access safe, reliable public institutions who have the visionary will to
transport, and they need to live in decent create safe and sustainable, accessible
accommodation that they can afford. For and affordable neighbourhoods in our
years, the city’s spatial segregation, a legacy city centres, close to transport, work
of apartheid planning, has excluded the opportunities and social amenities.
majority of the population from accessing
convenient work opportunities and We have created this guide as a tool
affordable accommodation. Affordable and for developers seeking to maximise the
inclusionary housing, developed around opportunity for building affordable housing
transit hubs in active economic centres, in Bellville, Parow and the Greater Tygerberg
is the key to achieving more sustainable and area. The details contained here should be
equitable development. used to inform development decisions that
will build on the existing potential of our
We have a vision for an economically vibrant, city, and drive the growth of a prosperous,
connected community that lives, works and economically active urban centre.
plays in a quality, safe and accessible 24-hour
urban environment. Sustainable, intelligent We look forward to building the future
densification targeted at creating affordable, Bellville with you.
decent accommodation is one of the most
important elements that will support the
society we envisage. - Warren Hewitt
Photo by Greater Tygerberg Partnership
3
CONTENT
MESSAGE FROM THE GTP CEO...............................................................1
CONTENT STUDENT HOUSING.................................................................................26
WHY INVEST IN AFFORDABLE HOUSING HERE?...............................3 TRENDS.......................................................................................................28
How to invest .............................................................................3
How the GTP makes it easier to invest .....................................4 LAND...........................................................................................................30
THE URBAN AFRICAN OPPORTUNITY...................................................5 MAJOR INVESTMENTS
Completed..................................................................................34
THE SOUTH AFRICAN CHALLENGE........................................................5 Construction Underway...........................................................34
Bellville as a Secondary City......................................................6 Planned......................................................................................36
Bellville as Cape Town’s second CBD - IDEAL LOCATION......................................................................................37
The Bellville Future City Masterplan.........................................7 Education...................................................................................37
Employment...............................................................................37
WHAT IS AFFORDABLE HOUSING? .......................................................8
AMENITIES AND SERVICES
THE INVESTMENT CASE FOR AFFORDABLE HOUSING ....................9 Public Spaces............................................................................39
Health.........................................................................................42
AFFORDABLE HOUSING PRECEDENTS ..............................................10 Libraries......................................................................................42
Retail and Shopping.................................................................42
DEVELOPMENT READINESS
Incentives ..................................................................................13 FINANCE AND FUNDING OPPORTUNITIES.......................................43
Urban Management.................................................................19
Supportive Zoning....................................................................19 DIRECTORY...............................................................................................44
Planning Priority........................................................................20
HOW TO INVEST.......................................................................................45
INFRASTRUCTURE
Transport Infrastructure ...........................................................21
Bulk Infrastructure ...................................................................25
4
WHY INVEST IN AFFORDABLE HOUSING HERE?
A place where people love Many well-located HOW TO
to live land parcels ready for
development
INVEST?
Bellville is in high demand by many The Greater Tygerberg Partnership is your
groups as it offers a high quality of A diversity of serviced land parcels single point of access to a personalised and
life with an abundance of schools, with suitable and supporting zoning confidential service for investors interested in
tertiary institutions, health facilities and in place ready for development, with the Bellville area.
amenities with well-functioning city plans to release public land in five
improvement districts. major precincts. To register your interest in investment
opportunities in affordable housing, please
contact:
An area rich in jobs and UDZ tax incentive extended
attractive to companies for two years The Greater Tygerberg Partnership
www.gtp.org.za
A high concentration of jobs in the info@gtp.org.za
Urban Development Zone tax incentive
financial services, education, logistics, +27 (0)21 823 6713
extended until 2023 and heritage
manufacturing and medical technology Unit 3A, Bellpark Building
exemptions in place, with further
sectors along with three major Cnr De Lange Str & Durban Rd
incentives for inclusionary housing
industrial nodes. Bellville
being developed.
7535
Major public and private An infrastructure priority for
investment in the area government
A local, provincial and national priority
Growing confidence in the last decade for investment in new transport
with R7.3 billion public and private infrastructure and bulk infrastructure
investment between 2010 and 2020 and within close proximity to an
along with stable property value international airport.
growth.
5
HOW THE GTP MAKES IT EASIER TO INVEST
Development and investment Site-finding service Partnership support
projects Using our networks and the GTP We provide targeted marketing and
We help with facilitating, supporting algorithm, we identify greenfield or media support for investors in the area,
and managing investment projects brownfield sites or precincts that are reaching a B2B audience.
across all key sectors. available and best suited to a proposed
development project.
Property development Research and data services Government relations and
facilitation We undertake research and analysis, engagement
We assist developers and those gather expertise, provide data Through our relationships with local
developing in the area to help and information. and provincial governments as
understand and accelerate the well as government agencies, we
development process and cycle from help to facilitate and build stronger
feasibility to plan submission. relationships.
Implementation partner Business development
From placemaking to innovation support
and community and stakeholder We facilitate and connect growing and
engagement, we help with delivery, small businesses to wider networks in
viability and implementation of addition to the recently launched small
projects. business portal.
6
THE URBAN AFRICAN OPPORTUNITY
It is estimated that over 900 million people, mostly youth, will move into African cities in the coming few decades. This represents significant
urban growth at a rate outpacing that of Asia and the rest of the developing world. While this presents a major challenge for housing
provision, infrastructure, amenities and social and cultural cohesion, it also represents a major opportunity.
The opportunity arises when cities and countries tap into the energy and ingenuity of the younger and creative population, while
leapfrogging the developed world to a more sustainable, inclusive and resilient future.
THE SOUTH AFRICAN CHALLENGE
S outh African cities are primed for the
delivery of affordable housing options
with a massive demand and market across
Increasing land values, particularly in Cape
Town, has further reduced the availability
and accessibility of well-located affordable
With the right development incentives,
supportive policy and legislative frameworks,
affordable housing can be used as a tool to
all categories of affordable housing. The housing. achieve greater socio-economic and spatially
current delivery mechanism and supply is inclusive development.
outstripped by demand due to population Cape Town is considered a major investment
growth and urbanisation. opportunity, with PwC ranking it as Africa’s
top city of opportunity in 2018.
The legacy of Apartheid means affordable
housing is generally located far from jobs Affordable housing delivery in well-located
and other facilities like healthcare, quality areas creates the conditions for cities to
“We are establishing strategic
education and recreational offerings. This both densify and to intensify land uses, while
forums to engage academic
trend has continued post-1994, with a low contributing positively to a mix of housing
institutions, the business
supply of government housing stock in well- typologies and land use functions.
sector and civil society, which
located areas, and little to no contribution
will assist our short, medium
from the private sector.
and long-term goals of
revitalising the Bellville CBD”
-
City of Cape Town Executive Mayor,
Dan Plato
BELLVILLE IS
CAPE TOWN’S
SECONDARY CITY
W ith the Bellville CBD at its heart, the
Greater Tygerberg Area is a diverse
financial, medical and educational urban
centre. It is a highly connected hub at
the heart of the metropole. It can be
considered as the secondary city of the
metropolitan region that supports Cape
Town as the primary city.
Like most major urban centres, Cape
Town is facing pressure from growing
urbanisation, characterised by increasing
congestion, rising accommodation
costs and limited space for inclusive
development. As a key node, given the City
of Cape Town’s strategy to bring people
closer to their workplaces, Bellville has an
important role to play in supporting Cape
Town, by shifting towards a mixed-use
centre with well-connected, multi-modal
transport linkages and well-established
service infrastructure.
8
BELLVILLE FUTURE CITY
A masterplan for Cape Town’s second CBD
C ape Town’s Executive Mayor, Dan
Plato, launched the Bellville Future City
masterplan in March 2021. This long-term
masterplanning project aims to unlock
the development potential of Bellville as a
multi-functional and dynamic economic hub.
Through targeted investments by the City
and other agencies, Bellville will become
an increasingly attractive place to live and
work; improving the overall quality of life
of residents, while also promoting greater
socio-economic inclusion and facilitating
upliftment.
The City of Cape Town has prioritised Bellville
as a catalytic transit-oriented development
(TOD) node. The Bellville Future City
masterplan should be seen as a strategy to
stimulate opportunities for the affordable
housing sector - both in terms of supply and
meeting rising housing demand; and in terms
of property investment within the affordable
housing sector. The substantial investment in
land and public transport corridors within the
Bellville CBD is also a positive impetus for the
growth of a viable and accessible affordable
housing sector
9
WHAT IS AFFORDABLE HOUSING?
A ffordable housing is housing for people
or households with incomes lower
than median income of an area or where
Affordable housing is a broad term that
includes:
• Inclusionary Housing
the household incomes are not sufficient • Social Housing Housing that is developed by the private
Rental or co-operative housing that is
to access the market rental housing sector (ownership/rental) and reserved for
delivered by an accredited Social Housing
opportunities in an area. households who may not qualify for Social
Institution (SHI) for households earning
Housing but earn below R35,000-R40,000
between R1,501 - R15,000 per month.
Affordable housing is not necessarily ‘cheap’ per month. For example: the Western Cape
or of a poorer standard – it is quality housing, • Government Subsidised Government recently defined this as rental
Housing that is provided by the private
priced at a level which is affordable relative to accommodation targeted at households
market through a number of possible subsidy
the income of its occupants. currently earning a monthly income
arrangements. For example: FLISP (Finance
above the threshold for social housing but
Linked Individual Subsidy Programme), a
The term ‘affordable housing’ is often less than R40,000.
home loan subsidy for qualifying buyers
confused in the media with ‘low-cost’ and • Student/Sectoral Housing
with a joint monthly household income
‘low-income’ housing. The development of Housing that is developed for particular
up to R22,000.
this housing generally embeds long-term sectors or groups who would otherwise not
‘affordability’ into the area through certain • Transitional Housing have access to housing in an area on the open
Supportive, yet temporary housing that is
terms and conditions around the sale market e.g. student housing, essential service
meant to bridge the gap from homelessness
and rental of affordable housing units. housing, housing for public service workers
to permanent housing for households who
such as police, healthcare workers, teachers.
face eviction or other emergencies.
10THE INVESTMENT CASE
FOR AFFORDABLE HOUSING
The investment case for any asset class rests For the institutional investor deploying a In addition, between 2012 and 2015, the
on the potential for above-inflation returns significant scale of capital over a longer affordable housing segment outperformed
based on a large demand. term horizon as part of a diverse portfolio of the overall housing market. House price
assets, affordable housing can: growth of properties in the bottom quartile
For affordable housing, as a fixed real estate (i.e. less than R330,000, excluding RDP
investment, the large and growing demand Î offer risk-adjusted returns over a longer houses) nearly doubled that of the second
outstrips the pace of supply within the South time period, due to the high demand highest quartile (R700,000 - R1.135m) and
African context. This is expected to continue Î act as a hedge or counter-cyclical were four times greater than the highest
for decades to come. investment, which is more resilient quartile (more than R1.135m).
during downward trends in the economy
as vacancies remain low According to the ABSA MSCI Residential
Î act as a defensive and secure investment Results for 2018, which tracks affordable
as the capital value of the asset is housing as a separate category of residential
likely to increase over the medium- to across 20 property funds:
long-term if good maintenance and
“The affordable market is one operations systems are managed • Affordable accommodation posted
offer a more stable investment as the a higher income return than other
of the few in which demand Î
capital and income growth of the accommodation (8.9% vs 6.5%)
exceeds supply with strong fixed asset is less volatile compared
fundamentals, given the with equities • Total returns were comparable to other
Î provide stable rental income, which accommodations (12.3% vs 13.4%),
ever-increasing trend in South can be pegged to inflation and is more despite the significantly lower costs. This
Africa towards urbanisation. responsive to the state of the economy means affordable housing investments
The affordable market has are an option for a wider number of
investors
the lowest vacancy rate of the
residential rental market”
Transcend Property Fund
11AFFORDABLE HOUSING PRECEDENTS
SAVONNERIE
HEYMANS PUBLIC
HOUSING, BRUSSELS
L ocated on the site of a former soap factory,
the social housing project in Brussels
facilitates a mix of 42 low to middle income
rental homes.
• Opened: 2011
• Capacity: 42 units (1 to 6 bedroom
apartments, lofts, duplexes and
maisonettes)
• Amenities: social meeting room, library,
garden, park, playground and main
promenade
12
Photo by Filip DujardinTHE ONYX,
JEWEL CITY,
JOHANNESBURG
T he Onyx is a 13-storey affordable housing
development which forms parts of the
Jewel City precinct covering six city blocks.
The precinct includes about 1,500 residential
units in two new blocks, 10,000m2 of office
space as well as several supermarket and
retail outlets.
• Opened: August 2020
• Capacity: 660 residential units (348
bachelors; 226 1-bedroom units and 91
2-bedroom units)
• Amenities: CCTV security, free wifi,
proximity to shopping and office spaces,
gym, clinic, schools, ample parking,
convenience retail shops, fast food
outlets and a restaurant
13
Photo by GASS Architecture StudioBRAAMFONTEIN GATE,
JOHANNESBURG
T he conversion of the 30-storey former
Total Oil Company’s headquarters to
provide well-located affordable housing for
students, young professionals and families.
• Opened: 2018-2019
• Capacity: 400 residential units
• Amenities: gym, sports court, garden,
games room, swimming pool, basement
parking, business centre, retail units and
event space
14
Photo by Local StudioDEVELOPMENT READINESS
INCENTIVES
1.1 | Urban Development Zone
. Tax Incentive
T he Urban Development Zone (UDZ) tax
incentives administered by the South
African Revenue Services (SARS) aims to
The incentive is an accelerated depreciation
allowance on the cost of buildings erected,
added to, or improved and which are within
the designated UDZ areas. The allowance is
promote the upliftment and regeneration of applicable in respect of:
particular areas by rewarding private sector
residential and commercial developers • Erection, extension and improvement of
who build or refurbish in these areas. SARS or addition to an entire building
• Erection, extension, improvement
seeks to address the issue of urban decay
or addition of part of a building
within inner cities and to maintain existing representing a floor area of
infrastructure while encouraging investment at least 1,000m2.
in certain properties.
In February 2021, the National Treasury
extended the UDZ incentive until the end of
The Parow-Bellville UDZ boundary comprises
March 2023.
83 hectares extending from Bellville to Parow,
primarily wrapped around the VRC (east- The GTP, in support of the city, has also
west) and from the Bellville CBD to the N1 proposed that the UDZ boundary be
intersection with Durban Road (north-south). expanded to include most of the Parow
section of Voortrekker Road as well as Durban
Road from Voortrekker Road to the N1.
15INCENTIVES N1
CURRENT BOUNDARY N1
Due to expire 31 March 2020 N1 N1
CURRENT BOUNDARY
CURRENT BOUNDARY N1 N1 N1
DuePROPOSED
to expire Due EXTENSION
to expire
31 March 2020 31 March 2020
The City of Cape Town
PROPOSED PROPOSED
EXTENSION EXTENSION N1 N1
MIKE PIENAAR
together with the GTP
Themotivates
The City of
City of Capeto
The
Cape Town,
extend
City ofthis
Town Cape Town
together with the
the GTP,
MIKE PIENAAR
MIKE PIENAAR
incentive
together withbeyond GTP2020
together withand
the in
GTP
motivated to extend
extend this to extend this
RD
boundary
motivates to motivates
this
incentive in time,
incentive beyond to 2023,
incentive
2020 beyond
and in 2020 and in
BAN
and in the boundary extent
RD
DURRD
G IE
boundary boundary
BLVD
BAN
BAN
L BA
G IE
G IE
VOORTREKKER RD
DUR
DUR
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ND VOORTREKKER RDRTREKKER RD
SSO
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BELLVILLE STATION
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ND
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BELLVILLE STATION
BELLVILLE STATION
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TYGERBERG
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TYGERBERG TYGERBERG
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REY R
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Map showing current and proposed Urban Development Zone boundaries.
A Summary of the Urban Development Zone Tax Incentives
New / Improvements Use Allowance
Commercial/residential 20% year 1 and 8% years 2 – 11
Erection/extension/ Purchased from a developer Deemed cost = 55% of the purchase price (deductible over 11 years)
addition
25% year 1 and 13% years 2 – 6
Low-cost residential unit
10% year 7
Commercial/residential 20% years 1 – 5
Improvements
Purchased from a developer Deemed cost = 30% of purchase price (deductible over 5 years as above)
Low-cost residential unit 25% years 1 – 4
161.2 | PT1 and PT2 Zones
PT1 and PT2 zones regulate the amount of PT1: A minimum requirement of one bay
parking required for developments. of off-street parking per dwelling unit or
main house. Refer to areas where the use
T he City of Cape Town has designated of public transport is promoted, but where
certain areas within the Greater Tygerberg the City considers the provision of public
Area as PT1 and PT2 zones, reducing the transport inadequate or where the use of
parking requirements compared with motor vehicles is limited.
standard areas which require two bays
per dwelling. PT2: A minimum requirement of 0 bays
of off-street parking per dwelling unit
In 2020 the City extended these zones to or main house. In these areas the use of
include most of the Greater Tygerberg Area public transport is promoted and the City
with PT2 Zones (0 parking bays required) considers the provision of public transport
for large parts of the Bellville CBD and for good, or where the use of motor vehicles is
the majority of the area from Goodwood to very limited.
Parow along Voortrekker Road.
These zones also generate fewer car trips,
The new designation is designed to which reduces congestion, encourages public
encourage residential development by transport use, and potentially reduces the
reducing overall the costs of development. carbon footprint of a development. They make
It also increases revenue, since the removal particular sense for developers providing
of parking bays enables more development housing for lower-income groups who may not
bulk to be allocated to tradeable space, own or need a car and use public transport
in the case of affordable accommodation, instead.
housing units.
17INCENTIVES
PT1 Zone
PT2 Zone
N1
Voortrekker Road
Mike Pienaar Boulevard
Durban Road
PT1 and PT2 Zones
18INCENTIVES
1.3 | Section 13sex of the SA
Income Tax Act.
Under section 13 Sex of the Income Tax Act,
SARS permits a significant tax benefit on
residential property. This incentive allows
purchasers of new residential units in South
Africa, in the same or different developments
and across financial years, to write off a
percentage of the cost of buildings, or
improvements to buildings acquired or built
after 21 October 2008.
Photo by David Savage
The following criteria applies:
a) The taxpayer must own at least five New/
Developer/Purchaser Allowance
residential units mainly used for residential Improvements
accommodation excluding properties uses Deemed cost = 100%
for business purposes, e.g. hotels Developer - 5% p.a.
- 10 % p.a. for low cost accommodation
b) Residential units must be new and unused
New or unused
Deemed cost = 55% of the purchase price
c) The units must be used solely for the Purchased from a developer - 5% p.a.
purpose of a trade, i.e. residential letting, - 10 % p.a. for low cost accommodation
and not be used for personal or family use
Deemed cost = 100%
Developer - 5% p.a.
- 10 % p.a. for low cost accommodation
Improvements
Deemed cost = 30% of the purchase price
Purchased from a developer - 5% p.a.
- 10 % p.a. for low cost accommodation
19INCENTIVES
1.4 | The Parow Station Precinct Heritage 1.5 | Local government incentives for
Exemption inclusionary housing development
The City of Cape Town has selected the The City has undertaken a financial feasibility
Parow Station Precinct as a pilot study area analysis to inform Inclusionary Housing
for an application for exemption from the Policy choices. This will interrogate the real
heritage requirements of sections 34(3) and value of incentives that will be offered to
38(9) of the National Heritage Resources developers when developing affordable
Act, No. 25 of 1999 (NHRA). The City is housing, and that will be used as part of the
investigating similar measures for the Bellville implementation of the Inclusionary
CBD. Housing Policy.
The urban spatial incentive is intended The Feasibility Analysis outcomes should be
to streamline the application process for ready for engagement in 2021.
potential investors, by relieving the need
for certain permissions. This incentive is The Western Cape Government draft
designed to encourage development in Inclusionary Housing framework has been
the Parow Prioritised Local Area, which is a published with the public comment period
key project for stimulating urban growth completed.
and renewal.
Investors will be exempt from the
requirements in respect of applications to: Consideration is being given to the following incentives:
• alter, improve or demolish buildings
older than 60 years; and/or
Type Examples
• consolidate three or more properties
within a defined geographic area. Direct financial Density bonus, reduced parking requirements, lower municipal rates and taxes,
incentives and favourable lending rates
Planning and Fast-tracking approval processes by a dedicated project team, creating
regulatory process inclusionary housing overlay zoning, introducing a single comprehensive permit,
improvements alternative construction and design standards
Bulk infrastructure Reducing bulk services contribution, reducing connection time to bulk
incentives infrastructure, bulk services infrastructure payment holiday
20URBAN MANAGEMENT
2.1 | Mayoral Urban Regeneration As part of this initiative, new precinct 3. Providing a safety net for the less
managers have been assigned to the 23 privileged
Programme (MURP)
precincts to closely monitor and engage with a. Social development programmes
relevant stakeholders to improve service through outreach
The MURP initiative involves the development
delivery in various communities. b. Collaboration with shelters and non-
of a more comprehensive community action
profit organisations
planning process premised on a strong
social crime prevention approach. Work 2.3 | Improvement District c. Providing skills training
is progressing towards the realisation of
a community policing programme and In collaboration with the CoCT municipality,
integrated neighbourhood safety programme
based on the work piloted by MURP in areas
the Voortrekker Road Corridor Improvement
District (VRCID) provides top-up urban SUPPORTIVE
presently suffering from severe gang activity. management, public safety and social
upliftment services. The VRCID functions on
ZONING
T
MURP areas include, amongst others, three principles:
he City will be reviewing the Municipal
the Bellville transport interchange, the Land Use Bylaws with the aim of further
Voortrekker Road corridor and Parow. 1. Ensuring safety and security
incentivising favourable developments
a. 24 hour security centre
within the Bellville area. The Voortrekker
b. 57 CCTVs and 15 license plate
2.2 | Mayoral Visible Service Road interface of many suburbs is zoned as
recognition cameras
Delivery Acceleration c. Close monitoring of crime hotspots
General Business or Local Business allowing
for medium- to high-density developments
d. 49 safety officers working in
The City’s Mayoral Visible Service Delivery comprising residential and commercial or
collaboration with SAPS and Law
Acceleration (MVSA) programme will invest retail uses. It allows for taller and denser
Enforcement
R200 million to fast-track efforts to improve buildings, while encouraging an active street
the quality, safety and environment of level through the benefit of commercial
2. Cleanliness and maintenance
communities in 23 identified precincts across and retail spaces. Where these sites also fall
a. Regular maintenance of signage, roads,
the metro. into PT1 or PT2 zones, the reduced parking
storm water drainage systems
requirements would also significantly reduce
b. Maintenance of roads and pavements
The Bellville CBD, Parow CBD and the development cost.
c. 20 cleaners and a cleansing supervisor
Goodwood CBD have been identified as key
precincts in the MVSA programme.
21PLANNING PRIORITY
Bellville, Parow and the Greater Tygerberg Area The Tygerberg District Spatial Plan identifies the spatial
benefit from planning priority at a local and planning and infrastructural support needed to sustain
national level. economic growth and realise a more inclusive city. The plan
highlights the need for:
Bellville is being designated a priority catalytic
TOD node. • High intensity development and improved public transport
along the Voortrekker Road Corridor, with a special focus
The Voortrekker Road Corridor Integration Zone
(VRCIZ) identified by the City of Cape Town aims on medium- to high-density housing
to facilitate spatial restructuring of the City using • Promoting non-motorised transport between public
Voortrekker Road as a key selling point for mobility, transport interchanges and major destinations such as
accessibility to economic opportunities, and to Tyger Valley
promote greater densification of the zone to support
• Promoting commercial development along north-south
public transport and transit-oriented development.
development routes such as Durban Road, Robert
The Metropolitan Spatial Development Framework Sobukwe Road and Symphony Way
places the entire Greater Tygerberg Area within the • Protecting and upgrading open space systems along
urban inner core (UIC) which represents the priority Elsieskraal and the Bottelary and Kuils Rivers; and parks
development and infrastructure investment focus area
such as Elizabeth Park
for the City at a metropolitan scale.
• The plan is currently being reviewed.
22INFRASTRUCTURE
TRANSPORT
A new rail link from Khayelitsha, four planned high Five rail links connect at Bellville Station, with 1.3 | Road infrastructure around the
capacity MyCiTi trunk lines , a transformed Bellville nine train stations serving the area. These Greater Tygerberg Area
Station as well as three public transport interchanges lines are:
will make this one of the most connected and
• Wellington to Cape Town via The Greater Tygerberg area is well served
accessible areas in the city by 2032.
Woodstock: 90,000 passengers daily by road and rail infrastructure, providing
(est.) connectivity and accessibility on a suburban,
1.1 | A major centre for public transport
• Muldersvlei to Cape Town (two lines via metropolitan and regional scale. The existing
Stellenbosch and Esplanade): 30,000 road-rail transit-oriented system serves as a
The Greater Tygerberg Area is served
passengers daily (est.) strong platform to support the future intense
by one of Cape Town’s busiest transport
• Strand to Cape Town via Bellville and development across the area.
interchanges (PTI) at Bellville Station, with
Parow: 44,000 passengers daily (est.)
350,000 daily trips. Other PTIs are at Parow,
• Bellville to Cape Town via Esplanade The road infrastructure in the area includes:
Elsies River and Tygerberg stations. The Elsies
and Langa: 35,000 passengers daily • the N1 to the north, providing
River PTI connects seven minibus taxi routes.
(est.) connections to Cape Town CBD or
These provide rail-to-road-based transport
nationally in the opposite direction
connections to other parts of the city. The
1.2 | Transport Plans for Bellville • Voortrekker Road, providing an east-
Great Tygerberg Area is serviced by five rail
west connection between Bellville and
lines and nine train stations in the area.
• New Blue Downs rail line from Nolungile Cape Town CBD
station to Kuilsriver station, providing a • the R300, linking to Khayelitsha and
The Bellville taxi rank sees a total of 50,000
direct link between the Metro South East Mitchells Plain to the south
passengers daily and 142,000 passenger
and Bellville • the Durban Road link from Bellville
trips via 30 routes daily. This is compared
• Major transformation of Bellville station CBD to the N1 and Tygervalley, with
with 48,000 and 31,000 daily passengers
planned, with refurbishments to Parow, additional north-south links provided
at Cape Town Station taxi rank and
Tygerberg and Elsies River interchanges by Vasco Boulevard, Giel Basson Drive,
Khayelitsha respectively.
• T13, T14, T16 and T19 MyCiti trunk lines Mike Pienaar Drive (M16) and McIntyre
to connect through the area via Bellville Street (M14)
The Cape Town to Bellville Golden Arrow Bus
CBD
Service (GABS) is the fifth busiest GABS route
• Review of PT1 and PT2 zones to
in the city, transporting 1,300 passengers
reduced parking requirements for future
daily with over 31,000 passengers moving in
developments
and out of Bellville daily. 23
• A proposed future airport rail linkMonte Vista De Grendel BELLVILLE
Avondale
Oosterzee
T19
Bellville Station
GOODWOOD Parow Tygerberg
Elsies River
PAROW
T14
ELSIES RIVER Blue Downs
T16 Rail Link
T13
Future Transport Infrastructure : planned MyCiTi trunk routes and rail link
24TRANSPORT
1.4 | Future investments in public transport
infrastructure
The new Blue Downs rail link from
Khayelitsha, along with four high capacity
MyCiTi trunk lines and a transformed Bellville
Station will make this area one of the most
connected and accessible in the entire
metropolitan region by 2032.
According to the 2032 Integrated Public
Transport Network Plan for Cape Town, the
new MyCiTi trunk lines will have a capacity of
10,000 passengers per hour in each direction
that will serve the Greater Tygerberg Area.
The realisation of the Bellville Future City
Masterplan is dependent on investments in
public transport infrastructure that improve
connectivity between Bellville and the
broader metropolitan area.
Photo by David Savage
No. of Constr. Period
Phase Route Code Route Description Length (km)
stations (years)
2 T13 Symphony Way: a north-south line from Mitchell’s Plain CBD to Bellville CBD and continuing to Durbanville north 23 33.0 3
3 T14 Westlake-Bellville: A north-east line from Westlake to Bellville CBD via Parow Industria 25 35.10 3
3 T16 Eersterivier - Blouberg: A north-south link from Eersterivier Station to Parow continuing to Sandown station 35 50.80 4
Kraaifontein - Century City: An east-west line from Century City via Goodwood and Parow along Frans Conradie Drive
4 T19 21 29.65 3
to Bellville at Boston and continuing north to Durbanville and Wallacedene
Enclosed terminal stations will be built at Bellville Station at Charl Malan Street and Durbanville at New Street : T13 served by 3 feeder routes (D01, F40, F44)
251.5 | New Blue Downs Rail Link
PRASA and the City of Cape Town are
prioritising a new line from Nolungile Station
to Kuilsriver Station through the Blue Downs
area. This is expected to carry more than
20,000 passengers per hour per direction
by 2030.
The double track line will be approximately
9km long and comprise three new railway
stations between Noungile and Kuilsriver
station, providing a direct link to the
Metro South East residential suburbs and
Blackheath, Kuilsriver and Bellville commercial
and industrial employment areas. The new
proposed stations are at Mfuleni, Blue Downs
and Wimbledon.
1.6 | Cape Town International Airport
expansion
A total of R7 billion has been allocated by
Airports Company South Africa (ACSA) to
expand Cape Town International Airport
within the next three years. The upgrades
are targeted at realigning the airport
runway, expanding the domestic arrival and
international terminal. These three projects
will have a significant impact and make a
positive contribution to the local economy.
Image by Design Scape Architects
26BULK INFRASTRUCTURE
W hile the Greater Tygerberg Area
already has a well-developed
bulk infrastructure, a further R1 billion
2.1 | Cape Flats 1 and 2 bulk sewer mains
rehabilitation
2.4 | Waste
• A new R108 million upgrade is planned
public investment in water and sanitation • Cost: R320 million over three years for the Northern Regional Sludge Facility
infrastructure has been planned to serve the • Importance: Facilitating inter-catchment • A waste-to-energy project at the north
area. Other infrastructure projects include a transfer area of Bellville Wastewater Treatment
new innovative waste-to-energy project and • Status: Works commence in July 2019 Works (WWTW) will produce electricity
improvements to recycling facilities. over a three-year contract period and bio-solids for agricultural use. It will
include recycling and waste drop-off
2.2 | Athlone Wastewater Treatment Works facilities
(WWTW) • R6.6 million Parow depot upgrade
• R25.8 million new facility at Beaconvale
• Cost: R771.5 million
• Benefit: 50Ml/day system capacity
extension unlocks potential for low-cost 2.5 | Fibre
housing opportunities for a population
of around 391,000 people. The WWTW The Greater Tygerberg Area is well covered
catchment services the VRCIZ, which by ADSL and LTE services, with majority
includes Parow and other suburbs access to fibre internet, excluding Parow
• Status: The tender for upgrade has (including Parow Industria) and portions of
been issued the Bellville CBD south of Voortrekker Road.
It is expected that fibre coverage will be
2.3 | Bellville wastewater treatment works extended to these areas in the near future,
through public and private infrastructure.
R144 million future refurbishment to increase
capacity.
Water
27
Photo by Henk KrugerSTUDENT HOUSING
STUDENT HOUSING IN THE GREATER TYGERBERG AREA
Around 100,000 students are enrolled the Cape Peninsula University of Technology
at tertiary institutions in Bellville and the and Stellenbosch University. Other prominent
Greater Tygerberg Area. In 2020, over 5,000 tertiary institutions include Boston City
students were living in the area, presenting Campus, the University of Stellenbosch
an attractive development opportunity for Business School and Northlink College.
developers of student accommodation and
student support businesses. The location and scale of student
accommodation facilities matches the
This creates a wide market of young, qualified prominence of the GTP as an educational
individuals who could take advantage of the node. There are a number of student
emerging amenities, cultural offering and accommodation facilities in the area by major
employment in the area. developers with planned new investments
already underway by new investors as well as
The student housing backlog as reported existing universities.
by the Presidential Commission on Higher
Education and Training stands at 300,000 Many students travel from across the country
beds for both public universities and public and the continent to participate in the quality
TVET colleges. education these institutions offer. In 2020
over 5,000 students were living in Bellville, in
Within the Greater Tygerberg Area there is 24 student residences, located both on and
a cluster of educational facilities (primary, off-campus.
secondary and tertiary) which contributes to
the area as an educational node. The GTP is driving the development of the
24-hour economy to support students during
Three universities fall within this area: the the day and at night.
University of the Western Cape,
28
Photo by David SavageStudent Housing
1. Disa Court
2. Hippokrates Residence
3. Toplin 2
4. Sheriff House
5. Faulls Student Residence
6. Southern Life Residence
7. Perejoy House
8. Toplin House
9. Regkam House
10. Theresa Court
11. Kruskal House
Bellville 13
9
12. Park Central
14
12 11
13. Old Mutual Student Residence
15
10
16 14. Belpark
15. Ileli House
7
16. De Goede Hoop
3 8
5 4 17. Gorvalla - Phase 1
6
18. Gorvalla - Phase 2
Parow 2
18 19. Kwikbake
Bellville train station 17 20. UWC On-Campus
21. CPUT On-Campus
22. Melade
1
23. South Point
22
20 Voortrekker Road
UWC 21 CPUT Mike Pienaar Boulevard
23
Durban Road
29TRENDS
Global Residential Property Trends Development Trends in the Greater Tygerberg Area
Younger and first-time buyers are opting for smaller homes in • Based on a 2018 study there has been a gradual and steady
more medium-density developments, where they can access a increase in flat rentals in line with the investment in affordable
wider option of amenities and services that are available 24/7,
and because of convenience, cost considerations and a reduced accommodation.
maintenance load. • Lower increases in sectional title property values over 10 years
compared to full title properties
This has led to the emergence of smaller apartment footprints • Greater demand for standard flats compared with upmarket flats,
and micro-units, which are 20% to 30% smaller than a
with rental increases of between 80% and 130% for standard units
conventional sized studio apartment. First-time buyers focus
more on location. Factors like congestion, long work hours,
increasing public transport costs and increasing fuel prices mean
people are willing to sacrifice other factors in order to live in
smaller, better-located properties (often sectional titles).
30TRENDS
A comparison with other Cape Town Oversupply of upmarket residential units in Steadily growing investor confidence
suburbs Cape Town CBD.
The Annual Residential Index has increased
Potentially lower development costs in There has been a lack of new affordable gradually year on year for both full and
Bellville. rental supply in the Cape Town CBD, and an sectional titles within the Greater
oversupply of upmarket apartments or units Tygerberg Area.
The costs and risks of developing affordable targeting higher income groups.
housing in the Greater Tygerberg Area are
potentially lower than the Cape Town CBD The 2020 FNB Commercial Property
due to lower land prices per square metre. This presents a potential opportunity for Finance Property Insights report speculates
the Greater Tygerberg Area to cater to the that affordability and basics will take centre-
Lower demand for commercial space and demand for affordable accommodation stage for the next few years. This means that:
significant demand for affordable housing. developments focused on lower-middle
income groups. • Residential developments towards the
Since 2011/2012, Grade A and B office more affordable end of the market are
vacancy rates have been decreasing in both Steady property values relative to other likely to be a key theme
Bellville and Cape Town CBD, with vacancy suburbs. • Affordable community shopping centres
rates in Bellville being consistently lower. will take preference, rather than the
Where supply of office space exceeds the The average price per square metre of full- larger and more costly Regional and
demand, the conversion to residential space title residential property within the Greater Super-Regionals
is gaining popularity. This is especially true Tygerberg Area has remained relatively • One could expect to see categories such
in CBD areas where there is a scarcity of steady over the past 10 years, relative as storage space outperforming non-
mid-market residential property for young to other suburbs in Cape Town, namely essentials, like the Hotels and Leisure
professionals looking to live closer to work. Milnerton, Observatory and Woodstock. category
Woodstock and Observatory have
experienced very similar growth in residential
property prices, with growth rates of 256%
and 203%, respectively, over the past decade.
31LAND
A number of brownfield and greenfield
sites across the Greater Tygerberg
Area are either in the process of being
The precinct approach will address issues
such as social development, movement
patterns and the need to consider urban
The City has identified the optimal sites
within these precincts. It will work with
SHIs, other stakeholders and the private
developed, or have been earmarked as ideal management in the area. sector to undertake the following tasks on
for development by the City of Cape Town. these sites:
They form part of a phased release of public For investors:
land and buildings for the development of With Social Housing Institutions (SHI), the • Refurbishment of brownfield sites along
affordable accommodation by social housing City will invite investors to participate in the the Voortrekker Road Corridor
institutions and the public sector. redevelopment of its land parcels, bound • Buying buildings and land in the
by specific conditions that will assist in the precincts along the Voortrekker Corridor
These sites could have a total development regeneration of the area. The City and SHIs • Releasing some land owned by the
footprint of 10.5 hectares and over an will also develop a masterplan for the entire City and Western Cape Government
estimated 5,800 units across four station area to further grow investor confidence over for mixed-use developments and are
precincts. Other greenfield sites in the area the coming two decades. working with Passenger Rail Agency
present additional possible development of South Africa (PRASA) on the
opportunity, subject to planning. The precincts identified include: development of their land parcels
• Parow Station Precinct
The City of Cape Town’s goal is to secure land • Tygerberg Station Precinct
for the delivery of affordable accommodation • Goodwood and Elsiesriver Station
before an anticipated upswing in Precinct
property prices. This will safeguard • Avondale Station precinct
the accommodation against income • Hardekraaltjie Precinct
displacement (gentrification) and ensure
accommodation for lower income groups in
perpetuity.
32LAND
Residential units
Density: Parking: Typologies: Status:
(potential):
3-, 4- and 11-storey residential;
Parow Station Precinct 948 761 du/Ha 0.14 to 0.33 bays per unit Planning
11-storey mixed-use
99 surface parking for
Tygerberg Station
Over 698 residential units 596 du/Ha building 1, married 11-storey mixed-use Planning
Precinct quarters (0.14 ratio)
Goodwood and 11-storey mixed-use; 3- and Planning to advertise sites through an
Approx. 550 bays with
Elsiesriver Station Around 2 112 residential units 544 du/Ha 4-storey walkup; 8-storey RFP process and allocate to a social
0.14 to 0.34 parking ratio
Precinct buildings housing company
Avondale Station Approx. 340 bays with
2 080 residential units 508 du/Ha 3- and 4-storey walkup Planning for land transfer
Precinct 0.14 to 0.34 parking ratio
33Avondale Station Precinct Sites
Five publicly owned sites (City and
Province) Hardekraaltjie Precinct Sites
Location: Other greenfield sites in the
Various sites near Avondale Station area present additional possible
Development Area: 4.09 Ha development opportunity, subject
to planning.
De Grendel Location:
Hardekraaltjie, Voortrekker Road
Avondale Development Area: 65 Ha
Bellville CBD
Bellville CBD
CapeTown
Cape Town CBD
CBD
Hardekraaltjie
Parow
Tygerberg
Goodwood and Elsiesriver
Tygerberg Station Precinct Sites
Parow Station Precinct Sites 3 City-owned sites
Goodwood and Elsiesriver Station 1 City-owned park Location:
Precinct Sites 5 under-used parking lots 1 privately owned vehicle
5 unused private buildings next to City- 1 private site (not prioritised) showroom on the corner of
owned buildings that are currently used Location: Voortrekker and Delaney Road,
as a second-hand car dealership and for Between Voortrekker and McIntyre Parow
car repairs. Road, Parow CBD Development Area: 1.17 Ha
Location: Development Area: 1.25 Ha
Corner of Voortrekker and Halt Roads
Development Area: 3.88 Ha
34MAJOR INVESTMENTS
Completed
Completed
1.1. Parow
Parow Centre
Centre
2. Karl Bremer Bellville
Durban Road 2. Karl Bremer Bellville Health
Health Office
3.
Office
Stanford Industrial Park
Mike Pienaar boulevard 4.3. Stanford
New City Industrial Park
of Cape Town
4. New Cityand
Water of Cape Town Water
Sanitation
and Sanitation
Head Office Head Office
11 N1 5.5. UWC
UWC Faculty
FacultyofofCommunity
12
and Health Sciences
Community Bellville
and Health
Sciences Bellville Campus
Campus
N1 6 6.6. Oak
Oak Corner
Corner
Jack
Muller 7.7. Saratec
Saratec
17
Park
2 8.8. South
South AfricanMedical
African Medical Research
8 Research Council
Council
Under Construction
Elizabeth
5 9.Under Construction
Glenhaven
4 Park
13
9. Glenhaven
10. Stellenbosch University
1 10. Stellenbosch University
Biomedical Research
14
10 Bellville
Train Station
Biomedical
Institute Research Institute
Voortrekker Road
Planned
Planned
3 8 11. Bellville Velodrome
Velodrome Galleria
11. Bellville
15 Galleria of Stellenbosch
12. University
16 12. BellPark
University of Stellenbosch
9 Hospital Precinct
BellPark Hospital Precinct
13. Bellville Student Housing
13. Blanckenberg Student
Tower
Housing
7 14. Goodwood Social Housing
14. Goodwood Social
Project
Housing Project
15. The
15. TheGlen,
Glen, Glenhaven
Glenhaven
16. Anchorage,
16. Glenhaven
Anchorage, Glenhaven
17. Tygerdal
17. Tygergal Depot
Depot
35MAJOR INVESTMENTS
COMPLETED CONSTRUCTION UNDERWAY
Parow Centre Stanford Industrial Park Parow Centre - Phase 3
R1 billion This industrial building is situated in Parow The Parow Centre mixed use development
Parow Centre and its surrounding facilities Industria and comprises 2,000m2 of industrial consists of three phases of which the first two
are undergoing a five-year upgrade plan. space, which can be subdivided into two have been completed. Phase 3, the proposed
The upgrade entails the refurbishing of Pick units of 1,000m2 each. residential development, will be completed
n Pay and the surrounding shopping centre, by December 2022. The project spans
the introduction of an additional four levels New City of Cape Town Water and 1.8 hectares. The Parow Centre shopping
of new parking bays, and the refurbishment Sanitation Head Office centre will be transformed into a mixed-use
of existing council offices. A 20,000m2 R270 million development, with R250 million already
commercial/office space and 25,000m2 The City’s new Water and Sanitation head committed to the Phase 1 renovations and
hospital have also been introduced into the office, situated on Voortrekker Road, was extensions having commenced in 2019. It is
plan. A new train station stop will also be part completed in 2018 at a cost of R270 million. expected to include 1,200 residential units
of the upgrade. The four-storey, 10,000m2 building was and add over 40,000m2 of space.
awarded a GBCSA 5-Star Green Star rating.
Karl Bremer Bellville Health Office Glenhaven - Urban Status Rentals
R128 million UWC Faculty of Community and Health R190 million
A part of Karl Bremer Hospital, the new Sciences Bellville Campus Glenhaven is a social housing development
R128 million Bellville Health Park provides R244 million by Urban Status Rentals (previously Devmark)
accommodation for over 320 public servants The University of the Western Cape located in Bellville South. The City’s
from the Department of Health across completed its conversion of the 10-storey Glenhaven project consists of 512 social
14,000m2. The building was awarded a Jan S Marais Hospital in Bellville CBD. The housing opportunities as well as 253 gap
GBCSA 5-Star Green Star rating. It will create new Community Health Sciences building rental housing units.
minimal waste, use passive solar design, and cost R244 million and will provide state-of-
offer bicycle-friendly facilities. the-art health-care training for nearly 2,000
future nurses and other health professionals.
36Stellenbosch University Biomedical Research Institute
R2.3 billion
Construction of a Biomedical Research Institute (BMRI) by the University of Stellenbosch has commenced at the Faculty of Medicine
and Health Sciences in Bellville.
It is expected to be completed by 2022 and will be one of the most innovative and advanced biomedical research centres in Africa.
37
Photo by Roelof Rabe ArchitectsPLANNED
Bellville Velodrome Galleria Goodwood Social Housing Project Anchorage, Glenhaven - Urban Status
R3 billion Construction is underway at a R380 million Rentals
The Galleria is a mixed-use development of social housing investment providing 1,065 2020-2021
11.5 hectares around the Bellville Velodrome rental housing units on a site parallel to R200 million
and Athletics Stadium. The Bellville Goodwood train station, targeting household Construction of the Anchorage Social
Velodrome arena will be redeveloped to incomes between R3,500 and R15,000 per Housing Project, commenced in October
increase capacity to 18,000. The surrounding month. The housing will comprise six-storey 2018 and has a total of 512 social housing
land will be developed into mixed-use urban apartment blocks on both sides of the railway units. The first phase of social housing
developments featuring retail, business, line, offering units ranging from bachelor’s consists of 416 apartments arranged in four-
residential, hotel, and conference facilities. flats to two-bedroom flats. The project is a storey walk-ups in five buildings. To date,
partnership between the City of Cape Town, 209 of the completed 416 units as part of the
University of Stellenbosch BellPark the Western Cape Government’s Department first Phase are occupied. The second phase
Hospital Precinct of Human Settlements, the social housing consists of a single four-storey building of 96
R250 million institution DCI Community Housing Services, units.
The University of Stellenbosch is planning PRASA, Intersite Asset Investments and the
to develop a new 30,000m2 250-bed National Housing Finance Corporation. Tygerdal Depot
hospital precinct. A new access road will be A higher density mixed residential infill
developed to provide access to the hospital The Glen, Glenhaven - Urban Status development scheme with possible
precinct off Carl Cronje Drive. The entrance, Rentals commercial/community-use elements
parking areas, sidewalks and external public 2021 centred around the railway station on its
spaces will be upgraded, and a covered The Glen, Glenhaven, is a greenfields project eastern edge. While facilitating appropriate
walkway will be extended to the main in Bellville South measuring 72,428m2 and access to the railway station, the site will also
hospital entrance. Once completed, the is situated on the corner of Peter Barlow incorporate public open space elements and
facility will offer a 24-hour emergency service. and Bester Roads within Restructuring accommodate stormwater functions in an
Zone District D, Cape Town. This integrated innovative and multi-functional way.
Blanckenberg Student Housing housing project will provide affordable mixed
The proposed building provides a total tenure housing opportunities.
of 2,592 beds designated as student
accommodation along with ground floor
retail space. This development will respond
to the urgent need for student housing in the
area.
38IDEAL LOCATION
W ith Bellville, Cape Town’s secondary
city at its heart, the Greater Tygerberg
Area spans over 50 square kilometers. The
81% of the geographical area is within a 1km
walking distance (+- 12min) to a place of
education, whether ECD, primary, high school
The area comprises approximately 500,000m2
of office space, equating to over 25% of all
office space (A+, A and B) in the Cape Town
infrastructure and services in the Greater or tertiary. metropolitan region. It is estimated that the
Tygerberg Area are equal, and in some VRC accounts for 50% of formal employment
cases, superior to major international cities. Over 5,000 students are living in 24 tertiary and 85% of industrial employment in the
Its package of assets, combined with the student accommodation buildings both Cape Town metropolitan region.
vibrancy and multicultural nature of a leading off- and on-campus. This is part of a trend
African city, highlights the area’s untapped in which investors are buying old buildings Bellville accounts for 22% of the city’s
potential. This potential is maximised by the and converting them into major student employment. There are over 1000 companies
presence over hospitals/clinics, 5 public accommodation developments. located in the Bellville area, ranging from
transport interchanges, 9 train stations and leaders in financial services and insurance
EMPLOYMENT
150 education institutions. such as Sanlam, to retail giants TFG and
smaller tech and IT start-ups and
EDUCATION
professional services.
Residents in affordable housing developed
in the Greater Tygerberg Area would benefit
Over 150 educational facilities are housed from high levels of accessibility to diverse
within the Greater Tygerberg Area. employment opportunities in relation to the
This comprises 13% Early Childhood province and city region.
Development (ECD), 78% Grade R – Grade
12 and 9% tertiary education. As of 2017, The Bellville CBD and Tygervalley area
over 100,000 students were enrolled in are key nodes for large corporates and
the Greater Tygerberg area. This number government agencies in the formal sector.
increases annually. Century City, a major commercial node is
also within easy access along the N1. This is
further supported by major industrial nodes
within easy travel times of most parts of the
Greater Tygerberg Area.
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