Cape Town – Cape Town’s prime real estate market is set for prosperity in the year ahead, with prime forecasts growing by 5% this year, according to research by independent real estate consultancy Knight Frank.
Mayco member for economic opportunities and asset management James Vos said: “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.”
“Over the last three financial years, 155 properties were sold and transferred, with a total sales value of R220.8 million. 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.
“Most recently, in January, Council gave the green light to a number of property transactions which demonstrates the City’s commitment to release under-utilised land for its most appropriate use,” said Vos.
He said those include an extension to a 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.
“The City’s smart real estate approach to get the best economic and social value from our assets is evident in the volumes and value of property disposals and leases being processed by the Property Management Department as well as Council’s approvals.”
“Going forward, there are also plans to resume virtual auctions to make City property transactions more accessible to the public.”
As the City drives its smart real estate transactions, a Sars tax incentive, the Section 12J, has opened property-buying options in Cape Town’s inner city. Section 12J of the Income Tax Act was introduced in 2009 by the government to encourage taxpayers to invest in local companies and receive a 100% tax deduction of the value of their investment.
Head of sales at Anuva Investments Andrew Friedman said Sars’s section 12J incentive enabled taxpayers to invest in South African companies instead of paying income tax.
“The Section 12J tax incentive is proving to not only be an excellent investment opportunity, but as we get closer to our annual tax year-end, it’s clearly gaining popularity as a well-informed solution to a heavy tax burden,” said Friedman.