Cape Town’s Golden Acre housing targets ‘missing middle’

Construction has officially started on the residential component of the R780 million Golden Acre redevelopment, which will convert the 24-storey tower into over 400 inner-city rental units.

The residences are aimed at young professionals, with studio apartments expected to start at around R10 000 a month.

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Beyond the residential component, the Golden Acre retail precinct will also undergo a facelift, with operating hours set to extend beyond conventional trading times.

On Thursday, Cape Town Mayor Geordin Hill-Lewis led a walkthrough of the Golden Acre precinct. He was joined by mayoral committee member for economic development James Vos, city officials, and the development team.

The visit focused on the progress of the residential building project, safety interventions, and the rehabilitation of key commuter routes, including the pedestrian bridge linking the precinct to the adjacent transport interchange.

The redevelopment is being undertaken by Putirex – a joint venture between Cape Town property developers Gary Moore and Roelof Delport.

Long-term focus

Hill-Lewis says the project was never intended to chase maximum short-term profits.

“Our investors never planned that this must be chasing the biggest profit and sell it off. The Golden Acre redevelopment is a significant investment in Cape Town’s inner city and an important step in strengthening one of our most vital commuter precincts.

“Projects like this play a key role in bringing people closer to work opportunities and improving public spaces.”

Thursday’s site visit followed the formal commencement of construction on the residential component and provided an opportunity for the city and private partners to align on upcoming retail upgrades, as well as shared commitments around safety, accessibility and commuter-focused precinct regeneration.

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The Golden Acre is located at the centre of Cape Town’s largest public transport interchange, surrounded by the main taxi rank, the rail station and the central bus terminus.

Since opening in the late 1970s, it has been a thoroughfare for commuters who move through the inner city daily.

Rental units 

Moneyweb previously reported that none of the apartments will be sold to private investors. That model remains unchanged, with residential operator Neighbourgood appointed to manage the units and provide weekly servicing.

Vos says “the best part” of the investment is that it will deliver more than 400 affordable homes for Capetonians who “live and work in the city”.

“Many people are currently spending 30% or 40% of their income just on public transport. Now they can live right here.”

Lesego Majatladi, managing director of Gracht Asset Management, which has been appointed to oversee the redevelopment, says the target market is what is often referred to as the “missing middle”.

“These are young working professionals who earn too much to qualify for state-subsidised housing but too little to comfortably afford market rentals in the CBD,” he adds.

Studios are expected to start at around R10 000 a month.

Majatladi says this figure should be viewed through the lens of total living costs rather than rent in isolation.

“If you take someone who is financing a car at R5 000 or R6 000 a month, paying R2 000 for insurance and another R2 000 for fuel, they’re already at R10 000,” he notes.

“And they’re still paying rent wherever they live. If they can live in the city and remove the car from the equation, that changes their quality of life.”

According to Majatladi, the interior layouts were designed specifically with young professionals in mind, using built-in joinery and compact design principles to optimise smaller spaces.

“We’re deliberate about how people actually live. For example, this market doesn’t really bake. We’ve swapped ovens for air fryers to free up space.”

The clubhouse will be built on top of the parking structure and will include a garden, an outdoor running track, restaurant facilities and an outdoor cinema concept.

Majatladi describes it as a “green lung” within the dense CBD environment.

Retail precinct

On the retail side, the redevelopment aims to shift Golden Acre from being primarily a commuter corridor to a more integrated, extended trading environment. Earlier plans described an 18-hour retail precinct that would serve both residents and inner-city workers.

Majatladi says negotiations are under way with existing tenants about their future space needs, while interest from new retailers is increasing.

He previously told Moneyweb that the refurbished retail precinct will offer a “better-quality” shopping experience.

“That means rethinking the tenant mix.”

Upcoming auction

Vos says the Golden Acre redevelopment ties in with the city’s push to release underutilised public land for redevelopment.

“That’s why we are pressing ahead with the release of properties across the city on 26 February, when we’ll be doing an auction of city properties that we have taken through a process of rezoning and making investment-ready to bring in the private sector.”

First occupation of the residential tower is expected from 1 December, with tenants moving in on a phased basis as floors are completed.

Read: Cape Town’s new plan for inner-city housing

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