36 Bedroom Apartment / flat for sale in Observatory

A well-positioned development site in Observatory, one of Cape Town’s fastest-growing urban precincts. The property is located on Anson Street, just off Station Road and Liesbeek Parkway, within 1 km of the Riverlands development and Amazon’s African headquarters, which accommodates approximately 2,000 employees. The Site The erf measures 861 m2 and contains an existing 1,300 m2 building across two floors, partially renovated for lodge or student accommodation use. MU2 zoning permits 100% site coverage and a floor area ratio (FAR) of 4, allowing for 3,520 m2 of gross developable area. The site includes on-site parking and a wraparound yard with landscaping potential. Demand drivers in the area are well established, with strong demand from student accommodation, young professional rentals, and short-term hospitality, supported by proximity to UCT, major employment nodes, and ongoing urban investment. Option 1 - 36 Units (existing structure) This scenario is based on existing approvals and utilises the current building structure. It comprises 36 furnished units let at R8,000 per month, with a 10–15% allowance for management fees and vacancy. Total development cost: R27.0m Estimated yield on cost: 11% Option 2 - 120 Units 9ground up development) A full redevelopment to maximise permitted bulk. The scheme comprises 120 newly built furnished units let at R10,000 per month. Total development cost: R58.3m Estimated yield on cost: 15%