R 17 000 000 | 36.0 bed property 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%