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Analysing the Market Value of Land Accommodating Logistics Facilities in the City of Cape Town Municipality, South Africa

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  • Masilonyane Mokhele

    (Faculty of Informatics and Design, Cape Peninsula University of Technology, Cape Town 8000, South Africa)

Abstract

The world is characterised by the growing volumes and flow of goods, which, amid benefits to economic development, result in negative externalities affecting the sustainability of cities. Although numerous studies have analysed the locational patterns of logistics facilities in cities, further research is required to examine their real estate patterns and trends. The aim of the paper is, therefore, to analyse the value of land accommodating logistics facilities in the City of Cape Town municipality, South Africa. Given the lack of dedicated geo-spatial data, logistics firms were searched on Google Maps, utilising a combination of aerial photography and street view imagery. Three main attributes of land parcels hosting logistics facilities were thereafter captured from the municipal cadastral information: property extent, street address, and property number. The latter two were used to extract the 2018 and 2022 property market values from the valuation rolls on the municipal website, followed by statistical, spatial, and geographically weighted regression (GWR) analyses. Zones near the central business district and seaport, as well as areas with prime road-based accessibility, had high market values, while those near the railway stations did not stand out. However, GWR yielded weak relationships between market values and the locational variables analysed, arguably showing a disconnect between spatial planning and logistics planning. Towards augmenting sustainable logistics, it is recommended that relevant stakeholders strategically integrate logistics into spatial planning, and particularly revitalise freight rail to attract investment to logistics hubs with direct railway access.

Suggested Citation

  • Masilonyane Mokhele, 2025. "Analysing the Market Value of Land Accommodating Logistics Facilities in the City of Cape Town Municipality, South Africa," Sustainability, MDPI, vol. 17(13), pages 1-24, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:13:p:5776-:d:1685598
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    References listed on IDEAS

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