Page 1 Template BD_Homefront straussv 12:41:18 13/10/16 HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 1 SEPTEMBER 2023 WWW.BUSINESSLIVE.CO.ZA A look at new residential builds going up in the Mother City. See page 4 Still rising 3 HERE WORK IS LOTS OF PLAY | 6 SEA POINT WELCOMES BRIGHT NEW APART HOTEL 1 & 2 Bedroom Apartments BOOK A TOUR Sales Enquiries: 087 537 0539 |
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industrial structure with art, colour and unusual creative elements to bring the space to life.”
The Trend team worked closely with the client to understand the company’s culture as well as learn about the elements that would appeal to their staff. The design concept is based on Impact’s circular logo, which is pulled through in various ways from the round entrance doorway to reception, a think tank ball pit, bleacher seats, acoustic panels and furniture.
LET THE LIGHT INSIDE
Stocks says the design motif came about after they understood how the staff interacted and operated.
“They often huddle in teams and collaborate as groups in a ‘circle’,” says Stocks. “We used this motif throughout the space to create soft and interesting lines. Their office space has a full view of Table Mountain, so we further used the circular motif by creating a tunnel leading from the waiting area into the offices, which guides your eye to the magnificent view.”
Most of the office area features glass storefronts. Open-plan desks are placed here, allowing occupants to enjoy a better user experience with ample natural light and scenic views.
“We also incorporated a lot of greenery in strategic areas to separate zones and soften areas,” says Stocks.
THE HEART OF THE MATTER
A large open kitchen area became the heart of the office donning a fun modern colour palette with greenery and entertainment facilities. This space encourages team gatherings and aims to foster a culture of a shared thriving work environment. Employees can utilise the space to hot desk, collaborate and enjoy lunches.
Stocks says the Western Cape is experiencing an influx of people semigrants which has seen businesses letting more space and others opening up new offices. This has led to a number of businesses letting more space and others opening up new offices.
PRODUCED BY ARENA PROPERTY PUBLISHING EDITORIAL TEAM Editor: Debbie Loots Designer: Samantha Durand ADVERTISING SALES Chantelle Balsdon chantelle@augmentcreative.com 084 061 7888 Wendy Navarra wendy@augmentmentcreative.com 082 894 5617 A PUBLICATION Production: Lucea Goosen HOMEFRONT XXXXX WORDS: STAFF REPORTER AND SUPPLIED :: PHOTOS: JOHANN LOURENS A design company transforms their client’s offices in a record time into a fun and friendly space to work A quick and quirky turnaround
The COVID-19 pandemic highlighted the effectiveness of the hybrid work model, leading to the implementation of booths and pods in offices to facilitate virtual meetings. This is according to Western Cape director of the Trend Group Lloyd Stocks, who says these facilities are no longer a trend but a necessity. Trend Group is an interior design and refurbishment specialist company who just completed a 1,900m² design-and-build fitout for the partnership management platform Impact at Century City in Cape Town. They finished the project in a record eight weeks. REFLECTING THE COMPANY CULTURE Impact’s brief included an unconventional, fun and quirky design approach. “And, it turned out to be very successful,” says Stocks. “Impact’s new home is bold, playful, and completely reflective of its brand and culture. We combined a clean,
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The Barracks
flexible leasing choices and co-working amenities across various developments leaves them spoilt for choice. Once complete, these new developments will add thousands of homes to the CBD. In 2022, the number of residential units here was 6,827, up from 5,791 recorded at the end of 2021 and 4,954 at the end of 2020.
Last year, Neighbourgood Reserve - a R75m development offering fully furnished loft apartments, co-living and co-working amenities in a community-centric environmentwas completed, while four others,
with a total value of R1.48bn, were under construction. These include the R60m Vida d’Chette on the Foreshore, which offers flexible and shared letting, and The Tokyo (R150m) and The Carrington (R70m), both on Loop Street. Moreover, the R1.2bn The Fynbos in upper Bree Street is garnering a lot of excitement. Set to become Africa’s first biophilic building, its façade will include 30 types of trees and 20 types of shrubs, offering resident a unique “garden experience”.
Says Kane: “These new residential builds have the potential to change the character of inner-city precincts and will not only boost the retail economy in town but also prompt new business opportunities in the area as footfall increases.”
MIXING WORK AND PLEASURE
The pandemic’s impact on office space demand led Cape Town developers to transform commercial buildings into mixed-use properties (combining residential, retail or commercial aspects).
In 2022, three such projects were under way:
One Thibault: A transformation of the old Standard Bank building on Thibault Square, valued at R500bn. It successfully converted into a mixeduse space, integrating aparthotel and Airbnb-style accommodation within its residential section. The Barracks on Bree Street: This R150m redevelopment of a historic CBD landmark, formerly a warehouse and military barracks from the 18th century, is introducing a modern extension featuring 70 micro-units.
The Rubik: Valued at R600m, this
One Thibault represents a notable level of sales compared to the pre-Covid-19 period.
mixed-use development combines premium residential units with more than 5,000m² of top-notch office space in an elegant skyscraper.
ONE TOWER AT A TIME
Amdec Group’s Harbour Arch, a sustainable mixed-use development, is being built on the 5.8ha Culemborg site near the N1 and N2 highways. Valued at R15bn, it encompasses 200,000m² of usable space and features about 2,500 apartments across six towers. The development is set to unfold over the next five to 10 years.
“We don’t want to flood the market with units. We are on track with our master plan for Harbour Arch,” says Amdec Group CEO James Wilson.
“In the best-case scenario, Harbour Arch will be completed in the next five years. In the worst case, it will be completed in the next 10.”
Its first tower valued at about R2.4bn was launched early this year and includes 80,000m² of built form, 560 residential apartments, restaurants, high-end vehicle retailers and about 1,200 parking bays. The apartments are priced from R2.1m to about R8m each.
Similar to Amdec’s sustainable development, Melrose Arch in Johannesburg, Harbour Arch also embraces green practices. Numerous buy-to-let investors have bought as many as five units for rental purposes. Construction will begin on Tower Two once Tower One has been fully let.
In November last year, Wilson said: “The Amdec Group is deeply committed to redressing the injustices of the past, which is why we voluntarily elected to incorporate
affordable housing at our Harbour Arch mixed-use development.”
CURVE APPEAL Horizon Capital’s residential development The Vera in Vredehoek in the City Bowl is nearing completion. Designed with curved shapes and large windows to allow in views and light, The Vera is a modern take on the art deco style predominant around the suburb, thus respecting and supporting the character of the area and community.
The Vera is also designed considering responsible environmental practices, which make it easy for residents to recycle waste, save electricity and so minimise their environmental impact. Custom workspaces are also designed for each apartment and uninterrupted power supply and fibre internet connectivity make for the perfect work-from-home space. State-of -the-art security and parking are also part of the deal.
Comprising 15 units, only two are still available for sale – a northfacing, two-bedroomed unit at R4.295m and a south-facing, twobedroomed unit at R4.625m.
Horizon Capital’s newest two developments in Vredehoek, The Poplar and The Holly, offer the same quality and considerate design.
The estimated completion date of The Vera is December 2023, The Poplar, December 2024 and The Holly, March 2025.
CITY SALES PERFORMANCE
According to the SCCR, the greater Cape Town residential market performed strongly in 2022, even with the rise in interest rates.
Remarkably, the CBD managed to maintain its stability amid declining sales and prices, recording more sales than before the pandemic began.
The median price of sectional title properties in the CBD experienced a dip from R1.71m in 2021 to R1.47m in 2022, marking a decrease of 13.8%. While the 648 units sold in the CBD during 2022 were fewer than the 750 units sold in 2021 – a reflection of the market rebound after pandemic-driven activity – this still
RENTAL MARKET BOOM
At the close of 2022, Property24.com listed 57 rental apartments in the central city. This number is significantly lower than the 217 units listed at the end of 2021 and the 475 units listed at the peak of the pandemic in 2020. Most of these units were listed as fully or partially furnished. The Carrington
HOMEFRONT HOMEFRONT PROPERTY WORDS: DEBBIE LOOTS :: PHOTOS: SUPPLIED An overview of Cape Town CBD’s thriving residential development sector including a quick look at neighbouring Vredehoek
Urban bliss
The latest edition of the State of Cape Town Central City Report 2022 – A Year in Review (SCCR) brings good news concerning new residential property developments in the Mother City. Published annually by the Cape Town Central City Improvement District (CCID), this 11th edition of the report shows that eight of the 22 property developments under construction in 2022 are residential builds estimated to be worth about R1.65bn. The total of 22 new developments with a net worth of R3.555bn adds to the overall value of all property in the CBD, which is set at R42.9bn according to the City of Cape Town’s 2022 property evaluation. CCID chairperson and CEO of specialist property developer Boxwood Property Fund Rob Kane says the new developments add to the ongoing vibrancy and economic stability of the Cape Town CBD, which continued to open its doors to an increasing number of national and international visitors, including digital nomads, solo travellers and semigrants from other provinces. INNER-CITY BOOST Increased competition in the CBD sees residential developments kitted out with top-of-therange fixtures and fittings. Services prioritise proximity and convenience, while interiors offer high-quality fixtures and fittings, all accompanied by eco-credentials. Additionally, for investors, the abundance of
Harbour Arch
The Fynbos
The Vera in Vredehoek is currenly under construction and the render (inset) shows the development on completion in December
Bloemfontein offers value for money
The crowd-sourced database of comparative living costs
Livingcost.org named Bloemfontein in the Free State one of the world’s most affordable cities.
“The average cost of living for one person in Bloemfontein, including rent, is $644 (R12,274),” says CEO of BetterBond Carl Coetzee. “It ranks the city among the top 23% of least expensive cities in the world.”
Furthermore, Lightstone property data shows the Free State has the highest ratio of affordable properties. “With its favourable cost of living and accessible property prices, Bloemfontein has seen a boom in property sales in the past two years, with sectional title properties performing particularly well,” says Coetzee.
Property24 data shows that sectional title sale volumes have remained above 2,600 annually since 2021. This increased demand has pushed up the average sectional title sale prices from R750,000 in 2020 to R950,000 currently.
“Yet, compared with other regions, these prices are still competitive
and appealing to particularly firsttime buyers,” says Coetzee.
In Cape Town, the average sale price of a sectional title unit is currently R1.7m. Property24 reports that almost a third of buyers in Bloemfontein in the past year were between the ages of 18 and 35.
“Many of these buyers would benefit from the government’s R1.1m transfer duty threshold. Furthermore, buyers of properties in the many new developments coming onto the market in Bloemfontein would also be exempt from paying transfer duties.”
New developments, such as the Arcata Lifestyle Estate in the east of the city, appeal to new buyers looking for low-maintenance properties with an array of lifestyle amenities.
Bloemfontein’s appealing lifestyle also makes it an attractive option for families. Property24 data shows that 35.7% of buyers in the past year were between the ages of 36 and 49.
“Bloemfontein is the ideal city to raise a family and put down roots,” says Coetzee.
Many families from other provinces, with children at top schools such
as Grey College and St Andrews, buy property near the schools to use during term time. Students who move to the province to study at the University of the Free State often buy their first properties in the area.
“We are also seeing a growing interest in buy-to-let investment to meet the increased demand for student accommodation,” he says.
The Free State offers plenty of economic and employment opportunities, with the Free State Development Corporation providing support to SMMEs, manufacturing, trade and the promotion of investment. Two of the province’s outstanding characteristics are its contribution to South Africa’s staple food production and its location, sharing boundaries with six other provinces and the Kingdom of Lesotho.
It also provides access for contractors to the vast Lesotho Highlands Water Project, With a sharp decline in rail transport, the Free State has become a crucial hub for road freight –especially the Harrismith node on the N3, and the N8 corridor.
Sea Point welcomes a swanky new
High rental demand sees tenants default
Although the residential rental property market has remained resilient in
demand for residential rental property.”
However, TPN’s data reveals that tenants in good standing have declined slightly for three consecutive quarters as economic challenges continue to filter into households. This mirrors the result of the National Credit Regulator’s age analysis which indicates that almost all consumer credit types in good standing deteriorated slightly in the same time period. TPN’s Squat Index, defined as the number of tenants who on a monthly basis fall into a category of non-payment, has also seen an increase in the last two quarters. Marcus points out that a decrease in credit good standing is typically a predictor of rental payment rates.
“Although overall sentiment in the sector remains positive, property owners need to consider how a tenant’s late or no payment will impact them.
Tenants classified as squatting pose a severe risk to the ability of landlords to collect and recover rental due.”
The residential market recovered faster than most property sectors post Covid-19 with reduced vacancy rates and steadily recovering rental escalations. The sector’s recovery was assisted by an aggressive interest rate hike cycle which dissuaded potential buyers from entering the property market.
FNB’s House Price Index, which peaked in the first quarter of 2021 to 5.1%, dropped to 2.3% in the first quarter
of 2023 as a result of interest rate hikes and is expected to remain around this number for the balance of 2023.
Rental escalations have been recovering since mid-2021 as demand for residential rental property grew providing property owners with an opportunity to play catch-up with the consumer price index (CPI) which, at the end of March 2023, was 7.1%.
The TPN report found that tenants in the Western Cape are the most committed to paying their rental while tenants in KwaZulu-Natal have the highest number of squatting tenants, up from 4.67% in the fourth quarter of 2022 to 5.09% in the first quarter of 2023. Gauteng is only marginally behind in the number of squatting tenants at 4.58%. When it comes to rental payment performance by the rental band, tenants paying R3,000 or less a month, the lowest rental band, continue to struggle to pay their rental with a continued deterioration of tenants in good standing. Tenants paying between R7,000 and R12,000 have been the best performing category of tenants since 2014 with the highest proportion of tenants in good standing of all rental bands, followed by tenants paying between R12,000 and R25,000 per month. The luxury market – defined as rental properties costing more than R25,000 per month – has the highest vacancy rate.
new apartment hotel in Sea Point for the developer Signatura.
Going up next to the old fire station in Kloof Road, the fullservice apartment hotel, managed by Perch Short Stays, will comprise 54 self-catering apartments ranging in size from 25m² (bachelor studios) to 39m² (one-bedroom suites).
Tropicana has both heritage and planning approval, but apartments are not for sale. “Having been spared the ‘Hunger Games’ of having to pre-sell everything off-plan, we’re therefore allowed to push the envelope with an
to and respectful of its environment and that aims to be as characterful as the surrounding properties.
“The design is original, theatrical and sculptural – yet still speaks to the design vernacular of its Art Deco neighbours,” says Silke.
Product design company Dokter and Misses will be creating a number of custom furnishing items for the rooms including a strelizia lamp,
Rietveld-inspired beds and a number of other authentic pieces.
The restaurant Tasha’s will be opening on the ground floor with a sea facing terrace and garden in the back. The roof deck will offer guest a pool for cooling down in and offer views across the ocean.
“We love design and architecture and sometimes, to the detriment of the bottom line, we want things to be beautiful and fun. Only because, hopefully, the buildings will outlast us and when people see them, it will provoke some positive and joyful thoughts,” says Signatura and Perch Short Stays MD David Cohen. “We are also fighting a bit of the drabness that has crept into the residential development space where conservative designs ensure that most buildings just look very similar to each other.”
HOMEFRONT PROPERTY NEWS
recent quarters despite the financial stress consumers are under, the number of tenants in good standing deteriorated in the first quarter of 2023 in all provinces, according to TPN’s latest Residential Rental Monitor report. Waldo Marcus, industry principal at TPN Credit Bureau, says the resilience has been driven by high interest rates which has dissuaded potential buyers. The expectation of further interest rate hikes will help to retain a healthy rental demand for residential property. However, although rental growth continues to improve, Marcus says property investors need to keep a close eye on the financial health of consumers. The Residential Monitor Report reveals that vacancies were at 6.19% in the first quarter of 2023. TPN’s Market Strength Index, which measures the perceived demand and availability of supply within the residential rental market, remains strong at 9.14 points above equilibrium, a figure last seen in 2017. “Traditional market factors indicate that the residential rental market is buoyant with improved returns and lower vacancies,” he says. “Another interest rate hike before the end of the year is expected to further deter property purchases and retain healthy
Construction has started on Tropicana, a
edgier, more innovative design,” says Robert Silke from Robert Silke & Partners, the architect of the building. According to Silke off-plan sectional title developments often have to err on the side of the ordinary begging questions such as: “Could I live with that colour?”. He says hospitality offerings, on the contrary, must step out of the proverbial box and provide something cooler and more memorable – as guests often do want to take a break from their own lives. The development team collaborated with heritage consultant Ashley Lillie in their attempt to build a seaside building that is responsive
CORAL COVE IS BREAKING GROUND!
