Business Day HomeFront 17 November 2017

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 17 NOVEMBER 2017 WWW.BUSINESSLIVE.CO.ZA

MUST READ

New home for artistic expression PAGE 2

Housing gap for professionals PAGE 12

Keep tabs on hidden costs PAGE 18

Must-haves for apartment life Commercial property steady PAGE 22

The demand for sectional title property is resilient and will continue to grow as developers respond to the changing lifestyle needs and sustainability expectations of home owners

For more information please contact: our Rosebank Office on 011 268 1637/1 or Melrose Arch Office on 011 684 2995/6 pamgolding.co.za/property-developments

PAGE 8

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HOMEFRONT

From left to right: Fishermen, by Eija-Liisa Athtila, 2007; Mahmoud & Ayaz (floor), by Pierre Fouche, 2012; Give us a Poem, by Glenn Ligon, 2007.

ART

Invention at 23 Buitenkant New A4 Arts Foundation is leaving its mark WORDS: MELVYN MINNAAR :: PHOTOS: KYLE MORLAND

T

he red-brick gloom of Cape Town Central police station, infamously known as Caledon Square during the politically heady 1960s, looms diagonally across the road at 28 Buitenkant Street.

But here, at number 23, an older building of a different kind is freshly refurbished. The pervading spirit is one of enthusiasm and enterprise — one promoting culture, creativeness, artistic invention and freedom of expression.

The doors of the A4 Arts Foundation’s home base have been open only for a couple of months, but its fingerprints are already visible on the local art scene. News of its high aims for collaboration has spread.

OPENING EXHIBITION Its opening exhibition is a delightful group show with just the right edge. It was diplomatically launched when the high and mighty of the international art world were in the Mother

City for the opening of that other art space, the Zeitz Mocaa.

The contrast between the two in terms of purpose and size is mediated, in both cases, by successful refurbishment of old buildings.

Twenty-three Buitenkant is among the hotchpotch of buildings that line up and expand anonymously from the edge of District Six. The official museum for that sad history is up the road; the museum’s Homecoming Centre a block down. Around the corner is The Fugard Theatre, which is increasingly charting a distinct indigenous path.

Like these neighbours, the building — identified by a simple “A4” on the terracotta facade — wears its past on its sleeve.

Some of the original industrial trimmings that anchored its existence and enterprise remain as markers of its history, providing an ambience of genuineness. This makes for exactly the uncluttered environment where expression can take hold,

be nurtured and inspected.

Through simple glass doors, on the ground floor a welcoming counter leads to an extensive and growing art and research library, open to the public, and workstations.

Behind that a secured space guards an archive and storage for artworks.

All walls are neutrally white; metals black. Light is everywhere; spaces are open. An elegant utilitarian staircase sweeps up to the first-floor exhibition area.

ADAPTABLE The gallery is adaptable.

No matter how you experience it, it conveys a sense of workmanlike anticipation. The top floor is the closed space used for artists’ residencies, workshops and seminars.

A nifty canteen kitchen, a covered outdoors section and management offices spread out under the high roof. It is here where exposed Victorian rafters, as well as an original mid-century lift mechanism, are visible records of the building’s industrious history.

Josh Ginsburg is the

The A4 Arts Foundation

t

HOMEFRONT OPENING EXHIBITION: YOU & I

“The pervading spirit is one of enthusiasm and enterprise — one promoting culture, creativeness, artistic invention and freedom of expression”

A4 Arts Foundation’s energetic director.

At a table constructed from repurposed on-site wooden panels, he tells the fortuitous story of how a haphazard shop of importers, J-Lee Trading, was turned into a hub of artistic production.

Working with art patron and collector Wendy Fisher (the main sponsor of the foundation) Ginsburg’s interest is in the field of art curatorship and the management of artistic production and collection. It is from this relationship that the concept of the A4 Arts Foundation was born.

“Initially we were looking for about 300m 2 of space to activate certain elements of what we had in mind for the project,” says Ginsburg.

“When we heard this place was for sale we still had no intention to buy, but went to look. The middle floor seemed perfect to rent.”

possible to the character of the building but to create an array of different spaces for different modules of the project,” says Ginsburg.

“We prioritised adaptability and modularity.”

Breaking ground in September 2016, work was completed in April this year, on schedule and on budget.

Ginsburg is full of praise for the renovation team.

“They were all, from my point of view, the key to the fulfilment of our scheme.”

They include architects Sean Mahoney and Heidi van Eeden of studioMAS, the group responsible for Johannesburg art spaces Circa on Jellicoe and The Trumpet.

There is a sweet undertone to the title of this enterprising new art space’s first exhibition, suggesting intimacy, working together and enthusiasm for the future.

The works on show reflect that in a cheerful, mixed-up way.

You & I, the curators say, looks at how people come together, asking about the conditions, histories and dynamics of the “collective” — an upbeat buzz word in the manner of “culture workers”

and thus apt for what this space sets out to be. Curators Ziphozenkosi Dayile and Kemang Wa Lehulere have an exhibition that invites public participation.

Some works are collaborative projects and include photographs and sculptural installations, performances and videos.

The theme takes up on how people connect and disconnect.

There is vibrancy to the selection and diversity of artists. International names

such as Glenn Ligon, Yoko Ono, Malick Sidibé and Meschac Gaba complement bright local stars such as Zanele Muholi, Dan Halter and the Gugulective.

You & I runs until the end of January. Sourced mostly from art collections, the pieces are generally of exceptional standard.

It incorporates a public programme of live performances, screenings and discussions. It is well worth a visit. www.a4arts.org

Mend Piece (detail), by Yoko Ono, 1966-2015.

OPPORTUNITY They waited for the new owner to negotiate a rental, but a deal fell through.

Fisher saw an opportunity to inhabit the entire building. “We could really bring many more aspects of the project into existence.

So we managed to make it happen,” says Ginsburg.

From purchase to renovation to opening took 18 months — not long, given the challenge of dealing with age, wear and tear, and the rest. While J-Lee Trading packed up its shop shelves and cleared the upper floors over a few months, the new team planned the renovation.

“The idea with the design was to do as little as

Left: Bathroom attached to the office of the general manager with clean bath and dirty bath, by David Goldblatt, 1967.

Right: Amongst Men, by Haroon Gunn-Salie and James Matthews, 2014.

PRODUCED BY BLACKSTAR PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand

PUBLICATION

Copy Editor/Managing Editor: Michael van Olst Production: Joanne Le Roux Content Business Manager: Catherine Davis

ADVERTISING SALES Michèle Jones Susan Erwee

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HOMEFRONT HOMESENSE

Best bathrooms Organic elements juxtaposed with modern materials have taken hold WORDS: ANNE SCHAUFFER :: PHOTO: ISTOCK

O

nce primarily about function, today’s bathroom is a space designed to be a standout feature in its own right.

Kyle Turner from Luximo, supplier of the international high-end sanitaryware brand Roca, sheds light on trends influencing bathroom design:

Organic is back “Designers and homeowners are emulating Mother Nature as the ultimate source of design inspiration,” says Turner.

“Organic elements add warmth, uniqueness and a rich tactile sensation to the overall composition — wood, stone, metal and ceramics remain popular.

“These materials bring nature into our homes and, to stay within budgets and ensure easy maintenance and longevity, numerous indistinguishable

imitative products are gaining traction. These are used to great effect when juxtaposed with modern materials and super-clean, streamlined design lines that offer a practical and simple arrangement of spaces.”

Leading colours Darker, more moody tones are making a comeback throughout the home, and the bathroom is no exception.

Turner says a rich palette of grey hues is enormously popular, used on walls and floors, and juxtaposed against brilliant white sanitaryware.

“Matte, nude and neutrals offer the perfect combination when paired with darker greys and blacks, and offer a great way of introducing contrast to the overall colour palette.

“Combinations of pastel tonalities in blue, green, salmon and ash are also on

the rise, but only when used as accent tones. The classic all-white, monochromatic bathroom never seems to go out of fashion.”

Metal and marble mania Turner says marble cladding on the walls and metal accessories in gold or copper are bang on trend. “There’s been a stylish revival of this 1970s aesthetic. Brass has really become the most fashionable metal for the bathroom and makes an irresistible combination when paired with marble.”

Play with geometry The trend of geometric shapes inspired by the strong lines of architectural and structural elements has really come to the fore with regards to tiling and ceramic cladding.

“Hints of the Orient and Mediterranean are being introduced in a modern and dynamic

way in new bathroom tile ranges,” says Turner.

“Look at the rising popularity of the hexagonal tiles for wall and floor coverings. It’s a very popular design combination with multiple variations able to be interpreted in many ways.”

Deluxe showers The bath has traditionally taken centre stage in bathroom design, but there’s a move to replace it with a super-luxurious, grand shower. Turner says showering is waterefficient, quick and easy, and provides the opportunity for stressfree “me time”. “Right from the shower walls, shower heads and taps, you can customise your shower according to your budget and needs,” he says.

Saving water Water-efficient sanitaryware is a must.

“Brass has really become the most fashionable metal for the bathroom and makes an irresistible combination when paired with marble” Kyle Turner, Luximo

“You use more water in the bathroom than all the other rooms in your home combined. There are a few innovative products well worth examining, one being the exclusive Roca W and W, which reuses water from the basin to fill the cistern after filtering it, further reducing water consumption by up to 25%.”

FIVE BATHROOM TILING TIPS Use your dream tile as a starting point Don’t use more than three different types Pick one standout tile that shows off some personality Take maintenance into account when choosing tiles Think long term and pick something that will work now — and in five years

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HOMEFRONT

PROPERTY TRENDS

Must-haves for apartment life The demand for sectional title property is resilient and will continue to grow as developers respond to the changing lifestyle needs and sustainability expectations of home owners WORDS: MIRIAM MANNAK :: PHOTOS: SUPPLIED AND ISTOCK

W

hile owning a freestanding home surrounded by a lush garden is regarded as the real estate Holy Grail, the demand for sectional title property is growing. Figures by Seeff, for instance, suggest that 40% of properties in Pretoria are registered as sectional title units.

The situation is not much different in KwaZulu-Natal, according to Rainmaker marketing director Stefan Botha, whose firm manages the marketing of sectional title properties in and around Durban.

Besides Umhlanga, Botha says KwaZulu-Natal’s sectional title market is strong in Sibaya Coastal Precinct, Upper Highway and Ballito.

“We have seen a

development such as The Pearls of Umhlanga break all KwaZulu-Natal records in terms of achieved pricing.”

The market in the Western Cape is strong, too.

“Data indicates that more sectional title building plans are being passed, indicating a growing demand for this kind of living,” says Pam Golding Properties research analyst Sandra Gordon. “In 2000, 14.7% of all building plans passed in the Western Cape were sectional title.

That figure now sits at 37% of all building plans passed in the province.”

PHENOMENAL GROWTH Horizon Capital Residential MD David Sedgwick says nodes such as the City Bowl, Atlantic Seaboard and pockets in the Southern Suburbs as well as Stellenbosch, Paarl

and Franschhoek, have experienced phenomenal growth since 2013.

“Cape Town, for instance, is actively pursuing an urbanisation strategy by encouraging mixed-use developments with active street edges to pedestrianise the areas.”

Gordon believes the rise in sectional title properties is driven by people’s changing priorities and expectations in terms of where and how they want to live. “With limited land availability, increasing congestion and rising home ownership costs, there is a growing demand for sectional title properties,” Gordon says.

“Instead of spending hours in traffic, people are willing to sacrifice larger plots or gardens to live closer to work.”

The question is: what are sectional title property

Residential property type split Of SA’s registered properties 6.5-million are residential properties valued at R5-trillion.

Sectional title properties still make up the smallest portion.

Volume

Value

11.6%

14.8%

Sectional Title

82.8%

69.7%

Freehold

15.5%

Estates

Total of

6.5-million residential properties valued at

R5-trillion

5.5%

Source: Lightstone Property

HOMEFRONT owners looking for? Head of operations, sales and marketing for Century Property Developments Jessica Hofmeyr says people want a sense of space, if living in smaller units.

Open-plan living areas and extra-high ceilings are drawcards.

“In terms of the entire development, it is about creating open spaces so it doesn’t feel like units are on top of one another. This is done by placing trees between units and building parking bays to break up individual buildings,” Hofmeyr says.

HEALTHY MIX Besides space, sectional title home owners are looking for developments that offer them more than a place to live. “People want a healthy mix of residential, retail, commercial and even hospitality,” says Botha. This underlines demand for the live-work-play concept as developers maximise rental opportunities, he says.

Popular lifestyle amenities include pools, gyms, clubhouses, entertainment facilities, tennis courts, sports facilities, nature trails, children’s play areas, conferencing and business lounges.

LIFESTYLE Blyde at Riverwalk Estate

by Balwin Properties is another example of how residential and lifestyle are merged.

The Pretoria East development features a clubhouse, promenades and a 1.5ha Crystal Lagoon, with beaches and watersport facilities.

Developments that combine living, working and play are popular among people who work in or near city centres, says Gordon.

“The need for a live-workplay lifestyle has grown in

16 On Bree, Cape Town part because of the city’s increased traffic congestion.

People are willing to sacrifice space in return for a more convenient location and less of a commute to work.”

Pam Golding’s Park Central is a mixed-use, lifestyle-oriented sectional title property development.

In Rosebank, one of Gauteng’s prime business hubs, the project features a landscaped park, a clubhouse, entertainment areas, a fully equipped gym and a rooftop swimming pool.

Blok sales and marketing manager Lior van Embden says a central location is key. “Proximity to public spaces and nearby retail is growing in importance, especially as more people are looking at other

Park Central, Rosebank, Johannesburg

“Data indicates that more sectional title building plans are being passed, indicating a growing demand for this kind of living” Sandra Gordon, research analyst, Pam Golding Properties

means of mobility as city congestion worsens.” Blok’s TENONQ in Cape Town illustrates this well.

The Sea Point development, with its indoor gym, 500m 2 communal rooftop terrace and entertainment deck with a pool and braais is surrounded by shops, restaurants, schools and public transport options — and the beach is a stone’s throw away.

The same counts for The Eden by Horizon Capital.

Featuring a pool, braai area, gym and laundry facility, this soon-to-be-completed complex in Observatory, Cape Town, has shops, restaurants, bars, schools, public transport, access ways and the University of Cape Town close at hand.

The Eden forms part

of an urban development zone. “Investors purchasing new properties in these areas benefit from highly attractive tax incentives whereby they can write off a portion of their purchase price against their income tax,” Sedgwick says.

“In the case of The Eden, investors benefit from a 55% capital write-off which makes the after-tax returns very attractive.”

FAMILIES Another trend is that sectional title property developers have begun incorporating facilities that cater for families.

They are the new drivers of the market, says Pam Golding Properties senior executive for developments Laurie Wener.

“Sectional title property historically attracted singles and couples, not families with children.

“Today, however, families are seeking low maintenance, security, and convenience; hence the demand for larger three-bed apartments is slowly rising,” Wener says.

SCHOOLS

The Eden, Observatory, Cape Town

Larger multiphase developments are now incorporating pre-primary schools in their projects.

“Our 16 on Bree development in Cape Town, for instance, includes a crèche,” says Wener.

Hofmeyr says Century Property Developments has begun doing the same, referring to the Precinct on Allandale in Midrand. Besides several thousand apartments, the development consists of

shopping centres, corporate parks and a private school.

“Another exciting mixeduse development that we are conceptualising is Linksfield Estate in Johannesburg East where both affordable housing and luxury units integrate into a single precinct with retail parks and two schools,” says Hofmeyr.

Last but not least, sustainability is important.

Ross Levin, developments director at Seeff’s Atlantic Seaboard and City Bowl office, says new developments are including more green features, ranging from lighting to heat efficiencies.

Levin says sustainability will become a necessity more than a trend.

“Purchasers are very eco-aware and are looking for ways to reduce their carbon footprint.”

TECHNOLOGY Hofmeyr says Century Property Development is also taking sustainability seriously. Besides LED lights and low e-glass, which retains heat and saves energy, the company’s projects feature heat-pump geysers and other innovative technology.

“Our landscaping is indigenous and waterwise,” says Hofmeyr.

Century sources local building materials and installs grey water systems and recycling depots.

“The long-term benefits of green construction has been proven many times over and ensures lower operating costs in the long run.”

HOMEFRONT URBAN LIVING

Middle-income housing gap Developers and local government have to put their heads together to find solutions for urban professionals, writes director of Future Cape Town Rashiq Fataar PHOTOS: SUPPLIED AND ISTOCK

M

iddle-income earners in SA face tremendous financial pressure in finding urban housing in well-located areas.

This group of urban professionals falls between two stools — the upper end of the monthly income bracket (R50,000-plus per household) is supplied by the private sector, while the government is mandated to serve households that fall in the below-R3,500 bracket.

The middle-income market has an estimated combined monthly household income of between R15,000 and R50,000, according to the University of Cape Town’s Unilever Institute of Strategic Marketing.

UPWARD PRESSURE This segment faces enormous difficulty finding housing in urban areas because significant upward pressure has been exerted on rental, housing and land prices. This is due to the limited supply of land and

houses, sellers dictating the cost of land and relatively uncompetitive building costs. The challenge is acute in Cape Town because of a rapid rise in the cost of land.

In addition, this group largely falls outside the gap and social housing markets and therefore cannot access government subsidies or affordable housing products offered by banks. Gap housing in the City of Cape Town is for households with a monthly income of between R3,500 and R20,000. These qualify

for subsidies and products from the government and financial institutions.

On the other hand, the city defines social housing as state-subsidised rental housing for households with a monthly income of less than R15,000, which is developed and operated by an accredited social housing company or institution.

RENTAL TRAP As a result, the middleincome market is forced to rent or buy property in outer suburbs where it is

cheaper. This traps families in long-term rentals and denies them the security of home ownership in favourable areas, which in a South African context has a wide array of cultural, social and recreation amenities.

To start meeting the needs of the forgotten middle-income market, urban property developer Blok is piloting a new housing development model within the integrated, medium-density development FORTY ON L in the Bokaap.

My role, on behalf of Future Cape Town, is as an adviser and partner.

The development in Lion Street was a vacant plot of land sold to Blok by the privately owned St Monica’s Centre.

Future Cape Town is involved in research and has a multistakeholder engagement with Blok.

Future Cape Town promotes a more visionary and inclusive city.

As a nonprofit, we are an independent think-tank that advocates improved knowledge and citizen

“This segment faces enormous difficulty finding housing in urban areas because significant upward pressure has been exerted on rental, housing and land prices” Rashiq Fataar, director, Future Cape Town

HOMEFRONT engagement to meet the challenges of the city.

The benefits of mediumdensity urban living spaces are far-reaching.

They decrease pressure on municipal service delivery. More nurses, doctors, firefighters, policemen and other services and amenities are available per square kilometre if they are focused over a smaller area.

Increased density also promotes the development and growth of culture and human capital by reducing commuting time and, in turn, allows more time to be spent on other activities.

Blok’s new development initiative, piloting an 80:20 inclusionary model locally, is built on extensive local and international research.

AFFORDABLE The research-by-design partnership between the public and private sectors exemplifies inclusionary housing.

At Future Cape Town, we define this as housing developed by the private sector, where the development either includes units that are more affordable for income groups with a lower median income than the neighbourhood offers, or is in a location where certain income groups would not qualify for a loan or bond.

The aim is to enable developers to deliver a more diverse mix of housing in these areas as we seek a more integrated, vibrant and inclusive city.

This approach depends on unlocking potential bulk

An aerial view of the FORTY ON L development, where the 54 units are now on sale on existing sites earmarked for development to add more apartments to the original scheme — some of which will be sold at a more affordable price through an audited, open draw system.

SUBSIDISE This is because the sale of the apartments in the originally planned-for scheme are sold on the open market at market-related values to subsidise the land, finance and planning costs of the more affordable units.

But there is more to this. By using a one-forone approach, for every additional square metre of bulk allocated to the

inclusionary housing units, the developer could match that measure to build open market apartments.

This enables the development to be financially viable while still providing an opportunity for the squeezed middle-income market to gain access to well-located urban homes that they would otherwise not be able to afford.

The 54 units in FORTY ON L’s original scheme are now on sale. Blok is awaiting the city’s approval on the bulk departure, which will dictate the developer’s next steps. The development is scheduled to break ground in August

2018 with occupation planned for autumn 2019.

Blok MD Jacques van Embden believes FORTY ON L responds to needs that are current and real: the lack of urban housing for a more diverse set of income ranges in well-located areas.

“As developers, we play an important role in shaping our cities and need to ensure that we make beneficial contributions to the urban fabric of the community,” he says.

Blok’s aim with FORTY ON L is to provide urban apartments that serve the uncatered-for middleincome market by designing

them into the development.

“Our goal with this project is to evolve a model that pushes local government, other housing authorities and developers to better utilise and unlock the potential of well-located sites for housing for the middle-income market,” says Van Embden.

INTERVENTION Blok’s approach used in the 80:20 inclusionary model was referred to by an activist organisation in a recently published opinion piece. Says Ndifuna Ukwazi senior researcher Julian Sendin: “Inclusionary zoning is a

basic intervention used by top cities around the world to ensure that private developers build a fair amount of truly affordable housing in exchange for additional development rights.”

He says property developers and The City of Cape Town, which grants land-use rights and requested departures, have the opportunity to effect change and undo spatial apartheid.

“Either this or continue with business as usual where the poor and working class are relegated to the peripheries, out of sight and out of the minds of the affluent, predominantly white inner-city resident,” says Sendin.

“This is not the kind of inclusive city from which residents who live and work here will benefit. It is not the kind of transformative city that our constitution envisions.

We call on the city and the private sector to do the right thing and break ground on inclusionary housing in Cape Town.”

KEY COMPONENT

The planned FORTY ON L Bokaap development

Inclusionary housing models that enable more diverse income groups to live in well-located areas, such as the one being piloted by Blok, are a key component in building more integrated and sustainable cities in SA. We are in a housing crisis, and the commitment and co-operation between communities, developers and local government will be at the forefront of developing and delivering meaningful solutions. The future of South African cities rests on this.

FOCUS ON: THE AZURE

ADVERTORIAL

Sophisticated and majestic In a setting so beautiful, it’s only natural to blend the interior of these bespoke residences with the outdoors WORDS AND PHOTOS SUPPLIED

T

he Azure is Horizon Capital Residential’s newest development, offering four bespoke residences in the heart of Camps Bay. The exclusive development is nestled between Lion’s Head, the Twelve Apostles and Camps Bay beach. The natural beauty of these landmarks make it easy to imagine the area before it grew to become one of SA’s most sophisticated and urban seaside destinations.

Situated in the “village” of Camps Bay, The Azure offers the convenience of being within walking distance to the beach and Camps Bay Boulevard, where an array of fine restaurants, bars and cafes can be found.

After an evening’s fine dining and entertainment the quiet sophistication and luxury that defines The Azure is a short stroll away.

HIGH QUALITY Boutique property firm Horizon Capital specialises

in local and offshore property investment, management and development. Horizon Capital Residential is in the process of developing four other high-quality residential developments across Cape Town, ranging from Observatory to Vredehoek and Sea Point.

“Horizon Capital Residential focuses on designing and developing high-quality residential buildings and residences that meet the practical needs of future owners,” says Horizon Capital MD David Sedgwick.

“The buildings and residences represent a commitment to conscious living,” he says.

Design is crafted “with mindful intent to create spaces that suit the modern lifestyle”.

SECURE ACCESS The Azure has basement parking, which offers each residence secure access, a private storeroom and two basement parking bays.

The two residences on the mountainside of the development also offer private lift access.

Each residence offers four en-suite bedrooms, a master suite of generous proportions with a walkin closet and a beautifully crafted bathroom with underfloor heating, heated towel rails, dual basins and an exquisite free-standing bath.

The air-conditioning provided throughout ensures that the perfect cool temperature can be maintained in Cape Town’s summer months, while one can enjoy the colder winter evenings in front of the comfort of the built-in closedcombustion fireplaces.

The bespoke chef’s

kitchens all incorporate separate sculleries and fully integrated SMEG appliances such as 900mm oven, hob and extractor fan, dual integrated fridge/ freezers, dishwasher, integrated microwave oven, a tumble dryer and washing machine.

FUNCTIONAL In addition to being aesthetically beautiful with a blend of natural wood and stone, they are functional, warm and comfortable, making them a perfect spot to prepare a meal while entertaining friends and family.

Emphasis was placed on having large open-plan living and entertaining areas where there is a seamless transition between the indoors and the outdoors.

A number of green initiatives and technologies were considered during the design phase of The Azure.

The development boasts a wellpoint water supply, heat pump with solar water heating, solar-heated swimming pools and water-efficient fittings.

“The development has been designed to respond to the elements, using deep balconies and screens that shade floor-to-ceiling glass sliding doors,” says Horizon Capital CEO John Witter.

This prevents unwanted heat gain while also maximising natural light to each room.

“Horizon Capital Residential has considered the end user in every aspect of the design to ensure that each exclusive residence not only functions well, but also that the architectural aesthetic of the development remains timeless,” says Witter.

Security was also a key consideration. The Azure’s

FOCUS ON: THE AZURE

fittings include CCTV cameras with 24-hour monitoring, an integrated alarm system with panic buttons, outdoor motion sensors and electric fencing.

Each residence will contain fibre connectivity, DStv points and an integrated home speaker option will be made available. Nature and the magnificent views surrounding the site were all contemplated during the design phase of the development.

At the heart of each home is a green space — either a water-wise garden or courtyard — that continues nature’s presence into the interior of each residence.

REFINEMENT Jon Jacobson and his team from Metropolis Design were the appointed architects on the development, which has been a work in progress for a number of years, going through much refinement along the way.

“Our designs were inspired by the surrounding landscape of weathered sandstone cliffs.

“We wanted to give the quintessential Camps Bay experience by blurring the boundaries between the exterior and the interior, immersing people in the landscape,” says Jacobson. “But connecting each residence to all the surrounding views turned out to be the key challenge.

“Exposing them to the north sun while providing them with wind-protected entertainment areas defined the shape and configuration of each building around natural courtyards.

“The challenge we set ourselves was to create exceptional spaces, ensuring that each residence has unique characteristics

“The buildings and residences represent a commitment to conscious living” David Sedgwick, MD, Horizon Capital Residential

which make them attractive and meaningful to live in.

“The Azure offers a rare opportunity to buy a substantial lock-up-andgo or permanent residence with an expansive lifestyle and beautiful views.

“The combination of these views, generous spaces and classic contemporary architecture will ensure these residences retain their lifestyle value and never date,” says Sedgwick.

The residences are priced from R21.495m (excluding VAT), and construction is set to begin during autumn 2018 with planned completion mid-2019.

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HOMEFRONT PRACTICAL FINANCE

The hidden home costs When buying a property it is advisable to factor in additional expenses such as bond registration and transfer fees WORDS: ANNE SCHAUFFER :: PHOTOS: ISTOCK

O

f all major asset purchases, buying a property has to be the most exciting. It signals a new phase in life … but before making the purchase, particularly if raising a bond, it would be wise to consider related costs, both direct and indirect.

Jawitz Properties Atlantic Seaboard property consultant Lolly Unterslak compares buying property to other high-value assets such as a car.

Buyers know the vehicle’s purchase price, licence and insurance costs, and have a general understanding about servicing the vehicle, fuel, new tyres and so on.

“Buying property works the same,” Unterslak says. “You’ll expect some costs, but may find hidden, or rather previously unknown, costs also payable during the process, so it’s best to be prepared.”

CEO Rhys Dyer of bond originator ooba urges buyers to access the easy bond and transfer costs calculator on ooba’s website. Dyer says education about those costs is important, and should be understood and budgeted for before shopping for a property.

Surprise or shock expenses can swiftly remove the excitement of a property purchase, so it’s best to familiarise yourself with the small print.

HOMEFRONT WHAT ABOUT OTHER FINANCIAL IMPLICATIONS? Levies for a sectional title purchase Buyers should know the cost of the monthly levy and what it covers: perhaps exclusive use of a gardener for a couple of hours a week, rates, refuse removal?

A special levy is different, so ascertain the details — it is normally for a future project, such as painting.

Seeff Southern Suburbs sectional title division manager Sean Guy says there are two types of special levy: a once-off payment or a monthly instalment. “Where a lump-sum special levy has been implemented and is payable prior to the transfer of the property, the seller is liable to pay this amount in full.” After the transfer, the buyer pays, says Guy. Guy says the law pertaining to an instalment special levy has recently changed — a seller is required to pay the special levy instalments due until the date of transfer; the balance due after transfer is payable in the same monthly instalment amount by the purchaser.

Moving Geoff Henebrey, owner of Stanley’s Removals in Durban, estimates removal costs of the average three-bedroomed house, packed for the client and moved locally, at between R4,500 and R6,000, risk insurance excluded.

Security A buyer is required to contribute a monthly fee for a community neighbourhood watch.

Depending on the service supplied and number of residents contributing, the price varies widely — ask the seller or estate agent.

Blue Security in Durban conducts an on-site visit to quote on home security.

A general cost estimate for a basic alarm system for a three-bedroomed, two-bathroom house including a rental kit (the system belongs to the security firm) with a 36-month monitoring and armed response contract and maintenance plan is about R305 a month.

All monitoring and response services require a communication device with an annual licence fee of R280.

BOND REGISTRATION AND TRANSFER COSTS On a R2.5m property with a bond of R2m: Bond registration costs Bond registration: R27,588 Bank initiation fee *: R5,985 Post, petties, Fica and other fees ***: R1,200 Total bond registration costs: R34,773

Transfer costs Property transfer costs: R31,578 Transfer duty**: R108,000 Post, petties, Fica and other fees ***: R1,200 Total transfer costs: R140,778 Total cost: R175,551 * A once-off bank fee.

Certain lenders may charge a higher amount for juristic entities, for example, companies and trusts. ** If the seller is a VAT vendor, there will be VAT payable on the purchase price. *** Approximation.

Source: Ooba online calculator

“You’ll expect some costs, but may find hidden, or rather previously unknown, costs also payable during the process, so it’s best to be prepared” Lolly Unterslak, consultant, Jawitz Properties

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HOMEFRONT MARKETS

Commercial property weathers storm Office sector plagued by vacancies as big corporates consolidate and move WORDS: SUNGULA NKABINDE :: PHOTOS: ISTOCK

T

he ailing economy may have dampened growth prospects in most South African industries, but the commercial property sector is withstanding adverse conditions.

While industrial and retail property have delivered, the office sector still struggles with high vacancies.

RESILIENCE Industrial property has long proven its resilience — it has been the top-performing sector for the past few years.

Elaine Wilson, Broll Property Group’s divisional director for research, says government initiatives to boost industrial activity through the establishment of special economic zones and industrial development zones have helped the sector’s resilience.

The MSCI Bi-annual IPD Property Index shows that

the South African property investment sector rendered an ungeared total return of 6.1% for the first six months of 2017, up from the 4.5% recorded for the six months ended June 2016.

Sponsored by Nedbank CIB, the index covers almost R290bn of professionally invested real estate.

A decline in vacancy rates during the sixmonth period (4.9% to 3.5%) helped industrial properties deliver a total return of 7%. The sector has also benefited from a trend towards active management, which saw improvements in overall cost efficiency.

The index singles out warehousing and light manufacturing as the two most profitable industrial segments, producing total returns of 7.2% and 7% respectively in the first half of this year. “Warehouses are a particularly good investment,” says Wilson.

HOMEFRONT “The emergence of online shopping has increased the need for warehouse space.”

But industrial property investments are not sure bets. Research associate Matthys Beukes of commercial real estate company Colliers International says location can make or break industrial properties.

“Some nodes are doing extremely well with vacancy rates virtually at zero and rental rates showing good growth,” Beukes says. But some industrial nodes in outlying areas are struggling (those far from main roads, highways or airports), with vacancy rates of up to 20%.

“There is quite a big gap in performance, which is based almost solely on location,” says Beukes.

OPPORTUNITY Nexus Property Group co-director Greg Nafte recommends their upcoming industrial property portfolio November sale in Midrand as an “exceptional investment opportunity”.

“The tenanted portfolio of seven A-grade industrial properties in Midrand – housing blue-chip JSElisted company tenants and smaller local tenants – is for sale via private treaty,” he says. The seven properties consist of 84 units of up to 6,000m2 as well as smaller units of 275m2. Nafte says a mix of smaller and larger tenants covering different industrial sectors is key, as are properties located in a growth area with very low vacancies.

“This Midrand area also boasts new infrastructure

“The emergence of online shopping has increased the need for warehouse space” Elaine Wilson, divisional director for research, Broll Property Group

and development, such as the Mall of Africa and the new PWC building,” he says.

The index shows that the retail sector has performed relatively well, delivering a total return of 6.7% in the first half of the year, but vacancy rates remain a challenge.

Overall vacancy rates 3.5%

TENANTS’ MARKET The economic climate has resulted in a tenants’ market. Landlords have little negotiating strength over rentals as demand for retail spaces drops.

“It’s getting to a point where people are taking advantage when renegotiating leases,” says Wilson. “Some want rental reductions of up to 50% because they know that the landlord’s only alternative is a vacancy.”

Wilson does not predict a significant rise in household expenditure or disposable income.

“There are going to be a few tenants operating on thin margins who are just going to close shop.”

Neighbourhood shopping centres are doing well, though. Besides a tendency to have major supermarkets as anchor tenants, proximity and parking attract consumers.

STRAIN However, the office sector is under strain. Major corporates are consolidating space and moving to new headquarters, leaving vacant large spaces that are difficult to fill, says Beukes.

According to the IPD index, aggregate office vacancy rates went up by 60 basis points to 8.5%, which, combined with a flat rental

Warehousing returns 7.2%

Retail returns 6.7%

growth rate, resulted in capital growth of zero for the six months ended June 2017.

City decentralised offices was the worst-performing segment for the six months, with a total return of 3.9%.

“Because of the economic and political climate, there aren’t many multinational companies coming into SA that can take up the A-grade spaces vacated by the likes of Sasol, Discovery, Deloitte and Werksmans Attorneys,” says Beukes.

“All these companies are moving to new headquarters

Light manufacturing returns 7.0%

Office vacancy rates 8.5%

and leaving big vacancies.”

A high vacancy rate has resulted in the conversion of office spaces into residential apartments, particularly in the Cape Town and Johannesburg CBDs. Wilson

says the office vacancy problem will worsen. “I’m based in Sandton, and when I look out my window, all I see is cranes.”

Wilson says construction projects will continue.

“I think most will be occupied by large corporates upgrading to green buildings.”

She cautions that they will leave a “big hole” in the nodes they vacate.

19026

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HOMEFRONT PROPERTY NEWS

Curtain goes up on virtual reality showroom

J

awitz Properties Western Seaboard has introduced virtual reality and view panning technology to view listings remotely at a digital showroom in its offices at Cape Town’s newly opened Table Bay Mall.

As part of the SPS property listing group, Jawitz contracted a top production company to produce virtual reality show days in SA. “This new way of viewing a home brings the

experience to life — from the comfort of wherever you are,” says Pieter Davidtz, business manager at Jawitz Properties Western Seaboard.

Davidtz says technology has become a big part of property industry future directions. “Virtual reality and view panning is the next step — and the game changer — taking real estate to the next level.”

Franchise principal Corne Davidtz says the agent does a recorded viewing

that “speaks to the camera as though the camera is the client, highlighting the various features of the home”.

Davidtz says having one recording done as a “show day” simplifies the process for prospective sellers, without the need to disturb a seller or their tenants.

“We offer this only for exclusive mandates and find that sellers and buyers alike are enjoying and embracing this concept.”

KaChing launching at Mall of Africa

K

aChing, the smartphone app for ticketless mall parking, is now in operation at Midrand’s Mall of Africa.

The system uses automatic number plate recognition cameras and smartphone app technology to enable payment for the

parking. There is no extra fee for the service.

The app is also available at Melrose Arch, Thrupps and Morningside shopping centres in Johannesburg.

Customers can download the app from the Apple App Store or Google Play.

Customers register with

their vehicle number plate, load their pre-paid account or choose the credit card option.

Number plate recognition cameras at each entry and exit automatically pick up customer details and open the parking area boom gates.

Cape Town still outperforms the rest of SA property market RE/MAX twice hits R2bn in monthly home sales

R

E/MAX of Southern Africa achieved R2bn in homes sales for two consecutive months in September and October 2017.

Regional director and RE/ MAX of Southern Africa CEO Adrian Goslett says that not even during what was

considered the boom years did the brand achieve sales in excess of R2bn in a month.

The first time monthly sales reached the R2bn mark was in September 2014.

“We firmly believe that these kinds of sales results are only possible due to various tools and services

we provide our estate agents that equip them to thrive and succeed,” says Goslett.

RE/MAX supplies franchisees and agents with access to local and international training, as well as resources such as a customisable online marketing toolkit.

A

lack of vigour” best describes the performance of the South African property market, according to property economist and valuer Erwin Rode of Rode and Associates, publishers of the quarterly Rode’s Report on the South African Property Market 2017.

Rode says Cape Town house prices are growing at roughly double the rate in the rest of the country “but nobody can tell whether this outperformance is

sustainable, considering the affordability ceiling”.

The report shows a contraction in spending on manufactured goods is impacting negatively on the manufacturing sector, usually one of the support pillars of the industrial property market.

The situation appears to be more buoyant in the Cape Peninsula where nominal market rentals for prime industrial space could muster growth of 9%. Also

affected by weak demand is office rental growth.

Only two areas have shown annual growth in market rentals: Durban decentralised (5%) and Cape Town decentralised (3%).

Nominal flat rentals across the country show year-on-year growth of just 5%, with the strongest shown in Durban (7%), followed by Pretoria and Johannesburg (both 6%), and Cape Town (4%).

Tongaat Hulett wins international water award

T

ongaat Hulett has been recognised as a global leader in sustainable water management. The company has been awarded a position on this year’s Water

A List by CDP, the nonprofit global environmental disclosure platform.

The Water A List comprises 73 international companies. It has been produced at the request of

827 investors with assets of more than $100-trillion.

Hundreds of companies submit annual water disclosures to CDP for independent assessment.

Tongaat Hulett is among

10% of participating businesses included on the Water A List, in recognition of its actions in the last reporting year to manage water more sustainably.

“Water is an essential

input in the business and all operations are affected by the variability associated with water availability,” says CEO Peter Staude.

“Inclusion in CDP’s Water A List confirms our

prudent management of this scarce resource and is further acknowledgement of the business’s ongoing commitment to water recycling and reuse whenever possible.”

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Come and view our luxury apartment 12029.

Available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ALAN BECKER 082 718 8100 | alan@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12029