Business Day HomeFront 02 June 2017

HOMEFRONT 13 OCTOBER 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 2 JUNE 2017

MUST READ

Joburg’s new golden drum PAGE 2

Building flexible homes PAGE 4

Malls to evolve to stay relevant PAGE 12

Pelican Park, Cape Town

Is affordable housing a good investment?

It pays to hire an architect PAGE 16

Experts say demand outweighs supply of homes in the R400,000-R800,000 price bracket. This trend is expected to continue

PAGE 8

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DESIGN AND ARCHITECTURE

The gold standard Johannesburg’s new R280m council chamber in Braamfontein packs symbolic punch, and is designed to catalyse urban regeneration and make the city more democratic WORDS: GRAHAM WOOD :: PHOTOS: SUPPLIED

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ohannesburg’s new R280m council chamber in Braamfontein is designed to be the kind of building that not only makes a statement, but also helps to stitch together the fragmented urban fabric around it. It adds something visually exciting to the cityscape, yet it has not missed the opportunity to create safe public space around it, and make people’s passage easier and more secure.

LIGHT Designed by StudioMAS Architects and Urban Designers, the chamber is a bold and intriguing architectural intervention.

It is set right outside the Metro Centre, to the south of the imposing neo-brutalist landmark. In contrast to the monolithic concrete slab, the new council chamber is light and circular: a golden drum with a scalloped and finned glass façade. It floats above a reflection pond on flag columns, and reaches up to make its mark on the skyline with a 10m-high golden spire.

It is everything its apartheid-era counterpart is not: curved, light, transparent and, more importantly than anything else, firmly in the public realm.

“The old Metro Complex … was an award-winning design in its time,” says Alan Dinnie, senior manager of property development at the City of Joburg Property Company (JPC), which manages the city’s property assets. He says, however, that it is very much “inward focusing”. It was built on 139 erven, clearly at odds with Braamfontein’s “rather intricate” grain. “It really divorced itself from the urban fabric,” he says. “It sits in the cityscape but somehow doesn’t relate to it.”

SPACE Buried deep inside, far from the public eye, was the old council chamber.

“The project [the new chamber] started out as pure frustration with the lack of space,” says JPC CEO Helen Botes. But it became so much more.

The chamber itself is the first phase of a comprehensive R2.5bn plan

not only to revamp the old Metro Centre, but also to add to it and transform it into a multi-use precinct. The old council chamber was too small to accommodate the city’s growing number of councillors: 135 by 2014.

Beyond that, the council had become scattered across 159 building without any comprehensive property strategy. “[We] could greatly improve not only costs, but service delivery and efficiency by consolidating its operations to a single centre,” says Dinnie.

STATEMENT Of course, a project of this scale needed to make a statement. “We know what’s happening in Sandton in terms of iconic buildings,” says Dinnie. Braamfontein needed to make a statement to compete with those if it was to be at all effective in catalysing urban regeneration. “I think if you’re really going to make a statement — set the standard, and people will follow,” he says. The council chamber presented that opportunity.

The JPC was also aware of the opportunity such a

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precinct presented on an urban planning level. “The plans for the other buildings are about rebuilding fabric and connecting us back into Braamfontein and Hillbrow,” says Dinnie, “so it doesn’t seem like it’s this cut-out place anymore.”

He believes strongly that “the value of a place is not in how it looks, but in how people use it”, and wanted a plan that would bring people into the precinct.

Dinnie notes, however, that the iconic and symbolic aspects of the design “became our lead decision makers”. The JPC refused to compromise on those aspects of the brief.

The symbolism is multifaceted, working on many levels. Firstly, the building is circular to reflect an African drum (calling people together) and the circular lekgotla (meeting place). The glass façade represents transparency and accountability, and the gold

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colour is a reference to the city’s gold-mining history.

The way in which it is built also sets a precedent. The council chamber is what Dinnie calls a “bright green building”, incorporating smart technologies and green building systems so that it embodies the city’s vision of itself as a world-class African city. It has a five-star Green Star SA design certification in the public and education buildings category.

ART The interior might be a technological wonderland, but it includes human touches, too. The outer ring of the chamber features a series of carved wooden totems based on artworks collected during a public art competition to “gather resources from the people”.

Entrants submitted works that represented their community and their community’s history.

Neither the chamber nor the rest of the precinct plan involves effacing or demolishing the original Metro Centre building. “I did not want to destroy history,” says Botes.

Rather history is reframed, refracted and critically reinterpreted through the remarkable architectural lens of the council chamber.

“A city is a conversation of many different buildings, with many different voices coming through,” says Dinnie. This one speaks clearly, without drowning out past and future voices.

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HOMEFRONT HOME SENSE

What makes a modern home better?

Construction materials and house design are evolving as home owners seek spaces that are multifunctional, quiet and temperate WORDS: HELEN GRANGE :: PHOTOS: ISTOCK

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wo words define modern lifestyles — mobility and flexibility. Building a contemporary home or home office, therefore, has become all about embracing these freedoms, in design elements and materials chosen.

The global work-fromhome trend means that modern homes, in particular, are multifunctional environments where people can work, eat, relax and play. “Home owners spend more time at home, often working from home, so they need spaces that are well proportioned and easily adaptable, with a considered balance between interior and exterior,” says Karlien Thomashoff, architect at Thomashoff + Partner Architects in Pretoria.

Thomashoff is working in tandem with Saint-Gobain South Africa, specialising in sustainable habitat solutions.

Saint-Gobain produces construction and highperformance materials. The companies are contracted in the construction of a novel show home called Stand 51 that, when finished, should epitomise this building evolution.

To be constructed on Val de Vie estate in the PaarlFranschhoek Valley and completed by the end of the year, Stand 51 will be designed and built using energy-efficient materials where the top objectives are health, comfort, safety, flexibility and environmental protection.

These are some other home or workspace considerations:

Homes can be made significantly quieter by the choice of materials for walls, ceilings and doors. Among the soundabsorbing materials used to achieve this are special plasterboards, acoustic ceilings and mineral wools used for insulation.

LIGHTING Lighting is as important, especially in workplaces, considering that a World Green Building Council study found that productivity increased by 18% in the presence of daylight.

“In buildings, access to natural light, fresh air and outside views has been shown to make people feel more energetic and inspired.

This typically results in higher test scores at school, better productivity at work and faster healing times in hospitals,” says Cerruti.

Glass, window films or architectural membranes are used to optimise natural lighting, while wall coverings, ceilings or flooring can contribute to the distribution of daylight and to the aesthetic of a space.

MATERIALS

Materials such as glass, plasterboards, mineral wools and External Thermal Insulation Composite Systems moderate indoor temperatures and help to keep the air fresh inside the building. In its design, a home should give consideration to solar heat gain through the overall building shape, orientation, number and size of windows and the ability of surfaces to reflect heat, says Cerruti.

“Buildings that are designed and built better, ACOUSTICS with materials that optimise Creating an ideal acoustic comfort, are often energy environment is key, efficient as well. These will especially in work spaces, save energy costs over the says Michelle Cerruti, lifetime of the building or residential and hotel sector home,” she says. manager at Saint-Gobain This visionary approach Construction Products. to building is proving to “The impact of acoustics be a strong drawcard for on our overall mood and wellbeing is profound. Sound buyers who work from home, and they are prepared insulation contributes to to invest accordingly, a sense of security and judging by feedback to a privacy,” she says.

questionnaire on the Stand 51 website. Saint-Gobain’s survey shows that 89% of potential buyers prefer to work from home, and 85% believe a home office is a valuable investment.

Acoustic and thermal comfort is important to 91% of respondents, who say they want their home to be quiet, day and night, as well as consistently warm and cool all year round.

FLEXIBILITY Flexible spaces are also important, where an office can convert into a living space and vice versa, as this ensures optimal use of smaller homes.

In other words, the modern building is expected to perform well beyond being a shelter; it needs to service today’s lifestyle.

WHY BUYERS CHOOSE BETTER BUILDINGS Val de Vie is a good example of world-class modern living. This means comfortable, multifunctional, energy efficient homes in which every square metre is optimised based on external views and the environment, with state of the art technology maintaining security and offering high speed internet connectivity.

The homes on the estate meet an increasing desire for a lock-up-and-go lifestyle. “Our resident demographics are evenly split between those commuting to Gauteng, those working from home, people working in Paarl, Wellington or Stellenbosch, those working in the northern suburbs (Durbanville/Bellville) and retired couples or swallows,” says Ryk Neethling, Val de Vie marketing director.

Investment value is another high priority. “Our residents and buyers are discerning and come to us because they want the best an estate has to offer, and they want homes that perform the best and which will be excellent investments in the long term.”

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HOMEFRONT INVESTING

Is affordable housing a good investment?

INVESTING IN AFFORDABLE HOUSING What features can an investor look for in this market? Says Lategan: “Locality, locality and again locality.”

Investors should look at what amenities are being developed, or at what is already available in the area, he says.

“When buying a property for an investment for rental purposes, we would recommend considering the area in which you buy, what the population is, what the housing needs are, etc. We do, however, believe that there is a huge gap in both rental and home ownership in this affordable housing market, so there are still many opportunities available.”

Power agrees that location and availability of amenities and services are important, but says

the most critical point is affordability. “We can build the most beautiful homes with the best features at good selling prices, but if the market cannot afford homes, your development is a dead duck. Developers therefore need to do extensive market research prior to proceeding with new developments.”

Potential investors would be wise to do the same.

Instead of offering the bare minimum standard amenities and fittings, Power says, the company’s philosophy is to value engineer and maximise economies of scale to include “as many as possible standard features”. This is done to protect against home buyers purchasing homes without essential standard features such as cupboards, ovens and hobs, alarm systems,

burglar bars and gates, and after a few months, defaulting on their bonds because of additional loans taken out for these items.

The affordable housing market remains extremely price sensitive, he says, and even though all the major banks are providing bonds to this market, a small increase in price can have a detrimental effect on bond approvals. “A R5,000 increase in prices may seem small to a developer, but could be the difference between a bond approval and decline,” Power says.

To participate in the affordable market, you cannot only be focused on profits, he says.

“You have to have a passion for the people and honestly want to uplift communities.”

Experts say demand outweighs supply of homes in the R400,000-R800,000 price bracket. This trend is expected to continue WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED

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uying an affordable home as an investment can seem like a good way to get into the property market, but units at this price often come with complexities related to sales finance.

However, for investors willing to take the plunge, there are good returns to be had.

The RE/MAX National Housing Report for Q1 2017 showed that in the period, 29.6% of housing sales were in the under-R400,000 price bracket; another 26.76% of homes sold were in the R400,000-R800,000 price bracket.

The report used housing statistics from Lightstone, a property information and statistic provider.

“The data brings to light the high demand for affordable housing in SA, a sector of the market that continues to thrive,” says Adrian Goslett, regional director and CEO of RE/ MAX in Southern Africa.

However, while there is a great deal of activity in the affordable housing segment, this does not necessarily equate to a good opportunity for investors.

This is because at the lower end of “affordable”, there are a number of government interventions and subsidies, and home

buyers tend to hold on to their property for life.

GAP HOUSING Gap housing, for example, caters to the shortfall between the residential units provided by the government and houses delivered by the private sector. It targets people who typically earn between R3,500 and R15,000 a month and therefore do not qualify for grants or home loans.

This income “is too little to enable them to participate in the private property market, yet too much to qualify for state assistance”, according to the government.

Buyers of these houses

“There is a huge gap in both rental and home ownership in this affordable housing market, so there are still many opportunities available” Wikus Lategan, CEO, Calgro M3

Pelican Park, by Power Developments, Cape Town

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Witpoortjie, by Calgro M3, Johannesburg are helped financially by the National Housing Finance Corporation through the Finance Linked Individual Subsidy Programme, which gives all qualifying beneficiaries the certainty of being granted loans or bonds by financial institutions. “[The duration of] general residential ownership in SA is seven years, and that extends to 13 years in the affordable market,” says Wikus Lategan, the CEO of property developer Calgro M3. “In the gap market, it is almost permanent.”

In this article, we are looking at affordable housing in the

R400,000-R800,000 bracket — which represents housing that investors can buy to let or sell.

AFFORDABLE MODEL Power Developments marketing director Gary Power says that although the company’s developments are not targeted at investors directly, investors certainly can buy or sell units.

Completed are Pelican Park, with 1,100 homes in the R350,000-R800,000 market; The Vines, with 83 affordable homes selling for between R426,000 and R750,000; and Belle Vue Estate, with 197 affordable

“In developments such as Pelican Park, we have seen increased values of 30%40% over the past three to four years” Gary Power, marketing director, Power Developments

homes selling for between R399,000 and R800,000.

“In terms of sales and signing offers to purchase, we sell between 30 and 60 units per month,” he says. “Unfortunately, the finalisation of the sale is still up to bonds and affordability and therefore actual confirmed sales were in the region of 10 to 30 units per month over the past three to four years.

“In developments such as Pelican Park, we have

seen increased values of 30%-40% over the past three to four years.”

DEMAND He says this market continues to challenge the status quo of SA’s economy and the world recession, illustrating the huge need in this market in the country. “Demand continues to outweigh supply and will continue along this trend for many years to come.”

Some of the houses in

Volume and value of residential property sales in 2016-current Property type

Volume of sales

% Volume of sales

R10,000-R100,000

32,980

11%

R100,000-R400,000

59,246

20%

R400,000-R800,000

82,081

27%

R800,000-R1.2m

46,506

16%

R1.2m-R2m

46,320

15%

Purchase price greater than R2m

32,074

11%

Grand total

299,207

100%

Source: Lightstone Property

Fleurhof, by Calgro M3, Johannesburg

Power Developments’ estates are earmarked for gap housing, and this, Power says, creates a type of synergy with the higher priced units.

CROSS-SUBSIDISATION “Cross-subsidisation in terms of enhancing lowerpriced and entry-level houses while increasing prices of top-end homes in mixed-use and integrated developments also ensures increased values.”

Lategan paints a

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Pelican Park similar picture. “All our current developments fall within this space [R400,000-R800,000].

More than 80% of our product falls below the R600,000 mark. We currently have more than 7,500 units under construction, where 90% fall below the R600,000

mark and they are all sold.”

He says that crosssubsidisation is also important to Calgro M3’s business model.

“At Calgro M3, we partner with the government on some of our developments to provide fully subsidised housing in the same development where we are

also focused on the private sector.

“We also receive Urban Settlement Development Grant funding from the government for infrastructure, but this should be a value added benefit that gets passed back to the end owner if it becomes applicable.”

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HOMEFRONT RETAIL

Malls must evolve to survive A conference about bricks and mortar retail outlined trends that will affect this property segment WORDS: GEORGINA GUEDES :: PHOTOS: ISTOCK AND SUPPLIED

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hopping malls were not dying, but they needed to innovate and become much more than only places to shop, it was revealed at the South African Council of Shopping Centres (SACSC) annual research forum.

The 2017 SACSC Research Conference took place on May 17 2017 at The Maslow hotel in Sandton.

The conference brought together thought leaders, economists, futurists and researchers who offered insights into retail trends.

Here are seven key takeaways from the event:

1. Consumer spending power

“The shortterm outlook for the consumer isn’t that dire, and there will be some real spending power in the short to medium term” Elna Moolman, economist, Macquarie Group

The V&A Food Market, Cape Town

Elna Moolman, an economist with the Macquarie Group, says her projections show that SA’s gross domestic product will grow about 1% this year and the same next year, despite economic concerns and some downside risks.

“On the consumer side, there will also be more or less 1% growth in spending power, despite tax increases and unemployment,” she says.

“The short-term outlook for the consumer isn’t that dire, and there will be some real spending power in the short to medium term.”

She projects that inflation will drop to 5.5% this year, and 5% next year, which will allow the Reserve Bank to cut interest rates.

2. Malls as destinations for social influence Malls should not just pay influencers to talk about them, but should become places with which influencers will want to be associated. Instant Grass International head of anthropology Kate Snyder says it is important for malls to interact with influencers on social media.

When Instant Grass International asked its research subjects or “grasses” why they went

HOMEFRONT AFRICAN MALL AWARDED Mall of Africa was honoured internationally in the Viva (Vision, Innovation, Value, Achievement) Awards’ design and development category in Las Vegas, US, on May 21. Africa’s geological features and iconic landscapes inspired the retail centre’s architectural appearance. Mall of Africa is SA’s largest shopping centre built in a single phase, offering

to malls, shopping usually only appeared third on the list. Ahead in the queue were visiting restaurants, and the need for people to see and be seen.

She says one aspect of this is the trend of “glocalisation”, which is conducting business in line with both global and local trends. Local brands are inspirational (whereas international brands are aspirational) and should be given the space to perform, she says. “It’s time to invest back into our own economy. We have really amazing stuff in SA.”

3. In-store trumps online According to Kirsty Laschinger, a retail analyst at Investec, there are only three goods categories in SA in which online shopping has passed the 50% of all sales mark: books, music, DVDs and videogames; toys; and sportsware. And only 1% of shopping is currently carried out online.

“So we think online will become bigger in SA, but our forecast is that it will account for 3% of retail sales in five years’ time, which is pretty underwhelming.

It gives us time as retailers, but please don’t put your head in the sand and pretend it’s not going to happen,” she says.

4. Food is a distinguishing feature Malls are adapting globally, with more space dedicated to food and beverage outlets than ever before. “Food is a culture. Gone are the days when people shared news of a music festival or a CD on social media — now it’s all about the latest dining experience,” says Yvonne Court, partner and head of international consultancy EMEA Cross Border Retail & Leisure.

“Malls will have to adapt to this and by doing so, will bring in new customers.”

Court’s research shows that the food and beverage

footprint ranges from 5% of total floor space to as much as 30%-35%.

Food and beverage offerings are also no longer concentrated in the food court, but are distributed throughout the mall.

“I’m not saying there isn’t a place for food courts — there is very much a place, especially with the fast food operators — but there are many other ways to appeal to a much broader section of shoppers and to introduce diversity and vitality to shopping centres,” Court says.

5. Retail innovation is everything Joven Pillay, customer and digital consulting leader at PricewaterhouseCoopers, says the importance of investing in innovation cannot be overstated.

Amazon, as a relative newcomer on the retail landscape, has clawed its way up to eighth largest retailer on the planet.

“Look at what they are

more than 300 shops, restaurants and services.

The Vivas are an initiative of the International Council of Shopping Centres. The Viva Best-ofthe-Best Awards honours outstanding examples of shopping centre design and development, sustainability, retail store design and marketing, worldwide.

Says Cobus van Heerden of Atterbury Property

Development: “As developers of Mall of Africa, Atterbury is thrilled it has received international recognition among the most esteemed shopping centres across the globe.

From its conception to its design and development, Mall of Africa was envisioned to create a world-class mall with a unique shopping experience unlike anywhere else.”

“Shopping is going to slowly get replaced by online, but people still need to get out and a shopping centre provides a good opportunity to do that” Lynne Krog, Tshwane business manager, Caxton Community Papers doing — they are delivering using drones; they have launched Amazon Echo to allow you to use your voice to place an order; they have a Dash button so you can reorder regular monthly products; they are piloting a check-out-less retail store. They are taking away the pain points.

These kinds of businesses

are constantly pushing the boundaries,” he says.

6. Retail catchment areas are shrinking Lynne Krog, business manager for Tshwane at Caxton Community Papers, carries out market research across 120 communities in SA to get a clear picture of consumer behaviour. Her research has found that with the

proliferation of malls in SA, the catchment area for each mall is shrinking.

“People who would have travelled 45 minutes to an hour to get to a shopping centre are now only willing to travel for 15-20 minutes,” she says.

7. Malls offer secure entertainment spaces Krog says people support malls because they seek

entertainment. Good security is also relevant, and free Wi-Fi is a given.

“My hypothesis is that people need to see other people, and malls provide an environment that’s safe.

“Shopping is going to slowly get replaced by online, but people still need to get out and a shopping centre provides a good opportunity to do that,” she says.

YOUR PROPERTY DEVELOPMENT PARTNER

HOMEFRONT DESIGN

Get the right advice It may cost a little extra to bring on board an architect when you are building or renovating, but in the long term it will save you money WORDS: NICOLA JENVEY :: PHOTO: ISTOCK

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he saying “penny wise, pound foolish” may have been written with architects in mind as the concept of spending money on the design plans you have faultlessly conceived seems wasteful.

However, Engel & Völkers Southern Africa CEO Craig Hutchison says possibly the best reason to hire registered architectural professionals when building is to save money.

While this may seem contradictory, architects have the professionalism to create cost-effective designs meeting clients’ briefs as well as the competency and technology to adapt plans

UNDERSTANDING THE PROFESSIONS Draughtsman: a person who prepares detailed technical scale drawings of buildings, machinery or devices under supervision. Hire a draughtsman for small or medium projects where drawings are required that provide technical detail; they do not do design. They have a certificate or diploma in draugthing.

Senior architectural technologist: a person who is involved in the technical side of construction and works closely with architects and other building professionals to resolve any potential design issues on construction projects. They have a national diploma in architectural technology.

Architect: a person who designs buildings, advises on their construction and often administers the contract during construction.

They design new buildings, restore and conserve old buildings and develop new ways of using existing buildings. They have a degree in architecture.

long before the first sod is turned.

“This may be the difference between a lifelong investment and a continued money pit,” he says. Architectural professionals are not merely designing walls and roofs, but are creative souls creating unique environments through their training, experience and insights, he says.

“When it comes time to sell, buyers purchasing a renovated property are also assured any additions and alterations were executed under a registered professional’s supervision.”

EXPERIENCE South African Council for the Architectural Profession (Sacap) CEO Marella O’Reilly says the importance of consulting a fully qualified, registered professional cannot be underestimated. While a builder wholly understands the mechanics for putting together a structure, qualified draughtsmen, technologists and architects have the insights and experience vital for a successful project.

A legal entity incorporated under the Architectural Professional Act, Sacap regulates the profession; upholds education and training standards through accredited architectural learning sites within tertiary institutions; registers qualified candidates and professionals; promotes continuing professional development via collaborative engagement with voluntary organisations; and protects the public interest by identifying the type of work its members are capable and competent to perform.

Elphick Proome Architects director George Elphick says clients’ requirements and aspirations are paramount in designing their space — and that means creating buildings,

“This may be the difference between a lifelong investment and a continued money pit” Craig Hutchison, CEO, Engel & Völkers Southern Africa environments and spaces that respond to the unique nature of each project.

“Our philosophy emphasises an appropriate architecture that responds to context, region and climate,” he says.

Hutchison says any building project requiring foundation excavation requires town council approval, while part of the architect’s responsibility is creating working drawings that provide the construction team with a step-by-step guide on how the design must be built.

This avoids construction mistakes that might later have to be demolished and rebuilt. Hutchison says good professionals ensure clients are wholly happy with the design before construction starts and, while there is always space for minor adjustments, this step is essential in avoiding time wastage and additional costs.

DESIGN DIALOGUE Sakhisizwe Architects director Patrick Mawesane says that on receiving a client’s brief, architects create a design dialogue and devise a concept shaped by the project’s geographic urban setting intertwined with economic, social, environmental and other related aspects to produce a holistic product.

Architects also keep updated on the latest design trends, product developments and building regulations, meaning they are knowledgeable about the most appropriate and cost-effective products for a

particular project.

“It is their business to know about energy-saving construction methods that will save you money in the long term, long after the workers have left the site,” Hutchison says.

RENOVATION O’Reilly says it is particularly important when people are making additions or renovating older properties that the professional understands the design and construction methods used when it was first built.

“This is vital to understand any engineering implications and to appreciate the weak points. An architectural professional has been trained to identify these issues and has studied the different construction methods through history.”

She says that using experts ensures homes are

legal; illegal constructions can significantly affect the property when owners look to sell. It is also in the professionals’ interests to earn continuing professional development points by attending industry related conferences, seminars,

workshops and lectures, by lecturing at an institution or by becoming a member of a registered voluntary association as this makes them eligible for continued Sacap registration — and operating without Sacap registration is illegal.

ARCHITECT FEES The Architectural Professional Act has historically governed architectural fees with the law including an annually updated guideline fee structure. The structure works according to percentages with different amounts paid at different stages of construction.

Typically project management is included, meaning architects frequently visit the site to ensure their design is being correctly executed. They have the knowledge to identify

problems not obvious to the untrained eye.

The fee structures can be used as a negotiation guideline, but O’Reilly says as clients cannot negotiate with doctors or lawyers, architectural professionals have undertaken years of study, a structured candidacy internship process and written practical examinations before qualifying to practise their profession and should be afforded the same respect as other professionals.

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HOMEFRONT PROPERTY NEWS

Blok pilots 80/20 model

C

ape Town urban property developers Blok has launched a new product, Blok Raw, premised on what the company calls the 80/20 model, to offer a new range of urban homes in a new price band in urban Cape Town.

The aim is for the developer to deliver a more diverse mix of housing in well-located urban areas, providing homes aimed at the middle income market.

Blok has named this the

80/20 model as the flats in the originally plannedfor scheme account for 80% of the total number of units and will subsidise the more affordable flats that account for 20%. This will be achieved through the 80% absorbing the land costs as well as some of the associated planning and finance costs, it says.

Ground breaking for the first Blok Raw development, FORTY ON L, is scheduled for August.

On Lion Street in the Bo

Kaap, it will comprise 54 flats, priced from R1.975m.

Occupation is expected in autumn 2019. Paying homage to the district, each flat will get a bright splash of colour.

Says Blok MD Jacques van Embden: “We are excited to be launching a first for Blok that responds to needs that are current and real in today’s market — the lack of urban housing for a more diverse set of income ranges in welllocated areas.”

Muted building activity in first quarter

R

esidential building activity in the private sector remained under pressure in both the planning and construction phases of the South African market for new housing in Q1 2017, according to Absa Home Loans’ building statistics, released on May 18. The bank used data published

by Statistics SA. It excludes state-financed housing.

New residential plans approved for all three housing categories [flats and townhouses, less than 80m 2 and equal to or more than 80m 2] declined 4% year on year to 13,064 plans from

13,606 plans approved in the same period a year ago.

Plans approved for flats and townhouses increased 13.7% year on year, or 688 plans, in Q1 2017.

New housing units built increased 9.4% year on year.

New flats and townhouses built increased 29.2% or 1,023 units.

New smaller-sized houses built — with a building area of less than 80m² — increased 9.4% to 3,385.

New houses built of 80m 2 or larger declined 16.6% to 2,225 units.

Real value of plans approved for new residential buildings declined 7.9% to

R10.78bn, calculated at constant 2015 prices.

Real value of new residential buildings reported as completed increased 15.7% to R8.02bn, calculated at constant 2015 prices.

Average cost of new housing built increased 11.3% to an average of R7,139/m 2.

Average level of and increase in building cost/ m 2 in Q1 2017: i) Houses of <80m²: R4,979, up 19.2% year on year ii) Houses of ≥80m²: R7,123, up 10% year on year iii) Flats and townhouses: R8,023, up 8.7%.

New look for Art Deco building

T

he landmark Art Deco building, 50 on Long Street in the Cape Town CBD, is to undergo a complete interior refurbishment.

It was recently sold for R37m in a deal brokered by Annenberg Property Group.

The freestanding commercial building is on the corner of Hout and Long streets. It comprises

a gross lettable area of 3,075m 2 with ground floor retail and six storeys of commercial office space, as well as a penthouse.

Tenants will be able to customise the office space to their requirements, and the building will be fibre optic ready.

All internal areas will be refurbished to a AAA grade standard. The aesthetic will include the

use of timber and stone and panelling detail in the reception, with black steel cottage pane shop fronts on all office levels.

Completion is anticipated for August this year.

Says Andries Louw, a director of Annenberg Property Group: “The refurbished office space will be marketed at competitive asking rentals of R130/m 2 .”

Lure of Ladismith property is in the lifestyle

P

roperties in Ladismith in the Klein Karoo do not stay on the market long as they offer good value for money, says Seeff Properties estate agent Imelda Egan. The historic farming town in the Swartberg is a secure environment with good schools and infrastructure.

Egan says average prices of property have more than doubled since 2012 and have increased nearly sevenfold since 2001 “and still there is no sign of a slowdown”.

Ladismith also has a rich architectural heritage, and three unusual properties are on the market.

A five-bedroom Victorian homestead, run as a guesthouse, has been fully restored but still has many period details. It is set in a 2,712m2 landscaped garden and is being marketed for R2.295m.

The four-bedroom Meulsloot, built exclusively

from stone, on the outskirts of Ladismith, has a price tag of R2.699m. It has unusual architecture and views from every room. The stone used for the house is all local and was hand excavated. The interior includes stones from all over Africa.

Albert Manor, a Victorian home, was built in 1892 and is a national monument.

This 400m2 home is run as a guesthouse; the main house has seven bedrooms while the refurbished Coach House has two. The wraparound veranda has views of Towerkop and the Klein Swartberg Mountains.

It includes many period features, such as handmade windows from Holland.

Another special feature is that every door in the home has its original locks and keys. It is on sale for R2.6m.

Says Egan: “For a large Victorian home that includes these features this price is exceptionally reasonable.”

The Victorian homestead

PRETORIA EAST

. . .

D R N U A !

O T Y E S M D A L O I H U B BUY M A AND DRE Stand: R589 000 up to R650 000 Building: R1 225 000

Stand: R589 000 up to R650 000 Building: From R1 150 000

FAR = 120% of stand size Stand: R589 000 up to R650 000 Building: From R1 100 000 WERNER EKSTEEN

RE/MAX Jowic - Team Werner Eksteen

082 411 3089

082 577 4531 (Office) werner@wernereksteen.com

BUY NOW d te ca lo y ll a tr en C d n a t n Convenie A PA R T M E N T S A N D P E N T H O U S E S Our latest three and four bedroom en–suite luxury apartments are ready for occupation

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Don’t lose the opportunity to buy before it’s sold out.

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M1

HOUGHTON GOLF CLUB

2ND AVE

Come and view our luxury apartment 12029.

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