Business Day HomeFront 06 March 2020

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MUST-READ

Design Indaba: a brighter future PAGE 2

Smaller towns with big-city plans PAGE 12

Affordable homes show growth spurt PAGE 14

Steyn City estate in Midrand is home to a range of generations

Next-generation living Gen Z calls the shots at work PAGE 14

HomeFront explores the buying trends of Generation Z and baby boomers. What do they look for and how does it impact the property market?

PAGE 6

HOMEFRONT INNOVATION

Design can save the world This year’s 25th Design Indaba hosted some of the world’s foremost thinkers and speakers, with sustainability and biophilic design high up on the agenda. Here’s a wrap of the highlights

S

A is not alone in its struggle with a high unemployment rate, rising homelessness figures, sexual crimes against women, corruption at grassroots level and a flat economy. It may be little comfort, but most countries in the rest of the world suffer similar woes. Yet design offers solutions. This was the message last week at the 2020 Design Indaba, where local and international speakers shared their inspiring visions to create a better future for the world.

WORDS: DEBBIE LOOTS :: PHOTOS: SUPPLIED

Living with nature Paul Cocksedge | biophilic design Unwilling to be labelled as one specific kind of designer, the award-winning Paul Cocksedge focuses largely on designs that improve people’s environmental experience.

He incorporates as many natural elements as possible into living and work spaces to counter technology that permeates most aspects of modern life.

His striking public installation Please Be Seated (above), commissioned for the London Design Festival and British Land, is both functional and sustainable, and provides reprieve from the busy Finsbury Avenue Square in London. With spaces to sit or lie down, this bench-sculpture is made from upcycled scaffolding planks.

Two other significant works of his are Drop, a large buckled magnet coin on which spare change for charity can be affixed, and The Living Staircase in an office building in Soho, London, where workers have the opportunity to look after plants that seem to be flying off the balustrade, and spend time in a library or relax at a tea bar.

Better cities Jeanne Gang | architect One of Time magazine’s 100 most influential people of 2019 and Architectural Review’s Woman Architect of the Year 2016, Jeanne Gang is a US architect who believes in building sustainable futures for cities. The term “actionable idealism” drives Studio Gang, her multidisciplinary practice. Apart from a range of projects using design to help people and organisations create their futures, the team also has a longstanding interest in ecology. In 2011 Gang wrote the book, Reverse Effect: Renewing Chicago’s Waterways to Propose a Greener Future for the River.

Always pushing boundaries, she also designed the Aqua Tower in Chicago. Completed in 2010, it was the tallest building designed by a woman at the time. It is only surpassed by her Vista Tower, now under construction, also in Chicago.

HOMEFRONT

Radical empathy Bas Timmer | philanthropic fashion designer On a mission to clothe the homeless of the world, Dutch fashion designer Bas Timmer is pursuing his vision one Sheltersuit at a time. The young ArtEZ Institute of the Arts student’s award-winning waterproof and windproof bodysuit (left) with an attachable sleeping bag and matching backpack is made by volunteers – formerly homeless or unemployed people, or refugees – using upcycled and recycled materials.

Some of the workers are paid and refugees are given opportunities to integrate into Dutch society.

Sheltersuits have brought relief to refugees as far afield as the Greek island of Lesbos and Sarajevo in Bosnia and Herzegovina. During Design Indaba 2020, Timmer launched the Sheltersuit SA with seed funding from the conference.

The design of this version differs from the original to accommodate the warmer South African climate.

Building with seagrass Kathryn Larsen | architectural technologist Kathryn Larsen is a US architectural technologist with the firm Bygningskonstruktør MAK, based in Denmark. Her interest in vernacular architecture and the adaptation of local construction methods and materials into modern buildings led to her dissertation on the seaweed houses of the North Sea island Læsø and the use of eelgrass as building material.

“Eelgrass and many other inedible seaweeds are seen as waste,” she says. “If we don’t remove it from the beaches, it will pollute the water with nitrates. If we use it, we create a circular economy and improve the water’s quality.”

Eelgrass does not decay and is fire resistant thanks to its salt content. It is nontoxic and can create breathable, membrane-less constructions when used as insulation, improving indoor air quality.

“When used locally, it helps create carbon-neutral buildings,” Larsen says. “A traditional seaweed roof lasts up to 200 years and, on top of it, it’s a great fertiliser.”

For her research project, Seaweed Thatch Reimagined, she built prefabricated seaweed thatch panels to use on roofs and façades. These panels were installed on a roof and studied for more than a year.

Local rising star Vukheta Mukhari | civil engineering graduate, UCT Enthusiastic about design since childhood, Vukheta Mukhari pursued a master’s degree in civil engineering at the University of Cape Town before joining a dynamic team that shared his passion for sustainable design.

Being awarded a GreenMatter and WRC fellowship groomed him to become a leader in the biodiversity and science spaces. Soon Mukhari got involved in a project that made the world’s first biobrick made from urine. Finding sustainable ways to utilise our “waste”, the team also created a fertiliser and sustainable building material.

Mukhari’s other green interests include saving the oceans by spearheading a plastic pollution awareness campaign, and building smart technology that promises to revolutionise the health and fitness space.

A

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HOMEFRONT INSIGHT

Next-generation living HomeFront explores the buying trends of Generation Z and baby boomers.

What do they look for and how does it impact the property market?

WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

I

n 2014, PWC released a report called Real Estate 2020: Building The Future. It projected that middle classes would grow by 180% between 2010 and 2040 and that cities, especially in emerging market countries, would attract younger middle classes.

“As intense competition for space increases urban density, apartments are likely to shrink. Developers will need to become more innovative about how they use space,” the report said.

It also predicted that by 2050 demographic shifts would affect demand for real estate fundamentally, with middle-class urban populations in Asia, Africa and South America needing far more housing.

A prediction that has materialised in 2020 was that “advanced economies’ ageing populations will demand specialist types of real estate, while their requirements for family homes will moderate”.

SUBSECTORS EMERGING The PWC report also forecast that significant older population growth would result in subsectors of real estate emerging: new “significant subsectors in their own right” would include retirement and healthcare – trends we are certainly seeing currently.

Picking up on this in 2020, HomeFront researched the impact of buying trends of two significant generations – Generation Z (aged 18 to 25) and soon-to-retire baby boomers (aged 56 to 75) – on the local property market. What are these groups buying, how do they approach property decisions and how do their life stages influence their wish lists of home specs?

While not all of PWC’s projections played out, one was spot-on: “Shifting demographic trends are likely to create a huge need for new and different real estate by 2020 and beyond.

Residential real estate will become more specialised, with local and cultural

GENERATION Z The swimming pool at the show village of Steyn City in Midrand

“Generation Z is all about instant access, so the fact that you can participate in your favourite sport or exercise without leaving the residence is a major plus” Zoe van Onselen, marketing and events group head, Steyn City differences influencing how this evolves. For example, city apartments for young professionals may be smaller, without kitchens or car parks; there’s likely to be a range of retirement accommodation for the elderly; and families in some emerging economies might well live in gated communities outside the city centres.”

Steyn City Parkland Residence is an excellent example of a large gated community that sprung up in the “new north” between Johannesburg and Pretoria.

The estate is home to a range of ages, but its retiree population fits the specs of a higher-income, active resident who tends to “refire” rather than retire after 60.

“Most of our retired buyers opt for cluster homes because of the lock-up-andgo lifestyle. Most are moving from larger homes and looking to declutter their lives in every area, so they

want a simple home with less need for maintenance,” says Steyn City marketing and events group head Zoe van Onselen. “Security is paramount for this group and Steyn City is known for its highly advanced security measures.”

This estate offers two cluster developments: 65 on Park, where baby boomers make up about 30% of buyers, and Origin, where the figure is about 25%. At Oasis apartments, 12% of the owners are baby boomers.

It’s a demographic group that enjoys travelling, and the cluster or apartment lifestyle allows for this.

VALUE EXPERIENCES Aside from 13,416 millennials, the Deloitte Global Millennial Survey 2019 also gauged responses from 3,009 Gen Z-ers in 10 countries. It found that these young people value experiences, but more than half want to earn high

salaries and build wealth too. Priorities have shifted: for 57% of Gen Z-ers, travel topped their list of aspirations, whereas 49% said they also want to own a home.

However, financial constraints are an issue for many. “It’s all about affordability. We offer a turnkey solution for millennials and Gen Z-ers.

You don’t pay until you stay.

So you only start paying the bond once you move in,” says Multi Spectrum Property marketing representative Francois van Staden, referring to the apartments offered at BuhRein Estate in Cape Town. Its location in the metropolitan’s outlying Northern Suburbs keeps prices lower.

“You only need a minimal securing deposit upfront for the turnkey solution,” he says. “If you’re a millennial, it can take two years or more in the normal residential market to save for a deposit.

Renting is not a solution because you’re paying somebody else’s bond.”

Buh-Rein’s younger buyers generally opt for modern two-bedroom apartments in Blue Lily Lane as first-timers.

“It’s always better to buy directly from a developer because most costs are included in the purchase price,” says Van Staden.

Sweetening the deal is MSP’s offer to first-time owners of a five-year guarantee on structural defects, with a retention period, and a plumbing and electrical guarantee.

Its current special gives buyers R65,000 in rental assistance on a twobedroom Blue Lily Lane unit that sells from R1,159,900, with no transfer duty.

PRICE-CONSCIOUS In Johannesburg, Balwin Properties finds a market for price-conscious Z-ers in secure complexes with

Just more than 13,000 Gen Z-ers are active in the local property market (in their own right, not via inheritance).

R890,000 is the average current market value of these properties, with an average of R750,000 for freehold and R970,000 for sectional title. A small proportion buy in estates valued from R1.1m to R1.8m.

There is substantially more freehold than sectional title stock in SA. While only 15% of national stock is sectional title, 35% of Gen Z homeowners own sectional title property, showing a strong preference for sectional title living.

HOMEFRONT

BABY BOOMERS There are 2.1-million baby boomers active in the property market – but only 22% have transacted since turning 56 (so 78% still live in a property owned prior to their 56th birthday).

Tricolt's Serengeti Golf and Wildlife Estate, outside Pretoria

R1.125m is the average current market value of these properties. This data is limited to the 22% who bought as they approached retirement (or during the process). Of those, 13% bought within an estate. Average values are R890,000 for freehold, R1.2m for sectional title outside estates; R1.7m to R2.5m for estates.

“Baby boomers are definitely diversifying their specifications. Lifestyle estates are becoming very popular”

With more freehold than sectional title stock in SA, it’s no surprise that the bulk of retirement-buying baby boomers bought freehold. While only 15% of national stock is sectional title, 21% of retirement-buying baby boomers own sectional title. They show a stronger preference for sectional title than the general population, but not as strong as Gen Z-ers.

Louise Varga, branch manager for Stellenbosch, Somerset West and Strand, Pam Golding Properties

Source: Cindy Beets, PR and marketing head, Lightstone Property

Pam Golding Properties' Obs Court in Observatory, Cape Town

Ballito Hills, a KwaZulu-Natal development by Balwin Properties

Amenities at Buh-Rein in Cape Town include an outdoor gym

amenities, such as The Amsterdam in Randburg.

“Clients are looking to be as close to work as possible but get the best value for money.

A lot of centrally located developments are extremely pricey for small apartments.

The Amsterdam hits this nail on the head with big apartments, correctly priced and close to major CBDs,” says Balwin property executive Jason Heywood.

Prices for a two-bedroom start from R1,199,900.

A number of Z-ers still rent with friends or curtail costs by living with their parents. Pam Golding Properties Southern Suburbs branch manager Samantha Nel says the agency has sold only two units to buyers younger than 25 – both in Observatory in Cape Town.

Recently an apartment sold to a 27-year-old who paid R1.37m for a one-bedroom.

At Obs Court, a sectional title unit development in this suburb, two-bedroom units sell from R1.75m to R2.1m.

“Most Gen Z-ers prefer central locations but millennials are definitely moving further out to suburban locations to get more for their money,” says Balwin property executive Michelle Blackburn. Its Ballito Hills development targets both these groups and is centrally located within 35km from Umhlanga, with easy airport access. One-bedroom apartments start from R1,074,900.

Added value is a big deal for these buyers. “All appliances are included – it’s easy to just move in and enjoy savings of additional costs in your first home,”

Blackburn says. “Fantastic amenities on your doorstep include a restaurant, a pool, a gym and a spa. These are covered by your levies and therefore cost-effective.”

Convenience is just as important. “This generation is all about instant access, so the fact that you can participate in your favourite sport or exercise without leaving the residence is a major plus,” says Van Onselen. “Our 800ha of indigenous parkland are ideal for trail running or mountain biking. Steyn City hosted the Discovery 947 Ride Joburg MTB Ride in 2019 and offers residents a 40km blue-graded route.”

CLEAR SHIFT What are baby boomers looking for? “They’re buying for lifestyle, safety and a great environment for walking, on a golf course estate,” says Tricolt CEO Tim Kloeck, referring to Serengeti Golf and Wildlife Estate homeowners. This estate is quite a way out of urban centres, on the R21 between Pretoria and OR Tambo International Airport.

More centrally, Tree Tops Houghton apartments are a good example of a sectional title development that delivers lock-upand-go ease for Boomers.

“People buy here more as an investment, but we have a few retiree residents. They love the Rosebank area, with friends and all their favourite restaurants close by. They want to downscale but in the area,” says Kloeck. “The freehold house market in Joburg is dead. People want safety over everything, so estates are the way.”

Seeff cites recent Lightstone demographic data showing “a clear demographic shift” in Somerset West. While 70% of current owners are older than 50, 57% of new buyers are younger than 50.

DIVERSIFYING Louise Varga, Pam Golding Properties branch manager for Stellenbosch, Somerset West and Strand, says mostly Boomers buy in this region. In Somerset West, 50- to 65-year-olds make 27% of all purchases; in Stellenbosch they comprise 31% of purchases. “They are definitely diversifying their specifications. Lifestyle estates are becoming very popular. They are also opting not to spend all their resources on one, single property,” she says.

“They’re looking for security estates and homes on smaller erven of 400m² to 800m² that are water-efficient with lowmaintenance gardens. These should have high-spec finishes and fibre. They are typically three-bedroom homes with a study and a double garage.”

And do millennials and Z-ers go about their purchasing in a different way compared with baby boomers? Technology definitely plays a part, according to Heywood.

“These younger clients tend to do their research online and normally look at one- and two-bedroom apartments to live in. In a few years when they have greater earning potential, they would let the apartment and buy a bigger property to meet their needs.”

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HOMEFRONT HOT TOPIC

The rise of second-tier cities Smaller South African towns are growing as people realise opportunities for more affordable living and working environments.

HomeFront investigates WORDS: DEBBIE HATHWAY PHOTOS: SUPPLIED AND SHUTTERSTOCK

“Cosmo City was a huge success and has created excellent accommodation close to the city. Investors who bought early on have seen good return on investment over a 10-year period” Linda Erasmus, CEO, Fine & Country Sub-Saharan Africa

Conradie Park in Pinelands, Cape Town

T

he AfrAsia Bank SA Wealth Report 2019 by New World Wealth flags several small-town hotspots in the Western Cape and KwaZuluNatal as being among the most exclusive in the country in terms of property investment. Plettenberg Bay, Knysna, Stellenbosch, Paarl, Franschhoek, George, Hermanus, Wilderness, Umhlanga, La Lucia and Ballito feature homes around the R20m mark, according to 2018 figures.

Up-and-coming towns nearby are Nature’s Valley and Keurbooms (near Plett) and Zinkwazi (on the KwaZulu-Natal North Coast), the report says.

Meanwhile, metros outside urban centres are becoming more appealing to businesses and families. Known as second-tier cities, these hubs include Mbombela, Kimberley, Rustenburg, Bloemfontein, Port Elizabeth and Polokwane.

Affordability aside, what underpins growth in these areas is improved quality of life, which depends on infrastructure keeping pace with development. That

means continued pressure on authorities to provide basic services, education, healthcare, policing, telecommunication networks and roads.

Park in Pinelands, Cape Town, is a good example.

SA’s first fully integrated mixed-income housing development aimed at reversing apartheid spatial planning is the outcome of a partnership between HIGH GROWTH AREAS The United Nations estimates developers Concor and the Western Cape Government. that 71.3% of the South The 22ha community African population will live comprises more than 3,500 in urban areas by 2030, and homes, some of which are almost 80% by 2050.

Gauteng, the Western Cape subsidised or grant-funded, and eThekwini are expected with the remainder for sale on the open market from to have the highest growth, according to the Department about R950,000.

The development is an of Agriculture, Land Reform incubator for growth and and Rural Development’s evolution, says head of Draft National Spatial sales Wayne Lawson. “It’s Development Framework.

“Significant movement will aspirational – those renting also take place from villages subsidised housing will be inspired to buy subsidised and small towns to larger, properties. Subsidised better connected towns homeowners will in turn located on major routes,” the strive to buy their first house document predicts. “Both large urban regions and rural on the open market. The model provides social and areas will require targeted and appropriate government financial support for this.”

Phase 1 has been launched focus and attention.” and the public is keen to Municipalities will need be part of a connected, financial and technical multicultural community support from the private marked by affordability, sector too, it says. sustainability and security, says Toni Enderli, founder of PUBLIC-PRIVATE Realtor of Excellence.

PARTNERSHIPS The model demonstrates Recently launched Conradie

how state-owned land can be unlocked to boost economic growth while providing mixedincome housing in one neighbourhood. Located near main arterial routes and railway stations, the project involves a longterm transport master plan, potential new MyCiti routes and road upgrades.

Concor project leader Mark Schonrock says the R3bn development will also stimulate small business growth through 10,000m² of retail and, initially, 14,500m² of commercial space – all designed by architects DHK and Jakupa. More than 2,000 jobs will be created during construction.

Included are two schools, several creches, a hotel, an urban gym and pet-friendly parks. Foot and cycling paths are part of an integrated nonmotorised transport plan and green technology has been applied to energy, water and waste management.

The first phase comprises 99 units and occupation is set for early 2021.

TRANSPORT HUBS SA’s second-tier city landscape resembles what

HOMEFRONT

Linda Erasmus, CEO, Fine & Country Sub-Saharan Africa

Berry Everitt, CEO, Chas Everitt International Property Group

Craig Mott, Western Cape regional sales manager, Rawson Property Group

(From left) Mark Schonrock, property development manager, and Mark Fugard, MD, Concor Construction

Toni Enderli, founder, Realtor of Excellence

INDUSTRY INSIGHT Craig Mott, Western Cape regional sales manager for Rawson Property Group, predicts that Johannesburg’s northwestern suburbs will become investment hotspots for firsttime buyers and investors should President Cyril Ramaphosa’s plans for the 5G-ready smart city in Lanseria be successful.

“If all goes well, this will be one of the largest and most innovative property developments in SA,” says Mott.

“The project is set to be a benchmark for green infrastructure. It will provide electricity, water, digital infrastructure and roads for 350,000 to 500,000 people within the next decade.”

The envisioned Lanseria Airport City is a joint project between the Investment and Infrastructure Office in the Presidency and the Gauteng and North West provincial governments, working together with the cities of Johannesburg, Tshwane and Madibeng.

Neighbouring suburbs Sandton, Midrand and Fourways will also benefit as they are easily accessible from Lanseria.

“Improved transportation systems and town planning often signals where the next property hotspot will be and contributes to a shift in buyer patterns with a medium- to long-term view,” says Mott. “Rising demand for smaller homes in conveniently located areas creates opportunities for renewal of older suburbs close to city centres and public transport hubs – and even old industrial and commercial areas, where run-down properties can be recycled into decent, affordable accommodation for young firsttime buyers and renters.”

This way, cities can make optimal use of existing utility, transport and communications infrastructures, become more inclusive and reduce “crime and grime”.

“There is downward pressure on prices of large, old homes in many heritage suburbs now, which creates more latitude for owners and developers to subdivide or rezone and build the upmarket apartments and clusters for which there is strong demand,” he says. “These will generate a much higher return. The resulting job creation, resurgence in property market activity and boost for the construction industry will ultimately contribute to positive economic growth.”

Pietermaritzburg in KwaZulu-Natal is a prime example of a second-tier city is happening in large cities around the world, except here it is geared more for the lower- to middleincome groups, according to Linda Erasmus, CEO of Fine & Country SubSaharan Africa.

“Mixed-income developments with units selling from between R500,000 and R1.8m, some of which are subsidised by government, are well needed in smaller hubs such as Mbombela and Rustenburg,” she says.

Employees seeking accommodation closer to their place of work to overcome historic transport challenges, among others resulting from colonial and apartheid planning, may find solutions in mixedincome developments.

“Town planners will need to make provision for transport hubs such as the Gautrain, linked to opportunities for new developments that take into account huge variances in income in different groups,” Erasmus says.

Rosebank is another area where mixed-income developments offer a complete solution to people

from all income groups who wish to live and work in the same zone.

“During my early years on the executive board of the Randburg Business Chamber, I remember Cosmo City being debated by the municipality,” says Erasmus. “Objections offered by the public were driven by fear. They imagined an informal settlement developing on the doorstep of the city.”

Cosmo City was the first successful integrated development in SA, with occupation starting in 2005.

“It was a huge success and has created excellent accommodation close to the city. Investors who bought early on have seen good return on investment over a 10-year period. First-time buyers are now in a position to sell and move even closer to the traditional areas,” Erasmus says.

The 2,000m 2 Cosmo Mall, owned and developed by the Bentel Group, has also given the area a boost.

HOUSING POTENTIAL The new spatial plans for our cities lean heavily towards densification and

thus better use of land, natural resources and existing infrastructures to better accommodate and embrace the country’s rapidly urbanising population and slow the proliferation of informal housing on the margins.

Chas Everitt International Property Group CEO Berry Everitt says new developments built with this in mind should also help to reverse the toxic effects of apartheid-era spatial planning by providing poor people with easier access to better services and more opportunities to obtain and create employment.

Traditionally, inner-city land has been too expensive to enable developers to deliver new mixed-use precincts that are affordable for lower-income earners.

“Local authorities must work closely with developers in identifying suitable inner-city brownfield sites like the old Conradie Hospital grounds [the property that gave rise to Conradie Park]. and making them available at low cost, while enabling and promoting the low-cost provision of the elements

required for modern mixed-use developments to succeed,” Everitt says.

These include highspeed internet connectivity throughout the precinct, excellent public transport and sustainable energy and water supplies.

“Many suitable sites are already available in all of our metros and there are likely to be more as increasing numbers of traditional factories, office buildings and shopping malls in central areas become redundant. This will also be true of second-tier cities like Mbombela, Rustenburg, Pietermartizburg, Alberton, Germiston and Springs, which have large industrial areas close to their centres,” he says.

“Many developers are aware of the potential of these inner-city sites and even entire areas that can be transformed into thriving urban villages. Yet the major stumbling block is that many of our local authorities currently don’t have the town-planning, coordination capabilities or financial capacity to provide the help they need to bring such projects to fruition.”

HOMEFRONT PROPERTY NEWS

Lightstone announces 2020 property outlook

L

ightstone Property’s recent indices seminar provided insight into SA’s property sector for 2020.

According to Lightstone head of analytics Paul-Roux De Kock, the take-home realities include a robust, fast-growing affordable market, a struggling luxury property sector that is expected to experience further negative growth, and a unique finding within the value band forecasts that sees sectional scheme growth projected to

outperform the freehold property sector.

“After starting off last year with negative GDP growth in Q1, South Africans were desperate for an economic silver lining,” says De Kock.

In 2019 house price inflation ended just below the 2% mark, which is what Lightstone Property had forecasted in its lowroad scenario. “This is the first time that inflation came in under the lowroad scenario forecast,” he says.

A slow economy is likely to cause house price inflation to break through the 0% barrier in the second half of the 2020, ending the year with a 1.3% decline in home values should the lowroad scenario play out again.

On the positive side, now is a great time to buy a house, and homeowners wanting to sell can take heart. De Kock says the high-road scenario predicts a positive turnaround of house price inflation in Q2 to conclude the year on an optimistic trajectory.

Growth: luxury vs estate homes Luxury

Estate 35% 30% 25% 20% 15% 10% 5% 0% -5% -10%

2000

2019

Source: Lightstone Property

New transfer duty threshold is good news

D

uring last week’s budget speech, finance minister Tito Mboweni announced tax relief across the board, with the bulk going to taxpayers earning less than R500,000 a year.

Good news for the property market in particular is the adjustment of the threshold for transfer duty, with no duty payable on property priced R1m or less, says Pam Golding Property group CEO Andrew Golding (right).

The increase in the transfer duty threshold is an attractive incentive for first-time buyers and those seeking affordably priced homes – a key sector in the current market.

“It will help stimulate transactions in this price band, increasing volumes and creating a ripple effect across the market in general, which will in turn benefit government income generation,” says Golding.

He says the trend towards energy-saving features

Demand gives rise to more affordable homes

T will gain momentum as homeowners across all sectors reduce their reliance on Eskom or even go off the grid to alleviate already tight budgets.

“This is becoming an economic imperative especially as the costs of such features become

more accessible to a broader public. Developers and landlords will focus increasing attention on reducing municipal costs for services such as electricity and water as much as possible in order to make their offerings more appealing to tenants.”

he high demand for affordable housing and easier lending conditions are behind the launch of developments such as Ihlathi in Parklands, Cape Town (above). The offering at this entry-level gated community ranges from one-bedroom apartments starting from R689,999 to penthouse units at R1.2m including transfer costs.

Developed by International Housing Solutions (IHS), a global private equity fund focused

on property priced below R1.5m, Ihlathi is the fund’s ninth gated community project. It borders a nature reserve and offers environmentally friendly technologies that use 20% less electricity and water, as well as excellent security and annual capital growth of up to 10%.

According to Toni Enderli, head of Realtor of Excellence, the trend is likely to continue, as stock in this sector is limited. “Some banks have responded to the demand

by offering 100% finance because they see the entrylevel sector as an incubator for growth,” he says.

IHS’s MD for SA, Rob Wesselo, says the affordable housing market will keep growing, especially in Parklands, which is less than 20km from the CBD, with easy access to schools, shops, work opportunities and some of the country’s most beautiful beaches.

Ihlathi’s Phase 1, the first 102 apartments of a total of 384, will be ready for occupation by early 2021.

First truly digital generation changes the game

I

n the corporate world, baby boomers and their successors, the millennials, are now joined

by Gen Z. As the first truly digital generation, it is responsible for dramatic workplace shifts.

“While millennials adopt new technologies faster than their predecessors, Gen Z-ers have never known life without digital tech,” says Lew Geffen Sotheby’s International Realty CEO Yael Geffen.

“Research shows that 60% of this group prefer to learn through YouTube tutorials,

which presents new challenges for standard HR and training methods.”

Global economy, traffic and the expectation of convenience all point to the traditional nine-to-five era fading, being replaced by flexible hours and digitisation, Geffen adds.

Enter co-working centres like Slow in the City in Sandton, a forerunner in this market. Others following suit include Open in Maboneng, The Workspace, JoziHub, Impact Hub and Regus.

Gen Z-ers have different habits too: they prefer

to shop online and walk everywhere, spurring further shifts in the commercial real estate sector.

Live/work/play precincts like Century City will become more attractive to such tenants, says Jack Bass, director of Lew Geffen’s Cape Town commercial division.

Moreover, International Workplace Group’s annual Global Workspace Survey shows that flexible workspaces boost productivity, with 54% of employees saying that working remotely enables them to get more done.

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