Business Day HomeFront 08 September 2017

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 8 SEPTEMBER 2017 WWW.BUSINESSLIVE.CO.ZA

MUST READ

Joburg Art Fair: on this weekend PAGE 2

Inner city hotel appeal PAGE 8

Start-ups hit right note on property PAGE 16

Buying to let A Futurist nod to heritage PAGE 24

Rental default caution is wise for investors, but good returns are on the cards as residential property deals beckon PAGE 12

HOMEFRONT ART AND DESIGN

Going Dutch at JAF Botswanan designer and craftsman Peter Mabeo’s limited editions of handcrafted furniture are a highlight of this year’s Joburg Art Fair

WORDS: GRAHAM WOOD :: PHOTOS: SUPPLIED

T Orange Babies, Embi cabinet, Peter Mabeo

“We don’t take 100% of the profit — we always make sure it is a win-win situation” Johanne Balfour, organiser, Orange Babies exhibit

he FNB Joburg Art Fair (JAF) celebrates its 10th anniversary this year. The rise of the fair over the decade reflects a local and global shift in the way art is exhibited and marketed. Art fairs have in many ways changed the way galleries operate and perhaps even the way art functions in society.

The JAF, an international event focused on contemporary art from the African continent and the diaspora, is on at the Sandton Convention Centre from September 8-10. It has helped build a solid base of buyers and hosts 80 exhibitors this year, who are expected to attract 12,500 visitors.

REFLECTIVE

FNB Joburg Art Fair 2016

Robin Rhode, RYB, 2016

The general mood of the JAF this year seems reflective. Cape Town-born, Berlin-based featured artist Robin Rhode filled that role at the first Joburg Art Fair in 2008. And the exhibition by special projects curator Zoe Whitley of Tate Modern in London is “Truth, or some other abstraction”, a look back at artists who have shaped the history of art.

“Rather than contemporary practice, I’ve focused on artists active long before 1994,” she says.

That doesn’t mean that only pre-election work will be exhibited. Whitley selected works “with the understanding that artists are artists the whole of their lives, so some of their works will be more recent”.

HOMEFRONT ABOUT ORANGE BABIES Orange Babies was established in 1999 by Senegalese-born footballer Baba Sylla with make-up artist John Kattenberg and creative director Stef Bakker. The NGO’s aim is to help achieve an HIV-free generation.

Orange Babies provides financial support to selected organisations in SA, Namibia and Zambia with a special focus on prevention of mother-to-child transmission initiatives and organisations that provide medical care, nutrition, education and daily support to babies and children infected with HIV, or children otherwise affected by HIV/AIDS. orangebabies.org.za Sefefo Series, Peter Mabeo, available at Couth showroom, Cape Town A small gem this year will be the booth for Orange Babies, a Dutch NGO which aims to fight the transmission of HIV/AIDS with the aim of helping to achieve an HIV-free generation (see sidebar).

SPECIAL EDITIONS This year, its fourth at the fair, Orange Babies has branched out slightly and has included special editions of work by revered Gaborone furniture designer Peter Mabeo.

Johannesburg-based French interior designer Johanne Balfour has been instrumental in organising the JAF booth this year.

Gallery MOMO founder Monna Mokoena introduced Balfour to Mabeo, who agreed to make special editions of two designs for the stand.

Gallery MOMO arranged

the exhibition of a work

by Mary Sibande and two

by Andrew Tshabangu, as well as a book celebrating Tshabangu’s recent exhibition at the Standard Bank Gallery.

Last year Orange Babies collaborated with the Goodman Gallery in an exhibition of artworks (including two photographs from David Goldblatt) and a limited-edition crockery set featuring images by South African artists. “We don’t take 100% of the profit,” says Balfour. “We always make sure it is a win-win situation.”

DESIGN FAIRS Mabeo is no stranger to design fairs, having exhibited internationally at Milan Design Week, the International Contemporary Furniture Fair in New York and the

London Design Festival.

While he celebrates African heritage in his designs and supports local craft economies in the manufacturing processes, he has collaborated with a number of contemporary international designers including Patricia Urquiola and Patty Johnson.

SIDEBOARDS Mabeo has designed a special edition of five sideboards based on his Embi Series for the Orange Babies booth. At 2.4m, the edition is longer than others in the series. The most remarkable feature of the design is the door fronts, painstakingly crafted with hand-cut, individually sanded chips of panga panga wood, carefully overlaid to make a scaleor feather-like pattern. Part of the motivation for this

A panel from Robin Rhode, Evergreen, 2017 PRODUCED BY BLACKSTAR PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Samantha Durand

— apart from the beauty of the pattern — is that it allows even the smallest wood chips and offcuts to be used. The clean lines of the unit itself contrast with the richly textured and detailed door design.

Mabeo has crafted a special edition of 10 of the famous Kika stool, created in collaboration with Spanish-born, Milan-based architect and designer Patricia Urquiola. He has worked with Urquiola on a number of designs. The Kika Stool was the first, dating back to their initial meeting in 2009.

ORGANIC The stool is made using Botswanan Iroko, and involves a careful process of turning, scuplting and wood lamination,.

The stool’s beautiful organic shape is partly modelled on bollards used to moor ships, but also on the shape of the “kika and motsi” (mortar and pestle) used to pummel grain. It even hints at a drum-like shape and because of its hollow structure, can work as a percussive instrument.

The Kika stool is normally available with a subtle edge detail in red, black and white. “For this special edition, (Mabeo) has introduced an orange strip at the bottom and the trim,” says Balfour.

Orange Babies, Kika stool, Peter Mabeo

PUBLICATION

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

ADVERTISING SALES Michèle Jones Susan Erwee

michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info

084 246 8105 083 556 9848

CAPE WHALE COAST Arabella: 028 284 9385 • Betty’s Bay: 028 272 9145 • Hermanus: 028 312 1110 Kleinmond: 028 271 3423 • Onrus: 028 316 3390 • Pringle Bay: 028 273 8326

I am Hermanus

Voëlklip / R15.9 million Bedrooms 7 / Bathrooms 6.5 / Garages 2 Right above Grotto Beach This stunning seafront home on a double plot, is the uncompromising result of the perfect blend of art, design and functionality in one of the most desirable locations of Hermanus.

Ref# HF1332673 Allan Lotter 072 768 9984

Ref# HF1322554

Ref# ON1266481

Ref# ON1332058

Westcliff / R15 million

Benguela Cove / R17 million

Sandbaai / R3.7 million

Bedrooms 5 / Bathrooms 3 / Garages 2 A Hermanus landmark property, dating back many decades and is inherently part of the history of old Hermanus. Situated in a prime location, this heritage home can be a unique treasure to be cherished for years to come.

Bedrooms 4 / Bathrooms 4 / Garages 2 Spacious, modern 580 m² home on a secure, private Wine Estate with panoramic views of lagoon, Kogelberg Mountains and countryside. (VAT included).

Bedrooms 6 / Bathrooms 5 / Garages 2 Spacious seafront property with spectacular views and income-earning potential. Double garage with parking for 4 vehicles.

Heather Kleynhans 083 285 2777

Niel 082 967 0813 / Dinita 082 898 4519

Annemarie Gaigher 082 578 3334

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Arabella Country Estate / R5.5 million

Kleinmond / R5.4 million

Somerset West / R3.39 million

Bedrooms 4 / Bathrooms 4 / Garages 2 Secluded home in great condition. This centrally located and very private Arabella home has exquisite finishes, 4 en suite bedrooms and a totally private garden and is beautifully furnished.

Bedrooms 11 / Bathrooms 9 / Garages 2 Penthouse consist of 3 bedrooms, 2 bathrooms, an open-plan living area, an oak kitchen and bar, laundry, balcony and indoor braai. Plus 3x 2-bedroom units with bathrooms, kitchen and lounge and 2x bachelor flats. Ample parking.

Bedrooms 4 / Bathrooms 2.5 / Garages 2 This vast well-loved home offers open-plan dining and TV/family room with gas fireplace. Large wooden sliders leading to the lovely outdoor entertainment area. Formal lounge and formal dining rooms with beautiful views of False Bay.

Mike Bisset 082 889 5300 / Hugo Basson 083 386 6299

Lise Götz 083 609 7215 / Adri Wernich 071 157 6689

Ausra Houston 078 450 8892

CAPE WINELANDS Franschhoek: 021 876 2100 • Paarl: 021 871 1480 • Somerset West: 021 851 2633 Stellenbosch: 021 887 1017 • Wellington: 021 873 4557

Wellington / R1.999 million Bedrooms 5 / Bathrooms 2 / Garage 1 The location of this property is very sought-after. It is zoned for business. Situated opposite CPUT and within walking distance to all amenities. This property is perfect for student accommodation or a business.

The property currently consist of 2 separate units situated on a large erf. Large loft nor currently utilized. Ref# WEL1334851

We are Wellington

Erika Odendaal 082 412 6964 / Lynette Kannemeyer 082 672 1022

Ref# FWI1328559

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Franschhoek / R8.9 million

Franschhoek / R7.9 million

Val de Vie / R24.95 million

Bedrooms 3 / Bathrooms 4 / Garages 2 Immaculate lifestyle property on Gentleman’s Estate. Surrounded by rose gardens, lavender fields, Cabernet Sauvignon vineyards, olive and citrus trees, the Villa is situated on platinum Domain des Anges.

Bedrooms 4 / Bathrooms 3 / Parkings 3 country house.

This charming thatch home is the ideal country retreat. Located on the lovely Deltacrest Equestrian Estate with mature Pin Oak trees, vines and stunning mountain and vineyard views.

Bedrooms 5 / Bathrooms 6 / Garages 2 Absolute luxury on Val de Vie Estate. Offering seamless views from the deck and upstairs patios over the lake, stretching to the breathtaking Franschhoek Mountains.

Imported resilient vinyl flooring throughout the living areas.

Jeanine Allen 082 410 6837 / Doug Gurr 0726107208

Shelly Schoeman 083 301 8833

Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492

Ref# FWI TK1271107

Ref# TK1331628

Ref# SW1334742

Pearl Valley / R25 million

Paarl / R6.95 million

Somerset West / R2.69 million

Bedrooms 6 / Bathrooms 6 / Garages 3 Best position and views on the Estate. This beautifully designed modern family home is without doubt an amazing piece of architecture and design which uses the natural beauty of the scenery as its artwork.

Bedrooms 5 / Bathrooms 2 / Garages 4 Timeless Elegance!

Gracious Victorian combined with Cape Dutch home of generous proportions situated on a double stand in the heart of Paarl reminiscent of a bygone era, with stylish modern and period finishes.

Bedrooms 4 / Bathrooms 3 / Garages 2 Decidedly different family home with so much character and possibilities. It can be a perfect home for dual-living or excellent opportunity to live and work-from-home / home office with great visibility.

Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492

Lynette Schoeman 082 553 3045

Ausra Houston 078 450 8892

HOMEFRONT SHORT STAY

Downtown debut Despite its surrounds, a new Cape Town hotel offers a refreshingly noncorporate décor experience that draws on glamour from an earlier era

WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

I

’ve experienced hotel comforts as a business traveller, but a downtown stay in my own city was something novel. Cape Town’s small CBD is compact and easily accessible on foot.

An expanding restaurant and arts scene means Long, Bree and a few connecting streets now have nocturnal activity.

The Radisson Blu Hotel & Residence Cape Town opened on Riebeek Street in April 2017. The first noteworthy aspect, on check in, is the hotel’s surprisingly quiet downtown location. On the harbour side of Strand Street, Cape Town’s highest residential building falls outside that vibey strip (the exception being La Tête restaurant around the corner).

Surrounded by mostly corporate buildings of differing heights, ages and styles, we sipped a sundowner at the Ghibli Bar and Pool Terrace.

The vantage point was

DESIGN DETAIL Mardre Meyer, creative director at Source IBA, on the interior design:

Evon Smuts-Rogers was the design architect for Triangle House in the early 1990s. She was working at Louis Karol Architects.

Her design made references to the original Art Deco Mutual Heights building in Darling Street, one of SA’s best examples of Art Deco design. The Triangle House building is almost in the shape of a cross. It has four narrower extensions to maximise natural light and fresh air in the building. SmutsRogers was involved again in the interior revamp of Triangle House as part of its conversion to the Radisson Blu Hotel & Residence in 2015, this time as a partner at Source IBA. The revamp took close to two years.

The general styling of Triangle House had

touches that harked back to Art Deco. But there is an important distinction: we pay respect to Art Deco with a few nods towards it in the Radisson Blu hotel interior style, but even what Smuts-Rogers did in the 1990s was not pure Art Deco.

Most hotel groups are trying to be less formal, a little more hip and millennial. The focus at Radisson Blu is the exact opposite: it is inner city and smart. It is unashamedly glamorous, which suits its Art Deco styling. Art Deco was at a time of smartness. The interiors were inspired by big cruise liners such as the Titanic, when travel was glamorous. When we revamped it for Radisson Blu, we kept Art Deco elements such as the white marble floors in the reception lobby.

We didn’t use typical

corporate signage in the hotel, adding Art Decoinspired layering in gold font on black.

Art Deco had a lot of black and white patterns.

So we added to that a layer of moody blues and soft greys throughout the hotel’s furniture and curtains — we looked at a mood board of Cape Town colours and the deep blues were the moods of the ocean. The greys were the fog over the Atlantic.

What do you consider the X factor? Wherever you go in the building there are wonderful views: nobody really celebrates an urban location. There are sections that frame interesting pieces of big buildings and you feel like you’re looking at part of an international urban landscape. Everything was built in different times, but they live happily together to tell the story of the city.

of a historical charmer with curves and exposed brickwork, adjacent to a boxy 1980s office block complete with suspended window cleaners.

Later, on the hotel’s 11th floor, I couldn’t bring myself to close the grey curtains and shut out the lights. A series of aluminium windows in the Business King corner room soundlessly showed off bustling visuals of distant night to early-morning traffic, Table Mountain and the Bo-Kaap as its backdrop.

SPACIOUS The bedroom was modern and comfortable for two, with an excellent bed, a pod coffee machine and a bathroom with a spacious shower. The downstairs restaurant was closed for a function, so we ate room service from a round table, on a deep blue houndstoothdesign carpet, its pattern reminiscent of a man’s suit. Hallway carpets were similarly bold in design.

Business King guests

“The interiors were inspired by big cruise liners such as the Titanic, when travel was glamorous” Mardre Meyer, creative director, Source IBA

HOMEFRONT have the option of using the business-class lounge as a work space. This airy indoor meeting place has a butler station and mini-bar, around the corner from plush armchairs and two-seaters in variations of green.

But then much of the hotel’s décor shows creative flair in furniture, accessories and colour-scheme choice.

Some passage walls had photographs of Cape Town skyscrapers peeping out of thick cloud. A barman told me the hotel’s bar and restaurant were named after

an African wind and cloud respectively – picking up on weather elements seemed intentional.

Breakfast was refreshingly casual. The Stratus Room restaurant has a fresh feel, from its artisan market-like approach to displayed food, to lighttoned furniture and classy ceramic plates and bowls.

Based on Radisson Blu’s “larder” concept, instead of endless buffet sections a small food selection is constantly replenished, in addition to a-la-carte items.

The walls and cushions used pastel blues and sea-foam greens. White screens defined smaller restaurant sections, where solo execs on their laptops looked as comfortable as a brainstorming group of architects. Instead we wrapped up our night’s stay outside with a hot breakfast, newspaper and urban sounds on the adjacent deck.

It felt inner city and right.

Kim Maxwell was a guest of Radisson Blu Hotel & Residence Cape Town

2017 -

year the hotel opened

214 - standard rooms 1 to 11 - hotel floors 12 to 23 - residential

apartment floors

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HOMEFRONT

RENTALS

Buying to let Rental default caution is wise for investors, but good returns are on the cards as residential property deals beckon WORDS: SUNGULA NKABINDE :: PHOTOS: ISTOCK

T

he South African economy is under pressure from all sides.

The country is in a technical recession for the first time since 2009 and GDP growth has been lower than population growth for some time.

The average person is getting poorer. Add to that the unemployment rate is at a 14-year high, according to the most recent figures released

by Statistics SA, and one gets a sense that things aren’t about to improve.

Some experts believe this has put the residential property sector under strain, particularly as it has led to a slight decrease in rental payments, thus having an impact on the buy-to-let property market.

According to credit

bureau TPN’s most recent rental monitor report the percentage of residential tenants who paid their rent on time has deteriorated by about four percentage points to 82.87% in Q2 2017 from a multiyear peak of 85.95% in Q3 2014. TPN MD Michelle Dickens says on the good standing ratio, which reflects the percentage of tenants “in good standing” with their landlords, the deterioration is indicative of the 200 basis point increase in interest rates the Reserve Bank effected between 2014 and 2016.

DECLINE The ratio has been in gradual decline for some

“It’s actually a good time to get into the buy-to-let market as there are many sellers who are getting desperate to sell” Paul Stevens, CEO, Just Property

TOP TIPS FOR BUY-TO-LET INVESTMENTS Do your research. Find the right property, in the right location, for the right price, to maximise the return.

Find the sweet spot. A typically good investment property would be priced between R500,000 and R1,2m and achieve rentals of R5,000 to R12,000.

Manage your debt. Stay on top of your bills or your finances will invariably unravel as soon as a tenant is unable to pay.

Do not allow tenants to fall behind. Irrespective of the reasons, accepting nonpayment makes you a creditor and not a landlord.

Send relevant notices to the tenant as soon as their first default happens, and make sure it is handled by a legal professional.

Consider the running costs of the property.

Bond payments, levies, maintenance costs and agents’ fees will all reduce your return.

Do not rely heavily on property price rises. While capital growth is what a savvy investor aims for long term, experienced landlords focus on cash flow in the short term.

HOMEFRONT time. But the drop-off hasn’t been as dramatic as in 2009 when interest rates went up to about 15% fairly quickly and the good standing ratio soon dropped to 71%. Dickens says nonpayment has been worst in the affordable rentals market for tenants who typically pay less than R3,000 a month.

“To put it into perspective, those tenants are at a good standing ratio of about 72.5%, which is quite a big shift.

“That’s close to what it was in 2009 for the whole rental market. In fact, this is the worst that tenants in that bracket have ever been. They have even performed worse than they did in 2009.”

Dickens says 13.5% of affordable rentals tenants are not paying, “which is quite substantial considering that only 6.2% of the national total is failing to pay”.

Rentmaster CEO Deon Botha says the reality of the situation appears even worse when one delves deeper.

The rent collection services company head says this is because, looking only at those who pay in full and on time, the good standing ratio percentages decline more substantially, by more than six percentage points, from a 72.52% high in Q3 2015 to 66.78% in Q2 2017.

GRACE PERIOD “Built into that good standing ratio is a sevenday grace period,” says Botha. If a tenant pays within that period, they are still deemed as being in good standing.

“But that’s not necessarily good standing because, if the tenant is paying late, there is an impact on the owners’ ability to pay his bond and there is a knockon effect elsewhere.”

Botha say paying late, but

within the grace period, is a sign of impending trouble, even if they are in good standing with the landlord.

Despite this, many experts believe there is value in the residential rental market, especially in the Western Cape where double-digit growth in rentals is expected to continue, at least in the short term.

TREND According to the PayProp Rental Index, the Western Cape is the only province with an upward trend over the past four quarters.

It remains the most expensive province to live in.

A downward trend has been tracked in the Eastern Cape, Free State and KwaZulu-Natal. This could indicate an oversupply of rental properties.

“From our credit data we see that credit metrics have been stable over the past two years. It is likely, however, that our data set reflects a better

“We have a fairly consistent demand and a growing population, which bodes well for the sector” Deon Botha, CEO, Rentmaster

picture because we look at landlords who use rental agents and can, therefore, find better tenants,” says PayProp’s Johette Smuts

DESPERATE Just Property CEO Paul Stevens says part of the problem is attributable to poor tenant selection.

Desperate property owners or negligent agents place debt-impaired tenants who do not qualify to rent.

“It’s actually a good time to get into the buy-to-let market as there are many sellers who are getting desperate to sell.

“It’s what we call a ‘buyers’ market’. These are properties one is often able to pick up for well below

market value, which will help in ensuring you get a good return on your investment.

“This is a great time to be looking for good deals and put in offers that make the numbers work,” says Stevens. “Professional rental agencies should be more effective at rental collection processes.

Companies such as Just Property have more than 98% of tenants in good standing.”

DEMAND “We haven’t seen massive capital depreciation in our property market like there has been in the UK, which was brought about by overvaluation.

“We have a fairly

consistent demand and a growing population, which bodes well for the sector,” says Rentmaster’s Botha.

He says he is keen on what he names “incremental housing”, the gap in the market for people living in informal settlements but enjoying the benefits of economic empowerment by improving their earning ability and thus able to move closer to work.

Having a roof over your head is a basic need like food or water, and people will pay rent as a matter of urgency. This means, regardless of how an economy is doing, people have to live somewhere.

That makes the property industry resilient.

HOMEFRONT TECH REVOLUTION

Digital property boom The local online property space is expanding fast. What are property start-ups doing better than agents, or just differently?

WORDS: VANESSA CLARK :: PHOTOS: ISTOCK

I SHAPING UP Aside from sexy customer-facing apps, traditional agencies should upgrade their internal processes.

“If you don’t get it right internally first, then the external ‘glamorous’ digital channels have no solid base for success,” says Mimi Nicklin, head of marketing for Pam Golding Properties.

The company’s IT and digital marketing teams collaborate to ensure internal systems such as databases support improved seller/buyer service.

t is easy to dismiss online estate agencies as corner-cutters with unsustainable business models. Surely discerning property sellers will pay for excellent service and realise that it would be foolish to go it alone when negotiating possibly the biggest deal of their lives?

That dismissive view would be a mistake. Low commission rates and talk of a R65,000 saving for every R1m of the selling price might make some headline news.

But property start-ups’ improved customer service, professionalism and access to advice make for equally compelling subheads.

Ron Newman sold his Bryanston East house via online estate agency PropertyFox in April 2017.

The traditional valuation process and lack of market insights and accurate sales data on the suburb had

frustrated him but, he says, “PropertyFox’s technical ability and knowledge solved this”.

LOWER COST As well as the lower cost compared with a traditional agency, it was the fixed fee that appealed to Newman.

He says: “There is no dispute over negotiating with the customer, with an agent either pushing for a faster sale or waiting for something better.

With PropertyFox, I never felt there was a conflicting agenda.”

Today PropertyFox charges 1.5% commission with a minimum fee of R35,000, which includes a R2,500 registration fee.

For an R8,500 registration fee value adds such as drone photography can be included.

Clearly if there is a traditional industry ripe for disruption, it is property.

A determined vanguard

“We have no incentive to maintain the status quo, which gives us licence to try things that ultimately eat into the historically high profits service providers have enjoyed” Ben Shaw, CEO, HouseME

of property technology start-ups is harnessing new digital business models, tools and technology such as mobile, cloud computing, online marketing and big data analytics to do things better than traditional estate agencies.

BUYERS SCREENED Property marketplace eazi.com launched in early 2017. The goal is more transparent, easier, cost-effective buying and selling, plus tech support — including submitting and accepting offers online. The system verifies potential buyers before viewings and offers a full service for a fixed fee of R29,500 — payable only on a successful sale. The company exited beta testing

in August and has averaged one to two property sales a week, saving sellers about R80,000 in commission per sale.

PropertyFox also screens potential buyers and assists sellers with marketing and post-sales administration, with owners typically conducting viewings. Since its April 2016 launch the company says it has saved South Africans about R5.5m in agent commissions.

This is based on 1.5% commission charged on 60 sales valued at R96m, compared with a typical industry average of 6.5%.

Likewise, HomeBid charges 1.95% commission — recently saving a customer R236,750 in commission — and receives 85 exclusive mandates

HOMEFRONT a month. The company anticipates 100 monthly sales by the end of 2017.

“By 2022 we expect to have 15% market share of the 200,000 homes sold a year for between R300,000 and R10m,” says HomeBid GM Cavan Sheahan.

Leadhome, a hybrid of a traditional and online agency, charges a flat fee of R29,995 and says it has sold hundreds of properties since its 2015 launch.

RENTALS Digital disruption is not exclusive to property sales, with new entrants such as HouseME and Ekaya shaking up the rental space.

Since its launch in September 2016, HouseME — a rental management platform that allows tenants to bid on rental property auctions around SA — has listed more than 1,000 independent landlords and 1,300 tenants. Tenant placement and management is 2.5% of monthly rentals and 25% of any amount achieved over the landlord’s reserve rental price for the duration of the lease.

Ekaya, a rental payment platform emerging from stealth development mode, has already facilitated the payment and collection of R1.4bn in rental fees.

TECH POWER So how are these new entrants able to lower prices, offer better customer service and still run sustainable businesses? Just like disruptors in other industries, they are tapping into the power of new technology.

Says HouseME CEO Ben Shaw: “HouseME is a technology company focused on the property industry. And further, we have no incentive to maintain the status quo, which gives us licence to try things that ultimately eat into the historically high profits service providers have enjoyed.”

Shaun Minnie, eazi.com CEO, agrees. “We are continually testing and learning. Initially we deconstructed the process of buying and selling a home into the various elements that make up the transaction — including the role of the estate agent.

“We then designed optimal solutions for each part of the transaction. In most instances, this looks like a combination of the right people in the right roles, efficient processes and technology.”

Says Leadhome CEO Marcel du Toit: “We try to automate as much of the

process as possible — for example, enabling bookings to view properties online, which saves both time and resources.”

Technology also enables better communication between sellers, buyers and agents, and is eroding the need for physical branches in multiple locations, reducing overheads. Leadhome’s self-service Simpli platform keeps sellers informed at each stage.

“Advancing technology will look to enable and enhance the traditional mode of transacting, as opposed to replacing or disrupting it” Ted Fraser, national marketing manager, Seeff Properties

SAVINGS HomeBid emphasises savings. Says Sheahan: “Today property portals attract most of the buyers in the market and the cost is minimal in comparison to costly print adverts.”

Savvy traditional players can learn from these new entrants. Says Seeff Properties’ national marketing manager Ted Fraser: “Advancing technology will look to enable and enhance the traditional mode of transacting, as opposed to replacing or disrupting it.”

Some start-ups are open to collaborative relationships. Ekaya is as suited to landlords as to rental agents and investors.

Says Ekaya CEO Justin Melville: “Our goal has always been to service

the entire rental market.

The traditional view is that there is a professional agency and private landlord divide, and few entities even consider the tenant worth serving.”

It’s tempting to paint a picture where the rise of technology-driven and disruptive new entrants spells the demise of traditional players. But traditional taxi services still exist despite the shake-up by Uber. Hotels still welcome guests despite AirBnB. Consumers shop in stores, even with the convenience of ecommerce.

A “clicks and bricks” hybrid real estate model is emerging to offer the best of both worlds.

Increasingly digital and savvy customers will no longer settle for the status quo.

“We used to consider ourselves very much a technology-first company but the truth is property and renting, specifically, is a people business,” says Melville.

KEEPING SELLERS HAPPY It’s all very well launching a digital solution, but it has to tick the right boxes for consumers.

Minnie says the eazi.com surveys of “thousands of home owners” showed: 90% of sellers want active assistance when selling a home.

Most sellers want a local specialist to visit their home.

75% of buyers and sellers feel commission is not justified and prefer a fixed fee.

Most buyers find their homes on major portals before they contact an agent.

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HOMEFRONT HOME SENSE

Bright ideas Blended downlighting can complement the minimalist look WORDS: ANNE SCHAUFFER :: PHOTOS: ISTOCK

T

he impact of lighting in a home is often underestimated — there’s little doubt it should be top of mind for both major and minor home renovations.

Understanding how light impacts mood is key.

Guy Mets of Cobin Lighting says: “Most homes are working towards a contemporary minimalistic look — very sleek with clean lines — so clients, designers and architects come to us looking for a lighting design which will complement that look.”

CONCEAL Mets says the idea is to conceal as much lighting as possible. “For example, we use downlighters which almost blend in,

effectively disappearing into the ceiling and bulbs/ lamps which are recessed in the downlighter to create pools of indirect light.

“The downlighters are positioned around the perimeter of the room, which also allows the light to be reflected indirectly off the walls. So, when you’re sitting in the dining room or lounge, the lighting is always behind you and not in your face.

“We also use dimmer switches on all circuits so different atmospheres can be created at the touch of a switch.” Essentially, there’s no real sense of where the lighting comes from; it’s just there, with no overt source.

PENDANTS Because most homes are open-plan, with the

“Different atmospheres can be created at the touch of a switch” Guy Mets, Cobin Lighting

kitchen, dining room and lounge flowing into one another, Mets says good lighting should try to “define each of these areas by using pendants over the dining room table or over the kitchen counter”.

“We don’t choose a fitting that’s too bulky because we still want you to enjoy that feeling of openness while gently demarcating the space.”

CRITICAL He says designing exterior lighting is critical. “We recommend an up-anddown type wall light at about 1.8m off floor level so you’re never looking directly into the light.

“Rather, the unit shines the light up and down giving an indirect effect. We never suggest shining floodlights into a garden, but rather

light the garden by shining up the trees – it brings the garden towards the house.

We also use LED strip lights under stair treads to create a floating effect, or under a deck edge.”

For designers it’s clearly simpler to design lighting from scratch in a new build, but it’s by no means impossible in an existing home.

“Most clients considering renovating an apartment or house normally have old lamp technology — that’s halogen lamps.

“We first look at converting to LED technology — LED

downlighters — but another great way to enhance and modernise is to replace the switches and sockets.

“These are really noticeable and make a significant and contemporary difference,” says Mets.

MODERNISE YOUR HOME A new trend is to introduce European two-pin wall plug sockets and USB sockets for charging cellphones and other devices.

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HOMEFRONT ARCHITECTURE

Conservation, the futurist way Architect Robert Silke’s upcoming apartment block Tuynhuys will offer premium views and be historically significant in a venerable part of a city centre WORDS: GENEVIEVE PUTTER :: PHOTOS: SUPPLIED

T

he Tuynhuys apartment block in Cape Town city centre’s Keerom Street will offer another kind of deference to its heritagerich neighbours. Built on a once-derelict property, the project is due for completion in October 2018.

Architect Robert Silke says: “Whereas conventional wisdom expects deferentially low buildings next to old structures, we rather opted for a thinner, slenderer, taller tower to give enough space to its heritage neighbours at street level.”

He says the project came about after no one had shown interest in the property.

“Suddenly, there existed a redevelopment opportunity where no one else had seen it.”

Q&A with Robert Silke: How would you describe the style of the building?

Tuynhuys is modern, playful and optimistic.

Futuristic even. Futurism was the modern successor to Art Deco. First pioneered in Italy by Filippo Marinetti, it is synonymous with bespoke, premium properties in sophisticated

global cities and is best presented in the work of Zaha Hadid Architects.

The Futurist aesthetic was the perfect fit in which to frame this premium apartment building.

What went into the building’s design?

Keerom Street is probably the most sophisticated and highly developed street in Cape Town with hardly any traffic and some incredible architecture, such as the granite-clad Cape High Court. A respectable postmodern office building from the 1990s abuts the site for Tuynhuys, with the lateVictorian Keerom Street Chambers on the other.

We deliberately set about shaping the form and massing of our tower to protect the prominence of our Victorian neighbour, and its corner turret in particular.

In addition to our sculptural facades, we borrowed architectural and contextual details from surrounding neighbours, such as porthole windows and the window arches from the 1960s Senator Park apartments.

How did you find the location for Tuynhuys?

I live in Queen Victoria

Street. My office is in Wale Street, within walking distance, so I walk to work via Keerom Street, one of the city centre’s best-kept secrets. It was on one of these walks that I noticed a “for sale” board outside the derelict Embassy of Ireland. Months went by and no one had bought the property.

Although crude and ill proportioned, the building was probably verboten for redevelopment.

But it was on another of these walks when I first noticed that, behind the facade, the modern concrete industrial structure was posing as something older. Further research revealed that the building had been a parking garage for ambulances in the 1970s, which had simply been dressed up in the 1990s.

Was approval an issue?

The City of Cape Town has a forward-thinking Heritage Resources Agency with an interest in good design. We dealt closely with the city’s heritage officials who welcomed the modern sculptural design and did not prescribe conservatism — often confused with conservation.

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HOMEFRONT PROPERTY NEWS

Western Cape influx boon for Val de Vie

W

hile the South African property market appears to be taking strain, Val de Vie Estate in the Paarl-Franschhoek Valley is reaping benefits from its investors.

Val de Vie marketing director and shareholder Ryk Neethling says: “Having sold in excess of R2bn worth of developer stands over the past few years places us in a favourable position with an exceptional increase in property value year on year.”

Over the past 24 months Val de Vie has sold: A ll 162 Stefan Antoni-

•

• • • • • •

designed plot and plan units in The Vines development; A ll 60 Stefan Antonidesigned luxury apartments in the Polo Village development; A ll 17 estate smallholdings (3ha-5ha); A ll 64 stands in the Le Domaine neighbourhood; and All 72 plot and plan units at The Vines at Le Domaine; A ll the Pearl Valley Hotel sectional title hotel and rental pool (operated by Mantis Group); A 3,000m 2 stand on Champion’s Field for a record R12m.

In total more than 500 developer stands and properties were sold. On average, home prices increased from R18,000/m 2 to R24,000/ m 2 and land price for Val de Vie Phase 1 increased from R1,900/ m 2 to R2,500/m 2 . In Pearl Valley, amalgamated with Val de Vie in 2016, land prices increased from R900/m 2 to R2,600/m2.

The estate has a diverse property portfolio ranging from developer stands, lock-up-and-go apartments and family homes to top-end R100m houses.

Evergreen at Val de

Vie is a mature lifestyle community, launching at the end of 2017. This development brings

together SA’s top retirement brand and premier lifestyle estate.

Demand is high —

Phase 1 at Val de Vie is 95% sold and Phase2, excluding Evergreen Retirement Village, 85% sold.

R6.4bn plan for affordable Award for Atterbury’s Kumasi mall Gauteng apartments

G

hana’s Kumasi City Mall, developed

by South African property development and investment company Atterbury, has won the

J

SE-listed Balwin Properties Limited and Transcend Residential Property Fund have announced a strategic alliance to deliver up to 8,900 quality affordable rental apartments worth about R6.4bn in Gauteng over the next six years.

The rentals, across five developments in key Gauteng nodes, are expected to range from R4,000 to R8,000 a month, says Transcend CEO Rob Wesselo.

Balwin will be responsible for the design and construction of each development and sectional title apartment.

It will market and secure lease agreements for the apartments with prospective tenants.

Transcend will have the opportunity to purchase, in phases, fully tenanted apartments from Balwin.

Transcend plans to participate in all five.

Balwin Properties CEO Steve Brookes says the developments will offer premium apartments with “quality finishes not yet seen in the affordable rental market”.

Subject to approvals the first development earmarked is the 1,200-apartment Green Park, Boksburg project. The first apartments

are expected in early 2018. The development will offer solar energy and fibre connectivity.

Transcend is a real estate investment trust created by private equity group International Housing Solutions and listed on the JSE in 2016.

It focuses on specialised residential property assets and holds a portfolio of 13 properties comprising 2,472 units primarily in Gauteng, as well as in the Western Cape and Mpumalanga.

Wesselo says the R4,000 to R8,000 rental range is now the sweet spot for a growing middle class in SA’s urban centres.

Tradehold restructures

P

roperty investment holding company Tradehold has begun a restructuring process to strip out its interests in the financial services sector and list them separately.

Joint CEO Friedrich Esterhuyse says: “Our financial services

investments have always been dominated by our property interests, which constitute 92% of total gross assets. Through the restructuring we want to achieve greater visibility for and public understanding of the financial services we offer

— their value and potential.”

Tradehold’s financial services interests are vested in companies in the UK and in SA. Its property assets are Moorgarth Holdings in the UK, Tradehold Africa operating in Africa, and the Collins Group in SA.

first Africa Property Investment (API) award for retail real estate.

The award was announced at the API Summit and Expo 2017 in Sandton in August.

The 18,500m2 mall, in the city of Kumasi, was selected as the best retail project.

Opened in April 2017, the mall has the potential to expand to 28,000m2.

Liberty Promenade bucks retail downturn

D

espite bleak retail trading conditions in SA, Liberty Promenade in Mitchells Plain, Cape Town, remains resilient with consistently strong trading density growth year on year.

Turnover grew by 11% in the year to May 2017 along with an improvement in spend per head.

This bucks the SA Property Owners Association retail trends report, which recorded a turnover growth of -4% for Q1 2017.

Liberty Promenade has more than 170 stores, a

gym, a medical centre, drive-throughs and a family entertainment wing that includes a food court and cinemas.

The mall attracts more than a million shoppers a month, among the highest shopping centre footcounts in the country.

The 73,400m 2 centre is the destination of choice in Mitchells Plain and Khayelitsha.

Key to the centre’s service offering is that two anchor tenants provide social grant payouts, there is a branch of South African Revenue

Service and a City of Cape Town municipal office.

“The tenant mix speaks directly to the market we serve, resulting in shopper loyalty and consistent turnover growth, says asset management executive for Liberty Promenade Nikiwe Mkhabela “Liberty Promenade is a gem. According to the latest Clur research the centre outperforms within its class, both in terms of overall trading density and growth levels,” says Belinda Clur, retail strategist and MD of Clur Research International.

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