Business Day HomeFront - 10 March 2017

HOMEFRONT WESTERN CAPE

Atlantic Seaboard 021 439 7415 / Southern Suburbs 021 673 4200 / South Peninsula 021 782 6440 1310OCTOBER 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA MARCH 2017

MUST READ

Simply nose to tail at La TĂŞte PAGE 2

A new look for Ballito Junction PAGE 4

Camps Bay / R24.995 million

Ref# BAY1303204

Bedrooms 5 / Bathrooms 4.5 / Garages 3 / The modern open-plan vernacular architecture is one of the keynotes of this newly built family home. Light-filled and sunny and only a short stroll to the beach.

There is a beautiful large living area with gleaming wooden floors flowing out to a covered verandah with a large swimming pool and good sized garden. Adjoining family room for indoor entertainment. Extra large master bedroom suite with high ceilings and breaktaking sea views.

Barbara Rogers 082 889 0140 / Karin Coetzee 082 887 4311

Residential rise or fall PAGE 12

Urbanisation: development opportunities in Africa Africa’s urban population is expanding rapidly and

Apartment-hotel for Menlyn Maine strategies should be defined to address housing and PAGE 14

infrastructure needs

Bantry Bay / R65 million

PAGE 8

Ref# AS1265975

Constantia Upper / R10.8 million

Ref# KW1294493

Bedrooms 9 / Bathrooms 9 / Garages 3 / Situated in prime De Wet Road, this 5-star Guesthouse is suited as a super-spacious home or a successful business. Stylish and minimalist, yet warm and inviting the interior spaces offer perfect flow through full length glass doors onto an expansive pool deck with breathtaking views. Glamorous penthouse suite. Spacious 2-bedroom apartment leading onto deck. Studio garden apartment. 4/5 Additional bedroom suites with private terraces.

Bedrooms 4 / Bathrooms 4 / Garages 2 / Spacious 4-bedroom family home in a security estate.

Situated in a quiet pocket of Constantia, this classic home has much to offer, 3 generous reception rooms flow to the covered patios, manicured garden and large pool. The eat-in kitchen leads to a separate laundry and drying area. The 4 upstairs bedrooms have beautiful mountain and garden views and the main bedroom has his and hers en suite bathrooms.

Janice Toay 082 770 1510 / Jackie Rosenberg 083 414 6600

Exclusive Agents : Arie 083 448 0488 / Angie 083 678 7876 / Lauren 083 306 3830

MEET THE

CHAIRMAN

REFURNISH YOUR OFFICE AT OUR KRAMERVILLE SHOWROOM, WWW.GGHOME.CO.ZA OR CALL 011 444 5744

HOMEFRONT LIFESTYLE

Where less is more At Cape Town’s newest brasserie, minimalist décor is in keeping with a prudent approach to food and a nofrills style of presentation WORDS: KIM MAXWELL :: PHOTOS: CLAIRE GUNN

L

a Tête restaurant opened at the foreshore end of Bree Street in November 2016.

The name is French for the head. “I called it La Tête because it symbolises what we do. I use the entire animal,” says chef and co-owner Giles Edwards, butchering a carcass into meaty parts as he chats.

Edwards is not one for half measures. He decided to become a chef after a game-changing dinner with brother James at Fergus Henderson’s St John nose-to-tail restaurant in London (their British father loved offal).

Edwards dropped out of the University of Cape Town and enrolled at Capsicum Culinary Studio.

Newly qualified, he headed back to London to find work at St John — but was turned down.

They refused him two more times. After cheffing experience at a oneMichelin-star and then a seafood restaurant, Edwards was finally hired as sous chef at St John.

“But the head chef disappeared, so myself and the other sous chef ended up running the St John kitchen. It was five years of heaven,” he says.

In late 2015, Edwards decided to try SA, testing the market with a popup restaurant called Salt Cellar, in Salt River. “It was a chance to see how Cape Town would react to pig tails, no foams and gels [on plates].”

By the time he launched La Tête a year later with brother James as a business partner, the concept was fine-tuned and crispy pig tails were on the menu.

“It’s not so much about nose to tail as about sustainability. It’s using up all the rest of the animal.

Everyone’s only using the prime cuts. I can get hold of liver, brains, hearts, tongue, kidneys … It’s also about getting hake,” says Edwards. Plainer fish species will always be on La Tête’s menu.

Meats are grassfed or free range, as are the chickens that supply eggs.

WORTHY CHOICES At lunchtime, the fish sandwich is a must: it is either hake or angelfish, deepfried in batter, served on sourdough, plus homemade tartare and red pickled onion.

At dinner, starters are the more interesting part of the menu. It is advisable to select a few. On the lighter

“Being an inner city restaurant, we wanted a clean space. The food is quite simple and the space is quite simple. So you’re not distracted” Giles Edwards, La Tête chef and co-owner side, chilled, sliced octopus tentacles are lightly pickled and served with cucumber lengths, capers and mint.

The crispy pig cheek is richness itself, using pork fat to create a confit centre, which is slow-roasted to crunchy crackling and

served with crisp, raw radish, creamy mustard and herby greens. Edwards rightfully calls it the “RollsRoyce of pork belly”.

Mussels out of their shells, with buttered leek strands and salty bacon lardons, is comforting in a brothy stock.

Salt hake with bread and green sauce tastes clean and fresh, a solid combo of poached, flaked fish, assorted herbs, red onion and cubes of good bread.

But it is devilled chicken hearts that draws a line in the sand. Fried fingers of a dense, layered potato bake, elegantly mopping up the intense umami jus of the hearts. Says Edwards: “It’s a new dish. I’m in love with it.

I think it’s amazing.”

On the mains, the duck is aged for a week to develop flavour. Edwards also rates the ox heart: thinly sliced, marinated and grilled. “My favourite way is to serve it like steak and chips, because

e

HOMEFRONT it tastes very much like steak.” Despite the obvious offal focus, La Tête offers a vegetarian lunch and dinner too. Porcini on toast is worth having in season.

Classic desserts include a meringue “floating island” on a homemade custard, or a plate of delicate sponge madeleines, baked to order.

Simplicity is the overriding philosophy. Says Edwards: “I like to say no to the idea of a signature dish. I use a lot of herbs, a lot of vegetables, a lot of meat.

Although my fish bill is almost as big as my meat bill. It’s a pleasure changing the menu twice a day.” latete.co.za

Design In keeping with the food, the narrow interior of La Tête is minimalist, with stark white walls and white pinboards, a concrete floor and wooden ceiling fans. Custom-made light fittings are by Arora Lights.

Stained wooden tables are reclaimed school desks from Swaziland.

There are no tablecloths.

The interior is functional rather than flash. A long kitchen runs parallel to diners, open part of the way. Exterior walls are grey and black; interior ones are painted white with light grey and black accents.

A zinc bar from Antonie Grobler of Individua Design is opposite a wall with a station clock. Says Edwards: “Being an inner city restaurant, we wanted a clean space. The food is quite simple and the space is quite simple. So you’re not distracted.”

recreated so the previous restaurant’s “higgledypiggledy space” became a “clean dining room look”.

The property was built in 1949 as a pub for Ohlssons Cape Breweries. One of few classic Cape Art Deco architecture examples, it has floating slabs above windows and entrances, and porthole windows along the Prestwich Street side. Says Edwards: “We love the deco design of the building; the

position on Bree Street was lucky. We always knew we wanted to be in the CBD, part of town and close to the office crowd.”

PLATES “Our aim is to cook amazing food and to provide an experience around that.

The experience must start with what’s on the plate and what’s in your glass,” says Edwards. La Tête’s plates embrace simple elegance and a “Parisian

bistro twist” in a cow head emblem or a single blue line.

His pop-up restaurant was in a Cape Town wine shop.

Unsurprisingly then, La Tête wine list — a collaboration by the Edwards brothers — offers many niche producers’ interesting labels, from Alheit to Storm and Crystallum’s whites, reds and rosés. Wines are sold by bottle or glass, in short-stemmed Parisian brasserie type stemware.

They moved the bar with the help of an engineer and part of the kitchen was

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HOMEFRONT

RETAIL

Ballito Junction gets a make-over Taking advantage of its location, the expanding KwaZulu-Natal mall has introduced an urban eatery with a large feature window and views WORDS: NICOLA JENVEY :: PHOTOS: SUPPLIED

T

he multibillionrand upgrade to Ballito Junction regional mall promises consumers a different dining and entertainment experience removed from neon lights and brashly coloured food courts.

An innovative design by Sandton company MDS Architecture introduces an “urban eatery” concept which Menlyn Maine director Carl Jankowitz says embraces openness.

Airy spaces are dappled in natural light from a 6m-high feature window and skylights while the restaurant zone incorporates raw wood as its signature visual effect.

MDS has designed commercial buildings,

“At Ballito we incorporated the huge picture window to allow natural light to flood in and offer a great view of the valley down to the ocean” Susie Squire, group head of communications, Woolworths

mixed-use developments, residential properties, regional and neighbourhood shopping centres and casino and entertainment facilities. These include the Mall of Africa, Diamond Walk in Sandton City, Game City in Gaborone and Mall of Mocambique in Maputo.

Owned and developed

by Menlyn Maine Investment Holdings and Flanagan & Gerard Property Development and Investment consortium, Ballito Junction opens on March 23.

The major expansion is an eight-fold increase such that the centre covers 80,000m 2 of retail space and more than 200 shops, restaurants and services.

VISION Says Jankowitz: “It takes vision to transform this project into an opportunity harnessing and enhancing its surroundings to create an exceptional shopping and leisure experience. The urban eatery is the most distinct example of that vision.”

While dining options include Famous Brands’ Turn ’n Tender, Tashas, Wimpy, Fishaways, Milky Lane, Mugg & Bean, Mugg

& Bean On-The-Go and Debonairs Pizza, as well as the Spur Corporation’s Spur, Casa Bella and RocoMamas brands, there is a sprinkling of independent owners and new concepts. These include the first Beluga Pan Asia and the more established seafood group Beluga, complete with a wraparound wine bar.

Piccadeli Café and MammaG’s already trade in Ballito Junction, but Tree Natural Concepts opens its second local store and national retailers Exclusive Books and Woolworths are establishing significant outlets with cafés.

OPPORTUNITY Tree Natural Café owner Brett Roux says the Ballito Junction outlet follows the original yoga studio and café in Umhlanga. However, the new outlet excludes yoga classes, focusing on the café and retail elements spanning wellnessorientated products such as nut butters, superfoods, free range eggs, coconut water, homemade breakfast products and skin care products.

“This is an opportunity to expand and cement

the health-orientated element within the business, emerging as our business strength as people increasingly recognise the value of healthy living and healthy choices,” he says.

Piccadeli Café manager Erica Poppmeier says the privately owned café-style restaurant specialising in meals-on-the-go has not increased its 140m 2 floor space, but believes the mall’s expansion will raise foot traffic through the centre. However, she is cautious about its impact on business because the “pie remains the same”.

ENTERTAINMENT Jankowitz says the entertainment element in Ballito Junction includes a Nu Metro Scene Xtreme cinema with the latest cinema audio technology and large screen, two VIP cinemas with their own lounge and dining space, as well as regular 2D and 3D theatres.

The 22 Jump Street trampoline park has climbing walls and the American game, dodgeball.

National retailers include Toys R Us, Sweets From Heaven and the computer outlet, Matrix Warehouse.

WCAFÉ The 6,500m2 Ballito Junction Woolworths outlet spans two floors and is among the largest in KwaZulu-Natal. As well as WCafé, the facility has various Woolworths clothing and beauty sections, plus a 1,000m2 Woolworths Food store.

Woolworths introduced the WCafé concept in 2000. Items are prepared in-store and beverages are made by baristas. Group head of communications Susie Squire says the Ballito Junction WCafé design uses a combination of timber, fair-faced brickwork and exposed ceilings to create a warm, relaxing customer atmosphere. “At Ballito we incorporated the huge picture window to allow natural light to flood in and offer a great view of the valley down to the ocean.” The café overlooks Simbithi Eco-estate and the Indian Ocean.

Says Squire: “Our cafés are shifting to create the philosophy of eating, learning and shopping ­— customers can learn about new flavours and ingredients; try them in our cafés and shop for them in-store. The changing retail landscape and rise of online shopping means we must attract customers into stores and Woolworths Cafés are part of that in-store experience.”

WESTERN CAPE Atlantic Seaboard 021 439 7415 / Southern Suburbs 021 673 4200 / South Peninsula 021 782 6440

Camps Bay / R24.995 million

Ref# BAY1303204

Bedrooms 5 / Bathrooms 4.5 / Garages 3 / The modern open-plan vernacular architecture is one of the keynotes of this newly built family home. Light-filled and sunny and only a short stroll to the beach.

There is a beautiful large living area with gleaming wooden floors flowing out to a covered verandah with a large swimming pool and good sized garden. Adjoining family room for indoor entertainment. Extra large master bedroom suite with high ceilings and breaktaking sea views.

Barbara Rogers 082 889 0140 / Karin Coetzee 082 887 4311

Bantry Bay / R65 million

Ref# AS1265975

Constantia Upper / R10.8 million

Ref# KW1294493

Bedrooms 9 / Bathrooms 9 / Garages 3 / Situated in prime De Wet Road, this 5-star Guesthouse is suited as a super-spacious home or a successful business. Stylish and minimalist, yet warm and inviting the interior spaces offer perfect flow through full length glass doors onto an expansive pool deck with breathtaking views. Glamorous penthouse suite. Spacious 2-bedroom apartment leading onto deck. Studio garden apartment. 4/5 Additional bedroom suites with private terraces.

Bedrooms 4 / Bathrooms 4 / Garages 2 / Spacious 4-bedroom family home in a security estate.

Situated in a quiet pocket of Constantia, this classic home has much to offer, 3 generous reception rooms flow to the covered patios, manicured garden and large pool. The eat-in kitchen leads to a separate laundry and drying area. The 4 upstairs bedrooms have beautiful mountain and garden views and the main bedroom has his and hers en suite bathrooms.

Janice Toay 082 770 1510 / Jackie Rosenberg 083 414 6600

Exclusive Agents : Arie 083 448 0488 / Angie 083 678 7876 / Lauren 083 306 3830

HOMEFRONT

DEVELOPMENT

Urbanisation: development opportunities in Africa Africa’s urban population is expanding rapidly and strategies should be defined to address housing and infrastructure needs WORDS: GEORGINA GUEDES :: PHOTOS: ISTOCK

AFRICA IN NUMBERS 1.1-billion – Africa’s expected work-age population by 2034

3.2% – annual growth of Lagos population, currently 18 to 20-billion

4.2% –

compound annual growth rate of Africa’s household consumption 2010-15

$2-trillion –

McKinsey Global Institute forecast of Africa’s household consumption by 2025

1.1-billion –

African Development Bank prediction of number of middle class Africans by 2060

A

frica’s population is growing and urbanising faster than its global counterparts, and cities, their planners and property developers need a strategy to address this.

This was the message at the RICS Summit in Johannesburg in February.

Today, 54% of the world’s population lives in cities. By 2050, the UN predicts that the global population will be 9-billion, with 66% living in urban centres — that means 6.3-billion people will be living in cities.

“Cities are the world’s most enduring and stable social structures,” says Amanda Clack, the president of the Royal Institution of Chartered Surveyors (RICS).

This is how the property landscape is changing:

Megacities of the future will be larger than many nations today. “The population of the greater Mexico City region is larger than that of Australia and China’s Chongqing region is an area the size of Austria.”

The measure of a successful city is not its size alone. “With growing competition for foreign capital investment, aspects such as innovation, liveability and ability to transform are becoming equally important.”

A nation’s infrastructure investment is vital to supporting this rapid urbanisation and creating the world’s future cities.

Clack says there is an infrastructure funding gap of $57-trillion until 2020, which is hampering global cities’ power to drive social

change, create jobs, support businesses, improve the environment and create a better world in which to live.

Sub-Saharan Africa in particular must attract investment from across national and continental boundaries to meet growing infrastructure needs, she says.

Africa has a much bigger proportion of the world’s population growth, which brings urban problems.

Says Ian Palmer, retired director of development consultancy PDG and a professor in the African Centre for Cities at the University of Cape Town: “Africa has a really big part to play in the future — Africa is going to meet the world [but] more and more people are moving to urban areas from rural areas. How are we going to cope from an

“What makes a city urbanise in a functional way that benefits citizens and enterprises?”

Ian Palmer, professor, African Centre for Cities

urban perspective?” Palmer says 62% of urban people live in slums. “As we go from 400-million-odd to 1.2-billion, how are we going to cope with those slums and how will we keep that manageable?”

In many regions, rapid urbanisation is associated with rapid economic growth but this is not necessarily true in Africa. In SA, from 1995 to 2012, there were both economic growth and rapid urbanisation. Kenya, Nigeria and Uganda are all doing well — getting the economic dividends associated with urbanisation. On the other hand, Zimbabwe and Liberia are not.

Africa’s population may be growing and urbanising ahead of the global curve, but care needs to be taken to avoid the continent’s

HOMEFRONT “Densification is one necessary approach to making cities, not only in Africa but all over the world, function better and become more livable” Holger Adam, Rendeavour country head for Ghana

cities becoming slums rather than efficient hubs of activity and commerce.

DEBATE

SOLUTIONS Says Palmer: “We have to ask what drives urban development potential.

What makes a city urbanise in a functional way that benefits citizens and enterprises?” He recommends the following: Build strong, decentralised cities; Improve access to finance within these cities. Often city tariffs are taken away from the cities and channelled into stateowned enterprises (SOEs) rather than into the cities’ own coffers but the cities need these funds to be able to pay their way in terms of funding infrastructure; Reform SOEs; Open up loans for housing poorer people; and Be careful about where subsidies are being used.

Money cannot only be invested in high-income property developments because funding also needs to be made available to the poor.

There are successful examples of cities rethinking development in Ghana and Kenya. Holger Adam, Rendeavour country head for Ghana, says in that country Rendeavour intends to develop seven cities, which are typically located 25km away from an existing CBD, making them mixed-use developments.

Rendeavour is a leading land developer in Africa.

“Densification is one necessary approach to making cities, not only in Africa but all over the world, function better and become more livable,” he says.

However, a lot of the existing urban structures are not available for development, which is why his company looks to create mixed-use developments outside existing city centres. “So many strategies are crippled by the land market, which is why satellite cities become important.”

Ada Mwangola, the Kenyan Vision 2030 delivery secretariat, says her development blueprint is to make Kenya an uppermiddle-class country by 2030. The Kenyan Vision 2030 is the national longterm development policy that aims to transform Kenya into a newly industrialising, middle-income country providing quality of life to its citizens in a clean and secure environment by 2030.

“Urbanisation is critical to this — we are currently

46-million and 25.6% of this is urban. In the past decade or less it has shot up”.

“Government has invested a lot in infrastructure, roads, railways, ports … and the other driver is unemployment. We have a huge youth population, so that is a bit of a challenge.”

Mwangola says that for people migrating to Kenyan towns and cities, the main challenge is a lack of basic services. “Affordable housing is the one thing we’ve pushed from a Vision 2030 perspective, upgrading slums to provide better living conditions, because among the 25.6% that are urbanised, 51% are poor.

Their mean income is hardly $80 a month — those are

the circumstances that led us to drive this urbanisation agenda,” she says.

This agenda is propelled by the 47 counties in Kenya, taking responsibility for urbanisation issues.

TECH GAP Emeka Eleh, principal partner at real estate group Ubosi Eleh and Company in Nigeria, says the development of new cities such as Eko Atlantic City, on the outskirts of Lagos on reclaimed land, is a response to urbanisation challenges. “In fact, the bulk of development in Lagos currently is taking place on reclaimed land, which is helping us deal with our urbanisation

and land challenges.”

Palmer says building new satellite cities instead of densifying existing city centres is a controversial debate in Africa.

He gives the example of Konza Techno City, punted as Africa’s Silicon Valley, outside Nairobi. “What they need is technology in the middle of Nairobi.

“What worries me is that the funding and development and energy are being diverted away from where it needs to be — in the centre of the city. As a property development, you can maybe see value in it, but it also raises the question of how far out you can stretch a city to accommodate a new sub-city.”

THE URBANISATION OF GAUTENG It is anticipated that there will be an additional 2-million people in Johannesburg in 2040.

Between 2001 and 2011, the population grew by 38%. According to infrastructure development MEC Jacob Mamabolo, between 2013 and 2016, Gauteng’s infrastructure investment amounted to R30bn, an annual growth rate of 20.7% — the fastest of any province.

Over the next three years, a further R42bn will be spent on infrastructure.

These areas have been prioritised for development: Public transport and logistics;.

Mega human settlements; Renewable energy and other energy projects; ICT and broadband; Government precincts that will provide integrated service delivery; Water and sanitation; Health infrastructure, especially communitybased centres to strengthen primary healthcare and mental health facilities; New schools; Libraries and recreational facilities; and Social development facilities.

FOCUS ON: REEFLORDS ADVERTORIAL

Luxury apartments at affordable prices Spanning the Reef, from east to west and out north, Reeflords offers a choice of well-appointed, well-priced homes WORDS AND IMAGES: SUPPLIED

R

eeflords Property Development is a growing property development company registered in 2011. Its objective is to become a significant player in the South African residential (freestanding homes, medium density and mass scale, multistorey housing, retirement complexes and affordable homes) and commercial development markets.

THE WEST END Located near Vodaworld and Carlswald Lifestyle Shopping Centre in Midrand, The West End is an exclusive investment opportunity. These apartments have a prime location and are available at market-leading prices, with zero transfer cost guaranteed as well as zero bond cost (terms and conditions apply).

DEVELOPMENT FEATURES

Royal Reef West — launching March 26

• 896 units • One to two bedrooms with one bathroom • Starting from R602,700 • Two to three bedrooms with two bathrooms • Starting from R951,600

DEVELOPMENT AMENITIES • • • •

Clubhouse Swimming pool Gym Recreational room

ROYAL REEF WEST Introducing Royal Reef West, situated in the upscale suburbs of Boksburg. It is to be launched on March 26.

Want to soak in the afternoon sun and play a round of golf at a tranquil golf club on your door step? Want a modern lifestyle but at the same time keep a touch of South African heritage within the same complex? Want to enjoy serenity but have all modern conveniences (schools, shopping centres, hospitals, major routes) around you? Want to invest in property but can’t yet afford anything more than R1m?

If your answer is “yes” to all of the above, then look no further. This development is for you.

The masterminds of a professional team have ensured that you will have a relaxed and comfortable lifestyle. This elite development is a one-of-akind venture with a holistic

approach to suit your lifestyle, with zero transfer cost guaranteed as well as zero bond cost (terms and conditions apply).

DEVELOPMENT FEATURES • 256 luxury apartments • One to two bedrooms with one bathroom • Starting from R507,600 • Two to three bedrooms with two bathrooms • Starting from R902,400

DEVELOPMENT AMENITIES • Full fibre optic network coverage • Enclosed garden units • State-of-the-art landscaping • Clubhouse • Gym • Swimming pool • Kids’ play area • Prepaid electricity • Biometrics (fingerprint access control)

ORCHID RIDGE Orchid Ridge is conveniently situated in the hub of the north-western suburbs of Johannesburg, in Randpark Ridge, at the corner of Beyers Naudé Drive and CR Swart Road.

This gem of an investment is close to nature reserves,

FOCUS ON: REEFLORDS

schools, churches and shopping centres, and is central to most other areas in the region.

A unique architectural design approach includes opulent elements. The development is an amazing opportunity for both investors and firsttime home buyers.

DEVELOPMENTS NOW SELLING The West End in Midrand

DEVELOPMENTS LAUNCHING THIS YEAR Royal Reef West in Boksburg, launching March 26 Orchid Ridge in Randpark Ridge Midview Garden in Midrand

MIDVIEW GARDEN At Midview Garden, luxurious sectional title apartments in Carlswald, in Midrand, with one-, two- and three-bedroom luxury apartments are launching this year.

SOLD-OUT DEVELOPMENTS The West End — selling now

Kengies Square — one unit left

The View in Dainfern Kengies Square in Fourways

GET IN TOUCH

Orchid Ridge — launching 2017

The View — sold out

Reeflords Property Development Tel: 011 516 0057 / 011 702 3076 reeflords.co.za The West End: Kyle Ludlow Tel: 076 259 4187, kyle@reeflords.co.za Claire Store Tel: 060 993 2574, claire@reeflords.co.za Royal Reef West: Eduan Janse Van Rensburg Tel: 079 431 6194, eduan@reeflords.co.za

HOMEFRONT

Bottom out?

Has the downward trend in the residential market bottomed out, and will the sector pick up in 2017? Experts and agents weigh in WORDS: NEESA MOODLEY :: PHOTO: ISTOCK

T

he downward trend in the residential market could well have reached the bottom. Things may turn around in the year ahead but it is still a long road, according to the FNB Estate Agent Survey for Q4 2016.

John Loos, household and property sector strategist for FNB, notes that although there was an uptick towards the end of last year, we will have to wait to see if this really means the market is bottoming out.

“It is too early to say whether this one quarter rise is merely ‘noise’ or the start of a strengthening trend,” he says.

PREDICTIONS The FNB Estate Agent Survey is an audit of a sample of estate agents predominantly in SA’s major metro regions, published in January. The key question in this survey was: “Does the agent expect activity levels to increase, remain the same or decline in the next three months?” The responses were aggregated into the percentage of agents expecting each of the three outcomes.

In Q4 2016, the percentage of agents expecting a decrease in activity in the next three months was 25%,

those expecting unchanged activity measured 50%, while the remaining 25% expected an increase. One of the questions in the survey referred to agents’ perceptions of residential market activity in their areas, on a scale of one to 10, with 10 being the strongest level of activity. The Residential Market Activity Indicator in the quarter rose slightly to 5.75, from the previous quarter’s 5.59.

Loos notes that quarter-toquarter fluctuations can be driven to a significant degree by seasonal factors prevalent in the housing market.

Andrew Golding, CEO of Pam Golding Properties, agrees, saying that much depends on the performance of the rand. But on balance the general expectation is that inflation will fall quite noticeably by the second half

“It is too early to say whether this one quarter rise is merely ‘noise’ or the start of a strengthening trend” John Loos, household and property sector strategist, FNB

of this year, hopefully with the Reserve Bank looking to cut interest rates during the latter part of the year.

Economist at Standard Bank Siphamandla Mkhwanazi expects purchasing activity will continue to point to subdued demand because of rising political uncertainty, slowing growth of disposable income, a tightening labour market and tight financial conditions.

He says: “We expect consumers to remain under pressure, with household expenditure only recovering in the third quarter once the Reserve Bank starts cutting interest rates.”

Although Golding agrees in part, he is hopeful of growth: “While political and economic uncertainty is likely to continue across the globe this year, it is hoped that local economic growth will be modestly stronger, which will be more supportive for the South African housing market.”

MORTGAGE Loos says new mortgage lending trend changes normally only follow an activity rating growth trend change with a considerable lag time. “Therefore, even if residential activity is gradually turning upwards, new mortgage lending could

still be in year-on-year decline for the first half of this year.”

Rademeyer, those who have owned property before are now paying deposits of as much as 40%. The average deposit in 2016 was 22%.

INVESTING

You should always consider location, regardless of whether the property will be an investment or a primary residence. Location is key

As an investor buying a new property, there are several things you can do in the midst of a market that is slowly turning up:

If you are a first-time buyer wanting a foot in the property market, save for a deposit first.

to an attractive property that will grow in value.

This fits in with the current trends towards mixed-use developments in metropolitan areas, where home owners are increasingly looking for a home within easy reach of shops, schools and work, or at least on a major route.

This way your home loan application is less likely to be turned down. A typical deposit should be 10%-20% of the purchase price.

Repeat buyers need bigger deposits. According

to Betterlife CEO Shaun

An energy- and water-efficient home is more attractive. South Africans have become more conscious of the need to save water and be environmentally friendly. If you are looking to sell your home, it is worthwhile investing in improvements that tap into this market.

Understand the dynamics of the market in order to make a sound investment decision.

According to Golding, these include factors such as the ongoing migration of people, supply of new housing units and lifestyle trends.

Residential Market Activity Indicator Activity levels on a scale of 1-10

FINANCE

8 7.5 7

6.73

6.5 6 5.75

5.5 5 4.5 4 2004

2006

2008

2010

National activity rating (scale 1-10)

2012

2014

2016

Seasonally adjusted activity rating

Factors that influence expectations of near-term future activity (percentage of agents) Seasonality

55

Economic stress / general pessimism Ample stock Stock constraints Pricing and affordability Area specific issues Consumer positive sentiment Buyer’s mind-set

22 6 10 14 6 5 5 3 3

Strict credit environment Interest rates Seller’s mind-set

1 5

Other

0

Source: FNB Property Barometer January 2017

10

20

30

%

40

50

60

|

I n t e r i o r D e s i g n

HOMEFRONT PROPERTY NEWS

TUFH launches building bond

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rust for Urban Housing Fund (TUHF) recently launched the first R280m tranche of a three-year R1bn domestic medium-term note programme on the JSE. TUHF CEO Ilona Roodt says the company manages investment opportunities in inner cities, with proven growth over 14 years, having financed more than

R4bn and 43,000 units downtown. The corporate bond listing will help the TUHF raise money towards property finance for building developments or urban regeneration.

Investors effectively lend their money to the company that has listed the bond and receive regular interest payments in return.

After a predetermined

amount of time, the bond matures and the money invested is paid back to them. The TUHF will release tranches over three years. The first tranche was a private placement, available only to a small group of investors. However, it may be opened to new investors in the second and third tranche.

Bond investments can be made via a stockbroker or using an online brokerage via one of the big four banks.

The Polofields released to market

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he Polofields, in Waterfall, Midrand, has been launched to the market by developer Balwin, which focuses on large scale sectionaltitle residential estates in high-growth, highdensity metropolitan nodes in major cities.

It is Balwin’s first development in Waterfall.

The company last year acquired development rights in Waterfall, where it will build about 15,500 sectional title flats over an eightto 10-year period. The development rights include three separate land parcels.

The Polofields will comprise 1,512 sectional title, upmarket flats.

Balwin founder and CEO Steve Brookes says: “Waterfall is a high growth node in Gauteng and one of

the most desirable areas to be developing in.”

The flats are certified with the Green Building Council of SA on the basis of energy, water efficiency and building material sustainability. Prices range from R2,029,900 for a twobedroom, two-bathroom

flat to R2,129,900 for a three-bedroom, twobathroom unit.

The estate is Wi-Fi enabled and includes elements such as a gym, restaurant, laundromat, spa, squash court, cinema room, pool, eco car wash and a yoga deck.

Inyathelo offers Woodstock work space Apartment-hotel opens in Menlyn Maine

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he apartment-hotel, a relatively new concept spearheaded in SA by The Capital Hotel Group, has reached Pretoria with the opening of the company’s R300m Capital Menlyn Maine. The 200-room Capital Menlyn Maine, opening on March 15, is located in Africa’s first mixed-use green city.

The multibillion-rand 315,000m 2 Menlyn Maine precinct is named by Seeff Properties as one of the prime property investment areas in SA. It is the eighth such

apartment-hotel in Capital’s portfolio, which is being expanded by a planned two openings a year, the next being The Capital on the Park in Mushroom Park, Sandton, in October. The company put 240 flats at The Capital on the Park on the market, from R2.95m, all of which have been sold.

Apartment-hotels combine a hotel with selfcatering flats that can be booked over an extended period. Capital Hotel Group MD Marc Wachsberger says his is currently the fastest growing hotel chain

in SA, in “direct response to ever-increasing demand for the apartment-hotel style accommodation”.

The Capital hotels have an average occupancy rate of 80%, well above the 55% rate of local hotels, he says.

The apartment-hotel, or extended stay hotel industry, is one of the fastest growing sectors in hotel accommodation in the world. It comprises about 9% of hotel accommodation worldwide, but about 2% in SA, with The Capital Hotel Group commanding about 75% of this industry.

PE house price record set

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he recent sale of a luxury 750m 2 home

by Pam Golding Properties (PGP) for R16m has set a new record in Port Elizabeth’s property market, beating the previous record price, across the market,

by R6m.

The sales, both in the Upper Seaview area, were concluded by PGP GoldClub agent Linda de Lange, according to area principal of PGP Port Elizabeth Ian Olivier.

“The sale underpins a growing trend for high net worth buyers to relocate to Port Elizabeth from other parts of the Eastern Cape on the back of the area’s growing economy, its new, dynamic municipality and its selection of exclusive coastal homes where space, privacy and good security come standard.”

Says De Lange: “This property has spectacular views of both the ocean and the countryside.”

It is located in a security estate with controlled access and electrified perimeter fencing. The property has six bedrooms and a separate twobedroom cottage, as well as housekeeper’s quarters.

There is a gym, tennis court, Balau-decked solar heated swimming pool, boat house, all weather veranda with built-in braai on the north side and another patio on the south side for yearround entertaining.

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nyathelo (The South African Institute for Advancement) is offering well-located and affordable work spaces in

Woodstock’s Buchanan Square, with hot desking, meeting spaces, conference rooms and related facilities.

Inyathelo is an NPO

and the facilities are aimed at nongovernment organisations, but are also available to for-profit companies. It offers chairs at communal “incubator tables” for half a day (R50 for nonprofits, R70 for for-profits) as well as conference space for up to 180 people, with catering.

There are meeting and training rooms, as well as offices suitable for two to three people, spanning R3,392.29 a month for 11.4m² to R7,006.56 a month for 28.9m², with facilities such as uncapped internet and meeting pods.

Buchanan Square, formerly a textile factory, was renovated according to strict heritage guidelines, but with an urban-chic, modern feel.

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