Business Day HomeFront 11 October 2019

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 11 OCTOBER 2019 WWW.BUSINESSLIVE.CO.ZA

MUST-READ

New Paarl eatery celebrates meat

SIMBITHI ECO ESTATE

Simbithi Eco Estate co-exists harmoniously with set in Ballito, a vibrant seaside town on the Dolp

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Mantis Simbithi Hotel and Suites (15 minute drive from King Shaka Internationa

18-hole Executive Golf Course | Pristine be Restaurants | Rooftop Bar | Spa | Gym 78 units (hotel and apartments) | From R8

Meet Mont Choisy’s industrious CEO PAGE 4

Property values: Cape Town rising PAGE 12

Tshwane: smart city on the cards

Vineyards near Paarl in the Cape Winelands

Investing in the Winelands

ST FRANCIS LINKS

Situated in the seaside village of St Francis Ba Links is a luxury golf estate and an outdoor enthu

St Francis Links Hotel by Mantis (90 minute drive from Port Elizabeth Internatio

Jack Nicklaus Signature Golf Course | Pristin Restaurant | Spa

60 suites (one and two bedroom) | From R1 A country lifestyle, top schools and proximity to the city, beach and Cape Town International Airport make the Winelands a residential favourite among a wide range of buyers

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Retire to the Tranquility of the Paarl Winelands Perfectly Located in Paarl | Unique High-Tech Security | Impressive Healthcare Options Leisure Lifestyle Centre | Green Building Designs

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Pearl Valley Hotel by Mantis (35 minute drive from Cape Town Internationa

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HOMEFRONT INTERIORS AND FOOD

Class act

A Winelands grande dame receives a fresh look and a menu with carnivorous clientele in mind

WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

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he Grande Roche Hotel has been sitting in the shadow of Paarl mountain for a long time. Hermanus Bosman owned the grounds back in 1715, operating the property as a working wine farm.

The story goes that immigrant Abraham Gabemma noticed a giant granite rock on the mountain glistening after a rainstorm in 1657. His description in Dutch of the sight mentioned “the diamond” and “pearl mountain”. Paarl Mountain is now a national monument and nature reserve.

A decade ago, Bosman’s Restaurant was the setting for many formal dinners at this luxury hotel. It was not uncommon for 12 or 13 courses to arrive, expertly paired with fine wines – the sort of meal where a silver cloche was lifted to show off an exquisite plate.

FOOD

Chef Pete Goffe-Wood

The landmark hotel still has glorious country views, but when Paarl locals Hansie and Theresa Britz bought the

property early in 2019 they wanted to lose the stuffiness.

A contemporary dining venue called Viande, French for meat, opened in June.

“We’re in Paarl, in farming country. So meat is highly valued culturally in this area. We offer quality meat we age ourselves,” says former Masterchef judge Pete Goffe-Wood, the chef behind the restaurant. Focused on modern nose-to-tail dining, Goffe-Wood and crew cure and smoke fish and meat too, with select cuts dry-aged in German meat fridges.

“We offer dishes that people, particularly in this neck of the woods, would have eaten with their grandparents,” he adds.

“Most of us haven’t got time to make those secondary cuts such as slow-cooked neck or crispy lamb tails any more. So our menu takes a lot of our diners back to their childhoods.”

Meaty options include ribeye with hand-cut chips and Béarnaise, Jersey rump and 28-day dry-aged T-bone for two. However, GoffeWood says the meat offering

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is not limited to prime cuts.

“It’s a bit of everything – veal sweetbreads with sautéed mushrooms, home-cured bacon and gnocchi, calf’s liver or slow-cooked beef cheeks.”

MENU The menu offers 10 starters and 10 mains, with five meat and five vegetarian or fish dishes each. Saltand sugar-cured salmon trout with fennel shavings, citrus and tarragon salad cream is a lighter option introduced for spring. West Coast mussels are steamed in blonde ale. A vegetarian salad is inspired by a Waldorf: local mozzarella with apple, celery, walnut, radish and cranberries.

As for desserts, warm lemon curd cake comes with crème fraîche ice cream; chilled buttermilk panna cotta partners rhubarb. In an decadent ice cream Sundae, dark chocolate mousse is layered with vanilla ice cream and chocolate malt ice cream, along with caramelised hazelnuts, brownie and toffee sauce. It’s a great match for an elegantly frothy espresso martini.

INTERIORS Designer Francois du Plessis of FDP Interiors was called in to bring Viande and its adjacent spaces to life. The result is a cheeky nip and tuck that acknowledges the building’s classic features.

“It’s 300 years old, so we didn’t want to go too modern: we kept the design elements in the fireplaces, gilt mirrors and original chandeliers,” says Goffe-Wood.

Du Plessis was briefed to implement a setting that suits the food. “They wanted an environment that was less grand,” he says. “It needed to be accessible and family-friendly – bare tables instead of tablecloths.”

Houtlander dining chairs are placed at rectangular black tables. A dark grey accent wall contrasts with the light wood floors. The

wallpaper featuring willow trees in grey, black and white was created by Cara Saven Wall Design.

To keep the tone light, Goffe-Wood’s wife, Elize, commissioned a series of kitchen-themed artworks for the restaurant walls.

Scotch & Sofa by Mitch & The Machine created 3D designs – a bull’s and a pig’s head, a meat cleaver, a mincer and a KitchenAid stand mixer – that were laser-cut in plywood.

In the spirit of recycling, built-in wooden units form the waiter stations. Original fireplaces with black granite tops and brass fire grids were also repurposed and fluted columns flanking the fireplaces were repainted in the same grey tone.

Chandeliers rescued from Bosman’s add a touch of oldworld glamour, deviating from Viande’s modern plan.

The result is a cheeky nip and tuck that acknowledges the building’s classic features

MONA LISA BAR The new Mona Lisa Bar introduces a touch of quirkiness. Framed in gold above assorted brandy and spirit bottles, a reinterpretation of the Mona Lisa shows her looking sassy, a fat steak in hand.

Blue velvet armchairs are placed near a bar counter installed by kitchen and cupboard specialists CCMI, and the curtaining is by Gordijn. “We built a cocktail bar to be more welcoming – somewhere sophisticated to have a drink,” says GoffeWood. The hotel’s reputation as an elitist enclave at the top of the hill had to go.

In the private dining room beyond, a midnight-blue wall leads to gilt-framed portraits, book displays and a nifty love seat by Houtlander.

“Every small town has a hotel: we’ve pitched ourselves as the Royal Hotel of Paarl,” concludes GoffeWood. “We want people to sit here on a Thursday afternoon, to order salt-andpepper squid from our tapas menu and sip a glass of wine on the patio, enjoying that view.”

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HOMEFRONT PROFILE

The woman with the golden CV Dr Jyoti Jeetun, CEO of Compagnie de Mont Choisy in Mauritius, stands firm in the face of opposition and commands respect by delivering results WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED

FIVE REASONS TO INVEST IN MAURITIUS 1. No. 1 place in Africa to do business; no. 20 globally 2. Total wealth growth of 20% in 2017 (ranked among top five globally) and 195% over 10 years (third globally) 3. Property value expected to grow by 40% in the next 10 years 4. Strong GDP growth of 5.9% since 2006 5. Mauritian residency with purchases over $500,000

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FIVE REASONS TO LIVE IN MAURITIUS 1. Desirable, idyllic lifestyle 2. Beautiful clean waters make it a popular destination for waterbased activities 3. International schools and a growing number of recognised tertiary institutions 4. Tropical climate with year-round sun 5. World-class golf courses The Beach Club will be a popular leisure destination for Mont Choisy residents

The Sanctuary Villas open onto beautiful lagoon parkland and tropical landscapes

e’re having lunch at the Mont Choisy Le Golf clubhouse, overlooking immaculate greens against the backdrop of a volcanic mountain.

Public reaction to the 2017 opening of this 18-hole golf course took everyone by surprise and the 642 exclusive memberships sold out quickly. “We knew we had an edge, being a unique golf course in the north, yet we were totally overwhelmed not only by the financial success but also the feel-good factor,” says Dr Jyoti Jeetun, group CEO and executive director at Compagnie de Mont Choisy.

“It’s such a nice place. There’s something magical here.”

But Jeetun has had her work cut out for her since taking up this role in 2016.

Her soft voice belies her steely resolve. She is geared to get results, but with grace and humility.

Does she play golf? The answer is a rueful “no”. It’s the only KPI she hasn’t met yet, she says. Time is an issue, understandably.

Men have questioned her knowledge of the game, her experience in managing developments and therefore her suitability for the position.

“I was annoyed. I don’t need

to play golf to understand the business of golf,” she says. “I had to stand firm and not fight with people.

That’s my philosophy – being courteous. After a while people get the message.”

Jeetun returned to the island after 11 years in the UK and Belgium, where she consulted in private sector development and financial services, lectured at business schools and held senior management roles with global investment banks. She was deputy director of the Centre for the Development of Enterprise in Brussels, CEO of the Sugar Investment Trust and founding chair of the Mauritius Post and Cooperative Bank (now MauBank).

By 2015 she needed a change. “I was in my 50s and the perfect candidate for board directorship.

Head hunters in London told me I had a golden CV, but it’s difficult to get that first directorship.”

Jeetun’s husband wanted to return to Mauritius, so she began to enquire about the nonexecutive directorship market there. When she was approached for “the perfect job” managing Compagnie de Mont Choisy, she hesitated because she did not want a full-time executive role and was sceptical about her

chances of success. However, she was persuaded to accept and was appointed to the board a year later.

In the three years she has been CEO, she has implemented corporate structures, grown the staff, managed the third-phase launch of Mont Choisy Le Parc (marketed by Pam Golding Properties Mauritius) and kick-started plans for a Smart City that has been approved by government.

Mont Choisy Le Parc forms the residential component of the Smart City, which incorporates the Mont Choisy Mall as well as plans for a sports university. The mall will be expanded into a mixed-use development and a piazza where the Mont Choisy and Grand Baie communities can meet.

Another coup is the publicprivate partnership that will link these neighbourhoods via a boulevard and a parkway.

Jeetun says she keeps learning every day. “You need a lot of maturity and wisdom.

The challenges I face are because I’m a woman leading a family company without a corporate culture through a major transformation.

“But I am surviving all these complexities and able to deliver. That gets me the respect of the board. The one works with the other.”

HOMEFRONT HOT TOPIC

Investing in the Winelands T A country lifestyle, top schools and proximity to the city, beach and Cape Town International Airport make the Winelands a residential favourite among a wide range of buyers

WORDS: HELEN GRANGE PHOTOS: SUPPLIED AND SHUTTERSTOCK

he Cape Winelands, once favoured only by wealthy retirees, has become a hotbed of market activity recently, attracting a broad range of buyers. Sales are buoyed in this region despite the slow market in the rest of the country.

According to recent data from Lightstone Property, 76 houses in the R3mplus bracket were sold in Stellenbosch over the 12-month period ending July 31, with an average sale price of R6.1m.

Of these, 19 sales took place in the past three months at an average price of R6.9m. The average sale price of estate homes in this price band also rose from R6.9m to R7m during that time, and in Paarl the average price of an estate home rose by 23% from

A Pam Golding offering at De Zalze Winelands Golf Estate outside Stellenbosch

R4.8m to R5.9m between May and July.

RECORD HIGH

“Even though sales volumes have dipped since 2016, the median price of houses in the Winelands region remained consistent at R1.96m in 2017, dipping a little in 2018 but rising again this year to a record high of 2.1m, a healthy increase of 9.6%,” says Chris Cilliers, CEO and principal of Lew Geffen Sotheby’s International Realty in the Winelands.

AfrAsia Bank’s SA Wealth Report for 2019 underscores the Lightstone data, indicating that growth in the wealth markets of Johannesburg and Cape Town has been “fairly muted compared with new areas such as the Whale Coast and the Paarl, Franschhoek and

Stellenbosch districts, which saw growth of 22% and 21% respectively over the past 10 years”.

The lure of the Winelands region is its peaceful country lifestyle, proximity to the city and Cape Town International Airport, and a number of excellent schools in the area.

Cilliers says getting away from the stressors of urban life has been a trend for a number of years now, especially among families with young children.

“People are looking to escape the growing traffic congestion, crime and general pace of city life. We’ve also been fielding more enquiries from professionals who predominantly work remotely or from home, and from empty-nesters looking to ease more gently into their golden years,” he says.

The upmarket sector in the Winelands is attracting significant interest from both local and foreign investors, with considerable interest from international clients who want to buy second homes or settle in SA permanently.

Estates in the Helderberg area in Somerset West, closest to Cape Town, are where the upward trend in the Winelands first becomes noticeable.

“We are experiencing tremendous demand for homes in the R2.4m to R3m bracket at Acorn Creek Lifestyle Estate. And the apartments, from R1.25m, are equally sought after,” says Werner Scheffer, project manager for Multi Spectrum Property.

The Huntsman, a new Balwin Properties development in Somerset West with apartments

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Balwin’s development The Huntsman in Somerset West

Balwin's modern The Huntsman apartments in Somerset West are cutting-edge, ecofriendly and secure, and close to kitesurfing paradise and all major city highways

Somerset Lakes in Somerset West is marketed by Lanis Salmon Estates starting at R850,000, is finding a strong market among young professionals and first-time buyers, according to principal sales agent Kerry Krynauw.

At Val de Vie Estate near Paarl there has been a slowdown of Gauteng semigration and an upswing of buyers from Cape Town looking to move to the countryside, according to group marketing director Ryk Neethling.

“The decline in Gauteng buyers is partly because clients are struggling to sell their properties in Gauteng.

But we’ve seen a definite increase in buyers from Cape Town’s Southern Suburbs and also from KwaZulu-Natal,” he says.

De Zalze Winelands Golf Estate and Brandwacht aan Rivier, both in Stellenbosch, and Boschenmeer in Paarl are maintaining robust sales too.

“The established lifestyle estates perform consistently well. De Zalze

and Brandwacht aan Rivier are doing particularly so,” confirms Louise Varga, Pam Golding Properties area manager for Somerset West, Stellenbosch and Strand.

Similary, Igrow Wealth Investments, which is marketing L’Ermitage Franschhoek Chateau & Villas in Franschhoek, is enjoying good sales of its recently launched second phase of 18 two-bedroom villas priced between R3.2m and R4m.

“Ten of the units are already reserved, mostly by cash-buying investors, a number of whom are South Africans working and living abroad,” says Lezelle Kirsten, Igrow project co-ordinator for new developments.

Grootparys Estate in Paarl has also launched a successful new phase of development. “We have sold 40% of Phase 1 and are constructing another 17 homes. Interest is definitely picking up,” says

principal sales agent Reon van der Merwe.

RESALES PEAK The current buyer’s market is being boosted by the increased number of resales of homes in some of these Winelands estates.

“There has been a noticeable peak in resales over the past two months, largely because of sellers leaving the country,” says Anri Wilsch, sales agent for Nooitgedacht Village in Stellenbosch, where properties are selling for between R1.8m and R3m.

According to Chris Cilliers, serious sellers who have had their properties on the market for several months are now making peace with the fact that this is a buyers’ market and are accepting offers they may have turned down a few months ago.

The most sought-after properties for cash buyers, Cilliers says, are estate homes in Paarl, premium new builds in Somerset

West and houses in the more exclusive suburbs of Stellenbosch.

Estate agents working in these areas concur. “We are definitely experiencing a buyer’s market linked to prevailing economic and political concerns and tighter budgets,” says Lanis Salmon, who markets Somerset Lakes, Spanish Farm Estate, Lane’s End and The Den. “At this stage, buyers are staying away from Stellenbosch properties set at high prices. The cheaper homes we get, on the other hand, sell very quickly,” says Seeff sales agent Wessel Goosen.

However, at the upper end, in the R8m-plus bracket, demand hasn’t waned among astute investors recognising the opportunities to exploit a weaker market.

“The interest in homes over R15m and Gentleman’s Estate stands is still very strong,” says Neethling of

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Grootparys Estate in Paarl this exclusive Val de Vie offering. “We recently sold three Gentleman’s Estate properties for an average price of R18m per stand.”

RENTAL RETURNS Although lifestyle estates in the Winelands remain in much higher demand than ordinary neighbourhoods because of their improved level of security and lifestyle amenities, the return on investment has adjusted in line with the price correction on the back of a very strong climb, says Claudius Combrinck, executive director of property sales at Sitari Country Estate in Somerset West. Property prices at Sitari range from just over R1m to R5m.

“Earlier in the Sitari scheme we saw some quick high-growth returns but buyers can expect a more sensible return of between 6% and 8% over the longer term,” he says.

Cilliers puts the figure slightly lower for Winelands

Val de Vie Estate near Paarl

Acorn Creek Lifestyle Estate in Helderberg, Somerset West homes in general, at between 5% and 6%. “The value in this region remains in the capital growth over the long term,” he says.

When it comes to properties in wellestablished upmarket estates that are close to major travel routes, however, the return on investment is significantly higher for those who entered the market early.

For example, an erf in De Zalze that cost R1.5m in 2004 was sold with a house built on it for R8.5m six years later and is currently being marketed by Pam Golding for R17.5m.

Investors in the Winelands are particularly drawn to new properties where no transfer fees are payable, because such deals offer the potential to achieve maximum returns as a result of lower acquisition costs.

“These buyers range from individuals padding their portfolio with rental income to those choosing to secure

a retirement property at today’s prices and letting it until it’s needed,” says Salmon. She adds that new apartments in Somerset Lakes Estate, selling from R850,000, have just been launched to meet the need of such investors.

“Studio and two-bedroom properties are popular because they’re much easier to find tenants for.

The rental return is about 7% currently, but we’re expecting it to increase in a couple of months, as the banks remain sticky about lending, yet the motivation to get onto the property ladder is still there, especially among millennials,” Salmon says.

Ultimately, the appeal of the Winelands lies in the desire to have it all – security, convenience and a tranquil lifestyle in picturesque surroundings.

The fact that making it yours has become more affordable is the fuel that will boost sales well into the future.

“The value in this region remains in the capital growth over the long term” Chris Cilliers, CEO and principal: Winelands, Lew Geffen Sotheby’s International Realty

Sitari Country Estate in Somerset West

Own all of this for as little as R860 000 *

SIMBITHI ECO ESTATE Simbithi Eco Estate co-exists harmoniously with nature and is set in Ballito, a vibrant seaside town on the Dolphin Coast Mantis Simbithi Hotel and Suites (15 minute drive from King Shaka International Airport) 18-hole Executive Golf Course | Pristine beaches Restaurants | Rooftop Bar | Spa | Gym 78 units (hotel and apartments) | From R860 000

ST FRANCIS LINKS Situated in the seaside village of St Francis Bay, St Francis Links is a luxury golf estate and an outdoor enthusiast’s dream St Francis Links Hotel by Mantis (90 minute drive from Port Elizabeth International Airport) Jack Nicklaus Signature Golf Course | Pristine beaches Restaurant | Spa 60 suites (one and two bedroom) | From R1.5 million

VAL DE VIE ESTATE Located in the Cape Winelands, Val de Vie Estate is a luxury wellness estate, rated as the top residential estate in South Africa Pearl Valley Hotel by Mantis (35 minute drive from Cape Town International Airport) Jack Nicklaus Signature Golf Course | Restaurants | Equestrian and polo activities | Wine farm 40 one bedroom suites | From R2.2 million Only 20 units left

* Buy a room in Simbithi Hotel and Suites, St Francis Links or Pearl Valley Hotel by Mantis and have access to three of South Africa’s leading resorts +27 21 863 6105 | MANTIS@CAPEWINELANDSPROPERTIES.CO.ZA |

WWW.CAPEWINELANDSPROPERTIES.CO.ZA

HOMEFRONT METROPOLE

Heading downtown A new report shows Cape Town’s central city property values are up as businesses embrace new trends WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED AND SHUTTERSTOCK

The Central City in numbers CENTRAL CITY PROPERTY VALUES

RESIDENTIAL SPACE

R42,860,981,211

361 Units sold (transferred to owners) during 2018

The official nominal value of all property in the CBD, according to the City of Cape Town’s 2018/19 property evaluations (provisional figure, calculated before the valuation objection phase)

R2.798bn The value of property, conservatively estimated, completed in the Central City during 2018

61 Residential complexes in the Central City R35,431m² Average price of residential properties transferred during 2018

R2.1m Average price per unit transferred during 2018

R1.747bn

77,6m²

The value of property, conservatively estimated, currently under construction

Average size of units transferred during 2018

R4.296bn The value of property, conservatively estimated, in planning phase

R4.740bn The value of property, currently proposed, on which construction will begin by 2020

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TECH ENABLING

Scheduled for completion in 2021, the City of Cape Town’s broadband project aims to provide a municipalowned fibre optic network serving the entire metropole.

To date, 950km of fibre optic cables and 400 free Wi-Fi zones have been installed across the metro.

The city’s Connect Pilot Project, launched in January 2018, aims at affordable open-access high-speed fibre connections for more than 1,000 commercial buildings in the CBD. Luno, a crypto-wallet with nearly two million users, started in Cape Town. Luno was named the UK’s fastest growing tech startup in 2018 and operates in more than 40 countries.

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Amazon.com announced plans to construct a new office complex in Cape Town, with eight locations under consideration, including the Foreshore precinct.

Education group Curro is an example of the city’s growing tech business landscape. The JSE-listed company has launched a new tech-focused schooling model at its new campus located on the Foreshore.

Source: The State of Cape Town Central City Report 2018 by the Central City Improvement District (CCID)

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ew property developments in the Cape Town Central City are worth more than R950m, in spite of tight economic pressure.

This figure was recently released in The State of Cape Town Central City Report 2018 – A Year in Review by Cape Town’s Central City Improvement District (CCID).

According to the report the most significant indicator of investor confidence in the Central City is that the value of property in the area rose by nearly 40%. It grew from R30.628bn in 2016/2017 to

R42.860bn in 2018/2019, with 39 new developments valued at more than R13.5bn.

CCID board chairman Rob Kane notes that while overall property values may change with the adjudication of objections in the City of Cape Town’s current update of the general valuation roll, the increase in gross valuation for the central business district is heartening. “The overall picture shows confidence in the development potential in the Central City,” he says.

The Cape Town International Convention Centre’s contribution

to GDP was R4.5bn in 2018. Economic research analyst Sandra Gordon says an additional six new developments in the CBD in 2019 are worth more than R968m. Three are hotels that are already open, adding 196 rooms to the city – including the five-star hotels Gorgeous George and Labotessa.

She says two of the new developments are residential – The Duke and Fleetway House – whereas Foreshore Place is planned as a mixeduse development. These three developments should add another 416 residential units to the city.

The report highlights the following aspects:

1. HALAAL TOURISM The New York Times reported an increase in Muslim travellers of nearly 30% since 2016, making Halaal tourism one of the fastest-growing sectors in the field. The City of Cape Town plans to reposition the city as a specialist destination for Islamic travellers, with probable spin-offs in hotels and residential property.

In 2017, more than 81,000 tourists arrived in Cape Town from Middle Eastern markets. Wesgro estimates

HOMEFRONT the value of this sector will be $100bn by 2025.

2. COMMERCIAL VACANCY RATES Vacancy rates for commercial office space rose in the past year, with 30,000m2 of new offices coming onto the market during an 18-month period (14,000m² in 2018). New developments include 16,000m2 at KPMG’s The Halyard, 6,500m2 of prime grade office space at ENS House, and 3,000m2 in the upgraded Maserati building.

The downtown office sector did not fare well. The report notes that vacancy rates rose during 2017 and 2018, primarily from 30,000m2 of new office space on the market. On the upside, Cape Town is reported to have the lowest office vacancy rates of the five largest metropolitan municipalities in SA. “In terms of office rentals, rates have remained largely stable. Stronger drivers are required to support future demand and to improve the vacancy rate and asking rental growth. These drivers include growth in capital investment, employment and renewed business optimism in a changing political landscape,” says Kane.

The Onyx, a former commercial property that has been converted to residential units

COMMERCIAL AND RETAIL SPACE 1,062,023m² Commercial (office) space in the Central City 11.8%

3. FOOD RETAIL Food retail has surged in the past year, with restaurants in the CBD increasing by more than a third from 114 to 153.

The retail sector in the Central City remains stable, with a steady 93% retail occupancy rate – unchanged from December 2017.

Of 3,090 private formal enterprises in the Central City, 1,038 were classified as retailers (December 2018).

The East City precinct in particular is flagged as

Office vacancy rate as at Q4 2018

266,478m² Retail space in the Central City 93%

Retail occupancy rate as at Q4 2018

the country. “One of our largest consumer groups is parents acquiring property for students. The micro apartment lifestyle continues to grow and gain popularity,” he says.

Lightstone Property recorded 361 units sold during 2018. The average price per unit transferred during 2018 was R2.1m.

a retail and entertainment hub. One of its successful redevelopments, Harrington House in Barrack Street, has been converted to offices with retail outlets on the ground level.

4. RESIDENTIAL RESILIENCE The report states that almost 60% of city dwellers own their properties, while nearly 25% are tenants. The remaining 15% own their properties and let to tenants.

At The Onyx, a repurposing of the lower Foreshore’s iconic Nedbank Building into luxury apartments and penthouses, prices range from R1.7m for a studio to R20.5m for a three-bedroom duplex penthouse. “The mix of hotel and residential is an international trend we have embraced wholeheartedly,” says Signatura MD David Cohen. “It fits in well with the Cape Town lifestyle and adds that extra factor to a luxury building.”

Dogon Group Properties head of developments Rob Stefanutto says mixeduse developments such as Foreshore Place — the rejuvenated Absa building — offers a buying opportunity for as little as R1.164m (including transfer fees) in a sought-after part of the city. “South Africans are choosing to live in urbanised environments. And at the high end, Dogon Group’s involvement with Abland on The Rubik spells the future of urban development for the city centre, offering premium accommodation and lifestyle.”

Stefanutto adds that Dogon has seen “extensive purchasing” from Korea, Hong Kong and Japan, as well as from expats returning to reinvest in

5. DIGITAL HUB Cape Town is a recognised tech hub for technology development, offering 40,000 jobs. According to a study by the Cape Innovation and Technology Initiative (CiTi) and the Allan Gray Orbis Foundation, this city employs more tech sector workers than anywhere else in Africa. Cape Town’s tech employment rate is significantly higher than hubs such as Johannesburg (employing 20,000), Lagos (9,000) and Nairobi (7,000).

A recent PWC report says 56% of emerging tech or tech-enabled companies are headquartered in the Western Cape, the majority in Cape Town. The city has become a leader in mobile software, revenue management and payment processes, with R4.7bn of foreign direct investment in software and IT services.

International property consultancy Savills’ Tech Cities Index also ranked Cape Town in 30th place among the top 30 tech cities globally. Savills defines tech cities as important centres for tech in their regions, recipients of venture capital investment and offering appealing working environments. Cape Town is the only African city on the index. In 2015, the Western Cape hosted 75% of the country’s venture capital deals.

BREAKDOWN OF BUSINESS IN THE CENTRAL CITY A look at the 3,094 Central City businesses

Retail venues 1,038 Legal 639 Finance, 201

investment, insurance

and banking

Medical entities 197 Accommodation 161

and travel

Co-working 17 spaces

110

Architecture, engineering and surveying

101

Communications, media and advertising

94

96

68

Educational institutions and resources Industrial councils and NGOs/NPOs Corporate and head offices

56

59

44

117

44

52

Property and real estate Freight, customs brokering, shipping and export Employment and recruitment ICT and telecoms Artistic studios Specialised services

Source: The State of Cape Town Central City Report 2018 by the CCID The CCID’s geographical boundaries include four mixed-use precincts in Cape Town’s central city. It excludes the V&A Waterfront, the Bo-Kaap and some parts of the Foreshore.

HOMEFRONT PROPERTY NEWS

V&A property values holding fast

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roperties in the V&A Waterfront in Cape Town are holding their value better than other upmarket areas of the city, says Dogon Group Properties.

Dogon sales agents Natacha Neuburger and Karen Rubin say properties within the Waterfront have decreased by about 10% but many are retaining their value. “Desperate sales simply don’t occur,” says Neuburger. “Property prices per square metre

within the marina have dipped by a small degree from R95,000/m 2 to about R85,000/m 2 . This is more a case of prices equalising after a period of rapid and unsustainable growth than a case of devaluing.”

Dogon recently sold a one-bedroom apartment in Juliette, one of the newest Waterfront Marina blocks, for R6m. The en-suite bedroom and living area both lead to a large veranda overlooking the canals.

This secure estate has 500

units and more than 200 boat moorings.

There is high demand for short-term holiday and business lets from international clientele booking through agents and hospitality firms.

“This means a property investment in the Waterfront works for the owner when they are not in residence,” Neuburger says. “We don’t anticipate the popularity of the V&A Waterfront to abate any time soon,” adds Rubin.

Leadhome’s new analytics team harnessing AI

R

eal estate agency Leadhome has created a new division focused on providing the estate agent market with traditional and advanced analytics including artificial intelligence (AI).

Louise de Beer heads this new business

intelligence and data science division. “The role of data is becoming more indispensable by the day, regardless of your industry,” she says. “A positive and progressive change is long overdue in real estate in SA.” Simply having data and producing reports will no

longer be enough in the sector, says De Beer. “This approach is overwhelming and distracting. Our goal is to generate the right insights for the right people at the right time.

“Consumers have data available for most other purchases, from household goods and

level of transparency not experienced before.”

Leadhome is currently implementing AI to automate property valuations through the analysis of photos, market conditions, previous sales and input from property experts.

Incorporating AI in customer relationship

cars to investments.

But so far SA’s property market has been fairly closed in terms of access to this vital information,” she says. “By giving them details on suburb trends, property indexes, previous ownership and property financing, Leadhome enables a

management systems will enable agents to predict the likelihood of a sale and make recommendations regarding timing of the sale and optimum price.

Leadhome will make the tool available to agents and plans are also in place to offer similar tools to customers in future.

Sectional title hubs showing growth

P

R2bn smart precinct for Tshwane

A

bland and partners are breaking ground on the second phase of the Irene Link commercial development at Irene Link precinct in Tshwane this month. “Our aim is to make this one of the first smart precincts in Gauteng,” says Abland MD Jurgens Prinsloo. The 8,500m² building will be ready for occupation in October 2020.

The commercial component of the 75,000m² precinct (already

including the head office of Barloworld Logistics) will range from flexi suites of single 20m² semi-serviced offices to 50,000m² campus-style offices, depending on tenant requirements.

Also in the pipeline is a 12,000m² convenience shopping centre set for development by end-2019.

Irene Link’s mixed-use elements will include office space, medical services, restaurants, a preschool and a hotel.

“In this infrastructure phase, the precinct is planned to link all its functions to a smart city with interconnected buildings and security, smart taxi drop-offs and a Wi-Fi area,” says Prinsloo.

This R2bn mixed-use precinct – designed to comply with ecofriendly Green Star specifications, with back-up water and power, and renewable solar energy – is located on Alexander Road, off the Botha Avenue interchange.

am Golding Properties compared three key hubs in SA associated with a live-work-play lifestyle and found a proliferation of sectional title developments that offer excellent infrastructure, centrality, convenience and investor confidence.

Senior research analyst Sandra Gordon says four locations within the hubs were evaluated using Lightstone Property statistics: Umhlanga Rocks and Umhlanga New Town Centre on KwaZulu-Natal’s North Coast with 4,454 and 3,115 residential units respectively; Cape Town’s central city with 2,987 units; and Rosebank in Johannesburg with 774 units.

The findings:

• Each location has a high

percentage of sectional title units: Umhlanga New Town Centre has 99.7%; Umhlanga Rocks 81.2%; Cape Town central 95.1%; and Rosebank 92.3%, says Gordon.

All three hubs reflected similar median prices in 2009 – from R900,000 to R2.2m – rising to between R1.4m and R3m in 2019.

Umhlanga New Town Centre had the lowest median price (up to July 2019) but the strongest growth in prices over five years (66.7%). Over a 10-year period, Rosebank showed the strongest growth (141.8%).

While median prices in Umhlanga Rocks enjoyed a premium of about R1m

• •

•

compared with other locations over 10 years, it registered lower growth than Rosebank and Cape Town central.

The two KwaZulu-Natal locations registered the strongest sales thanks to growth in the region and the relocation of the airport to the North Coast.

Given the high percentage of sectional title units, Gordon compared apartment prices. “From September 2018 to August 2019, the prices catered for a broad spectrum of buyers, with the bulk of sales in the R1m to R3m price bracket,” she says. “The exception is Umhlanga Rocks, where the majority of sales exceeded R3m.”

•

•

PAM GOLDING PROPERTIES – PRICES IN KEY LOCATIONS: 2009 TO 2019

Suburbs

Price (2009) Price (2019)

Cape Town CBD R1m

R2m

Five years % Ten years % (2014-2019) (2009-2019)

+ 62.7

+ 105.5

Rosebank

R900,000 R2.2m

+ 45.7

+ 141.8

Umhlanga New Town Centre

R900,000 R1.4m

+ 66.7

+ 51.4

+ 11.1

+ 38.1

Umhlanga Rocks R2.2m Source: Lightstone Property

R3m

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