Business Day HomeFront 19 November 2021

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HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA WWW.BUSINESSLIVE.CO.ZA 19 NOVEMBER 2021

MUST-READ

Going, going, gone online PAGE 2

The Garden Province perks up PAGE 4

Luxe new Cape development PAGE 5

The lair of luxury Small apartments, big rewards PAGE 6

The Hills Game Reserve Estate brings urban convenience and bushveld bliss together to offer a unique investment opportunity

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HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA

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HOMEFRONT

ONLINE AUCTION TIPS As with any significant purchase, ensure you know what you can afford and what you are willing to pay for the property, says BidX1’s Du Toit.

One of the key benefits of online auctions is you won’t feel pressured in the way you might if you were physically present in a room with other bidders. “With online bidding, you have the privacy to make clear decisions without distraction, so remain calm and stick to bids that you are comfortable at – know your limit and stay with it on the day.”

When you have done your homework and decided you want to acquire the property, but don’t want to place your bids manually, you can specify the maximum bid price you are prepared to pay, Du Toit says.

The system enters the bids for you – only as necessary to retain your position as the winning bidder and only up to the maximum bid price you’ve specified. This is a good option if you’re concerned about your internet connection, experience load shedding or don’t have access to WiFi. “Be assured that your maximum bid cannot be viewed publicly, so only you will know how high you’re willing to go,” he says.

High Street Auctions for the City of Cape Town with auctioneers Stef Olivier (left) and Joff van Reenen

AUCTION FOCUS

The hammer falls – virtually

In the age of Covid-19 and subsequent lockdowns, everything seems to be going online – and property auctions are no exception WORDS: ATLEHANG RAMATHESELE :: PHOTOS: SUPPLIED

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hile some people may have found it intimidating to buy highpriced items online, such as property, current times see us becoming expert negotiators of big business in this new realm – with positive results.

As digital purchases continue to gain traction, auctions are following suit. But this wasn’t always the case.

Covid-19 and the subsequent lockdown altered consumer behaviour in a way that would have taken five to 10 years to change previously

– even with the increasing speed of the tech revolution.

This is according to Joff van Reenen, director and lead auctioneer at High Street Auctions, a South African online auction company.

“Prior to Covid-19 most people would have bought a shirt online, but there is almost no way they would have bought a house,” he says. “Now not only will they just as easily buy a house or a building using an app; most will do so site unseen, after having completed a paperwork due diligence and a virtual 3D tour.”

GAINING TRACTION John Jack, CEO of Galetti Corporate Real Estate, says about 5% of real estate sales in SA are transacted via online bidding platforms. Given the growing popularity, one could expect it to increase to 25% in the next five years.

“Influenced by Covid-19, the market has led many industries online and auctions is one of them, breaking down previous perceptions of transacting digitally,” he says.

The South African Professional Auctioneers Association (SAPAA) defines online auctions as “the

competitive marketing and disposal of goods or assets conducted on an internetbased platform for a predetermined period with each lot sequentially closing at a given time”. The optimisation of this process makes it more accessible globally. “This opens up the process to the overseas market and gives embattled landlords access to a wider pool of prospective buyers,” Jack says.

Like traditional in-person auctions, bid prices are updated in real time and the highest bidder is announced at the end of each auction.

EVERYONE CAN BID

Llandudno home on BidX1 online auction, opening bid price R14.8m

Joff van Reenen, Director, High Street Auctions

John Jack, CEO, Galetti Corporate Real Estate

MC du Toit, CEO, BidX1 SA

It may be a common misconception that auctions focus solely on foreclosures and are largely about commercial property, but they actually serve a much broader purpose, and more consumers are actively taking part.

More homebuyers, who have already become used to searching for potential properties digitally, are finding that online property auctions are a safe and easy way to make a purchase.

Online auctions in particular offer a myriad benefits for buyers.

“You can bid anywhere, anytime, anyhow and it’s really easy. The tech has also advanced hugely in recent years, so it’s a safe and convenient financial platform,” says Van Reenen.

“Most important of all though is people should work with a

A

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company they trust, a reputable brand with market track records. Last year, most of our sales were to buyers who couldn’t travel to view properties, and we sold a lot of coastal mansions and bush lodges to foreign investors who were bidding from their homes overseas.”

According to MC du Toit, CEO of online auction company BidX1 South Africa, South Africans in general are more tech-savvy and confident concluding purchases online, and that includes a big-ticket purchase of a home – or in the case of an entrepreneur or business owner, acquiring a commercial property.

Du Toit says it’s also important to familiarise yourself with the registration process – such as providing Fica documentation and a deposit. Thereafter, he advises looking out for auction catalogues to stay abreast of opportunities that suit your needs. Learn everything about the property you want to bid on and ensure you understand the conditions of sale.

“You can also visit and inspect the property on show days,” he says. “Property brokers will assist with any queries and can take you through a realistic bidding simulation so you know what to expect on the day. They are also available for advice and assistance during the auction itself.”

exclusive, rare and soughtafter properties are best suited for virtual auctions.

This is because technology behind the auction drives a robust virtual marketing campaign. This offers properties in high demand, such as wine farms, game lodges or a secluded fishmerman’s cottage, wider reach and increased international exposure.

“One is not physically present at an online auction.

You’re bidding via a number of digital platforms on your laptop, tablet or smartphone and you don’t have any physical interaction with other bidders or the auctioneer,” he says.

This is a big difference from the jostling and direct engagement at a physical auction where everyone gathers on the sales floor with the auctioneer at the

ONLINE VS VIRTUAL

101 Empire Place, Hurlingham sold by High Street Auctions in September for R5.5m

According to Van Reenen,

front on the podium calling out bids and where all the bidders can see each other.

Virtual auctions are a hybrid of the two, combining live and online elements.

“A virtual auction brings together numerous electronic bidding platforms including Zoom and apps and incorporates them via livestream on a sale day with a live audience and telephone bidding,” says Van Reenen.

“It’s hugely interactive, very exciting and has global reach.

High Street Auctions conducts both online and virtual auctions.”

TRADITIONAL SALES VS AUCTION When comparing online auctions to traditional commercial property sales, Jack says each of these options has its merits and how they are approached

should be determined on an individual basis.

“Mass exposure, a ‘quick’ transaction, transparency, qualified buyers and competitive pricing are key factors for auction,” he says.

“Alternatively, if the seller wants to keep the asset ‘off-market’ then a private treaty is best.”

While Jack believes there will always be a place for traditional commercial property sales, his Galetti team recently launched their new online platform, Galetti Auction Division, as an additional route to market for clients. “This is a new way to move commercial property and it’s backed by an experienced team,” he says.

STILL NOT SOLD? While some homeowners might still want to opt for the more traditional route of selling their home through an agent, Van Reenen says auctions offer the fairest and most transparent means of selling property.

“Selling on auction is also a lot faster and more immediate, with the usual turnaround time from signing the mandate to sale at about six weeks.”

The seller also doesn’t pay any commission. “Ultimately it’s market appetite for the lot that decides the price. There are no back room deals, no waiting months for those ‘promising’ prospects that lead to nothing and no putting life on hold waiting for a buyer to show interest,” he says.

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HOMEFRONT HOT TOPIC

Garden Province blooms again The Kent, La Lucia

Property sales and new developments on the KwaZulu-Natal North Coast are indicative of a positive market sentiment despite the chaos and drama of the past 18 months

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f sales, new property developments and expansions to existing developments are anything to go by, the KwaZulu-Natal North Coast is slowly starting to rise from the ashes of a dismal economic climate.

Here are a few noteworthy areas where the property market is on the up.

INVESTOR INTEREST WORDS: MARANA BRAND :: PHOTOS: SUPPLIED

Oceans, Umhlanga

Onyx, Umhlanga

“Despite the lockdown, the residential property market in this perennially soughtafter region has shown resilience, and we are continuing to experience activity across all price bands,” says Carol Reynolds, Pam Golding Properties area principal for Durban Coastal.

“Most notably, family homes priced under R5m are selling quickly while developments are attracting a significant amount of investor interest.”

Although global markets show volatility, it seems property has re-emerged as an investment safe haven, she says. The agency has noticed an influx of Johannesburg buyers, while local property developments in particular have attracted investment interest from out-of-towners.

Seeff has a similar experience. “The area north of Durban has become one of the hottest markets for semigration buyers specifically,” says Brett Botsis, Seeff’s licensee for this area. “We are inundated with enquiries from high net worth (HNW) buyers semigrating to gated estates or upmarket sectional title properties close to the beach.

These buyers are confident and relaxed about investing their money in high-end properties, so much so that we have seen significant prices paid for luxury homes this year, including a penthouse in Umhlanga Rocks that sold for R27.5m.”

The market is active in the R2.5m to R5m price range and in the R10m to R30m bracket in gated estates and beachfront blocks.

“The highest demand locally is from people in Gauteng and other upcountry provinces who either want to move here permanently, or invest in a second home to take advantage of the work from home trend and so escape the confines of the pandemic,” he says.

Popular properties include holiday homes close to the beach with semigration buyers wanting security and lifestyle, hence the demand for gated estate and sectional title homes.

“Properties have always maintained their value and have largely increased over the years with current growth at about 5% per annum depending on the property and price category,” says Botsis. “There is also an active rental market with landlords achieving good rental returns.”

According to Gareth Bailey, area principal for Pam Golding Properties Durban Coastal, sectional title and estate homes – including sectional title units within estates – have proven more popular in recent years, but freestanding homes continue to sell, especially those in low-supply areas such as on the beachfront, particularly

Zululami, Sheffield Beach

Westown, Shongweni frontline apartments, for which there is a high demand as long as they are realistically priced. “While the market has been favourable, buyers and sellers are more informed than ever and most have a good understanding of what constitutes a reasonable and acceptable market-related price,” he says.

POPULAR AREAS The Kent has been well received because of its unique offering in the heart of La Lucia – a highly desirable suburb with easy access to the beach, office parks and schools, says Reynolds.

“It is now 95% sold out, with a mix of local and upcountry buyers. This residential development ticks all the boxes for both endusers and pure investors, and is ideal for young professionals who work in the area and are seeking ‘green’ features, convenience,

location and sea views.

Construction has already commenced.”

Another development, Onyx, in New Town Centre in the Gateway area of Umhlanga, is 90% sold out, says Bailey. “The developers have converted some of the remaining one-bedroom units into trendy twobedroom, two-bathroom New York style loft apartments with double volume living areas. Only a few are still available, selling from R2.595m.”

The vibey Gateway area is seeing an increasing number of first-time buyers, given the low interest rates and affordable properties being brought to market.

“We’re also marketing units in Oceans, Umhlanga, specifically in the hotel tower where Radisson Hotel has taken the first 16 floors,” says Bailey. “A further nine floors up, we are selling one- and two-bedroomed apartments

priced from slightly more than R3m each.”

This concept has proven successful as private investors in the residential units enjoy the association with the upmarket Radisson brand, Bailey says, which buoys rental demand and rates – and with both shortand long-term rentals permitted. “Ultimately there will be three towers in this new development.”

RETIRE IN STYLE A total investment estimated at R1bn will give rise to a senior living community of international standards at Zululami Luxury Coastal Estate located on the shores of Sheffield Beach on the North Coast.

Estate developers Collins Residential and leading senior living developer and operator Auria Senior Living have concluded a landmark deal that will attract locals and foreigners seeking senior living in an unparalleled location.

The Auria community will offer a top-class level of development, service, hospitality and care.

“Coupled with access to Zululami’s famously beautiful environment, the subtropical climate of KwaZulu-Natal, prized beaches, bush, sporting, cultural and tourism drawcards, this will be, without doubt, one of the most desirable places to spend one’s finest years,” says director Murray Collins, Collins Residential.

Auria Senior Living’s community, Coral Cove within Zululami, will consist of a wide range of intentional and beautifully designed residences, an engaging

lifestyle and wellness and care offering – all on par with leading international retirement communities.

Living options will include independent living (freestanding houses and apartments), tailored assisted accommodation and extensive dining, recreation and hospitality services, as well as specialised care facilities.

The start of construction on Westown, the first retail and mixed-use component within Shongweni, situated in the western region of the eThekwini Metropolitan area, is expected to start in January next year. The roll-out of the rest of the project, such as residential, business and commercial offerings, is anticipated for May 2022.

This is according to Carlos Correia, CEO of asset management, property development and retail leasing company Fundamentum which will oversee the development with key stakeholders eThekwini Municipality and Tongaat Hulett Property.

“We believe Westown, with an urban core at its heart, will be a prime example of an inclusive, high energy and safe retail and mixed-use urban development,” says Correia. “It will add to the existing natural character and environment of Shongweni, with a focus on building and expanding the current recreational activities of equestrian shows, horse riding, mountain biking and trail running. This new ‘town-in-town’ will create an exciting new economic base for this subregion of which much will be grounded in urban sustainability.”

HOMEFRONT PROPERTY NEWS

Past meets present in unique Cape development

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new luxury residential development is currently under construction on Cape Town’s Atlantic seaboard that may be of particular interest to property aficionados, investors and history lovers.

The Marlo is a four-storey boutique development situated on the slopes of Signal Hill in Battery

Crescent, Sea Point, on what is possibly one of the last prime building sites on the Atlantic seaboard.

Dogon Group Properties is the marketing and sales agent for The Marlo.

The 20 premium apartments consisting of studios, and one-, two- and three-bedroom apartments, range in size from 33m² to a spacious 432 m².

MODERN LUXURY WITH HISTORICAL ROOTS The story behind the site on which The Marlo stands is as unique as the building itself.

The development is located on what was part of Cape Town’s fortified military defence system and was originally an English battery and tunnel network designed to house troops.

The Sea Point battery was a large coastal defence emplacement built during the Anglo-Russian war (1889) in response to a need to fortify the colonies.

By 1922 the battery was considered redundant and sold off by the Department of Defence.

The Marlo is a fusion of history and modern living, with the building incorporating the historic battery cellar beneath it.

The rare location of the Marlo, as it stands against the side of Signal Hill, means it enjoys uninterrupted views over Table Bay.

OCEAN VIEWS Each luxury apartment, which can be purchased furnished or unfurnished, is configured within the building to maximise natural light and views, and enjoy ocean-facing openplan living and dining areas.

Scheduled for completion in June 2022, it offers amenities which include a rooftop deck, private gym, exclusive snooker and entertainment lounge, hot desk work area, a wine cellar and dedicated areas for pets.

The building also features a backup generator, highspeed internet and a concierge reception area with CCTV surveillance throughout the building and the grounds.

Buyers continue to cash in

D

espite the ongoing upheaval caused by the Covid-19 pandemic, coupled with civil unrest in KwaZuluNatal and Gauteng earlier this year, statistics for the third quarter of 2021 (Q3 21) from ooba, a leading home loan comparison service, show that lending conditions remain advantageous to home loan applicants.

The pandemic has drastically changed consumer behaviour as well as banking trends, resulting in a surprising boom in the local residential property market over the past 12 months, says Rhys Dyer, CEO of ooba.

THE GOOD NEWS He says home buying and mortgage lending have remained relatively immune to the pandemic.

“Despite slower growth in property prices for this quarter, we expect

residential property prices to continue increasing.”

The ooba statistics show a retreat from previous double-digit to single-digit property price growth with the average purchase price increasing by 5.4% year on year compared to the third quarter of 2020 (Q3 20).

“The local banking industry appears to be optimistic about the future of the South African residential property market,” he says. “The current lending landscape remains competitive, which is evidenced in the softening of their deposit requirements and approvals at interest rates on average below prime.”

The usual deposit as a percentage of the purchase price declined by 10,5% year on year.

WHO IS BUYING? Of all home loan applications received by ooba in Q3 21, 50%

were from first-time homebuyers – almost 63% of ooba’s first-time buyer applications in Q3 21 were for zero-deposit bonds compared to 60% in Q3 20.

“Zero-deposit bonds are sought after among first-time homebuyers.

Our approval rate for 100% bond applications this quarter was 81.5%, up by 1.4% on the third quarter of 2020,” he says.

FEMALE BUYERS With the lower cost of borrowing boosting affordability, ooba’s statistics show growth in homebuyers buying alone as opposed to co-buying.

This segment of homebuyers has grown to close to 60% of ooba’s applications since the beginning of the pandemic.

Female homebuyers currently dominate this single-owner segment, constituting more than 51% of applications.

Rhys Dyer, CEO of ooba Since April last year, applications from women buying on their own increased by 4%.

“Purchasers buying properties as buy-to-let investments increased to 7% of applications in the third quarter, compared to 5% in the third quarter of 2020. Current lending and buying conditions are perfect for property investors,” Dyer says.

HOMEFRONT PROFILE

Big dreams for small apartments

A property financing company brought to life an entrepreneurial couple’s vision to develop a micro-apartment block for young professionals in Orlando East, Soweto WORDS AND PHOTOS: SUPPLIED

A Kgomotso Khumalo

young couple, Kgomotso and Mthandeni Khumalo, went knocking on all the usual doors to finance their big property ideas, but to no avail. Assistance and helpful guidance eventually came from uMaStandi, a company that specifically helps and supports entrepreneurs to develop rental property in townships.

Today they have one successful development under their belts with more projects to come. But it wasn’t always an easy road.

Kgomotso started as entrepreneur selling chocolates at school and helping her mother do promotions at large retail stores when she was a child.

Her journey continued with the establishment of a café within the corporate headquarters where she worked, until 2015,

when she purchased, with Mthandeni, a threeroomed property in Orlando to convert into student accommodation.

However, they found it difficult to secure funding from banks and investors, who were hesitant to support township developments due to the risks associated with typically lower rental returns.

EXPERT GUIDANCE In 2017, the couple’s paths crossed with uMaStandi, a member of the TUHF21 Group that specifically funds rental property entrepreneurs in townships.

While uMaStandi’s funding enabled the couple to demolish the existing structures on the site and build a new development from scratch, the company provided something equally essential – guidance.

As Mthandeni is employed full time, Kgomotso took the

lead developing this project and attended property development courses through uMaStandi.

Along with offering guidance to Kgomotso in assembling her team of contractors, uMaStandi also provided her with insight into the area and what she should charge for rental once the development was complete.

SUPPLYING THE DEMAND From the start, it became clear that there was a high demand for the compact and self-contained apartments they were planning.

“By the time we completed our block of apartments, named 743 on HM, we already had 50% of the tenants secured,” Kgomotso says. “Even before we finished our first floor, we had people interested and wanting to move into the

ground floor apartments.”

Each unit has a bathroom with a shower and toilet, and a kitchenette with space for a fridge and microwave. Stoves are provided as part of the unit.

The rental for the open-plan bachelor units ranges from R3,000 to R5,650 per month.

Since most of those living in the apartments are young professionals, many of whom are working from home, stable Wi-Fi and internet access being part of the rental is a major selling point, as is parking within the secure boundary wall.

While 743 on HM was the couple’s first development, it is not their last. They already have another one in the pipeline, in the same area, and will be working with uMaStandi again to redevelop a residential home into another 12-unit micro-apartment property.

“Even before we finished our first floor, we had people interested and wanting to move into the ground floor apartments.”

Kgomotso Khumalo