Business Day HomeFront 19 October 2018

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 19 OCTOBER 2018 WWW.BUSINESSLIVE.CO.ZA

MUST READ

Seven — casual yet stylish Cape dining PAGE 2

Kitchens: function, flow and good looks PAGE 6

Is Airbnb still worth it?

PAGE 16

Country living, city proximity

Construction holds its ground

Property buyers are increasingly seeking out the option of living in a rural setting, without sacrificing access to big-city amenities PAGE 10

PAGE 18

Property Investment Special Focus Look out for the HomeFront 16 November 2018 issue

HOMEFRONT DÉCOR AND FOOD

A numeric twist on classics Somerset West is increasingly attracting homeowners for its Winelands location and proximity to Cape Town. New Restaurant Seven adds to the offerings with stylish plates in a casual urban environment WORDS: KIM MAXWELL :: PHOTOS SAMANTHA CLIFTON

T

he new Restaurant Seven with George Jardine is upping the ante for quality casual dining, just off the main street in Somerset West.

Open for lunch and dinner in shop seven of a small upmarket shopping centre, it has a wine bar and a florist as tenant neighbours.

“This is a restaurant for young professionals from Somerset West, who don’t mind spending R20 more if they know they’re getting a superior product,” says Scottish chef-owner George Jardine. Its urban location in the Winelands makes sense. Previously, Somerset West locals made up about 50% of the clientele at Jardine’s two other Stellenbosch restaurants. Now they don’t need to travel.

“Property is expensive in Stellenbosch,” adds Jardine’s wife Louise Le Riche. “You can get a bigger property in Somerset West for less. A lot of our diners are between 30 and 45, with kids at school, who want to go out for a nice meal every two weeks.”

Décor Jardine and Le Riche sourced most of the restaurant décor elements themselves.

The open kitchen and the entrance area show off eye-catching wallpaper customised to the numeric theme, using favoured film,

advertising and book icons.

These include a 7 Up soft drink, agent 007’s From Russia with Love, Enid Blyton’s book Secret Seven and Yul Brynner starring in 1960s Western The Magnificent Seven.

Stunning unstained tables and chairs in ash wood were crafted by Somerset West furniture designer Louw Roets. Dirty olive or tan leather is used for the seats. The lighter wood contrasts with the restaurant’s walls of dirty green, and yellow with a teabag stain.

The long dining space is framed by a charcoal ceiling. Charcoal banquette seating, upholstered in textured green fabric, cleverly doubles as storage units.

Spare a moment to admire the floor. The former tenant was a laundry with unsightly square vinyl tiles, but now an epoxy coating has transformed worn vinyl indents into an arresting contemporary surface.

Food Seven head chef Brendan Thorncroft previously worked at Jordan Restaurant with Jardine, and at Restaurant Jardine in central Stellenbosch.

He is not keen to label this restaurant’s style.

“The food is just honest food cooked well: three, four, five ingredients,”

HOMEFRONT

Head chef Brendan Thorncroft

“The food is just honest food cooked well: three, four, five ingredients” Brendan Thorncroft, head chef, Seven Restaurant with George Jardine

PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130

A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand

says Thorncroft. “We bring the best out of the ingredient with no funny things added.”

Jardine agrees. “If you call it bistro, people will say that it’s not really a bistro.

So we said, let’s just call it shop seven.”

The single-page menu seems deceptively uncomplicated, hiding the skill and input that goes into making proper stocks and sauces. Take the artisanal brioche toast partnering bone marrow richness with earthy mushroom duxelles in stocky jus. Or the steak that does not leave the menu, partnered with unctuous béarnaise and shallots currently, but perhaps a bourguignon or pepper sauce in future renditions.

As starter options there are signature Saldanha oysters, served with a Bloody Mary and celery splash.

Or perhaps, an outstanding prawn boudin blanc starter using pressed, crumbed prawn and hake, resting on a flavourful prawn bisque pool of salty intensity, with crushed broad beans and pea purée.

“Going into summer we’ll see more things such

as the green gazpacho,” says Thorncroft. This delicious chilled soup is a vibrant mix of steamed leek and zucchini with a broad bean, diced avo and cucumber base. Served with buffalo milk labneh, it’s finished with toasted almond nibs.

Even nonvegetarians will enjoy the roasted celeriac dish with silky celeriac velouté, perky hazelnut crust and prune butter. Salad or hand cut chips are side orders.

Desserts include a signature warm, sweet soufflé — mine was Grand Marnier, flambéed, with a dollop of ice cream dropped in. Most times you’ll find a decadent dessert for dark chocolate lovers, or the cheese trolley is wheeled out for those with savoury tastes.

Seven’s food is classics with a twist: visually appealing plates served in a welcoming environment.

The long space is noisy when full of diners, as a neighbourhood restaurant tends to be.

“You should come and want to eat everything,” explains Jardine. In this enjoyable new dining space, it is hard not to. restaurantseven.co.za

PUBLICATION ADVERTISING SALES

Managing Editor/Copy Editor: Michael van Olst Production: Joanne le Roux

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P R O U D LY

D E V E L O P E D

B Y

HOMEFRONT

Smart kitchen design

Innovative and stylish certainly, but kitchens should be designed with functionality and flow top of mind

SUSTAINABILITY Gas has long been the fuel of choice for cooks — induction or gas stoves are greener options.

For other appliances, check the ratings — it not only saves money, but is less harmful to the planet. Look for fridges, dishwashers and washing machines rated A or A+ when you replace yours.

WORDS: ANNE SCHAUFFER AND STAFF REPORTER :: PHOTO: SHUTTERSTOCK

HARDWARE INNOVATION The focus on hardware has ramped up considerably.

“Now we’re looking at small, luxury details that make life easier,” says Watkins.

Slow-close drawers, gas-stay cupboard doors, anti-slam doors, Tiptronic (touch) doors and drawers, carousels, butler larders, counter pop-up plug points and dedicated cellphone or tablet chargers fit the bill.

STORAGE “Many home owners forget how much storage space they need to make the space functional.

Use the available space for creative storage solutions,” says Adrian Goslett, regional director and CEO of RE/ MAX of Southern Africa.

“Much revolves around invisibility — conceal the fridge, the microwave, even door handles and light switches. Cupboards are customised to hold everything unsightly, and cupboard doors and floors are all pared down to a stylish simplicity,” says Watson.

COUNTERTOPS “Now the market wants sleeker countertops, which are not only more cost-effective and use less material, but just look better,” says Watson.

Uncoloured concrete surfaces — sealed, matt or sheen finish — are relatively inexpensive in chunky, slim or sleek. Bamboo is a sustainable material with antibacterial properties.

LIGHTING With kitchens as much living spaces as workplaces, lighting needs to accommodate the change

between a living and working environment.

Balancing mood and functional lighting can be tricky, making dimmers and timed lighting settings popular. The greenest option — quality LED downlighters — is now more affordable.

“The trends range from large metal industrial pendant lamps to massive and glam chandeliers. This is often predicated on the size of the kitchen and whether it has distinct zones — cooking, eating, storage and so on,” says Watkins.

SMART KITCHENS Remote control via cellphones or timers allows lights, ovens, music stations and televisions to be managed from a distance.

A green and smart food recycler turns your food scraps into fertiliser.

WORK FLOW You do not want to be avoiding poorly positioned islands while wafting from one end of the kitchen to the other. “The age-old rule of thumb still applies: design your kitchen to form a triangle between your sink, refrigerator and stove to ensure the best flow of traffic through the space,” says Goslett.

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kitchen needs to be a marriage of functionality, flow and good looks with the integration of the owner’s tastes and preferences.

“Each customer’s kitchen is unique — innovative and stylish, sure, but also functional, well thought out and easy to use,” says Brendon Watkins of Capital Kitchens.

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HOMEFRONT PROPERTY TREND

Country living, city proximity Property buyers are increasingly seeking out the option of living in a rural setting, without sacrificing access to big-city amenities WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED

Steyn City, Midrand

De Plattekloof, Cape Town northern suburbs

O

ne of the first things any buyer will tell you that they want from their home is a sense of tranquillity. Increasingly this is possible, even for city, or close-to-city residents, who are able to buy into estates that incorporate large areas of greenery for homeowners to enjoy.

Some are investing inland in country towns. But many are simply swapping busy urban metros for peaceful inland suburban housing estates on city outskirts.

These estates come with additional “country living” features including nature walkways or biking trails, and in some cases even stables, along with numerous other amenities.

Buyers who find living near to a city less important can choose estates in lush country settings not too far from an urban centre, but where they can enjoy the appeal of “getting away from it all”.

Gauteng

Waterfall Valley Mature Lifestyle Estate, Midrand

In Johannesburg, the Waterfall development in Midrand, between Johannesburg and Pretoria, occupies 2,200ha, with abundant green spaces between nodes of development. This sprawling area is desirable for residents wanting to get away from it all, yet have access to jobs and amenities in the city — even though Waterfall now has its own burgeoning CBD. Much of the purchase and rental accommodation in the estate is developed

by Century Property Developments. This includes the exclusive Waterfall Equestrian Estate and the Waterfall Country Estate.

The largest residential area in Waterfall, the latter incorporates rental units The Sheds @ Waterfall, and cluster housing at Waterfall Crescent.

“On the whole we have found that investors who choose to live in remote areas do so in an attempt to escape the ‘hustle and bustle’ of the city,” says Jessica Hofmeyr, Century executive in charge of sales, rentals, marketing and operations.

FACILITIES “In many instances, these people soon move back because the country lifestyle isolates them from their family infrastructure and social circles,” says Hofmeyr.

“It also lacks the necessary facilities such as hospitals, private schools and shopping amenities.

This is exactly why Century has developed a fine duality between country living and city dwellings.”

All Century’s developments are within the urban edge of Johannesburg or Pretoria, yet provide their residents with a sense of living in the countryside. Hofmeyr says this means more than just having a garden.

Century’s developments offer cycle tracks, mountain bike trails, fishing dams and picnic spots within a secure perimeter. Children can also walk to school within the estate.

OCCUPANCY Waterfall Estate is nearly sold out while the rental units enjoy 99% occupancy, despite the release of six new units on to the market every month. Outside Waterfall, Century’s other luxury lifestyle estates follow the same recipe,

including Blue Hills Country and Blue Hills Equestrian estates, The Hills Game Reserve Estate in Pretoria East and Helderfontein Estate in Fourways.

Within Waterfall, other developers are also making their mark. Balwin, for example, has established Kikuyu Waterfall, a block of fibre-ready apartments with eco-friendly appliances, starting from R849,900.

At The Polofields Waterfall, which includes a lifestyle centre, Balwin’s luxurious two- and threebedroom apartments start from R2,049,900.

Ellipse Waterfall, jointly developed by Attacq and Tricolt, is a new highrise luxury apartment development in the heart of Waterfall City, spread across four towers. Each has modern finishes, eco-friendly features, high ceilings and large windows offering views of the Gauteng skyline.

CHOICES Steyn City in Midrand is another of Johannesburg’s flagship country lifestyle estates. Steyn City Properties CEO Giuseppe Plumari says that until recently, homeowners have had two choices: make do with city grit, congestion hassles and the threat of crime in the suburbs, or escape for a peaceful life in the country that may also be “a little dull”.

He believes that parkland resort Steyn City has solved the conundrum by offering the best of both worlds: an idyllic retreat with all the conveniences of an urban hub.

“This has been made possible by Steyn City Properties’ significant

HOMEFRONT investment in facilities.”

Several kilometres of trails traverse this area. Outdoor exercise nodes and kids’ play areas further enhance this outdoor lifestyle. While it’s an easy drive from Steyn City into Fourways or Sandton, the estate has its own urban amenities including restaurants, shops and a school. “This ensures that the parkland is able to offer the sophisticated infrastructure and amenities of a world-class city, with none of the traffic problems,” says Plumari.

Blair Atholl, on Gary Player’s original farm near Lanseria, is one such secure estate that offers homes in a low-density country setting.

The Crocodile River runs through its extensive nature parks. There is a Gary Player signature golf course and an equestrian centre.

CAPITAL GROWTH Waterfall Country Lifestyle Estate, Midrand

Blair Atholl Estate, Lanseria

Pam Golding Properties area specialists Brenda Gilbert and Sharen Byren say 80 stands have recently been released, priced from R1.5m to R3.5m. There are fourbedroom, four-bathrooms homes on offer in the price range of about R9m. For modern mansions, prices go up to R35m. Significant capital growth is projected as supply diminishes.

East of Johannesburg, Modderfontein is another hot spot for developments in country settings. Seeff MD in Edenvale and Bedfordview David Ingle says that the old dynamite factory precinct is set to fly. “Not only is it one of Johannesburg’s oldest areas, but also one of the most exciting for the future,” he says.

Thornhill Estate in Modderfontein is a residential garden

development with about 500 dwellings alongside immaculate parks and gardens with a stream passing through, creating a country village ambiance.

And Balwin Properties’ Westlake offers modern urban living in a serene environment with abundant fauna and flora.

Western Cape A sea view isn’t everything.

Chris Cilliers, an agent with Lew Geffen Sotheby’s International Realty Winelands, says although hardly considered typical sleepy country towns, Paarl and Wellington still offer the draw of a communitydriven lifestyle — knowing your neighbour, shopping in smaller local shops, good schools, church communities and easy access to lifestyle and outdoor activities.

“Wine estates and restaurants are a relaxed experience, far from congested streets with parking problems and pollution,” she says.

“Generally, people are becoming more aware of the value of a healthy lifestyle and not just surviving in a city environment. They are prepared to give up some of the city attractions to achieve this.” She points out that in the Winelands, residents are just 45 minutes from Cape Town.

Cilliers says Val de Vie Estate is the pearl of Paarl’s country estate offerings, and incorporates Pearl Valley Golf Estate. It offers an idyllic lifestyle for all levels, and Val de Vie Evergreen Retirement village is launching soon.

Cilliers calls Val de Vie a super-estate, now covering more than 1,000ha.

Boschenmeer Golf Estate on the outskirts of Paarl is also popular.

“These are truly lifestyle estates — not just a group of houses behind security fencing,” says Cilliers.

In Wellington, Onverwacht Estate — on the Onverwacht Wine Farm — offers a country feel at attractive prices.

“Originally developed as holiday accommodation, Onverwacht has really grown in popularity,” says Cilliers.

The few vacant plots left are in demand, as are the original homes which are being upgraded and extended.

On the outskirts of Wellington on the way to Bain’s Kloof Pass, Stadsig Country Estate offers residents a tranquil setting amid rolling farmland within easy reach of the town and city’s amenities. Recently taken over by ATVANTAGE, this redevelopment is advancing positively.

Says CEO of ATVANTAGE Hessel Dijkstra: “Stadsig Country Estate will offer freestanding units in the Cape vernacular style.” Each house will be oriented to maximise views, privacy and natural light while offering protection from prevailing winds.

RETIREMENT De Plattekloof Lifestyle Estate, situated in Plattekloof in Cape Town, is intended for those keen to retire in an environment that is more luxury hotel than old-age facility.

Its contemporary architecture, stylish interior furnishings and top-rated service providers make this full ownership retirement

“Residents in all our estates are encouraged to construct homes that are environmentally responsible” Jessica Hofmeyr, Century Property Developments

Boschenmeer Golf Estate, Paarl

HOMEFRONT

Bird Valley Estate, Pietermaritzburg

Intaba Ridge, Pietermaritzburg estate one of Cape Town’s better offerings.

Buh-Rein Estate is also located in the northern suburbs. The lifestyle estate will be home to almost 12,000 residents by 2022.

In addition, it offers the recently launched Buh-Rein Retirement Village, with independent and assisted living apartments as well as dementia care facilities.

KwaZulu-Natal Brendan Falkson is the developer of Intaba Ridge Secure Eco Estate near Pietermaritzburg. He says this estate offers the advantage of large stands and open spaces close to top schools and the popular Midlands Mall.

“We have noticed a trend of increasing sales to families with children at schools such as Epworth, Maritzburg College and St Charles,” he says. “These families love the wide open spaces for their children to grow up in, but with the peace of mind of living in a secure, gated estate.”

Also near Pietermaritzburg is Bird Valley Estate. Developer

Likweti Bushveld farm, Lowveld

Richard Alcock says it offers many benefits of country living, including birdlife and peace and quiet.

SECTIONAL TITLE Giant’s View Estate is a fairly recent development in the KwaZulu-Natal Midlands, in the quiet hamlet of Rosetta.

The estate’s marketing manager Shelley Sobey says Giant’s View has a mixture of serviced sites, completed houses and sectional title apartments.

“We have recently launched Giant’s View Village, a sectional title village within the greater estate.” On offer are two-bedroom, twobathroom apartments.

“This product aims to fill a gap in the current property market by giving buyers a high-quality home at an affordable price with access to all the estate amenities.

With river frontage, a wetland area for birding and wildlife, and walking trails, this is the perfect lock-upand-go country retreat,” Sobey says.

The Gates at Hilton is another example of the trend of moving from cities to rural

areas conveniently close to the amenities available with urban living.

“The Gates provides a secure residential village with a distinctly rural feel, yet is minutes from excellent schools, a hospital, shopping centres and the like,” says Gwens Stream Estates executive director Iain McMillan.

Evidence of the growing popularity of this estate brand is that while the first 50 sites at The Gates took a few years to sell, the 31 sites released as a second phase in 2016 were snapped up in less than three months.

MATURE LIFESTYLE Owners at the Lazuli Lifestyle & Retirement Estate on the KwaZuluNatal north coast enjoy panoramic views of the ocean, wetlands, indigenous forest, Zimbali Country Club golf course and north-facing inland views. Residents at Lazuli can balance privacy and a community lifestyle in a contemporary living setting.

Renishaw Hills is a mature lifestyle village on the rolling hills overlooking

Scottburgh on the south coast. It provides reasonably priced, upmarket homes set in indigenous gardens, with surrounding forests and wetlands and a beach nearby.

The Lowveld Ivan Parnell, an agent with Chas Everitt International Lowveld, says the region is attracting more buyers from large metropolitan areas, especially to towns such as Mbombela (Nelspruit), White River, Hazyview and Hoedspruit.

These towns offer a more relaxed lifestyle, pleasant climate and scenic surroundings combined with the conveniences of city living, including schools, comprehensive shopping and medical facilities.

“Properties in these areas — and especially those in lifestyle estates — are relatively inexpensive compared with other favoured semigration destinations such as the Western Cape and the KwaZulu-Natal north coast,” he says.

The average cost of a new home on a 1ha stand in a secure wildlife estate such as Likweti would be about R12,400/m2, including a pool, hardwood decks and top-of-the-range finishes.

A similar home in KwaZulu-Natal or the Western Cape would cost from R15,000/m2 to R35,000/m2, says Parnell.

Likweti Bushveld Farm Estate is well situated in the triangle formed by Mbombela, White River and the Kruger Mpumalanga International Airport.

It encompasses 765ha of natural bushveld and 20ha of macadamia orchards. Its accessibility and proximity to urban conveniences and to the Kruger National Park have made it a favourite among buyers. Phase 1 (Likweti Hills) is sold out.

“We have noticed a trend of increasing sales to families with children at schools such as Epworth, Maritzburg College and St Charles” Brendan Falkson, developer of Intaba Ridge Secure Eco Estate

Giant’s View Village in Rosetta, KwaZulu-Natal

FOCUS ON: BUH-REIN RETIREMENT VILLAGE

ADVERTORIAL

A village that meets your needs Find the latest in retirement standards in Cape Town’s northern suburbs WORDS AND PHOTOS SUPPLIED

T

he awardwinning BuhRein Estate in the northern suburbs of Cape Town is a suburb set across 87.62ha that is already 50% developed. More than 2,000 homes have been handed over to clients.

This brainchild of MSP group of companies CEO Riaan Roos meets the latest trend in the work, live, play concept. MSP is proud to announce that it has recently launched Buh-Rein Retirement Village, which also meets the latest retirement standards. It is one of only two such developments in the country at present.

Says Roos: “As with the rest of Buh-Rein Estate, Buh-Rein Retirement Village takes into consideration the real needs of its residents.”

393 Independent Living Apartments. In addition, there is a care centre run

by Medwell SA, which offers 10 rooms for frail care and 10 rooms for dementia memory care.

“We created Buh-Rein Retirement Village to meet all sorts of physical and social needs,” says Roos.

“It has its own clubhouse with two restaurants managed and run by market leader Feedem, a heated indoor swimming pool, wellness salon, hairdresser, beautician and massage therapy, gymnasium with shower facilities, deli and library with internet access.

There are hobby areas, a courtyard with central water feature, lapa with indoor and outdoor braai facilities and a function hall that can accommodate 500 people.”

RETIREMENT APARTMENTS

OCCUPATION

The retirement village is open to people aged 50 and over and includes 461 one- and two-bedroom apartments priced from R719,900. The 461 apartments are divided between 68 Assisted Living Apartments and

The estate has been under construction for eight months and the first three apartment blocks are 70% complete. “The gatehouse, clubhouse, gymnasium, hobby rooms and restaurants are all between 80% and 90% complete and we expect to

have our first residents in occupation by mid-2019.

SHOWCASE “This development will be showcased on the weekend of November 3 and 4, where potential buyers and investors can have a look at what this development has to offer,” says Roos.

All service providers will be available during these two days to answer questions related to their service offerings. On November 4, Dr Roelof Botha, economist of the Optimum Financial Services Group, and Sister Madelein Duvenhage, chair of Alzheimer’s SA and now also associated with Medwell SA, will speak about the economy, retirement and the first stages of dementia.

This information session will provide good insight into retirement in SA. Booking is essential as limited seats are available.

GET IN TOUCH Buh-Rein Retirement Village Tel: 087 802 9005 buhreinretirement.co.za

t t! s o ye : 4 e e m ws s a th ie h P ely g v st. it kin fa n g i ef h-ta llin D t Se ea r b

Value. Quality. Savings.

The start of a new adventure

What do you need to retire well?

Is it exceptional finishes, quality facilities, state-of-the-art security, home-based care or unspoilt coastline views? At Renishaw Hills situated in Scottburgh, we offer our residents all of this and more.

With a harmonious balance of quality, nature and recreation, your every need is taken care of to make your retirement feel like the ultimate holiday.

Right now, phase 4 is selling fast. Many have already taken the chance to secure the retirement they’ve always dreamed of at a price they can afford. Don’t miss your chance before all of our units are gone: • • • • •

View our show homes.

Take in the landscaped beauty of our indigenous gardens.

Explore our unrivalled facilities.

Enjoy the ocean views.

Meet the passionate team behind it all.

For more information please contact Julieann on: julieann@renishawhills.co.za

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HOMEFRONT BUYING TO LET

Exploring the Airbnb effect on SA rentals Property investors typically use it for short-term rental income, but an oversupplied market has shrunk earnings. Once the operating costs and risks are factored in, is Airbnb still worth it?

WORDS: HELEN GRANGE :: PHOTOS: SUPPLIED AND SHUTTERSTOCK

T

here was an explosive growth in Airbnb accommodation in SA after it was introduced in 2008.

It proved to be an easy, relatively failsafe way for homeowners to make extra money. But is there still profit to be made on short-term lets, or are lower demand, lower prices and hidden operating expenses making it less viable?

The answer: it depends on where your Airbnb is, how strong your competition is and how low your nightly rate has been driven as a result.

Cape Town’s Airbnb hosts earn well above Johannesburg Airbnb hosts, according to the most recent Airbnb figures (December 2017), showing that Capetonians earn an average of R39,348 for a 27-night yearly average, compared with Joburgers earning an average of R16,000 for 24 nights a year. In Durban, the typical income is R20,000 for 13 nights a year.

EARNINGS According to Airbnb’s June 2017-18 economic impact study, there are more than 35,000 Airbnb hosts in SA. Their typical earnings are $1,900 (about R26,900) yearly for an average of 18 nights, which for about half of Airbnb hosts means they can make ends meet and afford to pay their home loan.

Supply of Airbnbs has grown rapidly to meet demand in SA, and in Cape Town the market is oversaturated, thus harder to make the average income than in the past, especially for hosts outside popular zones. But for those that are well located, by all accounts the going is still good.

“Many Airbnb hosts have found they can make more than the average by letting apartments in high-demand holiday destinations and commercial centres,” says Andrew Schaefer, MD

of national management company Trafalgar. “There are now many sectional title complexes in Johannesburg, Cape Town and Durban that have a near-constant daily or weekly turnover in Airbnb visitors.”

Cost implications One reason for the proliferation of Airbnb hosts is the relative freedom from regulation — for now at least — of the Airbnb industry.

The Tourism Business Council of SA has called on the government to regulate Airbnb, as it is believed to be threatening the viability of conventional lodging providers such as hotels.

Current hosts are free of legislation that controls other forms of short-term rental — such as where a B&B may be established, how many guests it can have and commercially based taxes.

In Cape Town, however, oversupply — there are

about 17,000 Airbnb hosts according to 2017 figures — is driving prices down. Market prices were driven up initially by demand for buyto-let property investments to service the high demand for Airbnb, but are now declining due to oversupply.

“A number of clients are not satisfied with the Airbnb rental returns and are now putting their properties up for long-term rent or even up for sale,” says Michael Hauser, an estate agent at RE/MAX Living in Cape Town.

EFFORT Another reason some of these investors and landlords are reconsidering the Airbnb market is the effort it requires to successfully run an Airbnb.

Unlike long-term rentals, Airbnb landlords have to maintain the property, take care of all expenses and make the guests feel welcome.

An Airbnb Plus home available in Cape Town

HOMEFRONT or body corporate rules.

This problem has already raised the alarm in some properties, with attendant attempts to put a stop to this short-term letting activity.

Shaefer says that in some cases, body corporates have tried to invoke local authority bylaws regarding B&B establishments.

“In Cape Town, for example, the bylaws prohibit the establishment of a B&B in any block of flats and stipulate that where a B&B is established in a primary or holiday residence, the proprietor must live on the property and may not let more than three bedrooms to paying guests — or have more than six paying guests at a time. But judging by the number of Cape Town apartments listed on Airbnb, the owners clearly don’t think that these bylaws apply to them,” he says.

RULES

A Cape Town apartment rental facilitated by Happy Host

IT’S WORTH IT, SAY AIRBNB HOSTS IN PRIME LOCATIONS

"In Cape Town, however, oversupply — there are about 17,000 Airbnb hosts, according to 2017 figures — is driving prices down"

Johannesburg: Sue Russell, who listed her cottage in Parkview on Airbnb in March, says she is making R5,000 to R7,000 monthly for about 20 days a month at R275 a night plus a R60 cleaning fee. “I think location is absolutely key. We are a block away from Zoo Lake and close to Rosebank,” she says.

“And pricing is obviously very important.”

Cape Town: Beulah Mallinson Airbnbs her

four-bedroom home in Claremont each December at an average rate of R4,000 a night.

Five years ago she was one of five similar Airbnbs in the area — now she is one of 750.

“I’ve had to work harder on the Airbnb algorithms (being active on the portal) to get bookings, and they take longer to secure, but it is still worth it,” she says. “The income makes a big dent in the kids’ school fees for the year.”

“Being an Airbnb host is a huge time commitment,” says Hauser. “You have to constantly adapt your listing and price to the ever-changing market and taste of the guests. If you choose not to work with a third-party manager, you have to check guests in and out, do all the cleaning, restocking, respond to guest inquiries, lock-outs, handle complaints and possible grievances from neighbours.”

The alternative is to employ someone or use a management agent — and that requires a cut of the profits, affecting return on investment and the payback period if there is a bond on the property.

The risks

An Umhlanga home rental facilitated by Happy Host

Seasonal vacancies are another concern. Although Airbnb hosts may make double or triple what they could make monthly from a long-term rental, the months of no business mean that profits may end up being the same as for a long-term tenant, for much more work.

Again, this is highly dependent on location. “If your property is on the Atlantic Seaboard in Cape Town or within the CBD, the demand will be much higher and more likely to generate income year-round than if your property is in the suburbs,” says Hauser.

In the case of multiple Airbnb offerings within complexes or apartment blocks, there is the constant risk of guests breaking the homeowners association

In other cases, body corporates have tried to amend conduct rules to restrict and even prevent short-term letting, with little success. Consequently, says Shaefer, most sectional title schemes with high volumes of Airbnb visitors are now concentrating on more strictly enforcing legal measures relevant to letting.

This could entail the imposition of fines where rules are broken, in terms of the Sectional Titles Schemes Management Act, or even the requirement of a lease for each stay, in terms of the Rental Housing Act, which stipulates that no premises can be let for any amount of time without a lease.

Role of agents For most property investors who live some distance away or in another city, seeking Airbnb or short-term holiday rentals using a specialist management agent is the best way to ensure optimal return on investment, despite commissions of between 12% and 22% of the booking rate.

Agent services typically include marketing/ advertising, updating calendars, handling checkins and outs, all guest communication, keeping damages deposits and arranging property cleaning and maintenance.

“Unless you are in the business of rentals, professional property management is key to competing with shortterm or holiday listings and ensuring maximum occupancy,” says Celeste Lombard, vacation agent at Cape Town Vacationer, which offers a full suite of services at 20% of the advertised booking rate Specialist Airbnb agencies have proliferated, such

as BnB Sitter, Airsorted and airManaged.

“It takes a lot of time just to manage the online Airbnb profile for a property,” says Joshua Reynolds, who owns Happy Host Airbnb Management. “That time is valuable to our clients, most of whom are quite busy.

“Our service includes taking professional photos, search engine optimisation of the profile and keeping up constant engagement so that Airbnb maintains the listings near the top.”

EXPANDING Happy Host Airbnb Management has 30 properties on its books in Durban and Cape Town, and is now expanding into the lucrative Sandton market.

Hosts can tailor their management package. “If we are handling only the online profile, the fee is 12% of the month’s income from Airbnb. If key exchange as well as cleaning/laundry, arranging and maintenance arrangements are added, the fee is 18%.

“Each deal is bespoke, so if cleaning is done at a laundry rather than on-site, the costs for that are added to our fee,” says Reynolds.

Also, the percentage fee as opposed to a flat fee “means it is in our best interests to ensure maximum occupancy at all times”.

INCOME There will always be a need for traditional letting agencies, however.

“Because the income of Airbnb is sporadic, the demand for longer-term/ corporate rentals through an estate agent will always exist,” says Hauser.

This is where agencies such as Just Letting come in. “We find tenants for short-term periods of up to three months.

“We do the marketing and advertising, work out a specific rate, then manage the entire rental process,” says Lea-anne Homan, holiday specialist at Just Property.

Often the more secure terms offered by niched holiday letting agencies such as Cape Town Vacationer are preferred by high-end holiday-home owners.

“Our advantage is that we pay our clients upfront on a booking, whereas Airbnb pays out only once the guest has checked in.

We also take a deposit, and our cancellation terms are stricter than those on Airbnb, so this gives our clients more assurance of bookings and payment.

“They also prefer the personalised service we offer, the ability to speak to someone in person,” says Lombard.

HOMEFRONT PROPERTY NEWS

Midrand commercial space opening up

C

entury Property Developments has announced Riversands Outlet Park as the next development in Midrand’s Riversands Commercial Park.

Aided by its proximity to Steyn City, Riversands Commercial Park has focused attention on the surrounding Riversands area, which the developer

plans to transform into a commanding business district.

Riversands Outlet Park will comprise premium offices, showrooms, warehouses and light industrial spaces to be made available from mid-2019.

Tenants will have a choice of completed spec offices or customised

installation to suit specific needs. Once complete, Riversands Outlet Park will have more than 50,000m² of lettable space.

Units ranging from 340m² to 5,000m² will provide tenants with warehousing, manufacturing, showroom and office space, depending on requirements.

Prospects brighten, says developer

S

tats SA announced this month that construction has been the star performer in Q2 2018. Despite SA slipping into a recession, activity in the sector increased by 2.3%, mainly due to the rise of nonresidential buildings.

John Whall, CEO of 4AX-listed commercial and industrial property developer Heartwood Properties, says prices for commercial and industrial zoned and serviced land seem to be holding their value, “especially zoned and serviced land that is commanding extremely high prices in Cape Town and in the prime areas of Johannesburg”.

Rentals of B and C grade

Private Property deal sealed

T

he JSE-listed technology firm Cognition has entered into R127m share purchase agreement with CTP Publishers and Printers to acquire a 50.01% shareholding in property portal Private Property.

CTP is a wholly owned subsidiary of Caxton, which is a material (34.7%) shareholder of Cognition.

Both Caxton and Cognition are listed on the main board of the securities exchange operated by JSE. Says Private Property chair Jan le Roux: “This transaction does not affect the property industry and real estate shareholders at all in that Caxton used to directly control 50% of Private Property and now still does through a subsidiary company. The relationship with the industry

offices have slipped due to higher vacancies, but A and P grade vacancies remain relatively low.

Whall says lower vacancies in good warehouse space, particularly in Cape Town, could make for higher rentals even as the economy slows down — partly due to the limited supply of new space.

Things are looking up for this sector and shareholders shouldn’t rush to offload their shares or even their properties just yet, says Whall.

The overall market will react to any increases in the interest rate and that could have an impact on the sale prices of investment properties.

Sandton apartments set to go on sale

A

partments at the mixed-use precinct Sandton Gate, on the edge of the Sandton CBD, are now being marketed.

A collaboration between Craft Homes, Abland and Tiber, the 137 exclusive apartments overlook the Braamfontein Spruit green belt and offer views of the Sandton skyline.

Designed for private open-plan living, the apartments feature large balconies that optimise outdoor space.

Buyers can choose between two-, three- or four-bedroom apartments, with a limited number

of penthouses available.

Prices range from R2.95m for a two-bedroom apartment to R8.15m for four-bedroom penthouses.

“The apartment block has been split in two at the entrance to allow views straight through to the tree canopy of the spruit,” says Craft Homes MD Reinier van Loggerenberg.

“We’ve included open internal landscaped atriums which allow for natural ventilation to the kitchens and inner bedrooms. The master bedrooms and lounge areas open up to full outside balconies across entire apartment frontage.

“The residential development also features a terraced pool deck with shaded seating and braai areas that have ablution and change room facilities,” says Van Loggerenberg.

Residents will have pedestrian access to everything the precinct has to offer, such as shops, premium office space and a gym.

The Green Building Council South Africa has selected the precinct as a pilot project for one of the first green-rated precincts in SA. The Sandton Gate prelaunch date is November 1.

remains unchanged.

Caxton has proved to be a supportive partner to the industry with a long-term view to ensure the success of Private Property.”

At the end of 2017, Private Property underwent a change in ownership after a consortium of buyers spearheaded by Caxton and CTP took over the reins of the property portal from holding company One Africa Media — a private equitycontrolled company.

Pursuant to the proposed acquisition, CTP and Caxton will have the controlling share in Cognition.

Private Property is one of SA’s largest property portals.

It holds a significant market share in the South African property market and, in recent years, has grown revenues in excess of 30%.

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