Business Day HomeFront 24 May 2019

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 24 MAY 2019 WWW.BUSINESSLIVE.CO.ZA

Special Property Investment Focus

MUST-READ

The future of retirement PAGE 12

Commercial trends and hot spots PAGE 16

New offshore opportunities PAGE 18

Woman safety drives wealth PAGE 21

The clubhouse of Century Property Developments’s Waterfall Country Estate in Midrand

SA’s new residential development trends From downscaling to financial buoyancy, new research shows why people are selling and reinvesting. Knowing what the market is looking for is key to investment success

PAGE 4

FOCUS ON: MZURI RESIDENTIAL ESTATE ADVERTORIAL

All-inclusive luxury lifestyle Mzuri Residential Estate offers modern, designer living in picturesque surroundings WORDS AND PHOTOS: SUPPLIED

M

zuri Residential Estate on Bizweni Avenue in Dennegeur, Somerset West, offers magnificent views across False Bay, Table Mountain and the Hottentots Holland mountain range. With minimal impact on the environment, the estate’s allinclusive lifestyle offering focuses on contemporary, eco-friendly design, innovative and energyefficient technologies, indigenous landscaping and state-of-the-art connectivity and security.

Surrounded by established residential developments, the estate is positioned to take advantage of nearby beaches, golf courses, mountain-biking and running trails, shopping centres and award-winning restaurants. Somerset West’s top private and public schools are all within 10 minutes’ drive and Mediclinic Vergelegen is only 1km from the estate.

Picturesque Stellenbosch is a scenic 20-minute drive away along one of SA’s most celebrated wine routes.

SUSTAINABILITY Built along quality and sustainable design principles, Mzuri Residential Estate offers singlestorey standalone houses, townhouses and apartments, taking into account individual needs and affordability. A key feature is the flexible design options that allow buyers to grow into their homes, considering the changing requirements of first-time homeowners or growing families. This is a rare opportunity both in terms of investment and value-added proposition.

The inspired and innovatively designed offering consists of 68 single- and double-storey two-bedroom, twobathroom and threebedroom, two-bathroom freestanding homes starting from R2.395m, as well as 32 opulent twobedroom, two-bathroom and three-bedroom, twobathroom townhouses priced from R1.895m.

Mzuri Residential Estate’s luxury apartment

GET IN TOUCH Mzuri Residential Estate Tel: 021 833 5550 E-mail: sales@mzuri.co.za

development, Imbali, comprises six separate, exclusive residential buildings totalling 136 modern one- and twobedroom units. Onebedroom, one-bathroom apartments start from R1.195m and two-bedroom, two-bathroom apartments are priced from R1.885m.

A number of ground-floor apartments have exclusiveuse gardens, and each unit includes basement parking and a covered patio with a built-in braai.

A contemporary architectural language with clean lines flows through the entire development, incorporating maximised north-facing orientations.

AMENITIES Mzuri Residential Estate embraces community and social interaction with a clubhouse, a fully equipped gym and an indoor swimming pool as well as a lounge, meeting rooms and outdoor braai facilities.

A running or cycling track weaves through the development, linking the social facilities to the callisthenic outdoor gym.

The estate is optimised to incorporate energy-efficient technologies for minimal impact on the environment and connected through a high-speed fibre network.

All its facilities cater for a modern family.

State-of-the-art security, including biometric access control, visitor management systems, a thermal camera network and 24-hour manned control rooms, is an important focus of the estate.

Collins Property, a fourth-generation property development company based in Durban, is the developer of Mzuri Residential Estate. Lazercor Developments, a property leader in innovation and sustainable solutions, has been appointed as development manager.

AIM Investment Holdings, offering a full-service property marketing, sales and financing solutions proposition, has secured the marketing and sales mandate for the estate, with permanent presence on site.

HOMEFRONT INVESTMENT

SA’s new residential development trends

From downscaling to financial buoyancy, new research shows why people are selling and reinvesting. Knowing what the market is looking for is key to investment success WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

Steyn City in Midrand

Rabie Property Group’s Clara Anna Fontein in Durbanville

R

esidential property trends are evolving to cater for diverse buyer requirements and it is happening in the three major provinces: Western Cape, Gauteng and KwaZuluNatal. What are the reasons for people selling and buying homes elsewhere and how are developers meeting this need?

In the FNB Estate Agents Survey for Q1 2019, surveyed agents listed downscaling due to life stage as the most prominent reason for South African home sales (23% of sales).

Homeowners sell because of changes in their families or life stages, to lessen financial burdens or because they are relocating within SA. Improved security is high priority, whereas some are attracted to urban work opportunities.

Natalie Du Preez says diversifying residential offerings across a portfolio has been proving successful.

“We are definitely seeing some of the downsizing and lock-up-and-go trend, which is why our townhouses in Clara Anna Fontein and small and micro apartments in Burgundy Estate and Century City are quite appealing.”

Development flexibility means engaging with a wider buyer pool range.

For instance, Clara Anna Fontein lifestyle estate offers “three distinctly different development approaches” in the form of family plot-and-plan homes (an erf is purchased and the owner designs or builds within guidelines); The Village smaller lockup-and-go homes created by the developer; and Oasis Life quality retirement estate homes.

1. Diversified developments are winning

2. Financial downscaling

Balwin Properties spokesperson Lisa Sinclair says the company’s numerous lifestyle estates and precinct developments in three key provinces are designed to satisfy residents’ requirements at every stage in their lives. She says Balwin’s developments appeal to first-time homeowners, families and older couples scaling down.

“For example, security or safety is a top priority at whatever age. Our lifestyle estates have world-class 24/7 security,” Sinclair says. This applies as much to Balwin’s Ballito Hills estate in KwaZulu-Natal as to The Jade, its apartments in popular Paardevlei Lifestyle Estate precinct near Somerset West.

In Cape Town’s Northern Suburbs, Rabie Property Group marketing and communications manager

Homeowners mindful of increasing costs are becoming creative. In FNB’s survey, agents throughout SA identify communal property purchases, bought jointly between friends or extended family for shared bond repayments and expenses, as a new trend.

The survey concludes that although supplydemand imbalances prevail, they don’t seem to have worsened during the first quarter of 2019.

Off the base of the May elections, there is new optimism about market prospects. Meaningful near-term recovery will pivot on improved economic conditions.

“Affordability is key,” says Werner Scheffer of Multi Spectrum Properties, behind Cape Town’s popular BuhRein Estate. “As a developer, we know we have to speak to a wide audience and

HOMEFRONT

“Safety is a top priority at whatever age. Balwin lifestyle estates have world-class 24/7 security” Lisa Sinclair, PR manager, Balwin Properties

The Rubik, a luxury inner-city development in Cape Town offer the ideal combination of products.” These would target an investor, someone looking to buy their first property or a retiree who is scaling down. Buh-Rein’s two-bedroom Blue Lily Lane apartments start from R1.16m, and its Sterling Grove townhouses with garages start from R1.82m.

“We believe a big driver is that people would like to stay in a safe environment offering great potential on their investment as well as lifestyle,” says Scheffer, adding that homeowners who travel often like “knowing that their property and loved ones are safe”.

SINGLE PARENTS In Somerset West, Mzuri Estate spokesperson Craig Page-Lee says smaller apartments, townhouses and

The Melrose Arch mixed-use precinct by Amdec Property Development

WHY PEOPLE SELL THEIR HOMES Reasons for selling SA HNWI (as % of total sales)

Life-stage downscaling

Upper

Middle

Lower

23 27.2 25.7 21.8 20.2

Financial pressure 15.9 13.3 11.8 16.5 19

Emigrating 14.2 18.1 15.5 14.7 10.6 Changes in family structure

12.2

13.6

10.4

12.8

11.7

Moving for security

10.2

8.7

10.8

9.6

11.5

Upgrading

Relocating within SA

Moving to be closer to work/amenities

9.1 5.4 10.3 9.2 10.9 7.8

7.7

8.9

8.3

6.9

7.5

6.1

6.8

7.2

9.2

Source: FNB Agents Survey Q1 2019

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: Debbie Loots Designer: Samantha Durand

home options meet different demands in terms of size and affordability. This suits their buyers, from families needing to downscale (due to retirement or children leaving home) to young families, new couples and divorced or single parents.

Mzuri’s luxury twobedroom Imbali apartments are priced from R1.895m.

RE/MAX reports Lightstone Property data that shows a 5.7% decrease in the number of bonds registered from January to March 2019, compared with Q4 2018. RE/MAX of Southern Africa CEO and regional director Adrian Goslett says the first quarter tends to be slower, so a drop in transactions is not unusual. “The first quarter of 2019 experienced a 25% growth on the number of bonds registered in the first quarter of 2018. This means that banks’ lending appetites have increased,” he says.

3. Paying a premium for urban convenience Goslett notes an improvement in luxury market sales in Q1 2019, with 15.8% of transactions occurring between R1.5m to R3m, and homes that sell for more than R3m accounting for 5.4% of all bond registrations. “The high-end market was the least affected by the overall decrease in the number of registered transactions.”

Goslett says properties priced above R3m showed only a 0.8% decrease compared with Q4 2018.

“This same segment has grown to 5.4% of all transactions this quarter, the largest this segment has been since Q3 2017.”

One recently launched luxury urban development meeting the demand for flexible living in Cape Town is The Rubik, where premium innercity apartments sell from R2.4m to R15m, with offices and retail space below them. Dogon Properties director of developments Rob Stefanutto says the concept of “living, working and playing in one place, where your time matters” is what appeals to their target consumer.

“The Rubik is creating a new segment of top-end apartments not there to fill a gap in the market as an alternative to the Atlantic Seaboard, but to offer innercity living with an exclusive address for a different consumer,” he says.

URBAN SECURITY Amdec Property Development also put its weight behind downtown urban secure apartment developments. At No 1 Harbour Arch, the first residential tower to be developed in this new Cape Town precinct, 97% of units are already sold.

Similarly, Amdec’s 240 units at One on Whiteley in Johannesburg’s Melrose Arch mixed-use precinct has seen sales of R630m since the residential development launched.

Amdec sales consultant Tersia Taljaard says in their experience properties are changing hands due to life or family stage, and because people want to be closer to urban work opportunities.

“The largest percentage of buyers in Melrose Arch are investors who buy to let. The remainder is split between purchasing units

PUBLICATION ADVERTISING SALES

Copy Editor: Christine de Villiers Production: Joanne le Roux

Susan Erwee Sarah Steadman

susan.erwee@thecreativegroup.info sarah.steadman@thecreativegroup.info

083 556 9848 083 222 9153

HOMEFRONT

104 on Wager in Izinga Ridge, Umhlanga, will comprise 21 luxury villas

“Over seven years we’ve adapted our offering to cater to a wider client range but also to capitalise on their changing needs” Ryk Neethling, group marketing director, Val de Vie

for business when people visit Johannesburg and those who have scaled down, having moved closer to the city for work.”

4. Up- or downscaling to luxury estates At Steyn City in Midrand, a variety of property types means this developer targets a broad market. “We have found that people invest for many different reasons,” says Steyn City marketing group head Tammy Menton.

“Security is, of course, a primary concern, but many look to Steyn City because of its design as a city within a city.”

She says ensuring that multiple facilities are provided for a livework-play lifestyle allows residents to “do a school run, drive to work, leave for home and fit in a quick jog without venturing beyond our gates”.

All this has implications for time saving too.

Launching in June, 104 on Creek is Steyn City’s latest apartment offering, with two-bedroomed units priced from R2.6m. Every apartment has views of a creek and a dam against the backdrop of Johannesburg’s southern skyline.

ASPIRATIONAL Rather than downscaling, Century Property Developments says the trend among its tenants and

purchasers seems to be the other way round. “Our brand is very aspirational so we find our clients are upscaling, rather selling a smaller home in Waterfall Country Village Estate to purchase a stand in Waterfall Country Estate in the same Midrand development. They move from renting an apartment to renting one of our clusters,” says sales, rentals, marketing and operations executive Jessica Hofmeyr.

“The only downscaling we’ve seen are clients who moved into our Mature Lifestyle Estates situated within Waterfall. These are industry leaders looking for a lock-up-and-go rather than a large house in Hyde Park or Bryanston.”

In the Winelands, Val de Vie’s amenities include a signature golf course, a barber, a spa, a CrossFit gym, restaurants and a coffee roastery. Group marketing director Ryk Neethling believes offering multiple home options with plenty of amenities is crucial to success in a luxury estate.

“Over seven years we’ve adapted our offering to cater to a wider client range but also to capitalise on their changing needs,” he says.

“We see young families moving from entry-level houses into larger homes. Or older couples downscaling or moving into our retirement village.”

5. Relocators and super-commuters A number of Gauteng semigrators have relocated to KwaZulu-Natal. Seeff Umhlanga director Brett Botsis believes Umhlanga Rocks is “evolving into the most in-demand area in SA”, having overtaken Sandton.

Seeff is marketing 104 on Wager, Balinese-inspired luxury villas in Umhlanga’s Izinga Ridge.

Further north at Sheffield Beach, Zululami Coastal Estate offers twobedroomed Aura apartments from R1.89m, with on-site amenities and surrounded by indigenous vegetation.

Hugging the coastline closer to Ballito — and the airport — is Zimbali Lakes Resort. Zimbali’s marketing manager Erik Steele cites numerous reasons for sales: families are drawn to secure estate living and wish to relocate to the North Coast, or upcountry buyers want an investment apartment at the seaside. Some families live on the estate, with a breadwinner commuting to Gauteng on a weekly basis.

Boulevard Suites is Zimbali’s executive-style, lock-up-and-go studio, one- and two-bedroom apartments, priced from R1.15m. A serviced shortand long-term letting service makes these a sound choice not only for residents but investors too.

Buh-Rein’s Blue Lily Lane apartment complex in Cape Town’s Northern Suburbs

Boulevard Suites at Zimbali Lakes Resort near Ballito

FOCUS ON: STEYN CITY

W A city like no other ADVERTORIAL

One-of-a-kind parkland resort Steyn City continues to set new standards in the luxury estate market WORDS AND PHOTOS: SUPPLIED

hen it launched in 2015, Steyn City took the market by surprise. The concept of a secure estate was not novel – indeed, a number of developments were promising residents a new level of luxury in a safe setting. However, Steyn City went beyond the norm to offer a parkland resort like no other.

Four years later it is considered the centre of Johannesburg’s new north, and continues to set new standards in this market.

A glimpse of the resort’s City Centre, set to launch in 2020, confirms this. Never before has SA hosted a secure gated development of this scale or scope. It’s not simply the residences that will distinguish this one-ofa-kind city – the variety and calibre of amenities on offer will be without compare.

Residents will experience the best of resort living, with access to superlative fitness facilities throughout the parkland, while enjoying the utmost convenience and accessibility. The final unveiling of the City Centre will undoubtedly satisfy any curiosity about city living.

LUXURY GET IN TOUCH Steyn City Tel: 010 597 1040 E-mail: sales@steyncity.co.za

In the meantime, Steyn City enthusiasts can look forward to the more immediate launch of 104 On Creek, which offers exquisite resort-style two- and three-bedroom apartments

FOCUS ON: STEYN CITY

with an emphasis on luxury. Each home boasts Siemens appliances, whereas features such as double-glazed windows and air conditioning ensure ultimate comfort. The development defies the conventional definition of apartment living: here, every home opens onto Steyn City’s famed 8,000ha parkland, offering a backyard for its owners to explore. Expansive views of Steyn City’s creek and Johannesburg’s southern skyline beyond complete the picture.

Steyn City is also preparing to break ground on the second building in its new commercial development, Capital Park. It is already proving a popular offering, with the first building sold to tenants eager to take advantage of Steyn City’s strategic location between Johannesburg and Pretoria.

Steyn City has played a key role in improving infrastructure in the area, making for even greater accessibility to major arterials.

LIFESTYLE While it is an obvious choice for people working in the new north (or any other corner of Johannesburg), the appeal of Steyn City’s work-live-play proposition cannot be ignored. The entire lifestyle resort has been designed to ensure that residents’ every possible need is met.

They can enjoy a wide range of activities including a championship golf course designed by Jack Nicklaus and an award-winning clubhouse, a world-class equestrian centre, an indoor aquatic centre, kilometres of running trails and cycle tracks, and outdoor yoga sessions – all without leaving the parkland.

With the outstanding Steyn City Schools campus situated on the periphery of the estate and a number of children’s play nodes located throughout the property, there are ample opportunities for family time.

These are just some of the aspects that make Steyn City such a special place.

This all-inclusive lifestyle resort’s vision is to create a connected community reminiscent of yesterday’s neighbourhoods, where people shared greetings and news and felt free to borrow a cup of sugar.

With every amenity within easy reach there is no need for lengthy drives on congested roads, so the Steyn City way of life is naturally more relaxed.

Moreover, the magnificent parkland offers soothing scenery and hundreds of thousands of indigenous trees and shrubs attracting a variety of birdlife. Add excellent fitness facilities and the peace of mind that comes with unsurpassed security measures, and it’s easy to see why Steyn City continues to set the benchmark in good living.

Invest in a carefree retirement lifestyle Evergreen Lifestyle has earned an enviable reputation as South Africa’s leading provider of retirement living.

They take an all-round approach to caring for seniors, and the communities of healthy, happy retirees who call their villages’ home, speak for themselves. Evergreen builds its relationship with a Partnership for Life model that has served it exceptionally well.

PHYSICAL SECURITY

FINANCIAL PEACE OF MIND

CONTINUOUS SENSE OF COMMUNITY CARE

FOR MORE INFORMATION CALL SHARON ON 087 808 7000.

WE LOOK FORWARD TO WELCOMING YOU.

info@evergreenlifestyle.co.za

www.evergreenlifestyle.co.za

/evergreenlifestyle

@Evergreen_LV

HOMEFRONT RETIREMENT

Out with the old New retirement trends suggest success favours developers who avoid stereotypes WORDS: CLIFFORD ROBERTS AND STAFF REPORTER PHOTOS: SUPPLIED AND SHUTTERSTOCK

WHAT ARE BLUE ZONES? Blue Zones are identified by author Dan Buettner as areas around the world where a third of inhabitants live into their 90s with virtually no signs of dementia. Factors

believed by medical scientists to contribute to this phenomena include moderate physical activity, an omnivorous diet and engagement in social life.

T

he world’s population is getting older, and along with the surge of technological innovation, retirement property developers are faced with a complex and fluctuating matrix in which to compete and meet demand.

According to the World Health Organization’s 2015 World Report on Ageing and Health, some 4.9-million people in SA are estimated to be over 60 and the proportion in this age bracket is likely to increase from 8.5% in 2018 to about 15.4% in 2050.

Society’s view is expected to change considerably to support an older generation, writes Shift Joe Public

strategic director Mike dos Santos in the Financial Mail of May 13.

He says today’s seniors are increasingly active and tech savvy, making them more discerning and demanding consumers.

This presents property developers with an opportunity to meet the new demands of not only current baby boomer retirees but also those of a new generation of buyers.

What are the trends shaping retirement offerings today?

CLOSE CONNECTIONS Not everyone wants to leave behind friends, family and familiar surroundings to retire elsewhere. Blok’s EIGHTONN apartments in Sea Point, Cape Town, the

company’s first endeavour catering for a 60+ age group market, taps into this need.

“There is a growing demand for retirement options closer to the city where people have spent most of their lives.

EIGHTONN aims to keep retirees within familiar communities, close to their personal history and close to their families, in a way that allows them to connect to their everyday life, thus empowering them to maintain their high standards of living in a beautifully designed home that offers long-term care should the need arise,” says Blok MD Jacques van Embden.

Sharing in a specific community from an earlier life stage is part of the attraction of popular BuhRein Estate in Cape Town’s Northern Suburbs. Here sectional title apartments, townhouses and freestanding homes have drawn first-time buyers and established families at competitive prices. The developer’s latest addition is Buh-Rein Retirement Village, where the first mature residents will move in soon.

“Buh-Rein Estate now embraces the term multigenerational when it comes to luxury estate living,” says Multi Spectrum Property spokesperson Werner Scheffer.

ADDED LUXURY Raising the bar in luxury offerings and incorporating a new lifestyle approach will always attract the discerning buyer and ensure a development’s status as cutting edge.

Award-winning De Plattekloof Lifestyle Estate is at the forefront in retirement property sales: MD of Adlab Claudius Combrinck, who markets the estate, confirms that property to the value of more than R330m has been sold here since it launched in 2017. Its recent grand reveal of full-ownership luxury retirement houses attracted more than 90 visitors and the showhouse, including furniture, was sold on the day.

“Our homes have set a new benchmark for retirement living,” says developer Johan Laubscher of Arun Holdings. “Each design offers an open-

OWNERSHIP OPTIONS

De Plattekloof Lifestyle Estate in Cape Town

“We realised early on that a retirement lifestyle business is more about people than about property”

There’s no one-size-fitsall solution for retirement investors. Sectional title and long-term rental are still preferred options, says Dejane Steyl, marketing manager of Devmark Property Group. This award-winning developer has just launched its ninth retirement village, Langebaan Manor, with 60 sectional title apartments.

Its popular The Plettenberg Manor is 70% sold out.

“Some retirement villages under full ownership title have shown growth up to 12% a year on capital and an 8% rental return, giving about 20% total investment return a year,” says Devmark CEO Hein Ehlers.

Arthur Case, brand marketing director, Evergreen Lifestyle

Mount Edgecombe in KwaZulu-Natal incorporates Blue Zone factors as part of its new care centre

On the other hand, according to property law specialist Lizelle Kilbourn of Smith Tabata Buchanan Boyes, there’s renewed interest in life rights. “Where this type of housing issue mainly occurred in the lower- to middle-price categories, there’s now a number of new luxury property developments where life rights have become the main

item,” she writes in a column for Die Burger of 4 May. The law around retirement housing still has many grey areas and did not keep pace with development over the past 30 years, Kilbourn says, but it has contributed to a stable and robust industry and resulted in a strong demand for life rights housing.

Companies such as Evergreen Lifestyle endorse life rights. “It’s the fastest growing model and premier choice in the US, Australia, New Zealand and parts of Europe,” says brand marketing director Arthur Case. “Over the past decade Evergreen has has not only become convinced of the benefits of the life rights model for middle- and upper-middle-income South Africans but also introduced greater flexibility.

“Apart from the standard features of a life right, Evergreen has introduced adaptable purchase pricing allowing for a lower purchase price, balanced by a reduced capital return on termination.”

HOMEFRONT

Blok’s EIGHTONN development in Sea Point

Waterfall Hills Mature Lifestyle Estate in Midrand

TOP 5 RETIREMENT VILLAGES IN SA FOR 2019 Waterfall Hills Mature Lifestyle Estate Helderberg Village Onrus Manor Evergreen Val de Vie Clé du Cap Source: New World Wealth

Fonteine Village at Klipfontein Farm Lifestyle Estate in Malmesbury plan concept with high ceilings and top quality workmanship and finishes.”

The continued growth of Amdec’s Evergreen Lifestyle retirement villages in KwaZulu-Natal speaks of a successful business formula that caters for residents’ every need beyond the standard amenities of a high-end lifestyle estate. Evergreen has 750 units in the pipeline in Zimbali, 640 in Umhlanga Ridge and 458 in Evergreen Hilton.

“We realised early on that a retirement lifestyle business is more about people than property and therefore our focus is hospitality,” says Evergreen Lifestyle brand marketing director Arthur Case. “This influences the management team and staff.

The ‘lived experience’ is everything at Evergreen.”

COUNTRY CHIC Trading city life for a slower rural pace but staying close enough to the bustle and charm of village living remains a popular option for retirees, especially with

technology fast shrinking access to the world.

Fonteine Village is an example – an upmarket fulltitle retirement scheme on a north-facing slope within recently launched Klipfontein Farm Lifestyle Estate.

Bringing a modern farmlike lifestyle to the town of Malmesbury, this country estate has spectacular views of the Swartland Mountains and Table Mountain. Phase one and two are complete, with phase three now being released.

“Property prices in surrounding towns have skyrocketed during the past decade, and all objective indications are that Malmesbury is earmarked for the next wave of growth,” says Multi Spectrum Property CEO Riaan Roos.

There is no age limit for Fonteine Village purchasers, but occupants must be at least 50. Aside from amenities, residents will have access to homebased nursing and frailcare services, home entertainment technology and top security.

ANTI-AGEIST A holistic approach to health is a growing world trend, with alternative lifestyle aids such as meditation, yoga and plant-based diet options becoming mainstream.

Moreover, easy access to advances in science and medicine thanks to technology, means that investors expect their on-trend lifestyle philosophies to mirror their retirement ideals.

Exclusive Mount Edgecombe Retirement Village in Kindlewood Estate on the KwaZuluNatal North Coast is part of Tongaat Hulett’s R1bn Retire KZN initiative (along with Zimbali and Shoreline Sibaya retirement developments). One of the first schemes with a major focus on care and security, according to Geoff Perkins, project director at Collins Residential, the developer of the village, Mount Edgecombe has now incorporated Blue Zone factors in its new care centre.

Cornel Nieuwenhuizen, founder and CEO of

TotalCare, which manages the care centre, says: “The Blue Zones approach identifies factors for healthy ageing and one is social interaction with your community. When we begin conceptualising a care centre, we marry practicality, regional context, the emotional impact of space and ways to foster community interaction.”

BACK TO BASICS Options abound in this burgeoning sector and the deciding factor often comes down to the simple things.

Century Property Developments’s Waterfall Hills won the award for Best Retirement Development in the World in 2009, then The Globals named it the Best International Retirement Resort in 2011, and this year New World Wealth ranked it among SA’s top five retirement estates, so suffice to say Century should have retirement investors at “hello”.

What tops the list for the developers, though?

According to the company’s

executive of sales, rentals, marketing and operations, Jessica Hofmeyr, stateof-the-art security, a fully equipped care centre and 37km of scenic walkways are right up there.

And with a strong focus on sustainability and fibre optic connections to each property, every possible need that makes for comfortable living in the later years are catered for.

FUTURE WATCH What will shape the retirement sector next?

Case says: 1. The employment of smart technology such as tele-medicine is likely to extend independence.

2. Baby boomers will want a lifestyle product, not an old-age home.

3. The increase in incidence of dementia will require specialist care.

4. There will be a need for sustainable construction.

5. People will be looking for new ways to fund postretirement healthcare as most medical aids do not pay for frail care.

FOCUS ON: LANGEBAAN MANOR ADVERTORIAL

Devmark launches Langebaan Manor Sister retirement development The Plettenberg Manor is almost sold out WORDS AND PHOTOS: SUPPLIED

W

ith 28 years of property development success, Devmark Property Group’s The Retirement Collection recently launched its ninth retirement village, Langebaan Manor. With successful retirement villages such as Cle du Cap, Legato, La Vie Est Belle, Heritage Manor, Onrus Manor, Villa Cortona, Helderberg Manor and The Plettenberg Manor, this new development promises to be no exception.

“We’re extremely excited about Langebaan Manor, which forms part of our The Retirement Collection,” says Jean Ehlers, director of the residential development division at Devmark.

“Sales are going well. The development boasts the ideal location, state-of-theart security, garden and house cleaning services, affordable levies, as well as other amenities to give residents peace of mind and a stress-free lifestyle.”

POPULARITY With prices ranging from R1.795m to R2.895m, Langebaan Manor offers authentic West Coast architecture, with four types of two- and threebedroomed homes to choose from. Sized from 103m² to 150m², all homes are north-facing, providing shelter from the southeaster.

Quality finishes and optional extras make it easy to personalise your unit.

“We’ve been involved in the development of thousands of residential units over the years, with The Plettenberg Manor our most recent success,” says Ehlers. “It’s already 70% sold out.”

The Plettenberg Manor is so popular because it offers everything you can think of, according to Ehlers.

“Beautiful surroundings, excellent security, direct access to a private beach, lovely hiking trails, bird hides for birdwatchers and bowling greens – all on the

estate. This development promises to offer not only an excellent return on investment but also the perfect lifestyle.”

The development offers residents eight accommodation types designed in the Cape vernacular style, juxtaposing the Cape South Coast’s rural charm with sophisticated modern functionality and openplan living. With 30 homes completed, construction of the apartments will start within the next two months.

The apartments sell from R1.55m and luxury units are priced from R2.695m to R4.35m.

RECOGNITION The Plettenberg Manor recently won two prestigious awards at the International African Property Awards for Best

Residential Development and Best Development Marketing and has been named one of the Top 10 residential estates in SA

by New World Wealth.

Global Brands Magazine Awards also recently selected Devmark as the Best Premium Property Investment and Development Brand in SA. Furthermore, CEO Hein Ehlers was named Top CEO of the Year for 2018 by the International Association of Top Professionals for his outstanding leadership and commitment to the property development industry.

“Our success rests on the shared philosophy of providing an exceptional and comprehensive service to all our clients,” concludes Ehlers. “We’re confident that these two developments will live up to your retirement dreams.”

Langebaan Manor

GET IN TOUCH Langebaan Manor Tel: 072 795 5371 (Walter Hart) E-mail: walter@langebaanmanor.co.za The Plettenberg Manor Tel: 082 970 6880 (Petro de Jager) E-mail: petro@theplettmanor.co.za Langebaan Manor

The Plettenberg Manor

HOMEFRONT

The lobby of Sable Park, Rabie Property Group’s new green office development in Century City, Cape Town

INVESTMENT

Commercial real estate trends and hot spots The industrial segment of SA’s commercial property sector performed best in 2018, followed by retail and offices. How are commercial real estate values shaping up in 2019 and where are the investment hot spots?

WORDS: MIRIAM MANNAK AND STAFF REPORTER PHOTOS: SUPPLIED

A

ccording to Lightstone Property analytics director PaulRoux de Kock, Lightstone’s 2018 commercial indices confirm industrial property to be its best performing asset class, showing 9% growth nationally, while retail and offices performed just below 5%.

“Opportunities definitely sit within the industrial segment,” says De Kock.

“There is a boom in online shopping with companies such as Takealot setting up massive distribution facilities. SA is also importing more, which will create a demand for additional warehousing.”

Takealot, SA’s largest online trader, has introduced more than 25 collection points countrywide. Its biggest outlet, launched in April, is a renovated 1,177m2 space in Midrand that uses technology and automation, including a spiral conveyer belt. Designed to support 7,000 daily collections eventually, the facility is next to the N1, Africa’s busiest highway. According to researcher WorldWideWorx, SA’s e-commerce retail sales is about 1.4% of the market compared with developed

countries, such as the US and UK, which is about 12% to 15% of the total market. In China it is about 18%.

Although most younger shoppers see online as their go-to shopping space, Takealot CEO Kim Reid has been quoted as saying “customers prefer alternatives to delivery, and having specified locations for both collections and returns is an added benefit”.

RETHINKING RETAIL While the retail segment has slowed down, there is progress catalysed by consumer spending habits.

According to Investec’s recent retail data published in March 2019, moderate sales growth is expected in the foreseeable future, with textile, clothing and footwear purchases scoring tops.

“Retail trade sales growth eased to 1.1% year on year in February, following January’s moderate 1.2% year-on-year lift,” says Investec economist Lara Hodes, who drafted the update.

Broll Property Intel’s latest report The Evolution of Retail shows retail stores are becoming more experiential to attract customers. South African shops are finding new ways to supply this demand. Last

month, Hyprop Investments announced it has allocated R57.6m towards renovations of Canal Walk Shopping Centre in Cape Town, including a revamped food court and the construction of Ratanga Family Entertainment Centre.

While some physical retailers are moving into the virtual space, certain online stores are turning to bricks and mortar. Yuppiechef is an example. This online retailer of kitchen and homeware products opened its first physical shop in Tifosa Park in Cape Town 11 years after shipping its first order. More Yuppiechef stores followed, all in prime locations such as the V&A Waterfront and Willowbridge.

Setting Yuppiechef’s stores apart is its use of the omnichannel concept, an integrated approach to providing shoppers with a unified experience across online and offline channels.

This means prices and specials are always the same online and in store, digital customer reviews are integrated into in-store price labels and QR codes offer more product information.

SHARED OFFICES The slower office segment is expected to pick up

thanks to new residential developments in the pipeline in and near business hubs such as Sandton. These include The Leonardo, a 20-storey skyscraper in Benmore developed by Legacy Group.

Office buildings such as Redefine Properties’ newly completed Rosebank Link at 173 Oxford Road are also contributing to the uptick.

WeWork, a global workspace company, will be occupying 10,000m² over six of the 15 storeys at Rosebank Link.

WeWork’s expansion into Gauteng shows how the world of office space is changing, also in SA. More companies here have opted for shared work environments offering communal amenities such as boardrooms, receptionists and telecoms infrastructure.

Market leader Growthpoint owns a 50% stake in various co-working offices, including Workshop 17, with branches in Sandton and Rosebank in Johannesburg, and the Cape’s V&A Waterfront and Paarl. Three more are in the pipeline – another in Rosebank, Durban and Cape Town’s popular Kloof Street.

According to Rabie Property Group chief operating office Colin Anderson, SA’s co-

HOMEFRONT

Paul-Roux de Kock, analytics director, Lightstone Property

19 4.5

2015 2016

4.2

7.2 3.2

4.1

4.5

3.3

1.4

4.3

3.8

11.6

12.2

13.8

14 10.3

2014

8.2

7.6

4.4

ZAR (billions)

“Opportunities definitely sit within the industrial segment. There is a boom in online shopping with companies such as Takealot setting up massive distribution facilities”

29.5

Total investment transactions value by sector

2017 2018

Offices

Industrial

Retail

Total transactions

Sources: Real Capital Analytics, JLL

executive at Century Property Developments.

“Businesses are more aware of employees’ comfort as it improves productivity and work quality.”

The Business Exchange has created a community among its tenants spread across branches in Rosebank, Sandton, Morningside and Mauritius, with its app playing a key role. “It allows our tenants to promote their services and products to our community while creating opportunities for collaboration,” Seinker says.

(GREEN) TECH

The Business Exchange has created a co-working community among tenants in Gauteng and Mauritius working space has grown exponentially. “The number of firms that have entered the fray in the past year alone is quite staggering,” he says. “Some landlords have partnered with shared office space companies to fill vacant buildings that are not appealing to the traditional commercial market.”

Besides SMEs, corporates are also acknowledging the benefits of shared spaces.

“Businesses don’t want to pay for fit-out costs or account for a large amount of capital expenditure on their

balance sheets,” says David Seinker, founder and CEO of The Business Exchange, which offers co-working and shared office spaces in Gauteng and Mauritius.

FLEXIBILITY Driving the demand for shared workspaces and hubs is flexibility.

Commercial MD at Pam Golding Mark Latham says: “Workplaces are changing; companies want more productivity and ways to reduce their footprint and save costs.”

Prevailing economic unpredictability means businesses need to be smarter with their finances.

Fewer companies sign long leases, says Jacques Weber, operations manager at Inospace, which acquires, owns and manages branded multi-tenant multi-use business parks. “At Inospace we allow for leases of up to a year and even six months.”

Redefine Properties’ commercial asset manager Pieter Strydom adds: “The demand for flexibility makes collaborative workspaces

appealing to entrepreneurs.

Teams at leading corporates are also moving to inspiring spaces for sharing ideas.”

PEOPLE-CENTRIC Another new work trend in SA is a move towards a people-centric philosophy, away from the traditional nine-to-five day.

“It promotes a relaxed work environment with production targets the focus rather than clocking in hours,” says Jessica Hofmeyr, sales, rentals, marketing and operations

The biggest enabler of SA’s changing commercial space is technology. “With mobile technology and the ability to work remotely, we are moving to collaborativebased working spaces and ‘untethered’ environments where people choose where and how they work,” says Latham.

In an office environment, tenants want a more backto-basics approach, he says. “Backup generators and water supply are as important as technology, which needs power.”

Anderson agrees.

“Building green remains a priority for Rabie, as it makes long-term sense.

Water recycling, rain harvesting, efficient lighting and designs reduce operating costs,” he says.

“Businesses don’t have to come to a standstill during load shedding or drought.”

HOT SPOTS:

Western Cape

An aerial view of Century Property Developers’ plans for Riversands Outlet Park in Midrand

Lightstone Property data singles out the Western Cape as SA’s top commercial property performer, with the V&A Waterfront, owned

by Growthpoint Properties and the Public Investment Corporation, being a key destination. Last year this property contributed 1.2% to Growthpoint’s growth in distributable income, according to the company’s annual report. It also notes the V&A Waterfront remains in high demand for new corporate offices. Currently,

the development of an 8,000m 2 office for Deloitte is under way, whereas Investec Bank has selected the Canal Precinct for its new premises.

Gauteng According to Strydom, prime-grade office spaces in Sandton and Rosebank are in demand because of proximity to the Gautrain and a consolidation and densification drive.“While traffic remains the key detractor in Sandton, new builds offer amenities, accessibility to transport and efficient green building designs,” he says.

Rosebank’s precinct has had a R20bn investment in the past two years, with upgraded landmarks including the Rosebank Mall, Oxford Corner and the Rosebank Towers.

The area’s office hub is growing too, with premium rentals charged for prime office space.

KwaZulu-Natal Development here is thriving, says De Kock, particularly in Umhlanga Ridge, the Sibaya Coastal Precinct and Cornubia.

Considering eThekwini’s population is set to grow to 4.4-million by 2030, providing compact, mixeduse environments that support economic, social and spatial inclusivity is the goal of Tongaat Hulett Developments, according to the company’s planning director, Rory Wilkinson.

Durban is also due for an upgrade. In the May edition of South African Property Review, Bernadette Khumalo, regional chairperson of Sapoa and partner at Rokwil Property Development, said that the city will benefit from continued clean-up and infrastructure development over the next three years. “We’re seeing huge investment in the CBD and the Waterfront, the development of logistic hubs and the Aerotropolis, and mixed-use development along the northern coast and the transport corridors of the west.”

HOMEFRONT INVESTMENT

Offshore opportunities In the 2019 edition of Knight Frank’s The Wealth Report, Moldova and Montenegro were added to the list of wealth havens offering citizenship and residency through investment schemes. We look at these and other popular offshore investment destinations such as Malta, Cyprus, Portugal, Mauritius, the US and the UK WORDS: DEBBIE HATHWAY :: PHOTOS: SHUTTERSTOCK

I

n its exploration of the movement of wealth around the globe and the fluctuations of the world’s luxury residential property markets, Knight Frank’s The Wealth Report 2019 notes that demand for second passports and residencies continues to grow. The report, which provides a global perspective on prime property and investment, reveals that 36% of ultrahigh net worth individuals (UHNWIs – people with a net worth of more than

$30m, excluding their primary residence) already hold a second passport, up from 34%, and that 26% are planning to emigrate permanently, up from 21% last year.

As more South Africans than ever are looking for alternative lifestyle and property investment opportunities overseas – for reasons such as safety and security, education, travel freedom and tax and citizenship incentives – more countries are encouraging foreign direct investment in return for citizenship.

“The only (investment) programmes worth considering are those that uphold high standards of due diligence and are free of corruption,” says Amanda Smit, managing partner at Henley & Partners South Africa. “These opportunities are the ones that draw credible, wealthy and talented individuals with valuable business networks and entrepreneurial expertise to a country, enriching its social and economic capital.”

MOBILITY

Montenegro offers citizens access to 123 countries

“Global families – and their businesses – today span countries and even continents,” says Dr Christian Kälin, group chairman of Henley & Partners. “Acquiring alternative residence or citizenship is a means of participating in and moving through this interconnected world with greater ease, and we expect that the value of this kind of mobility and access will only increase as the tendency towards isolationist, immigrationhostile policies becomes progressively prominent across the globe.”

DESTINATIONS

Portugal offers citizens visa-free travel in the Shengen Area

Some of the most popular destinations for South Africans are Portugal, Mauritius, Malta, Cyprus, Grenada and Antigua and Barbuda, all of which have the added attraction of an island or coastal location.

James Bowling, international CEO and founder of Monarch and Co, confirms that the most popular countries for South African investors are Portugal, Grenada and Antigua and Barbuda.

Portugal is a leading migration destination

for South Africans drawn by the prospects of a strong return on investment, residency, potential citizenship, quality of life and freedom to travel in the Schengen Area. Lisbon, Cascais and Porto are still the favourites for property investment and good longterm value.

“In the super-prime areas of Lisbon, a threebedroom apartment would cost upwards of ¤2m, about ¤9,000/m 2, with a similar property in Porto costing about ¤1.3m or ¤6,000/m 2,” says Chris Immelman, MD of Pam Golding International.

“However, you could still find something just off super prime, so still very good, for under ¤1m in Lisbon and below ¤800,000 in Porto.

Most South Africans will spend between ¤500,000 and ¤800,000 – mostly for a one- or two-bedroom apartment in a good area.”

ISLAND LIFE In Mauritius, now ranked 20th among 190 countries by the World Bank for ease of doing business, people who invest in property for a minimum of $500,000 gain residency and can open a company on this “paradise island” off the east coast of Africa.

Registration takes as little as two hours.

The Economic Development Board Mauritius highlights the country’s ranking among 51 upper middle-income economies. The island is ahead of countries like Canada (22), Germany (24), France (32), Japan (39) and China (46). The top five countries in Africa are Mauritius (20), Rwanda (29), Morocco (60), Kenya (61) and Tunisia (80) - with SA ranked 82nd.

Mauritius is rated 31st for visa-free access in the Henley Passport Index 2019, with Portugal and the UK fifth, the US sixth and Malta eighth.

POTENTIAL Cyprus, the third-largest and third-most populous island in the Mediterranean, is an attractive option for those who want to obtain a European passport in six months. When you acquire citizenship under the Cyprus Citizen-byInvestment Programme, you and your family enjoy

HOMEFRONT RESIDENCY VS CITIZENSHIP Residency allows the person to live, work and study in a specific country, but it usually relates to property ownership and could be linked to other conditions such as language tests, age restrictions on dependent children, and minimum-stay requirements. Residency is usually also renewable and is therefore riskier in terms of legislation changes. Citizenship gives full citizenship rights such as living, working and studying in that country or the jurisdiction it is part of, such as the EU. These rights could also include access to all benefits such as health care and education, as well as the right to vote. Citizenship is normally given for a lifetime, and often incorporates citizenship for children and grandchildren.

– Nadia Read Thaele, LIO Global, World Residence and Citizenship

Moldova

US

WHY? Visa-free or

WHY? The EB-5 Visa Program enables eligible immigrant investors to secure permanent residence in the US for them and their immediate family members. Children under 21 (on the day of the application) qualify.

visa-on-arrival access to 121 destinations.

Full citizenship for the applicant and included family members.

HOW? To qualify for citizenship, the main applicant must be over 18, meet application requirements and make a minimum nonrefundable contribution to the Public Investment Fund of €100,000.

Antigua and Barbuda WHY? Passport holders may travel to Hong Kong, Singapore, the UK and countries in the Schengen Area, among others.

HOW? Pay a minimum of

Grenada

Portugal

WHY? Grenada is one of the friendliest and safest islands in the Caribbean.

Citizenship offers travel freedom to the UK and Schengen Area, and eligibility to apply for a US nonimmigrant visa.

Citizenship may be passed down to future generations without restriction.

WHY? Portuguese residency offers the right to study or work in Portugal; visa-free travel in the Schengen Area; and eligibility to apply for citizenship after six years.

HOW? Invest €500,000

investment amount is $500,000 in a targeted employment area or $1m, depending on project location, and at least 10 jobs must be created.

$100,000 (nonrefundable) for a family of four via the National Development Fund (NDF), invest $400,000 in an approved real estate project (to be held for a minimum of five years), or invest $1.5m in an eligible business.

Montenegro

UK

Cyprus

Malta

Mauritius

WHY? It meets the growing demand from African investors looking for options in Europe.

Montenegro offers citizens access to 123 destinations.

WHY? London is expected to remain the leading global wealth centre in 2019.

According to The Wealth Report 2019, those moving to the UK temporarily may qualify for the favourable “non-dom” tax regime.

WHY? Flexible options with no residence required.

Securing an EU passport in six months is the biggest pull. Its strategic location near Europe, Asia and Africa has contributed towards its development as a financial centre.

WHY? Citizens have the right to enter, work and live in any of the 28 EU countries and Switzerland through the Malta Individual Investor Programme.

WHY? The best place in Africa to do business, a strong democracy and political stability, low cost of living compared with Europe, very tax-efficient, continued infrastructure growth aiding business expansion, and property value expected to grow by 40% in the next decade.

HOW? Options include a €250,000 investment in a less-developed area or a €450,000 investment in a developed area.

Government will direct an additional €100,000 application fee to a fund for underdeveloped areas.

HOW? The minimum

HOW? After five years of continuous residence, the investor may apply for Indefinite Leave to Remain in the UK. Then they can apply for citizenship within one year. Conditions apply.

HOW? Property investment of a minimum of €2m secures citizenship for the investor and spouse, their parents and dependent children up to the age of 25.

HOW? Investment in government-approved real estate for a minimum of $350,000, to be held for at least three years.

HOW? Contribute €650,000 to the National Development and Social Fund and acquire real estate for a minimum of €350,000 or lease an immovable residential property for five years or more for a minimum of €16,000 per year.

in real estate or €350,000 if the property is older than 30 years in an area of historical significance or urban regeneration.

This is a hard-currency investment with solid returns and good long-term appreciation prospects.

HOW? Real estate investments over $500,000 qualify the investor for permanent residency.

HOMEFRONT AMERICAN DREAM The EB-5 Visa Program, also known as the EB-5 Immigrant Investor Program, makes it possible for South Africans to gain lawful permanent residence in the US with an investment of $500,000 in a commercial venture.

Permanent residency is an option after five years.

Pam Golding International will partner with American Investor Immigration Law LLC (or AII Law) to present opportunities to South Africans eager to pursue that sought-after Green Card. “AII Law has successfully completed more than 30 EB-5 developments, enabling hundreds of people to become American residents and citizens,” says Pam Golding’s Chris Immelman. “However, indications from the

US government are that the entry requirement for this programme will increase to $1m during 2019, so time is of the essence. There’ll definitely be traction when South Africans understand what it’s about.”

A key legal requirement is that an EB-5 investment be considered “at risk”. That means the investment funds must actually be invested in the project and the funds must be available to be used for business purposes upon approval.

“At risk” also means that the investment capital cannot be guaranteed.

“That is why project selection in EB-5 is so critical for investors – if their investment must be at risk, they would be wise to select an investment project that is as secure as possible,” says Immelman.

Cyprus offers flexible options with no residence required full citizenship for life, which can be passed on to future generations by descent. The cost? At least ¤2m, which is a bit steep for most South Africans.

TOP INVESTMENT “In Portugal, it will take you the best part of six years to get an EU passport, but it’s the best investment you’re going to make in mainland Europe,” says Immelman. “It’s easily accessible, English is widely spoken and it’s a developedworld environment. It’s cheaper to live there than in Greece or Spain, and their unemployment rate is below 6%.”

Malta is an archipelago in the central Mediterranean between Sicily and the North African coast. The Maltese government requires you to make a substantial nonrefundable donation (about ¤850,000), as well as buy an apartment and not let it for five years.

An investment in Malta is rewarded with EU citizenship in about twoand-a-half years.

MICROSTATES “For microstates with small economies, the benefits of citizenship and residency by investment programmes can be substantial,” says Dr Kristin Surak of the School of Oriental and African Studies at the University of London in Knight Frank’s The Wealth Report 2018. “In certain Caribbean islands, programme revenues account for up to a third of GDP.” She says the potential profitability of these programmes has led to

investment migration policies spreading, allowing small economies to formalise and scale up previous informal offerings of residency and citizenship.

“Nonetheless, the overall effectiveness of the programmes depends on how funds are used,” says Dr Surak. “They may be spent responsibly to support long-term economic growth, along with educational opportunities, medical facilities, pensions and other forms of social support, but such assurances are typically not written into the policies.

Whether these programmes deliver the many benefits they promise prospective investors, is really a question of implementation and oversight.”

CARIBBEAN In the Caribbean, Grenada is one of the top options for South Africans seeking a foreign abode. Dubbed the Spice Isle because of its plentiful nutmeg plantations, it is home to about 100,000 people. Grenada is the only Caribbean country with a citizen-by-investment programme that offers visa-free access to China.

Grenadian citizens can also apply for a USA E-2 Investor Visa, which entitles them to start a business and live in the US. In Antigua and Barbuda (from the Spanish words for “ancient” and “bearded”), located where the Atlantic Ocean and Caribbean Sea meet, it’s possible to gain citizenship after living in the country for seven years continuously. Antigua and Barbuda has one of the

Maltese have the right to enter, work and live in any EU country and Switzerland best education systems in the area as well as the most modern hospital of all the Caribbean islands.

LONDON CALLING “London has long been a magnet for South African property investors,” says Mike Smuts, MD of Smuts and Taylor. “Although the UK’s divorce from the European Union (EU) has been anything but smooth, and while there are concerns over the potential economic ramifications of this departure, investors are not quitting the UK property market just yet.”

Many opportunistic investors will continue to snap up distressed assets

available at a discount thanks to a combination of lower asking prices and a weaker sterling, as well as the low cost of borrowing.

“This year, there will be headwinds for the property sector against a backdrop of Brexit-related uncertainty, but this is a relative concept when compared with political and economic uncertainty on the domestic front,” says Smuts.

Amanda Smit of Henley & Partners says the UK housing market is still experiencing significant volatility, but adds that analysts agree it will not be long before house prices begin to rise again.

“Grenada is the only Caribbean country with a citizen-by-investment programme that offers visa-free access to China”

HOMEFRONT GLOBAL INDICATOR

Australia safest for women Woman safety is driving wealth growth worldwide WORDS: DEBBIE HATHWAY :: PHOTO: SHUTTERSTOCK

SAFEST COUNTRIES PER REGION Europe: Malta, Monaco, Iceland, Switzerland Asia Pacific: Australia, New Zealand, Japan, South Korea Africa: Mauritius, Botswana, Namibia Americas: US, Canada Source: AfrAsia Bank Global Wealth Migration Review 2019/New World Wealth

Y

ear on year, Mauritius, Botswana and Namibia have maintained their status as the safest countries in Africa, with Malta again ranking among the safest countries for women and one of the safest in Europe. This is according to the AfrAsia Bank Global Wealth Migration Review 2019 compiled by global market research group New World Wealth, which also lists Australia, Iceland, New Zealand and Canada

among the top five safest countries for women.

“Woman safety is one of the best ways to gauge a country’s long-term wealth growth potential, with a correlation of more than 90% between historic wealth growth and woman safety levels,” says Andrew Amoils, head of research at New World Wealth.

ASSESSMENT When conducting its annual woman safety review, New World Wealth assesses results based

on the percentage of the country’s female population that has been a victim of rape, slavery, trafficking or general assault (physical assaults, acids attacks and so on) in the preceding year. Only 58 of the 195 countries in the world have reasonably reliable crime statistics. Those with unreliable crime statistics are excluded from the top five.

“Countries such as India and SA are often quoted in the media as being among the least safe countries for women. However, in our view this is a mistake,” says Amoils. “It is important to note that these two countries are among the 58 worldwide that have reasonably reliable crime stats, so it is unfair to say they are the least safe. They are simply more transparent than the 130+ others worldwide with unreliable stats. Women are also freely able to report sexual assault in these two countries.

In truth, India and SA are probably mid-range (8090) out of the 195 others in terms of woman safety.”

Wealth growth is linked to woman safety and in turn has a positive effect on economic growth – all factors that attract migrating high net worth individuals (HNWIs). Most of the countries in the top five have demonstrated strong wealth growth over the past two decades.

More reasons for HNWIs to move include a welldeveloped banking system and stock market, both of which indicate that citizens and residents invest and grow their wealth locally, thus ensuring GDP growth.

Low tax rates in countries such as Mauritius and cities such as Dubai and Singapore encourage investment whereas barriers including exchange controls and government intervention have the opposite effect.

“Government tampering

in the business sector creates large inefficiencies within an economy.

Government-owned enterprises and parastatals are another problem,” says Amoils.

Neutral and objective news reporting is important, as are strong ownership rights. “Zimbabwe offers a case in point as to what happens when ownership rights are stripped – once assets are taken away they tend to lose value as no one is willing to buy anything.”

GOVERNANCE Focusing specifically on Africa, the Ibrahim Index of African Governance (IIAG) measures and monitors governance performance on the continent in four main categories: Safety and Rule of Law, Participation and Human Rights, Sustainable Economic Opportunity and Human Development.

In terms of Safety and Rule of Law, results reflect the extent to which governments have violence under control, provide a safe and secure environment for the pursuit of individual or group endeavours, and guarantee personal security through the subcategories National Security and Personal Safety.

The IIAG’s 2018 report shows that in the period 2008-17, 34 of the 54 African countries had improved in this category.

Mauritius held the top spot in 2017, with SA in seventh place behind Seychelles, Cabo Verde, Namibia, Botswana and Ghana, in that order.

In the category Sustainable Economic Opportunity, Cabo Verde, Mauritius, Namibia, Rwanda, Seychelles, SA and Tunisia were among the top 10. These countries achieved the same result for the subcategory Transparency and Accountability, which has a strong impact on Sustainable Economic Opportunity.

HOMEFRONT PROPERTY NEWS

Tax incentive investment hotel opens in Rosebank

H

ome Suite Hotels Bristol launched in Rosebank in Johannesburg in April with the first hotel under the banner of a new boutique brand. Home Suite Hotels

by Lucid Ventures targets discerning business and leisure travellers in the South African market.

Lucid Ventures is the brainchild of Gidon Novick, who founded Kulula.com and SLOW Lounges as CoCEO of Comair. The Lucid investment fund facilitates

a full tax deduction for its investors through section 12J certification. This Sars incentive is a growth enabler for the economy, keeping investment funds onshore and stimulating job-creating industries such as tourism.

“We’ve pulled together an exceptional team to build the most desirable hotel experience in the country,” says Novick.

His codirectors are former Tsogo Sun head Graham Wood and Andrew

Kuming, head of urban developer K&S. Home Suite Hotels Bristol in central Rosebank is the first of up to 80 hotels planned, the concept being larger room sizes, a suburban feel and interiors

by Tonic Design. The Lucid Ventures business model is based on efficient capital sourcing through 12J, low in-house development costs and delivering a premium experience at a competitive price point on the four-star market.

Sandton Gate on schedule

A

bland and Tiber, joint developers of the Sandton Gate precinct, are on track to complete phase one of this Johannesburg mixeduse development. The first phase will include 15,500m² commercial space, 13,000m² P-grade office space and a 2,500m² Planet Fitness positioned

on the piazza level.

Confirmed commercial tenants will take occupation from November 2019.

“Due to the high demand following the launch of phase one, we aim to break ground for phase two in 2020,” says Abland marketing and leasing director Grant Silverman.

“We’ve redesigned phase

two to accommodate more retail offerings, such as a grocery store and pharmacy as anchor tenants, as well as a hotel and a holistic medical offering. Other amenities will include restaurants, coffee shops, salons and convenience stores.”

Phase two of the development will be ready for occupation in Q1 2021.

Landmark R1.4bn South African Foreshore building European co-development turns mixed-use in Lisbon

S

outh African property developer John Rabie has launched a R1.4bn joint venture mixed-use project in Portugal. Using his new European-domiciled entity Neworld, Rabie has joined forces with Geneva-based GMG Real Estate. The collaboration is designed to find development opportunities in the European residential and mixed-use markets.

The €90m (about R1.4bn) development LX Living is in the historic heart of Lisbon, in the suburb of

Amoireras. LX Living will offer 151 apartments over seven residential floors; 1,341m² of retail space, shops and restaurants; and 187 underground parking spaces.

According to Rabie their market research has confirmed a shortage of residential accommodation in Lisbon. “We now understand why experts have rated Lisbon as the number one city in Europe for investment in residential real estate,” he says.

LX Living’s apartment sizes range from studios

to four-bedroom units.

The mix will service the short- and long-term rental markets. Amenities in the building will include a gym, a day spa, two swimming pools and underground parking. There are also excellent public transport links nearby.

LX Living Investors will receive a 4% rental guarantee on the apartment purchase price for the first two years. This guarantee is available on smaller units with a price range of €270,000 to €650,000.

A

high-rise in Cape Town’s foreshore district is being regenerated into the mixed-use Foreshore Place, featuring 34 storeys of luxury modern residential and commercial premises.

Previously known as the Absa Building, Foreshore Place will have 15 floors of commercial space, including retail and banking facilities on the ground floor, and a fourth floor with a lounge and entertainment terrace.

The 11 storeys of residential units run from the 6th to 16th floors, and will include 63 studios, 99

one-bedroom apartments and nine two-bedroom apartments. Prices start from R1.164m for a studio.

Developed by HBW Group and designed by KMH Architects, the residential component will feature its own lobby, with elements including 24-hour concierge security, a laundry area and parking.

“The studio apartments in particular meet the modern trend of more affordable inner-city micro living — an apartment with all the luxuries buyers expect, in 70% of the size. Microliving units have been

popular internationally for several years and we are now following this trend in Cape Town,” says Dogon group developments MD Rob Stefanutto.

The commercial floors will also have a dedicated lobby and security.

Completion of Foreshore Place is scheduled for December 2020.

Cape Town’s Woodstock Quarter opens to renting tenants

W

oodstock Quarter has received healthy tenant interest from Capetonians since the Swish Property Group development launched in March. Construction of this building in the redevelopment zone of Sir Lowry Road in Woodstock was completed earlier this year.

It has nine storeys and 386 residential units.

Studio, one- and twobedroom apartments are available in various design options. Rentals range from R7,800 per month for a studio to R15,000 for a two-bedroom unit. Each apartment has an oven and hob as well as DStv and data connectivity.

Communal facilities include a fitness centre, a rooftop bar with 360° views, a lounge, a deck and three swimming pools.

“We paid a lot of attention to the design element,” says Swish Property Group sales and marketing representative Craig Getz.

“The heritage-inspired facade and classy finishes such as stone countertops and USB ports throughout add that little extra. The market is noticing.”

The ground floor and mezzanine retail area will include restaurants, bars and convenience stores.

k