Business Day HomeFront 30 August 2019

2-7 September 2019 • Cape Town | Durban | Johannesburg

HOMEFRONT To book your appointment contact

To book your appointment contact

Rinie Boshoff on +230 581 77553 or email bookings@pamgolding.co.za pamgolding.mu pamgolding.mu

Rinie Boshoff on +230 581 77553 or email bookings@pamgolding.co.za

To book your appointment contact

Rinie Boshoff on +230 581 77553 or email bookings@pamgolding.co.za

pamgolding.mu

pamgolding.mu

13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 30 AUGUST 2019 WWW.BUSINESSLIVE.CO.ZA

MUST-READ

Women leaders in property PAGE 2

Developments: best performers PAGE 12

Mixed-use precinct for Romania Pam Golding International's Eden Island in the Seychelles

PAGE 15

Sub-Saharan African opportunities Key investment experts flag the countries and property sectors

North Coast shows that are ripe for offshore expansion in 2019 robust growth

PAGE 6

PAGE 15

4 EXCLUSIVE GARDEN APARTMENTS JUST LAUNCHED FROM R2.495 MILLION

HELLO ORANJEZICHT

www.TheAster.capetown Key features:

CAPE TOWN

Beautifully landscaped private garden area for each apartment with private jacuzzi option Communal braai & pool deck 5 minutes drive to Camps Bay Beach Fully managed short-term let investment option, from 7% net yield Completion end 2020

Office - 021 425 8586 David - 072 385 4386 Maxine - 078 452 5559

CON SCIOUS LIV IN G

HOMEFRONT WOMEN IN PROPERTY

Realtors who rock In the spirit of celebrating women this month, we look at a few female icons, movers, shakers and rising stars who have asserted themselves in the world of real estate, an industry increasingly dominated by the fairer sex WORDS: TRACY ANN VAN BLERK :: PHOTOS: SUPPLIED

PAM GOLDING Pam Golding Properties When former president Nelson Mandela and his wife, Graça Machel, needed a home, who did they turn to? Legendary property mogul Pam Golding, of course! Golding, who died at the age of 90 last year, was a fearless pioneer of the real estate business and launched her brand in 1976, when the sector was still very much male-dominated and something of a cottage industry (pun intended).

She was brave, determined, charming and tenacious, and the real estate game was never a “sales job” for her: it was about people, more specifically matching people with homes, and it proved to be a recipe for great success.

Being a woman in the property industry is an advantage, said Golding, because women have natural empathy, which is of great benefit when negotiating sales transactions. “I have always believed that women can do anything they set their hearts on,” she said. “I think women today have endless opportunities to take up the careers of their choice and advance themselves too. More and more women capably manage to juggle the demands and needs of business and family; it is part and parcel of being able multitaskers.”

“My life’s work has been utterly fulfilling in every sense of the word. Know that anything can be achieved when your head is pointed to the sun and your heart is filled with purpose” Pam Golding

AMANDA CUBA RE/MAX Southern Africa “My mom gave me the belief that I can be anything that I want to be. It became a self-fulfilling prophecy that has proven helpful in this highly competitive industry,” says Amanda Cuba, COO of RE/MAX Southern Africa.

No stranger to hard work and overcoming adversity, Cuba, who grew up in Gugulethu, completed a Bachelor of Business Science (Hons) at UCT and assumed various corporate roles as a business analyst before establishing an investment and management consultancy group in partnership with her sister Yolande. “We concluded a 45% BEE deal with RE/MAX Southern Africa at the end of 2014. Thereafter I assumed the role of COO for the region,” she says.

Her family moved around a lot while she was growing up – Cuba had attended eight schools by the time she matriculated.

This taught her that change is a constant part of life, she says. “That lesson has been incredibly helpful in the ever-changing property market in which strategies need to be adapted and reworked constantly.”

“This is an industry that embraces women, with the majority of real estate professionals being female” Amanda Cuba

PAMELA CISAK Jawitz Pamela Cisak started her career in real estate at the end of the “golden years” and the beginning of the downturn in 2008 – that’s why she believes anything is possible no matter what market we are in. She also maintains that women are fundamental to the business of real estate as they are natural homemakers. “This innate ability and the softer side of women make them the ideal people to guide both sellers and buyers through the emotional process of selling and buying a home.”

Hard graft and a firm belief in her ability to go out there and “make the deal happen” are what helped Cisak become the top agent at Jawitz Properties Randburg for the period March to May 2019.

“Building relationships is the core of the real estate business and one can do this no matter how difficult the market” Pamela Cisak

HOMEFRONT

NOZUKO ZITOTI Harcourts South Africa When she was growing up, Nozuko “Zuki” Zitoti had her sights set on becoming a teacher, but by the time she finished school she was up for a challenge and ready to try something completely different.

And that was when the real estate bug bit.

Today Zitoti is a rising star within the Harcourts ranks who prides herself on hard work and a determination to provide her two sons with the best future she possibly can.

“The things I enjoy most about my job are meeting new people, communicating with them and coming to understand different personalities. One of the toughest things about the job is that the estate agent always gets the blame when something goes wrong, even if it isn’t our fault at all!” she says.

The secret to being an effective agent, Zitoti believes, is remaining calm and always trying to understand the client’s needs. “Listening rather than talking is critical.”

“In order to be successful you need to have the best intentions” Nozuko Zitoti

NOTES FOR NEWBIES Think you have what it takes to be successful estate agent? Here are some tips from the experts.

HELGA CLEMO Seeff It’s been 13 years since Helga Clemo made the move from Bloemfontein to Cape Town and started working in property as an estate agent. “Before that I had been involved in several businesses with my now ex-husband and I have always loved the idea of running my own show,” she says.

Four years ago Clemo decided to take the plunge, purchase a Seeff licence and start her own office from scratch. “It has been hard work but also a wonderful experience of training my staff and watching how each one has slotted into the business and perfected their roles. My four staff members have contributed greatly to my success and it gives me such pleasure that I can create employment for them.”

Clemo’s Seeff Century City office handles both sales and rentals and has achieved several milestones so far, including record rentals. “I am so excited about the future and am looking at how I can still grow and expand my business.”

“I attribute my success to my experience as an estate agent and of owning my own businesses” Helga Clemo

1. Choose to work at an office where the principal is passionate about helping new agents develop.

The 12-month internship programme provides on-the-job training where the support of the broker/owner is crucial.

– Amanda Cuba, RE/MAX

2. If you are determined, have integrity and passion, show that you care, remain honest and true to yourself, and surround yourself with people who you nurture, it will lead to success.

– Pam Golding, Pam Golding Properties

3. When the market is tough remember that there is always someone who needs to sell a home and someone who needs a home in which to live.

We will always have sellers and buyers, but it’s about connecting with people, going the extra mile and finding the perfect match.

DALE GREMELS Greeff Christie’s International Real Estate Veteran estate agent and Noordhoek area specialist Dale Gremels has a sound understanding of the market in which she operates – a prerequisite in the toolkit of all successful agents.

“Individuals are looking to avoid debt by eliminating the need for a bond. Many are also trying to live more simply by adopting an ‘off-the-grid’ lifestyle in terms of electricity and water.

Furthermore, clients are looking for dual-living arrangements so that they can help support their parents or children,” she says.

Gremels attributes her success as an agent to having chosen a good agency that offers backup support, training and efficient administration systems, and actively participating in her community on many levels.

“Working in property is hard, time-consuming work. Over the years I have learnt the importance of good time management, having a solid support system at home and knowing when to take a break and be kind to myself.”

– Pamela Cisak, Jawitz 4. Have a good cash reserve when you start, as it may be some time before you see significant, consistent cash flow.

– Dale Gremels, Greeff Christie’s

5. Spend less time talking and more time listening to your clients when showing them homes.

“Learn how to budget, as there will be good times and some lean times, depending on the market”

– Nozuko Zitoti, Harcourts

Dale Gremels

A

PRODUCED BY BLACKSTAR PROPERTY PUBLISHING

EDITORIAL TEAM Editor: Debbie Loots Designer: Samantha Durand

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

FOCUS ON: EDEN ISLAND, SEYCHELLES ADVERTORIAL

Own a piece of paradise For safe offshore investing, it doesn’t get much better than Eden Island in the Seychelles WORDS AND PHOTOS: SUPPLIED

R

egarded as the premier lifestyle investment option in the Indian Ocean islands, Eden Island is a residential marina development just off the main Seychelles island of Mahé. This tropical paradise with its clear turquoise waters is a place where dreams come true.

Sales at Eden Island have been consistent throughout recent tough economic times, proving that this development offers buyers a sound investment opportunity in terms of both capital appreciation and “relaxation returns”.

The Seychelles has benefited from continued growth in its tourism sector, but has also worked to attract visitors beyond its scope as an exotic holiday destination by becoming a stable, secure economic location for business and investment. It achieved economic growth of 3.6% in 2018 and 4.1% in 2017.

In the first quarter of 2019, GDP expanded 8.3% over the same quarter of he previous year.

Eden Island comprises a 40ha development with four secluded beaches and 16ha of waterways, making it the perfect base for leisure activities such as fishing, sailing, diving and snorkelling.

Three products are on offer: spacious Apartments starting from $400,000, deluxe semidetached Maisons starting from $1m, and spectacular sea-front Villas starting from $2.9m.

Each home is individual freehold title and comes with its own mooring and an electric buggy.

Eden Island residents have access to the

clubhouse, which has a gym, a tennis court and swimming pools.

Homeowners have the option of placing their units in the resort’s fully managed rental division on a short- or long-term basis.

There is no capital gains tax in the Seychelles, and no transfer duty, stamp duty or sanction fees apply on the purchase of new homes.

Buying a property on Eden Island qualifies you for Seychelles residency, allowing you to live there almost immediately.

So whether you’re looking for a holiday home, a safe haven for retirement or a solid investment opportunity, Eden Island offers it all.

GET IN TOUCH Pam Golding International South Africa: 082 361 4381 (Brian Gradner) Seychelles: +248 252 7575 (Christopher Nel) or +248 252 7715 (Jean Markham) sales@edenisland.sc www.edenisland.sc

Meet us to invest in Mauritius prime property FROM US$219,000 IN GRAND BAIE A short flight from South Africa, Mauritius offers strong offshore investment opportunities, as well as a safe and secure living environment for you and your family.

Why invest in Mauritius real estate?

On average over the past 5 years, there has been 7% capital growth per annum in USD and EUR currencies. Benefit from low income taxes and no capital gains tax or inheritance tax. Mauritius has a strong economy and stable government with a lower cost of living when compared with Europe.

MEET A REPRESENTATIVE FROM MAURITIUS 2-7 September 2019 • Cape Town | Durban | Johannesburg To book your appointment contact

Rinie Boshoff on +230 581 77553 or email bookings@pamgolding.co.za pamgolding.mu

HOMEFRONT

OFFSHORE INVESTMENT

Sub-Saharan African opportunities HomeFront asked key investment experts to flag the countries and property sectors that are ripe for offshore expansion in 2019 WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED AND SHUTTERSTOCK

M

any are looking beyond SA’s borders to explore investment opportunities in subSaharan Africa. But expanding an offshore portfolio can be daunting because every market requires insider knowhow. With that in mind, we rounded up expert comment on the most promising property investment sectors in the region. Which countries are poised for growth?

The Doing Business index ranks countries based on the World Bank Group’s research of their regulatory environments being conducive to business.

Economies with a higher ranking (1 to 20) have more user-friendly regulations for businesses, indicating a stronger protection of property rights. More than 190 economies were scrutinised on criteria including electrification, ease of business creation, tax burdens and protection of property rights.

The top 10 sub-Saharan African economies, as

ranked in the Doing Business 2019 report were Mauritius (20), Rwanda (29), Kenya (61), SA (82), Botswana (86), Zambia (87), Seychelles (96), Lesotho (106), Namibia (107) and Malawi (111).

Real estate investment sectors Growthpoint Investec African Properties (GIAP) is a pan-African real estate investment joint venture between Growthpoint Properties and Investec Asset Management. MD Thomas Reilly says subSaharan Africa’s property prices have been under pressure since 2015, when local rental levels fell, in some cases by 30% or more.

“Fast-forward a few years and a different picture is emerging. The overheated tenant markets with excessive rentals visible prior to the oil crash are no longer,” he says.

“Real estate markets have re-based themselves to arguably more sustainable levels and to open to a broader market. From a pricing perspective, this bodes well for new entrants.

While prices have yet to show a rebound, the entry point for a new long-term investor, particularly in markets such as Ghana and Nigeria, could be viewed as compelling. Couple this with demographics, which show little signs of abating, including some of the world’s highest levels of urbanisation and middleclass growth, aside from absolute population growth.”

OPPORTUNITIES According to Reilly, key opportunities prevail in retail, office and logistics/ industrial sectors, where quality assets remain in short supply and strong international tenants can be secured for a local or regional presence.

Standard Bank’s head of real estate finance for Africa regions Niyi Adeleye says sub-Saharan growth is inevitable. As some investors are pulling out, others are entering. “In the current market, property aggregators are able to acquire assets and portfolios at very competitive prices.

While investment levels on aggregate are currently

in a holding pattern, there is now more longer-term capital entering the market,” Adeleye says. He expects new projects in retail and industrial sectors, data centres, private education and student housing.

Kfir Rusin is hosting the Africa Property Investment (API) Summit this October.

API’s research shows that sub-Saharan Africa’s real estate sector has evolved.

“The trading environment in African real estate over the past 24 months has been tough, but in 2019 we’ve seen increased investment activity in new sectors that cater to proven demand,” Rusin says. “We estimate that our stakeholders alone have done deals of more than $500m in 2019.

That $500m has been invested in logistics and warehousing, affordable housing, convenience retail, hospitality, serviced land and mixed-use developments.”

AFFORDABLE HOUSING Which countries are drawing investors?

“Affordable housing is probably the biggest discussion point in Africa,”

HOMEFRONT

“In the current market, property aggregators are able to acquire assets and portfolios at very competitive prices” Niyi Adeleye, head of real estate finance for Africa regions, Standard Bank

Bronwyn Corbett, Grit Real Estate Income Group

says Rusin, singling out Kenya specifically. A positive is that economies in East Africa are less resourcedependent. “This has led to investment in warehousing, serviced land and mixedused developments.

Currently, there is a big focus on improving access to affordable housing, which we believe will generate large-scale investments and developments, especially in Kenya.

“Given the impending oil and gas boom in Mozambique, there are now attractive opportunities across sectors including hospitality, offices, corporate accommodation and logistic warehousing in that country too,” Rusin adds.

Real estate analyst Craig Smith of Anchor Stockbrokers agrees that sub-Saharan Africa’s top

Craig Smith, Anchor Stockbrokers

markets are “definitely a more attractive entry point than 18 to 24 months ago”, but cautions that investors need to exercise a “higher level of diligence”.

“From a real estate perspective, markets offering the most opportunity in the medium term are Nigeria, Ghana, Zambia and Kenya,” Smith says. “Tanzania, Ethiopia and the DRC could offer substantial opportunities, given the projections in size of major cities in the long term.”

POPULATION GROWTH Smith believes ensuring that constraints are addressed (with a focus on policies and implementation and ease of doing business) and investing in infrastructure (to support the rapid rise in

populations in major cities) are key.

He says there is a lack of fit-for-purpose offices, logistics buildings and retail, so these are growth areas. Opportunities also exist in “alternative” sectors including affordable housing, student accommodation, data centres and mobile towers.

Mauritius-based Grit Real Estate Income Group has property investments in eight African countries (Botswana, Ghana, Kenya, Mauritius, Morocco, Mozambique, Zambia and Senegal) and a market capitalisation of R5.7bn.

Grit targets corporate accommodation, hospitality, light industrial/logistics and corporate office assets underpinned by blue chip international tenants, yet CEO Bronwyn Corbett

Kfir Rusin, Africa Property Investment

says not all African property markets are alike.

“In Mozambique, we’re expanding our corporate accommodation offering on the back of strong demand from resource companies.

In Kenya, we’re expanding our logistics offering due to the shortage of suitable warehouses. In Ghana, we have a solid portfolio of corporate office assets based on the country’s growing economy and regional relevance.”

Asked to identify subSaharan countries showing promise in 2019, Corbett says one of Grit’s key risk mitigants is to hold about 50% of its portfolio in Investment Grade Africa (Mauritius, Morocco, Botswana) and 50% in Higher Growth Africa (Mozambique, Ghana, Kenya and Zambia.)

Thomas Reilly, Growthpoint Investec African Properties

HOMEFRONT African continent, 26 can be found in 14 Nigerian cities. Stehlik says that apart from ongoing expansion throughout Nigeria and Namibia, its first hotel in Ethiopia is opening in September. Angola is to follow suit.

Residential real estate

Bon Hotel Abuja in Nigeria “We see Kenya logistics as a high-growth area. As with banking, there are generations on the continent that have leapfrogged into the digital era, comfortable to transact on their mobile phones. Companies such as Amazon are capitalising on this by creating large clickand-collect warehouses,” says Corbett. “Although relatively small, the real estate sector in Botswana is set to benefit tremendously from the promulgation of real estate investment trust (Reit) status in that country, attracting additional capital.”

Corbett adds that Mozambique is proving to be a stable source of income and growth for the company, with demand for its corporate accommodation and offices at an all-time high. “Grit is currently the largest

landlord for A- and P-grade office space in Maputo.”

HOSPITALITY EXPANSION Grit’s most recent property acquisition was in Senegal.

“Our expansion there was as a result of a sale and leaseback transaction with Club Med, Senegal’s largest tourist operator with a 40-year track record in that country,” says Corbett.

According to her, this deal underscores Grit’s investment approach of partnering with its tenants to acquire and expand these types of assets under long leases.

Rusin also flags West Africa as attractive for investors or developers in the hospitality and logistics sectors. “Hotel development in Africa is accelerating, especially in West Africa,

“Hotel development in Africa is accelerating, especially in West Africa” Kfir Rusin, Africa Property Investment

in Nigeria, Senegal and Côte d’Ivoire,” he says, adding that Senegal has had significant investment in new hospitality assets, notable market moves being driven by the Radisson Hotel Group and Accor Hotels in the region.

South African-based Bon Hotels manages, owns and leases hotels, lodges and resorts throughout Southern Africa, as well as in West and East Africa. Founder Guy Stehlik says Bon Hotels is one of few hotel groups to focus on secondary cities.

Owing to the size of these locations, there is plenty of business activity and thus opportunities for hotels.

Launched in July, Bon Hotel Ngandu Rundu in northeast Namibia is the group’s latest in this country.

Of the 37 operations Bon Hotels operates across the

But where do residential property investments fit into this mix? Returning to the top 10 sub-Saharan African economies ranked in the Doing Business 2019 report, first choice Mauritius is a popular offshore residential investment destination too.

Pam Golding Properties Mauritius director Richard Haller says this island nation continues to lead the way for foreigners buying in sub-Saharan Africa, spurred on by South African and French property purchasers. “Capital growth, when looking at clients who purchased residential property off-plan and then resold four or five years later, has averaged 7% per annum. This, coupled with a 4%–5% rental return, makes an attractive offshore investment denominated in euros, dollars and Mauritian rupees.”

MAURITIUS AND SEYCHELLES Haller says a growing number of clients want to relocate to Mauritius or use it as a business gateway.

When purchasing property for $500,000 within designated developments, the buyer and their family get permanent residency.

“Mauritius is an attractive option as it’s still close to home. The island has strong investor protection regulations that require all money to be held in a trust

MARGINS OF SAFETY Measures guiding real estate investment decisions on the continent include the following: ability to transact in hard currency proven track record on ability to repatriate funds stable macroeconomic environment and low political risk means to secure land tenure ability to raise debt strong international tenants Source: Grit Real Estate Income Group

Investment opportunities offered by Pam Golding Mauritius include Mont Choisy Le Parc Golf & Beach Estate

account when purchasing property. The process also guarantees that any new development will be completed, so you aren’t left with a half-built property,” he adds.

Severine Pietersen of Seeff Mauritius says a report by the Economic Development Board showed 2,737 units on the island were sold to foreigners (as at September 2018), with South Africans comprising 22% of buyers. “Additionally, there are many who live in Mauritius on work permits and as professionals or who have invested in schemes. Most long-term rentals at Seeff are also to South African tenants,” she says.

The Seychelles ranks seventh on the Doing Business 2019 list. Pam Golding International projects sales and marketing manager Brian Gradner says it’s the perfect piece of paradise to invest in, given this country’s politically and economically stable environment and the fact that it has the secondhighest GDP per capita in Africa. “There is no capital gains tax in the Seychelles, and no transfer duty, stamp duty or sanction fees on the purchase of new homes,” he says. “As a homeowner you have access to residency and all homes are sold on freehold title ownership.”

Gradner recommends Eden Island, an awardwinning residential marina development on the coast of Mahé, the largest island in the archipelago. More than 40 nationalities from around the world are represented among investors in apartments, maisons and luxurious villas here, with 25% of them owning more than one Eden Island home.

Retire

LIKE A SOUTH AFRICAN IN MAURITIUS

The prestigious Akasha development occupies a magical space on the west coast of Mauritius with its ocean views and mountainous backdrops.

A purchase of one of these outstanding villas secures your spot in the protected reserve.

• Prime location near Tamarina Golf Course • Modern interiors • Manicured garden with swimming pool • Close to the beach and leisure parks • Sought-after river frontage and sea views • Ecofriendly living • World-class amenities on site • 3 bedroom villa available from EUR 680,000

To claim your piece of Mauritius, please contact: Derrick Mace +230 5 423 5072 • projects@pamgolding.mu

pamgolding.co.za/akashavillas

www.heuercourtonbird.co.za MUSIC TO PROPERTY INVESTORS EARS - STARTING FROM R1,45m incl Vat

Steeped within the historical student town of Stellenbosch, located just a mere 800 meters from the University, is the development of Heuer Court.

Its address on Bird Street has a certain kind of ring to it, especially to a student of the Arts. This is a superb ”start-up” for anyone who understands the importance of owning a valuable investment! Excellent, neat, modern and compact is all that any student needs.

Investing at this primary stage will certainly result in a masterpiece that will reach a crescendo, bringing music to one's ears. Heuer Court on Bird offers state of the art architecture with superbly designed interiors, credit to Clinton Savage Interiors and each apartment offers keyless entry.

The market has indicated a conservative 10% to 15% growth in similar developments within one year. With 20% of the development sold within one month, this is truly a great opportunity to invest in both a property and a lifestyle; with registration anticipated for 15 Dec 2020 - 15 Jan 2021.

R40 000 deposit (including VAT) secures your property.

For the month of September 2019, the first 7 new owners will receive a 55 Inch Full HD smart TV.

You won’t find this Bird’s Eye View anywhere else in Stellies

Art-Deco Inspired Interiors with Integrated Sound Systems

The rooftop terrace is home to a communal braai area and a hydroponic garden providing the residents with fresh salad greens and vegetables.

The hills certainly are alive in this magnificent development where each apartment comes standard with the unique Sonos Home Sound System.

Serving as a harmonious sanctuary and vantage point, one can get a bird's eye view of the historic town of Stellenbosch and of course, the hip hop of youthful students.

This includes a multipurpose amp to drive crystal clear sound from the ceiling-mounted speakers. One can also connect a turntable and TV to the amp and control the sound via any compatible smartphone.

Life is all about making the right choices; make a sound one!

®

Developed by the JLK Group who build lasting memories with great precision and care.

Stiaan Vercuiel 082 345 1209 stiaan@remax-helderberg.co.za

HOMEFRONT HOT TOPIC

Silver lining for residential property investment Property investors are encouraged to buy into quality developments now and reap the rewards when the market recovers.

Where are the top performing areas and who is building what right now?

WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED

Val de Vie Estate near Paarl has been voted one of SA’s top residential estates

T

The Onyx forms part of the revival of Cape Town’s historic Heerengracht

here’s no denying that the residential property market in SA has taken a few hits over the past decade and continues to be affected by the state of the economy. But there is some good news. The SA Wealth Report by New World Wealth counters comments on the generally poor performance of the sector, influenced by the depreciating value of the rand from R9.30/$ in 2008 to R14.40/$ in 2018, by highlighting an uptick in prices in some residential segments by as much as 30%. These include luxury estates such as Zimbali Coastal Resort near Durban, Fancourt on the Garden Route and Val de Vie Estate in Paarl.

“Some of the top performing luxury apartment complexes over the past 10 years include The Pearls of Umhlanga and De Meermin in Plettenberg Bay,” writes Andrew Amoils of New World Weath. “Notably, square metre prices at The Pearls of Umhlanga are now reaching similar levels to top apartments in Bantry

“There are a number of high-end sectional schemes under construction in Johannesburg and sectional title components to lifestyle estates are proving to be very popular” Byron Caloyannis, area principal for Johannesburg South and Alberton, Pam Golding Properties

Seaton on the KwaZulu-Natal North Coast has first-class equestrian facilities

Bay and Clifton in Cape Town. There has also been an increase in prices in surrounding areas such as Ballito and La Lucia.”

In fact, the eThekwini Sub-Regional House Price Indices show this city is outperforming all major metros in SA, according to the FNB Property Barometer released in July.

Average house price growth was 5% in Q1 2019, with areas in the north, closer to the airport, performing particularly well.

FNB’s Economics Weekly reflects an upturn in house price growth in July, recording 3.6% year on year from 3.5% year on year in June. “Looking ahead, housing market trends will remain heavily dependent on developments in the broader economy,” according to FNB analysts.

“Encouragingly, FNB housing market strength indices, based on the market perceptions of FNB property valuers, revealed a mild improvement in demand while the pace at which properties are entering the market for sale continued to slow.” At the higher

end, market conditions continued to favour buyers.

Affordability The need for affordable homes in high-demand areas, such as the Cape Town City Bowl and Woodstock, means apartments are getting smaller. “Even with the little bit of softness in the market, it’s still about what people can afford,” says David Cohen, MD of Signatura.

“We’re seeing a hybridisation of apartment living: smaller individual spaces but more shared amenities such as a deck with a pool and a gym that’s like an extension of your living room. That’s what keeps costs down.”

The desire for more manageable maintenance costs is also driving buyers into sectional title schemes.

“People are choosing to downscale in terms of property size,” says Byron Caloyannis, Pam Golding Properties area principal for Johannesburg South and Alberton. “That does not necessarily mean cheaper property schemes.

There are a number of high-end sectional projects

HOMEFRONT

8 Molteno in Claremont, Cape Town, will be completed in 2021

La Como Lifestyle Estate in Johannesburg South

WEX1, a mixed-use development in Albert Road, Woodstock

under construction in Johannesburg and sectional title components to lifestyle estates are proving popular.”

Simon Raab, director of Greeff Christie’s International Real Estate, has noticed a trend towards buying to live rather than buying to let. “This is likely motivated by the attractive price point of many of the new developments, the safety in a secure estate or complex, the convenience of a lock-up-and-go lifestyle and the ease of not having to maintain gardens, pools and so on,” he says.

Meanwhile, Century Property Developments has given in to pressure and made some of its rental stock at Waterfall Crescent inside Waterfall Country Estate, The Sheds @ Waterfall and The Oval Luxury Apartments at The Hills in Midrand available for sale. Georgia Hofmeyr from the Waterfall leasing team says leasing agents have reported taking clients through the development, showcasing the top units, only to be asked: “Do you have something just like this, but for sale?”. Existing tenants in these sought-after

properties will have first option to purchase.

Green credentials Environmentally conscious buyers and tenants are looking for new homes built to minimise their footprint and save on utility costs.

Balwin Properties recently achieved a world first when more 16,000 of its units attained Edge registration.

Created by the International Finance Corporation, the Edge standard enforces a minimum 20% reduction on energy consumption, water usage and embodied energy in materials, making the case for the financial viability of building green. “Using the Edge software, we now have a cost-effective planning tool that helps us build green based on occupant behaviour, building type and the local climate,” says Balwin Properties founder and CEO Steve Brooks.

Legaro Properties is also going for an Edge rating for its recently launched 38 on Morsim, being marketed by Chas Everitt, in Hyde Park.

The development comprises 12 ultra-luxurious duplexes priced from R6,999,900 for a three-bedroom, three-

“Downturns in economic cycles are invariably followed by upturns, so it makes sense for us to build now” Nicholas Stopforth, MD, Amdec Group

Foreshore Place in Cape Town will offer minimalist interiors

bathroom option and is oriented to make the most of solar power. Shaded by pergolas for energy efficiency, the homes have been designed to maximise evaporative cooling. On chilly days, closed woodburning Morso fireplaces provide warmth.

If you prefer space to convenience, Seaton on KwaZulu-Natal’s North Coast offers the best of country and coast across 411ha.

Innovation and sustainability are a major focus, and technology and materials are used to reduce energy consumption. “Buyers have a choice of country-inspired stands, which come with access to world-class equestrian offerings,” says Catherine Thompson of Pam Golding Properties Ballito.

Residents can enjoy a short walk to the stables or stroll along the nature trails or bridle paths to the beach.

They will also be able to pick fruit and vegetables from the estate’s private farms and have fresh produce delivered to their door.

Winelands lifestyle Paarl, Franschhoek, Stellenbosch and the Cape Whale Coast are among the wealthiest areas in SA, according to New World Wealth, because many retiring high-networth individuals are moving there. “Val de Vie is expanding into all levels of property development.

In its direct vicinity in Paarl, many planning applications are at council, including other multigenerational estates, retirement options, entry-level homes and apartments,” says Chris Cilliers, CEO and principal for Lew Geffen Sotheby’s International Realty in the Winelands.

Val de Vie Evergreen has just launched, joining SA’s award-winning lifestyle estate and top retirement brand in a development that is beautiful and super secure.

“Besides a new retirement village, The Waldorf, outside Stellenbosch, there are also many new developments in the pipeline in the hub of Koelenhof and Klapmuts,” says Cilliers.

Meanwhile RE/MAX Helderberg recently launched Heuer Court on Bird Street in Stellenbosch.

These Art Deco-inspired apartments come standard with a Sonos Home Sound System. “It’s a dream investment in the cultural heart of the Winelands,” says Stiaan Vercuiel of RE/MAX Helderberg.

Those who prefer what is known as the “French Corner” will love the appeal of the two-bedroom homes now selling at L’Ermitage Franschhoek Chateau and

Villas from R2,504,348.

The site is designed as though it were a little village in France, complete with cobbled streets and breathtaking views.

Regenerating cities A new move to regenerate cities, beginning with Johannesburg, has seen Black Brick disrupt the conventional property model by transforming discarded buildings into stylish short- and long-stay apartments and offering them at 40% below market price. With all the facilities and amenities a first-time homeowner might dream of, it’s no wonder 25 Fredman Drive in Sandton was 90% sold within 35 days. Only a few units remain, starting from R1,165m.

In Cape Town’s CBD, the transformation of the old Absa building is set for completion in December 2020. Foreshore Place is a mixed-use development that meets the modern trend of more affordable inner city microliving – think all the luxuries buyers expect, but in an apartment 70% of the size.

“Millennials are looking for location over square meterage; they want to be close to the city centre, able to walk, bike or rely on public transport. With many focused on their careers and social lives, younger buyers are rethinking their homes, looking at them as spaces to recharge instead of host,” says Rob Stefanutto, MD of Dogon Group Developments.

Foreshore Place prices start from R1.164m for the studio apartments, which range from 23.9m2 to 33.1m2.

So where should one invest today? “Downturns in economic cycles are invariably followed by upturns, so it makes sense for us to build now,” says Amdec Group MD Nicholas Stopforth. “It might seem counterintuitive, but that’s why it makes sense to buy into quality developments now, so that you can reap the rewards when the market recovers.”

The Amdec Group portfolio includes Cape Town’s new Harbour Arch, Val de Vie Estate, Pearl Valley, Evergreen lifestyle villages and Melrose Arch, which incorporates the One on Whiteley residential phase, in Johannesburg. At a recent launch, Amdec CEO James Wilson themed his speech around optimism.

“Have a purpose and do it with passion. Let other people be inspired by what you’re trying to do and what you’re trying to create,” he said. “We are optimistic, we are contributing and we are delivering with a R70bn investment into SA.”

BUY AUSTRALIAN PROPERTY IMMIGRATING OR LOOKING TO INVEST IN AUSTRALIAN REAL ESTATE? Australian Dream Properties has the solutions for you.

Prime time for foreign investments in Australian real estate.

The current drop in Australian property prices results in an ideal buyers market.

Mortgage interest rates as low as 4.79% p.a (on a 25 year loan).

Guaranteed rental returns of 6% on select properties, with onsite management.

Vacancy rates as low as 1%.

Buy into a stable currency ($AUD). Hedge against the volatile Rand.

Only 10% deposit required on select developments.

HOUSE + LAND PACKAGE BRISBANE FROM R4,6 MILLION*

SIGNATURE APARTMENTS GOLD COAST FROM R5,3 MILLION*

BOORAN APARTMENTS MELBOURNE FROM R9,1 MILLION*

NORTHCLIFFE SURFERS PARADISE FROM R6,2 MILLION*

Roni Tager

CONTACT US FOR MORE INFORMATION OR VISIT OUR WEBSITE TO VIEW THE FULL RANGE OF PROPERTIES ON OFFER.

Licensed Real Estate Agent Victoria and Queensland Cell: +61 479 125 181 Australia Cell: +27 644 944 224 South Africa Email: roni@adp.properties

* Based on current prices and exchange rates as of 21/08/2019

P R I V A T E

www.australiandreamproperties.com

E S T A T E

OCEAN-FRONT LIVING

Experience ocean-front living and 180-degree sea views from your home at Balize Private Estate. Enjoy family lunches on your expansive terrace or summer afternoons around the pool as you relish the tranquil privacy of your home while within the safety of the estate.

Located within the prestigious Sibaya Coastal Precinct, you’ll have access to a myriad of modern facilities on your doorstep, amongst them the chic retail piazza, ADVTech private school, comprehensive sports complex and the Sibaya forest boardwalks which connect you to the beach.

Balize Private Estate offers a distinctly coastal lifestyle with smart-ready 2, 3 and 4-bedroom luxury freestanding Villas, Cabanas and Penthouses to inspire a resort-living feel.

The depictions herein are for illustration purposes only and are subject to change without prior notice.

S I BAYA

penthouses from R5.25 MILLION u m h l a ng a umdloti

Contact our Development Consultants to set up your on-site appointment and experience the most exceptional views on the KwaZulu-Natal North Coast.

John Robinson: 083 410 1536 | Charlene Anamourlis: 083 262 2200

ons herein are for illustration purposes only and are subject to change without prior notice.

087 095 2744

bali ze. co. za

i nfo@bali ze. co. za

HOMEFRONT PROPERTY NEWS

New hotel-style apartments on Cape Town foreshore

T

wo floors of luxury apartments in The Duke on Fountain Circle will be ready for occupation on Cape Town’s Foreshore by the end of October. They are the first of 81 apartments planned

by The Mosaic Group, which has also redeveloped inner-city buildings in downtown Durban.

Situated on the corner of Hans Strijdom Avenue and Lower Heerengracht, The Duke offers pedestrian access to the Cape Town

International Convention Centre, a MyCiTi bus station and the regional offices of Vodacom, Standard Bank, Sars and Investec.

Overlooking city streets and Table Mountain, the building was redesigned by architect Lisa Rorich, known for her work on luxury lodges. Interiors were created by green building specialist Raewyn Hayhoe.

The hotel living-style apartments are priced from R1.29m, with no transfer duties payable.

“At about R36,000/m 2, with our prime location, this is an offer you wouldn’t want to miss,” says Mosaic Group marketing manager Chris Marsay.

The Duke has a 24/7 concierge service and security, air-conditioning, a gym, fibre, storage room space and a rooftop deck with a pool. Nine apartment configurations are available.

Buyers have the option to buy an “interior pack” added to the unfurnished apartment purchase price.

Controversial urban development for Bellville

D Mixed-use precinct to open in Romania

W

estern Romania’s first mixed-use development, Iulius Town Timisoara, launches this month. The largest real estate investment in the region valued at €220m, it is a joint venture development between investment company Atterbury Europe and Romanian developer Iulius.

“Iulius Town is Romania’s biggest retail area outside of Bucharest. It has the country’s largest fitness centre, with a semi-

Olympic swimming pool and a playground,” says Atterbury Group CEO Louis van der Watt. “Soon it will boast Romania’s tallest building — 155 metres and 27 floors high.”

Atterbury Europe entered into a 50/50 joint venture with Iulius in June 2017 to accelerate development of this prime mixed-use retail, entertainment and office facility.

The multifaceted precinct has created a city within an urban regeneration

project area built around the existing 71,000m2 Iulius Mall. Iulius Town’s total retail premises covers 120,000m2 and includes 450 shops and restaurants and a 12-auditorium cinema.

The new Timisoara high-rise will be the fourth building in the United Business Centre commercial hub, with the first three housing multinational IT and automotive firms.

Collectively the buildings will offer 100,000m2 of A-grade offices.

Estate near Ballito now a growth corridor

T

hanks to the rapid expansion of KwaZulu-Natal’s North Coast, Palm Lakes Estate has experienced an upward sales curve during the past 18 months, joining neighbouring residential developments.

“This month an agent from Seeff concluded the highest sale this year so far – R5.1m for a contemporary

multilevel Palm Lakes home of just more than 400m2,” says Seeff North Coast principal Tim Johnson.

“When the estate was launched 13 years ago, it was perceived to be offering entry-level affordability positioned ‘too far’ from Ballito,” he says. Twobedroom units in The Palms apartment blocks that were priced at between R600,000

and R700,000 in 2011 now sell for R1.4m.

The North Coast property market is showing robust growth in sales and prices, Johnson says. “Homes of about 400m2 are currently being built and marketed for more than R4.5m.”

KwaZulu-Natal will soon welcome SA’s first Club Med Beach Resort at Tinley, 4km from Palm Lakes Estate.

evmet Property Developments is nearing the realisation of The Galleria, a 11.4ha mixed-use urban property development in Tyger Valley, Bellville. It will include retail, commercial, residential, hospitality, sport, entertainment and medical offerings and has attracted national and regional head offices, hotels and an international events company.

Various sporting clubs have voiced their concern as the site is home to the Bellville Velodrome.

Northern News reported on August 7 that the developer

is still locked in a legal wrangle with the City about costs surrounding the lease. “While Devmark and the City continue their court battle, sports bodies are concerned about the future of the Velodrome, and they’re upset that a public participation process only took place last week [July],” said the report.

Devmet is a consortium of Devmark Property Group and equity investors. Its management is confident that the matter with the City will be settled.

“The synergies between the hotel and the multipurpose arena offering

a meeting, convention, entertainment and sporting facility are enormous,” says Devmark Property Group CEO Hein Ehlers, as it leverages a “previously underutilised asset”.

“The Velodrome will be redeveloped into a worldclass venue able to host international sporting events and cater for large expos and conventions,” he says. “Our team studied 52 international convention facilities to understand the requirements of a modern multipurpose events establishment.”

About 500 sectional title apartments are planned for the site.

Rental growth up

T

he latest PayProp Rental Index showed Q2 growth of 3.86% year on year, similar to the growth rate in Q1 2019.

PayProp’s Johette Smuts says this is good news for landlords, as rental growth remained steady over the past quarter.

While the North West is still the cheapest province for renting, it showed the highest year-on-year growth rate in Q2. Rental growth in the Western Cape continued to slow, and this province remains the most expensive for renters. Free State rentals are still increasing much

faster than most regions, as are those in KwaZulu-Natal.

Six of the nine provinces saw higher rental growth levels in Q2 compared with Q1.

Smuts says although rental growth is expected to stay muted, she foresees a slow recovery towards the end of the year.