Business Day HomeFront 30 June 2017

HOMEFRONT 13 OCTOBER 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 30 JUNE 2017

MUST READ

Design with an African aesthetic PAGE 2

Historic Malta lures investors PAGE 4

Sapoa CEO on building cities PAGE 8

The blame game Airbnb has been named as the culprit in the Cape Town

Coastal property prices unrealistic housing crisis, but is it solely responsible for driving up rents PAGE 18

and slashing available residential options?

PAGE 12

HOMEFRONT LIFESTYLE

Design for life Aimee Henning of Malica Design has a passion for a modern African aesthetic and life-improving design WORDS: JULIA FREEMANTLE :: PHOTOS: SARAH DE PINA

O

ccupying an interesting space somewhere between

residential and commercial, the latest projects by interior designer Aimee Henning are bridging the gaps

between disciplines.

Although she qualified for a financial degree, Henning was drawn to interiors for their ability to transform.

Exploring an African aesthetic Your range is quite broad — from residential to hotel spaces and offices.

Is there an overarching approach you take?

I always take the view that design should improve life — it has a direct bearing on how we sleep, eat, socialise … so how spaces are designed matters. On a broader scale too, design can effect change on an urban level.

Does your approach change when you are designing your own personal space?

I designed my husband’s and my previous home and I am currently working on our new penthouse. In

terms of thinking about longevity, and making sure it appreciates in value and does not date, I am going with finishes that are timeless and work with the architecture of the building.

I am also rethinking what people typically imagine apartment living to be — creating different rooms, such as a library, lounge, cinema room, rather than going open plan. It’s more versatile to have options — they can change as our needs change.

What was your most recent project?

I have just finished doing the reception spaces and hotel rooms for Hallmark

HOMEFRONT “I would have to call it comfortable minimalism.

Fewer pieces, but with a focus on texture, form and quality”

House in Maboneng, in Johannesburg, an amazing project in which architect David Adjaye was involved.

As a hotel, with foreigners coming in and out, it is a really exciting project as a showcase for African and South African design and I wanted to reflect the architecture, and the sense of Africanness in the interiors.

What were your considerations when approaching the hotel rooms’ look?

Because it is a hotel and the rooms have to fulfil numerous roles — sleeping, lounging, working, even eating — they had to be versatile and multifunctional.

So we created spaces that lend themselves to being conducive to all these activities.

On the topic of African design, who do you think is helping to build our reputation for excellence?

I love any designers who draw on a strong African aesthetic — whether that is through the use of pattern, colour or materials. At the moment I am following The Ninevites. Nkuli Mlangeni, who started the collective, was awarded Most Beautiful Object in South Africa at Design Indaba earlier this year for her Sankara Rug. I also love MaXhosa

by Laduma. Laduma Ngxokolo has such a way with interpreting tradition into something modern and relevant.

How would you describe your personal design aesthetic?

I would have to call it comfortable minimalism.

Fewer pieces, but with a focus on texture, form and quality. I love using special pieces by great modernist designers too.

I enjoy the contrast of combining old and new in an uncluttered way.

You also design your own products; how do these two practices work together?

The benefit of designing furniture too is that makes it easier to deliver spaces that match your vision when you can customise the pieces you cannot find.

Talk about one of your recent creations.

I collaborated with PRODUCED BY BLACKSTAR PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Samantha Durand

Katherine-Mary Pichulik from Pichulik designs on a hanging chair. We made two protoypes: one with a macramé seat which we created as a more accessible version, and then another with a handwoven grass seat which is more of a highend item. The idea behind it was to create a beautiful African piece that was functional, but also playful.

Why Pichulik — as a jewellery designer she is an unexpected choice for a larger-scale piece?

I approached Kate about the collaboration as I love her use of embellishments, and their balance of craft and sophistication, and thought we could create a unique African-inspired design.

How did your different design disciplines contribute to the outcome of the work?

Our roles in the collaboration were very specific. I had to look at the final design and work backwards from that in terms of function, materiality and detail. Kate approached the chair from the perspective of where the ropes would go and the limitations of their use.

PUBLICATION

Copy Editor: Lorraine Kearney Content Business Manager: Catherine Davis Production: Joanne Le Roux

ADVERTISING SALES Michèle Jones Susan Erwee

michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info

084 246 8105 083 556 9848

HOMEFRONT INTERNATIONAL

Grand entrance

Historic Malta – the cultured pearl of the Med – opens a door to Europe

WORDS: JOCELYN WARRINGTON :: PHOTOS: SUPPLIED BY HENLEY & PARTNERS

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lap-bang in the middle of the Mediterranean, the Maltese archipelago is ideally situated at the crossroads to southern Europe, North Africa and the Middle East.

Of the nation’s several islets, Malta is the largest, and the cultural, commercial and administrative centre.

Smaller sister Gozo is more rural and characterised by fishing, tourism, crafts and agriculture.

Despite being the EU’s smallest country — in population and size — Malta has the greatest density of historic marvels in the world, including its capital Valletta, a World Heritage Site and the European Capital of Culture for 2018.

The country’s history dates back to 5000BC and it contains the oldest known Neolithic temples, plus Roman catacombs, Second World War bunkers and a skyline dominated by the domes of 16th-century chapels, churches and cathedrals.

After 160 years of British rule, Malta gained independence in 1964, but English remains an official language. The archipelago has about 300 days of annual sunshine and an island lifestyle, all within easy reach of London, Paris and Frankfurt.

ECONOMY Malta has one of the lowest costs of living in Europe and it weathered the recessionary storm far better than Greece, Italy and Spain. In the 13 years since joining the EU, the country has developed an effective commercial infrastructure as well as world-class health and education systems.

Its strategic location and reputation for stability and security have made Malta a leading European financial centre. The country places one of the lowest tax burdens on its residents, the system combining corporate taxation with favourable tax credit incentives.

The archipelago is also a favourite with holiday makers, attracting nearly

2-million annually. Malta Tourism Authority puts the increase in visitors over the past 12 months at 22%.

PROPERTY Buoyant market conditions, a rise in disposable income and a 2017 budget that provides tax incentives for local and expat buyers are among the reasons for a property sales boom, says Chris Immelman, MD of Pam Golding Properties international and projects division.

The National Statistics Office of Malta reports that prices were up 8.4% at the end of 2016.

“But property is still more affordable than most European cities,” Immelman says.

“Banks are also offering remarkably low interest rates and the rental market is seeing major expansion.”

Lance Cohen, Seeff Atlantic Seaboard luxury market agent, says rental yields are about 3.5%-6%.

“Apartment prices tend to start at about €300,000 and villas at about €600,000, but can range to around €2m-€4m at the top end for a magnificent home and location,” he says.

Says Immelman: “For foreigners, the high quality of life, safety and exceptional facilities, plus the fact that investment offers a route to residence or citizenship, are key attractions.”

POPULAR AREAS

St Julian’s townhouse on sale for €485,000

Peppered with high-end villas, Madliena, to the north of the island, is pretty and tranquil. It is within walking distance of buzzing St Julian’s and Sliema as well as the towns of Swieqi, Pembroke and Ta’ L-Ibrag.

Across the water in Gozo, Fort Chambray is a luxury development in the fortress city built by the Knights of St John 250 years ago. Units are crafted from local stone.

The ancient “Silent City” and former capital, Mdina, comprises privately owned homes, all in high demand.

Foreigners buying or renting a property in the country can benefit from a residence

Valetta

“For foreigners, the high quality of life, safety and exceptional facilities, plus the fact that investment offers a route to residence or citizenship, are key attractions” Chris Immelman, MD, Pam Golding Properties international and projects division

permit or passport.

“Residence confers freedom of movement within the Schengen area as well as the right to settle indefinitely in Malta, although no minimum presence is required at all,” says Nigel Barnes, managing partner at investment-migration firm Henley & Partners, which has offices in Malta and SA.

VETTING “The citizenship programme, meanwhile, is the only one recognised by the EU and grants European citizenship that is transferable by descent.”

Although it opens the door to Europe and then rolls out a red carpet, Barnes says the country’s citizenship programme has

rigorous vetting standards.

However, for South Africans seeking greater access to global markets, or to secure their futures in uncertain times, Malta, named after the Ancient Greek word for honey, offers a pretty sweet deal.

TAX PERKS A remittance-based tax system provides foreigners who become resident with beneficial tax treatment.

Nondomiciled residents are only taxed on Maltese sourced income and capital gains, and foreign sourced income only if it is remitted to Malta.

No inheritance, gift or wealth taxes are levied.

WESTERN CAPE AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200

Bishopscourt / R26 million

Ref# KW1324358

Bedrooms 4 / Bathrooms 4 / Garages 3 / Timeless design in a tranquil setting. Attractive, classic-style family home situated in a lush leafy garden with mature trees, feature pool and lovely mountain vistas.

Elegant reception rooms and a deep verandah lead out to a lawned garden with tennis court - all the amenities a growing family could wish for.

Exclusive Agents Myrna Duveen 082 443 8417 / Christiaan Steytler 082 658 0071

Constantia Upper / R69 million

Ref# KW1310209

Green Point Upper / R13.75 million

Ref# AS1323093

Bedrooms 6 / Bathrooms 6 / Parkings 3 / Stately Mintaka. This unique estate comprises a classic villa and exceptional amenities on over 25 000 m2 (approximately 6 acres) of privacy in a glorious parkland garden with sweeping lawns, stately trees, shrubs, rose garden, vineyard, putting green, a magical cascade of large ponds and breathtaking views.

Bedrooms 3 / Bathrooms 3.5 / Garages 2 / This 3-bedroom townhouse offers an enviable contemporary lifestyle, security and luxurious living. Each of the 3 floors maximize the incredible sea, stadium and harbour views. Main bedroom suite on top level. Open-plan entertainment living space and outdoor terrace on middle level. 2 Further bedroom suites and pool deck on lower level.

Arie KadĂŠ 083 448 0488 / Angie Bloom 083 678 7876 / Lauren Clark 083 306 3830

Farrel Kelman 083 501 5015 / Melanie Truss 083 707 7033 /Minette Munitz 082 457 2978

FOCUS ON: WATERFALL RESIDENTIAL ESTATES

ADVERTORIAL

A world in one place Estates for retirees, a school and plenty of facilities, coupled with greenbelt, a lake and other amenities, Waterfall estates cater for the whole family WORDS AND PHOTOS: SUPPLIED

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ust 10km north of the Sandton CBD, between Woodmead and Kyalami, lies the 640ha Waterfall Residential Estates, which comprise the Country Estate and Village, an equestrian estate and two mature lifestyle estates,

namely Waterfall Hills and Waterfall Valley. There are more than 2,000 properties ranging from 600m² to 8,000m². Located adjacent to the new Waterfall CBD, these sought-after lifestyle estates offer residents an upmarket development to buy or build their dream home.

Waterfall is quickly becoming the preferred address for people who value a full and varied lifestyle, one that offers a spacious, secure environment for their family, upmarket living and true property value growth.

With attention to detail in all areas of development,

“Waterfall promotes an integrated live/work/play environment” Waterfall promotes an integrated live/work/play environment that sets a new standard in quality estate living.

VALUE Since the launch of Waterfall, clients have already seen a 200% property value increase on their initial investment, and in many cases, even more. Due to high demand, a limited quantity of properties and unrivalled lifestyle facilities, values of property at Waterfall have and will continue to outperform the industry growth norm.

In the last phase available in Waterfall, there are only 20 stands left, so don’t miss this opportunity and have to buy a resale at a premium.

By buying a property at Waterfall, the leading

development in southern Africa, clients are not only making a savvy financial investment but also the best investment in their lifestyle.

RETIREMENT Waterfall Valley offers a retirement lifestyle unparalleled in SA. Its lock-up and go homes are designed for retirees who enjoy an active and social life, with an emphasis on healthy living, but who wish to simplify their lives by removing the issues of maintenance, insurance and security normally associated with private home ownership.

With state of the art security and a multitude of lifestyle facilities, residents are fully catered for in every way in an upmarket, social environment.

RENTALS The Sheds@Waterfall consists of 72 freestanding homes ranging from 195m² to 270m² with well-appointed finishes and designer fittings. The development has its own clubhouse with swimming pool and clusters are

available to rent from R21,500-R28,000 a month.

FACILITIES Facilities include 37km of walking and biking trails that meander through 300ha of greenbelt along the riverside, a 5ha lake, a 5,000m² clubhouse with full gym, squash courts, studios, climbing wall, restaurant, indoor children’s play area and the Reddam House Waterfall private school. This means resident children can ride or walk safely to school without leaving the estate.

Each stand also has a fibre optic connection and piped LP gas. Located in Waterfall, a number of convenient retail and commercial elements as well as the Mall of Africa will be accessible to residents on their doorstep.

Waterfall Estate is on show daily from 9am-5pm.

GET IN TOUCH Waterfall Country Estate century.co.za Norman Mohr Tel: 082 903 7502

FOCUS ON: BLUE HILLS EQUESTRIAN ESTATE ADVERTORIAL

Refined country living Enjoy the benefits of a cosmopolitan suburban lifestyle alongside countryside tranquillity, a duality found at Blue Hills Equestrian Estate WORDS AND PHOTOS: SUPPLIED

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he epitome of country living is the ability to build your dream family home in a secure environment away from the hustle and bustle of everyday life.

The air is quiet and the landscape undeveloped, boasting traditional Highveld fauna and flora and green, rolling hills.

By investing in an estate such as Blue Hills Equestrian Estate, you can expect a unique duality of country living and cosmopolitan suburban lifestyle.

The estate is an ideal arena for a healthy, wholesome environment where the multitude of facilities are conducive to a safe, family-friendly lifestyle.

Amenities include private schools, equestrian facilities, greenbelts with walking and cycling paths and children’s playgrounds as well as easy access to highways and commercial and retail centres.

VIEWS Set in a picturesque valley with spectacular views over Fourways and the Magaliesberg mountain range, the 202ha estate offers discerning clientele large stands to build their dream homes, spacious greenbelts, state of the art security, a Reddford House private school and retail and

commercial precincts on their doorstep.

The property is known for its fauna and flora, with large dams and established indigenous forests. Blue Hills Equestrian Estate has an array of 128 stands ranging from 5,000m² to 15,000m², of which more than 75% have already been sold to savvy investors. Property values are expected to follow the sold-out Waterfall Equestrian Estate, where values have increased by 600% in five years.

INVESTMENT “Century Property Developments prides itself on creating viable and successful investment opportunities for our clients.

With us, you can always be sure your investment will grow,” says Rob Emett, sales director at Century.

The perfect example is Waterfall Equestrian Estate, where stands originally sold for R2m only five years ago; the last stand sold recently for R15m, giving investors a great return on investment.

Century’s country living estates are on show daily from 9am-5pm.

GET IN TOUCH Blue Hills Country and Equestrian Estate century.co.za Musi Motsuenyane Tel: 082 806 1735

HOMEFRONT PROPERTY PROFILE

Changing cities South African Property Owners Association CEO Neil Gopal is the frontman for a massive industry that affects the face, functionality and future of cities and the people who populate them WORDS: ANNE SCHAUFFER :: PHOTOS: SUPPLIED & ISTOCK

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eil Gopal is not a loud man, yet his impact on the South African Property Owners Association (Sapoa) has been just that. Vocal, with a voice that carries far.

It has to; the messenger and figurehead of this influential sector of the South African economy is no small role, but it is one for which Gopal is well-equipped.

Sapoa members own and control about 90% of the country’s commercial property — shopping centres, office parks, industrial parks — and are the largest contributors

to rates and taxes in metropolitan business districts. They are a force to be reckoned with, and are undoubtedly the brains trust of the South African property world, major players in the crucial flow and flavour of our cities today and tomorrow.

From the outset, Gopal charted a path that would lead him to play a significant role in the broader property picture. After school, he translated his interest in architecture and planning into a Bachelor of Science in town and regional planning at the University of the Witwatersrand.

“A partnership approach with the public sector is healthy, but that doesn’t mean we have to agree on everything”

He graduated in 1994 and immediately took the high road: “I headed up the property division at Intersite Property Management Services.” He spent nearly 10 years there, also leading the marketing and new business department, where he and Intersite MD Jack Prentice played a key role in establishing the Joburg Property Company in 1998-99.

SKILLS Gopal was invited to join Sapoa in 2004 as chief operating officer, and the following year took on the role of CEO. He brought a diverse range of skills to the position, but considers his town planning experience to be his strongest suit: “Issues of urbanisation, safety and security, environment and others, are crucial facets of everyday life which impact on each one of us as South African citizens. As a town planner, I’ve built up a good sense of the complex challenges faced by both the public and private sector, and this understanding has been vital.”

Sapoa is a section 21 nonprofit association established in 1966 by property investment organisations to unite all role players in the commercial property field. It is, in essence, the representative body and official voice of the commercial and industrial property industry in SA, and acts as a platform for property investors, a sector

with a combined portfolio of more than R1-trillion.

As CEO, one of Gopal’s primary functions is consultative, principally with government structures.

He says: “A large part of my role involves advocacy, meeting with government departments and officials, and communicating the role of — and the impact of legislation and policy on — the commercial property industry. Sapoa is held in very high esteem by the relevant sectors and we’re consulted on all matters pertaining to the property industry. We have representation on key South African bodies such as Busa, Nedlac, the Services Seta, the Property Sector Charter Council, National Treasury steering committees and the chambers of commerce.”

Sapoa is also strongly represented on local and provincial planning structures, and maintaining effective relationships with key local authorities is critical: “In order to have a healthy, functioning property sector, we need an efficient and effective local municipality, and vice versa. We’re always involved in a number of initiatives with regards to addressing new pieces of planned legislation, bills, policies and other platforms.”

FOCUS About Sapoa’s current focus, he says: “We’ve partnered with the cities of Joburg and Cape Town to address the concept of inclusionary housing. We’re studying international examples and this, together with consulting

developers, will assist in formulating policy measures.

“While Sapoa members may be building buildings, in effect, we build the urban centres and are party to creating the urban landscape.

Of course, we can’t do this alone as the policy decisions in this regard are established by government.” But that does not mean Sapoa simply toes the line. Much of its work is examining government or municipal processes and decisions, and debating them rigorously.

Gopal says: “A partnership approach with the public sector is healthy, but that doesn’t mean we have to agree on everything.”

POLICY He is responsible for all day-to-day management decisions at Sapoa and for implementing the organisation’s business plan.

Sapoa’s stated objectives revolve around relationships, education, advocacy and leadership, but the mandate probably closest to the CEO’s heart is the bursary fund: “We established this four years ago and, to date, we’ve placed close on 70 students at universities around the country, studying four-year degrees related to the property industry.

I’m convinced this will be a game-changer for the future of our industry.”

As CEO, Gopal is fully cognisant of the responsibility to South Africans entrusted to Sapoa.

Commercial and industrial property is not simply about big business in SA; it is a complex economic cornerstone that affects everything, from residential property to inner city regeneration to international investment. It affects individuals. You and me.

The Sapoa Annual Convention & Property Exhibition was held recently in Cape Town.

YOUR PROPERTY DEVELOPMENT PARTNER

FOCUS ON: EVELEIGH HEIGHTS

ADVERTORIAL

Eveleigh Heights ticks all boxes Sectional title complex in Ravenswood wins over buy-to-let and buy-to-live investors with great location and facilities WORDS AND PHOTOS: SUPPLIED

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ontemporary sectional title apartment complex Eveleigh Heights is proving popular with buy-to-let as well as buyto-live investors. Offering 240 apartments, the development, in Eveleigh, Ravenswood, Gauteng, was completed by Stonesman Projects, a family-run property development company with a long track record of successful residential and commercial developments in the area.

Says Ricky Goncalves of Stonesman Projects: “Eveleigh Heights has 15 four-storey apartment blocks of two- or threebedroom and two bathroom units, each with either basement parking or covered parking bay, as well as visitors’ parking. It was already 55% sold out before the official marketing launch, and we expect the rest to move fast.

“The apartments are move-in ready and feature modern designer finishes, a covered patio or balcony, private and pet-friendly gardens for the groundfloor units, exquisite views from the top-floor units, and preferential rates for ovens and kitchen appliances by top Italian manufacturer

“We have noted substantial interest from buy-to-let investors wanting to benefit from the attractive rental yields” Ricky Goncalves, Stonesman Projects

Smeg. There are also built-in braais and prepaid electricity meters, and Wi-Fi and DSTV setup is included.”

AMENITIES Central to Eveleigh Heights is a private clubhouse with a coffee bar and fully equipped gym. This gated village has 24hour guard service and CCTV surveillance, with electric perimeter fencing, and provides secure modern living with all the convenience of the city.

It is well situated, in close proximity to various restaurants and bars, East Rand Mall, East Rand Value Mall, OR Tambo International Airport,

schools, police stations and major highway routes. The grounds include a children’s play area with a jungle gym, as well as a laundry.

Says Goncalves: “We carefully considered the location and facilities in this development to ensure that it is perfect for an array of residents, from young and career professionals to first-time buyers and young families. The units range in size from 79m 2-101.4m 2 and pricing starts from R849,000, which includes transfer duty. There is a minimum holding deposit of R5,000.

“We have noted substantial interest from buy-to-let investors wanting to benefit from the attractive rental yields of 9%–10%. The rental demand in this area is such that some of the new units have already been filled with tenants ready for investor buyers, removing the hassle of their having to find a tenant.”

GET IN TOUCH On show daily 10am-5.30pm Stonesman Projects Ricky Goncalves Tel: 084 565 5772 e-mail: gonrinha@gmail.com

HOMEFRONT

INVESTIGATION

The blame game Airbnb has been named as the culprit in the Cape Town housing crisis, but is it solely responsible for driving up rents and slashing available residential options?

WORDS: GEORGINA GUEDES :: PHOTOS: LEAH DE JAGER, NATASHA LASSEN, NADINE VAN DRIEL & ANTON SCHOLTZ

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irbnb has been blamed for driving up prices and reducing the availability of property in Cape Town — but this is certainly not the whole picture behind the housing crisis.

A recent article on thesouthafrican.com places the blame for Cape Town’s housing crisis squarely at the door of holiday room rental portal Airbnb. The headline read “Cape Town’s housing crisis summed up in an Airbnb map”; the article showed a map of Cape Town stippled with Airbnb listings. Although other contributing factors to the housing crisis were acknowledged, the writer insisted that the Airbnb listings image “will give you chills”.

However, this map, with data from AirDNA, a company that scrapes Airbnb data around the

world, does not paint the whole picture. While Airbnb is certainly playing a role in the pricing of the Cape Town property market, the question remains whether it is a significant part.

THE DATA “In no uncertain terms, Airbnb has made a splash in the Cape Town housing market,” says Allan Davids, an economist and PhD candidate at the African Institute of Financial Markets and Risk Management at the University of Cape Town, working on real estate finance and housing markets. “One thing is certain — Airbnb is not the sole cause of the recent price appreciations across Cape Town. It is a contributing factor, and all that we have to establish is how large the contribution has been.”

Davids says, however, that this is not the easiest

task without any data to conclusively test this theory. Much of this data lies with Airbnb, which has done very little to disprove these allegations in Cape Town and this “does not help the discussion, since the burden of proof rests with them”. Airbnb has a policy of not commenting on scraped data.

Despite this, Davids believes that while Airbnb is contributing to price increases in the Cape, this effect is small, and other factors are more influential. The thesouthafrican article stated that there were 15,000 Airbnb rentals in Cape Town in 2017.

“However, these are active rentals, which means we do not know how long they are rented out for — it could be one or two days or five months — and these active rentals also count rooms in houses, so

“One thing is certain — Airbnb is not the sole cause of the recent price appreciations across Cape Town” Allan Davids, economist, African Institute of Financial Markets and Risk Management

HOMEFRONT

A TALE OF TWO HOSTS Karl, a Joburg host, lets out two cottages on his property. He would not have let out his properties for the long term if he had not signed up with Airbnb. “Airbnb is not just a mechanism to rent out an empty room or property, but an opportunity to meet interesting people that you as a host can carefully control and manage.

Airbnb is a platform of new experiences and travel for both the host and the guest.”

Belinda, who lets out her house in Betty’s Bay, used to keep the house as a second home, but a change in her earnings meant that the house had to “earn its keep”.

“Airbnb gives me flexibility, allowing me to determine how often it’s rented out and to whom. The fact that guests are also rated, not only the hosts, makes for a much more pleasant interaction as both parties genuinely seem to want to make the experience a positive one.”

one house with three rooms rented on Airbnb is counted three times. As a result, the 15,000 number is likely overstated.”

Davids says if prices are being pushed up by Airbnb, this only applies to properties that have “Airbnb potential”. He says: “In reality, many body corporates do not allow short-term letting and many places are not Airbnb appropriate, so even if Airbnb is pushing up prices, it is most likely only doing this in a segment of the property market and up to now, we don’t have any evidence that these increases filter through to the rest of the market.”

POSITIVE If property prices are indeed being inflated

by Airbnb, this is not necessarily all bad, he says.

“If Airbnb leads to small but manageable property price increases, who is to say that this is the only effect at play? In fact, Airbnb recently released a report showing that last year they injected about R1.7bn into the Cape Town economy, bringing in about 200,000 visitors.

This has many positive economic effects for many people in Cape Town, not just home owners.”

Approached for comment,

Airbnb regional market manager for Southern Africa Velma Corcoran says house pricing is a complex issue driven by many factors.

“We’ve met countless Airbnb hosts in Cape Town and seen how home sharing has helped them pay their bills and stay in their homes. The typical Airbnb host in Cape Town earns R36,700 per year by sharing space in their home for 23 nights per year. They aren’t taking houses off the market; they are sharing their homes and the city they love, and using the additional income to help pay the bills.”

While many properties listed on Airbnb conform to the classic Airbnb model — a room in a house being let by friendly hosts — it would be disingenuous to pretend that entire flats are not being let through the site as well. However, it is unlikely that these properties comprised a significant portion of the long-term rental pie before the advent of Airbnb.

“Airbnb has definitely caused a drop in our short-term rentals, but it’s not affecting long term as much or at all,” says Liz Marabini, a Just Property agent working on the Atlantic Seaboard.

“Our holiday rentals

have probably halved in the past two years, but there’s been no real impact on our long-term rentals.”

EASIER Davids says while Airbnb might have made it easier or more convenient to rent out a property, these “hosts” already had guest houses, bed and breakfasts and short-term holiday rentals long before the launch of the site.

“So to say that Airbnb has introduced the idea of short-term rentals is clearly false. In fact, many of the listings you see on Airbnb you will also see listed on other websites and have been operating as established holiday rentals long before the introduction of Airbnb.”

For this reason, he says that stating that Airbnb has introduced 15,000 short-term rentals in Cape Town is inaccurate, as many of these properties would have operated as short-term rentals on other websites and platforms irrespective of the introduction of Airbnb.

One area where agents say the impact of Airbnb is more noticeble is in the student housing arena.

Students typically rent single rooms in houses or share houses with other

students, and it is these types of spare rooms or second homes that are often featured on Airbnb.

“Most owners are using Airbnb now,” says Charlene Munyaro, a property consultant with Long Life Rentals. “This is often because they want to cut out the third party, so they don’t have to go with agents at all.”

However, while Davids’s research does not focus on student accommodation, he says there are a lot of factors — including the student protests — that could lead to accommodation owners looking to let elsewhere.

“I highly doubt that Airbnb is causing this.

Students take out oneyear rental contracts, which doesn’t really differ from other long-term rentals, and students don’t usually rent out beautiful apartments with views of the mountain, which are popular on Airbnb.”

ANALYSIS Bearing all of this in mind, a deeper analysis of the housing market is required to understand why there is a housing crisis in Cape Town. Davids says Capetonians want to live in or near the CBD and experience the associated

lifestyle and shorter commute, which drives up the demand for flats.

“In addition to these local effects, the demand for property in Cape Town is also coming from outside, as reflected in the prominent trends of semigration and foreign investment in property in Cape Town,” he says.

Numbers from Statistics SA bear this out, showing that net migration between 2011 and 2016 from the rest of SA to the Western Cape was about 150,000, which adds substantial demand for property and puts pressure on prices.

On the supply side, using data published by the City of Cape Town on its open data platform, between 2012-13 and 2015-16, residential building plan completions decreased consecutively year on year by -3%, -8% and -13%, so effective supply growth has stalled.

“This situation accounts for much — nearly all — of the price appreciation we have been experiencing in Cape Town. While Airbnb may contribute to these rising prices, removing Airbnb does nothing to address the underlying demand and supply dynamics driving prices,” Davids says.

NORTHCLIFF OFFICE Office: 011 476 1125 pamgolding.co.za/northcliff

Ruimsig/ R20 million

Eagle Canyon Golf Estate / R19.8 million

Ref# WR1134101

Bedrooms 12 / Bathrooms 12 / Garages 2 / Gorgeous setting on the banks of the Wilge River, offering an exciting opportunity for a new investment plus new lifestyle: living in this beautiful environment combined with an income generating business (weddings, conferences, pool parties etc). Application for a further 100 rooms awaiting approval..

• • • • •

Bedrooms 4 / Bathrooms 4 / Garages 4 / Contemporary lines combine with understated elegance in this exclusive luxury home in pristine condition.

Discover indulgent cosmopolitan living in a blend of architectural mastery and excellent taste. Entertain in the expansive, open reception rooms leading to an inviting patio, pool and viewing deck for the most majestic sunsets. Lose track of time in the unique street cafe' with its quaint character and charm. This unforgettable home is a fusion of laid-back modernity with a natural warmth that weaves its way into your heart.

12 Bed Guesthouse Wedding Venue and Chapel Various Conference rooms 2 Bars and Restaurants overlooking the river Pool/Entertainment Centre

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Angelika Edwards 083 377 5577

Boskruin/ R17 million

Ref# NC1292996

The best in local and International building finishes Wine Cellar Exclusive Nature Reserve Access Pool, jacuzzi and pool-house 2 additional Sub-divided stands Gwen Kenmuir 083 652 6105

Northcliff / R15 million

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Central air conditioning system A large generator State of the art security Pool house and pool set in rolling lawns Magnificent views over Magaliesberg

Juane Celliers 083 445 0384

@PamGoldingGroup

Ref# NC1317316

Bedrooms 7 / Bathrooms 9 / Garages 8 / Amazing attention to detail and no cost spared to ensure the owners designed and finished this home in only the finest fittings, from floors to ceilings. Boasting a fluid floor plan allowing for an extraordinary light and airy ambience and an easy flow through the double volume living rooms to the multi levels of this home, rounded off by a wrap- around patio with magnificent views of the Magaliesberg, rolling lawns and pool area.

/PamGoldingProperties

pamgolding.co.za

Contemporary Architecture Expansive Entertainment Viewing deck over the golf course Pool Flatlet

Linda Nunes 083 949 8662

Bedrooms 4 / Bathrooms 6 / Garages 4 / On the Northern slopes of Boskruin Koppie lies a home of Embassy style living. The residence borders the nature reserve with indigenous fauna and flora. The home has never been on sale before and has been occupied by the same family since being built. No expense was spared in creating an international master piece, constructed by a master builder; the result is truly a magnificent dwelling, showcasing the very best in local and international building finishes. Within the boundaries there are 2 sub-divided stands in which one could provide for extended family or investment.

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Ref# NC1304648

oneonwhiteley.co.za

The

It’s that feeling that no matter where you go from here, you know, deep down; It doesn’t get better.

One.

One-on-Whiteley is THE ONE when it comes to living, shopping, dining, playing and working in the lifestyle capital of Johannesburg, Melrose Arch.

With new 1-bedroom units available from R2 million, One-on-Whiteley is the perfect match for the first time buyer or avid investor.

For more information: Victoria Russell: C: 074 683 1222 | E: victoria.russell@pamgolding.co.za Tersia Taljaard: C: 063 695 7571 | E: tersiat@amdec.co.za

NOTHING WILL PREPARE YOU Kids & Teens Wonderland • Sport & Recreation • Legendary Golf • Restaurants & Retail • Leisure • Equestrian • Education • Innovative Infrastructure • City Living • Commercial • Retirement • Conservation • Security

Discover a new way of resort living within 2000 acres of beautifully manicured parkland. With access to world class facilities including an 18 hole Nicklaus Design championship golf course, equestrian centre, resort pool, off-and-on-road cycle tracks, dedicated 18km pedestrian boulevard, outdoor gyms, tennis, fishing, a skate park, wonderland play zones, restaurants, future city centre and over 100 reasons to make this destination your new dream home.

But, nothing we show can prepare you for what you will see. So book your exclusive viewing adventure on-line and experience authentic resort living.

FREEHOLD STANDS | CLUSTERS | APARTMENTS SCHOOL ADMISSION FOR 2018 IS OPEN

Sales: 010 597 1040 | Mark: 082 559 2989 | Leanne: 072 078 9562 | sales2@steyncity.co.za

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STEYNCITY.CO.ZA

HOMEFRONT PROPERTY NEWS

Steyn City adds its own schools to the mix

T

he multibillionrand Steyn City, in northern Johannesburg, is braced for several new developments, including a well-appointed office park, but it is the opening next year of Steyn City Schools that

has residents abuzz.

Designed in line with the latest thinking in education, the campus will offer students a complete learning journey from its Early Years Centre to Preparatory and College.

Steyn City Schools

commercial managers Marcus Oshry and Miles Wilson say current Clifton School headmaster Brian Mitchell will head the schools’ teaching team.

“Mitchell is one of the most highly regarded educators in the country.

His ethos is rooted in respect for the individual,” Oshry says.

Wilson says Steyn City Schools will be committed to a Christian ethos that acknowledges a diverse society where happiness, integrity, dignity, honesty, passion and rigour underpin what the schools will offer.

The schools’ curriculum, sporting and cultural programmes have been formulated to help students achieve their full potential.

Facilities include spacious classrooms with balconies for multiple learning areas, science laboratories, a canteen for hot meals and tuckshop for healthy treats.

Oshry says the campus offers an indoor aquatic centre, several multicourts, sports fields and a pavilion.

Students can also access the Steyn City facilities including running and mountain bike trails, a world-class equestrian centre and championship golf course.

“Steyn City’s philosophy of offering nothing but the best has certainly been carried through to this well-equipped, futurefacing school,” he says.

Admissions are already open and the schools open in January 2018.

Seven homes planned for 5th on Murray

T

rinity Projects’ 5th on Murray, on Murray Road in Durbanville, Cape Town, comprises seven sectional title homes.

The double-storey, threebedroomed houses are priced from R3.465m.

Says Erik Joubert, Trinity Projects MD: “5th on Murray is unique in the sense of its location on this excellent site on Murray Road in Durbanville’s Secondary CBD. It fronts beautifully north onto a public open space greenbelt, effectively allowing for a great sense of openness, commanding breathtaking views over the neighbourhood and beyond.”

The homes were designed by BPAS

Architecture, combining Georgian influences with contemporary convenience.

Says LeRoy Viljoen, Trinity Projects development director: “5th on Murray is a fresh variation on a typical utilitarian sectional title design, where space optimisation was addressed successfully.”

Each home has an internal courtyard, patio, private garden and double garage.

The complete development is fully walled and landscaped with a central remote-controlled vehicle access gate directly off Murray Street.

Infrastructure construction has started and completion is scheduled for February 2018.

Coastal house price realism deteriorates

A

recent FNB Estate Agent Survey found that the average time homes spend on the market before being sold has increased. Following two consecutive quarters of a rise in the FNB Residential Activity Rating, in Q2 2017 this rating receded. And the average time of homes on the market resumed its rise from 13 weeks and four days in Q1, to 15 weeks and four days in Q2.

This points to a housing market moving away from equilibrium, and into a space where supply exceeds demand, according to the latest FNB Property Barometer. A major regional breakdown points to two

different housing markets.

Gauteng appears to be in equilibrium, averaging 12 weeks on the market.

Average times on the market in the three coastal regions have risen markedly, taking the national average higher.

A second question related to price realism is the percentage of sellers having to drop their asking price to make a sale. From a multiyear low of 78% in Q2 2014, there has been a mild upward trend to 92% of all sellers dropping their asking price in Q2 2017. However, sellers are dropping their prices by a lower percentage: from -8% for much of 2015 to -6.8%

by Q2 2017.

The shift away from equilibrium, or deteriorating price realism, is a delayed response to weaker demand, according to the barometer.

The number of serious viewers per show house has also decreased, from a multiyear high average of 14.42 in 2013 to a 10.66 average in 2015. In the four quarters through Q2 2017, the average was 10.87 viewers. This is seemingly at a level where demand is not strong enough to mop up available residential supply.

In Q2 2017 there was a decline from a previous 12% of agents citing “stock constraints” to 8%, and the percentage citing stock constraints is now far below

the 24% high of early 2015.

The shift away from market equilibrium, or towards less realistic pricing, has taken place largely in the coastal metros, where the average time spent on the market increased to 20 weeks and three days in Q2 2017.

Gauteng has become the “solid” region, and appears to have improved in health, averaging 12 weeks on the market in Q2 — right on the barometer’s subjective “market equilibrium”.

Finally, the survey found there were far shorter average times that homes were on the market in lower income areas than in the high net worth end.

Average time of homes on the market — two-quarter moving average Weeks 0

5

10

15

South Africa

20

25

30

14.57

Joburg Tshwane Cape Town Mandela Bay Ethekwini

12.86 9.57 16.21 16.29 20.93

Percentage of homes sold below asking price —­two-quarter moving average % 50

55

60 65

70

75

80 85 90 95 100

South Africa Joburg Tshwane Cape Town Mandela Bay Ethekwini Source: FNB Property Barometer

91 89 95 87 75 96

35

PRETORIA EAST

. . .

D R N U A !

O T Y E S M D A L O I H U B BUY M A AND DRE Stand: R589 000 up to R650 000 Building: R1 225 000

Stand: R589 000 up to R650 000 Building: From R1 150 000

FAR = 120% of stand size Stand: R589 000 up to R650 000 Building: From R1 100 000 WERNER EKSTEEN

RE/MAX Jowic - Team Werner Eksteen

082 411 3089

082 577 4531 (Office) werner@wernereksteen.com

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Houghton on 12th, 53 Second Ave, Houghton

OFFICE – 011 034 2201 WARREN BECKER – 082 302 3004 || warren@thehoughton.com ALAN BECKER – 082 718 8100 || alan@thehoughton.com