DECEMBER 2012 #85
South African property and lifestyle for international investors
PRIME INVESTMENT APARTMENTS NOW LAUNCHING FROM R460,000 TO R630,000 ALL INCL.
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Urban housing demand on the rise Moving to the suburbs M
Photo by Evan Bench by STAFF REPORTER The need for the development of affordable housing in urban areas has increased over the last 10 years. According to Engel & Völkers Southern Africa, the rate of employment in the main metropolitan areas compared to outlying areas continues to contribute significantly to this increase as more people are inclined to move towards the metropolitan areas in search of greater job opportunities. The Human Settlements department annual report states that its goal is to achieve the establishment of 400,000 households by the end of 2012 and also to facilitate 600,000 housing opportunities in the gap market for people who earn between R3,500 and R12,800 monthly - goals that are highly achievable as international investors are now investing in the South African residential property market.
International Housing Solutions (IHS) has to date raised R1.9 billion for both the sales and rental residential market, according to the agency. IHS has substantial international backers. Based on the performance of their initial funding to date, there will be more capital made available for investment in the South African real estate market. Rob Wesselo, managing partner of IHS South Africa, says they believe that this market is getting better. “Rapid urbanisation is causing the supply gap to grow at a rapid rate as supply is hindered by the conservative lending by banks and capacity constraints at municipal levels.” The IHS has provided funding for 33 projects with approximately 25,000 units across all major urban centres in South Africa.
Their rental portfolio comprises 5,000 units, which to date has performed above expectations. Wesselo says the IHS has commissioned a study on the social impact of the affordable housing sector, as it believes the sector is punching above its weight in terms of financial as well as social return on investment. “I believe that there is no industry that creates as many job opportunities as construction so there is a double impact with their investment, not only are they creating jobs but also provide families with homes,” says Wesselo. He adds that foreign investors are keen to invest in Africa’s emerging market and this sector offers them a niche opportunity to invest in the burgeoning lower and middle class of South Africa. - Property24.com
y wife, two children (9 and 13 years old) and I are planning to move to Cape Town. I emigrated from South Africa 18 years ago and as a result have little understanding of what the current property market is like. We are looking to move to the suburbs, like Constantia or Rondebosch, but this will be largely determined by the schools our children will attend. As a starting point, could you advise us on the best areas to look in terms of safety, best schools nearby and also areas that could increase in value should we decided to sell and move to another area when our kids leave home. Andy Todd of Seeff Southern Suburbs answers: The most popular school areas are Newlands, Rondebosch and Claremont – for those wishing to be close to the traditional schools like Wynberg, SACS, Herschel, Rondebosch, Bishops, Rustenburg, etc. Other popular schools like Sweet Valley Primary, Reddam, Bergvliet and others are more easily accessed by Constantia, Bergvliet and Tokai. Prices of
property in these areas have remained buoyant – and in fact this applies to the entire Southern Suburbs for the very fact that access to good schools sets the mark for property prices. One must also remember that the Southern Suburbs is close to UCT and other tertiary institutions as well. Security is what it is in Cape Town and a well protected property is the way to go; prevention being most certainly better than cure.
Andy Todd (pictured above), Licensee: Seeff Southern Suburbs www.seeff.com
Interest rates and the property market by DENISE MHLANGA The decision by the Reserve Bank to leave the repo rate unchanged was not a surprise for property experts who say this is still a good time to buy. The Reserve Bank Monetary Policy Committee (MPC) left the repurchase rate unchanged at 5 percent per annum. In making the decision, the MPC noted that it assesses the balance risks to the inflation outlook to be on the upside, given the continued pressure on food prices, uncertainty of the exchange rate movements and the reweighting and rebasing of the CPI.
Adrian Goslett, chief executive of RE/MAX of Southern Africa says although no further rate cuts are expected, the current rate is still highly favourable for homeowners and would-be buyers, bearing in mind that the last time South African consumers experienced rates at this level was in 1974 “While some micro-property markets are slowly beginning to transition, for the most part we are still in a buyer’s market.” Buyers with a good credit record and access to finance should take advantage of the current conditions before the
market changes, he says. Meanwhile, Samuel Seeff, chairman of Seeff Properties says while a cut in the repo rate would have been good news for homeowners, the decision is still welcomed for the property market. “A rate cut certainly would have improved affordability for bond holders, but it may also have sent a signal that it is time to start spending.” Seeff urges consumers to focus on reducing their household debt and those wanting to buy should enter the market now without delay. - Property24.com
Buyers stay for the long run at Zimbali Coastal Resort by STAFF REPORTER Zimbali Coastal Resort was launched in 1996 and is now a mature estate of over 1,100 properties in its 17th year of operation. Andreas Wassenaar, Principal of Seeff Dolphin Coast, says: “By conservative estimates the estate has attracted over R6bn in investment over this period, and is referenced as one of South Africa’s greatest development success stories. The peak of registered Deeds Office transfers by Rand volume occurred during 2008, with R371.9m recorded.” The dramatic impact of the recession did not leave Zimbali unscathed, and registered sales fell by 26.5% in 2009 with R273.3m in sales registered during this year. “The recovery has been gradual, with registered sales volumes being R259.7m across 76 transactions in 2010 and R258.7m across 67 transactions in 2011. For the 2012 year to date, 34 Zimbali property transactions have been registered with a total value of R153m. Seasonal sales activity does have an impact, and we can expect the current year to close off similar to 2011. Seller expectations, in terms of pricing, have moderated, and as a general rule pricing is 15% below the market peak levels.” Entry level homes in Zimbali are priced from R3,5m, which will typically be a sectional
title unit of approximately 250m2. The typical mid-level home in Zimbali is priced at R8m and would be a fourbedroom, four-bathroom designer home with great entertainment areas and pool. As with most coastal destinations, the proximity to the sea and views add significant value to the property, and can impact on selling prices by as much as 50%. The average price of all transferred properties within Zimbali (sectional title, freehold and vacant land) over the past 12 months was R6,683,658. Within Zimbali there is a category of pricing from R12m to R20m, which can be referred to as the ‘highlevel’ pricing band, and which reflects extraordinary quality and positioning. The homes in this category typically offer four to five bedrooms, staff accommodation, triple garaging, designer kitchens with separate sculleries and laundries, and impressive entertainment areas with signature rim-flow pools. As every home within the estate is a bespoke architectdesigned residence with superior finishes, this aspect is now taken as a given by buyers. The ‘ultra high-level’ homes within Zimbali, of which there are more than 40, would trade within the R20m to R50m price bracket. These have levels of craftsmanship rarely experienced and would
rival residential homes in most internationally acclaimed destinations. Wassenaar says Zimbali properties are typically held for a reasonably long period prior to selling. “Of all the existing homeowners, just over half (50.88%) have owned their properties for more than five years. Of the sellers over the past 12 months, 57.34% owned their properties for more than 5 years. This gives an indication that there is little speculative buying behaviour and that most of the people
investing in Zimbali do so for the longer run. Age analysis of those who bought in Zimbali over the past 12 months indicates that 51.11% were aged below 50, indicating a shift to younger families with children. A migration from the greater Gauteng area has already started, with the new King Shaka Airport being just 10km away, making it easy and convenient to commute from Zimbali.” The featured property, priced at R13m, is a superb example of intelligent design and positioning of a home on a fairly steep site measuring 1582 m2, the end result being child-friendly with flat, grassed playing areas around a pool and entertainment area, offering good sea and greenbelt views and immaculate living spaces. The impressive and bold doublevolume entrance area sets the tone, with a sweeping marble staircase with bespoke wrought iron balustrade. The 6m high dry-stacked natural rock wall at the entrance is the perfect place to showcase art. The ground floor is all about living and entertaining areas. The over-sized triple garage leads directly into the home. The open-plan kitchen interacts perfectly with the
lounge and dining areas, has a large separate scullery and laundry room and leads off into an immaculate drying yard. Staff accommodation has become an important consideration for families with younger children, and this home provides a very generous staff room with an en-suite bathroom. The outdoor patio area has a builtin braai and worktop within direct access of the rim-flow pool. The separate TV lounge on the ground floor is the ideal room to use as a place to escape to and would make an excellent study. The four bedrooms are located in close proximity to each other on the first floor, with the higher elevation revealing spectacular views across the greenbelt of indigenous coastal forest to the ocean beyond (all the rooms have huge windows). The pajama lounge on the first floor leads onto an undercover patio, which is the perfect place to watch the sun rise out of the Indian Ocean. Contact Andreas Wassenaar, Principal – Seeff Dolphin Coast and Seeff KZN Chairman, on 082 837 9094; email firstname.lastname@example.org
R1 695 000
GAUTENG - MIDRAND, GRAND CENTRAL
HEADS UP - MODERN, SPACIOUS FAMILY HOME Bedrooms 3 Bathrooms 2 Garages 2 WEB 280231 Space for the whole family awaits you in this modern home with top finishes, entertainment patio and sparkling designer pool. [O] +27 21 794 5252 PETER THORNTON +27 72 625 8467 | PETER MARAIS +27 82 493 3316 email@example.com
R4 200 000
NEW DEVELOPMENT LAUNCH IN MIDRAND – THE BIRCHFIELD GRAND CENTRAL INVESTMENT APARTMENTS ROOMS WITH VIEWS!
Now launching phase 1 of Birchfield apartments in Grand Central Midrand, affordable Bedrooms 8 Bathrooms 8 Garages 4 WEB 280325 investment units from R460 000 to R630 000, all incl. A prime location in the heart of the 611m². Great value for money. Ideal for the extended family or multiple families. new Midrand upmarket growth node and within 1km from the Gautrain station. Undercover braai areas lead to landscaped garden with overflow pool. [O] 0+27 11 784 1222 GLEN FISHER +27 79 491 7941 firstname.lastname@example.org [O] +27 21 975 5290 LIEZL VAN DEN BERG +27 82 851 0658 email@example.com
R1 320 000
R3 950 000
KAROO DELIGHT WITH MUSCADEL
PEZULA GOLF ESTATE
Bedrooms 3 Bathrooms 2 Garage 1 WEB 276926 A decadent cottage, fully restored and situated in the popular area of Montagu-West. Surrounded with beautiful mountain vistas and an enchanted ambience of note! [O] +27 23 614 3332 PATRUZCHKA MÜLLER +27 72 261 6974 firstname.lastname@example.org
Bedrooms 4 Bathrooms 4 Garages 2 WEB 251634 This villa on the secure Pezula Golf Estate offers comfortable living and overlooks the par 4 tenth and par 3 eleventh at Pezula. Lovely North views, entertainment deck, pool. [O] +27 44 382 5919 CHARLES ERASMUS +27 83 448 1622 email@example.com
FROM R460 000
R20 000 000
A PALATIAL HOME FOR THE DISCERNING BUYER Bedrooms 5 Bathrooms 5 Garages 4 WEB 269825 Gated road, rose garden, olive grove, fountains, pool, pavilion and more. Gracious reception rooms open on to spacious patio. Separate exquisite cottage. Many features. [O] +27 11 784 1222 GEORGE PAPADOPOULOS +27 84 454 1834 | CORRINA LOWRY +27 82 652 8891 firstname.lastname@example.org
R14 250 000
HIGH- END, HIGH- TECH WITH ''GREEN'' CREDENTIALS Bedrooms 5 Bathrooms 5 WEB 270291 Generously proportioned rooms, entertainment area, extensive range of facilities, superb security and beautiful garden. [O] +27 11 784 1222 KATHIE HAY +27 83 229 6443 PAULINE TREHEARN +27 83 266 4228 email@example.com
R9 975 000
UNBELIEVABLE, BUT TRUE
YOUNG PROFESSIONAL OR STUDENT
Bedrooms 5 Bathrooms 5 Garages 3 WEB 214259 This executive home with all the bells and whistles has unrestricted views with nothing but Fynbos in front of it. [O] + 27 44 533 0311 ALET OLLEMANS +27 83 657 5678 firstname.lastname@example.org
Bedrooms 2 Bathroom 1 WEB 271282 Duplex in a sought-after complex. The unit has its own private patio overlooking a rock garden. [O] +27 11 475 3536 MATTHEW HARVEY +27 83 297 2650 email@example.com
Seaside homes in Mossel Bay tick all the boxes by STAFF REPORTER If you’re in the market for a seaside home, then Mossel Bay ticks all the boxes, says Seeff licensee, Lulu Theron. What sets it apart from other destinations is the full range of activities for holidaymakers, modern infrastructure and a wide selection of property options to suit every budget. While it is developing rapidly and resident numbers are growing, it still retains its quaint coastal qualities, offers a peaceful seaside escape and is especially family-friendly, she says. It has one of the mildest year-round climates, a warm sea and is conveniently located midway between Cape Town (about four hours’ drive) and Port Elizabeth with George Airport about 20 minutes away. The scenic Outeniqua Mountains form a backdrop to the stunning beaches (the main beach, Santos, has Blue Flag status) and just about every water sport activity (including top surfing) and adventure sports and top championship golf courses. Fynbos and stunning vegetation surrounds the area, there are interesting hiking and nature trails and it is a nature lover’s paradise. It has an old working harbour and a rich history that includes heritage architecture and sites and several museums. The town is also popular with anglers and is famous for its mussels and oysters and offers some of the best whale watching and seal spotting in the country. There is an endless selection of good quality holiday apartments, priced from as
low as R380,000 and homes from around R600,000, says Theron. Sea view and seaside apartments cost upwards of R600,000 and homes from R1.8 million, depending on the location. There is also plenty to choose from in the villages just outside of the town. Upper income buyers have a choice of luxurious penthouses priced at around R4.5 million to beach houses priced upwards of R4.5 million and exclusive estate homes that range upwards of R3 million. The small villages of Vlees Bay and Boggoms Bay, says agent Elna van Niekerk, offer quaint holiday homes and exclusive beachfront properties. Prices start at around R1.4 million and range up to R7 million for a water-side location with direct beach access. Dana Bay is situated in a conservancy area on the shoreline of the Bay of St Blaize and most of the properties have sea views. Studio apartments with balconies start at R350,000 and three bedroomed units range up to R1.5 million. Wooden cottages are priced from R650,000 and holiday homes from R2 million to R5 million for exclusive homes with beach access. Sea view plots range from R250,000 to R1.25 million for a waterside location. Duettes (two semi-detached homes on one plot) are popular; these range from R650,000 and R2 million depending on the location. Upper income buyers can look at the low-density residential developments that lie between Dana Bay, Boggoms Bay and Vlees Bay
(Moquini, Fishermans Village, Nautilus and Springerbaai). Exclusive homes here are priced from R3 million, but can range up to R20 million. Vacant plots are priced from R1.3 million for a 6,316sqm plot. Buyers looking for a more central location could look at the town centre and around the main Blue Flag beach, Santos, says agent, Frans Brits. The area is popular with families and retirees who want to be close to conveniences and medical facilities such as The Bay View Hospital (a well-known heart transplant facility). Housing options range from family homes priced around R1.2 million on average to retirement village homes, priced from R700,000. Apartments are priced upwards of R380,000, he says. Diaz Beach, on the way to Hartenbos, offers stretches of sandy swimming beaches, hotels, restaurants, waterfront facilities and a mix of holiday apartments, villas and homes, says agent, Johan Badenhorst. Small sea-view apartments start at around R600,000, but range up to around R4,5 million for a penthouse with panoramic sea views. Bay View offers a good mix of old and new, all freehold, priced around R1 million, says agent, Susan Bezuidenhout. Beachfront properties, however, can range up to around R7 million. Hartenbos remains one of the most popular coastal holiday destinations with a mix of old and new homes, priced from around R800,000 for an apartment to R5 million for a seaside home. About 15km outside the town towards Port Elizabeth, you will find coastal villages such as Little Brak and Groot Brak, says agent, Danie Grobler. The area is situated on a ridge that runs parallel with the shoreline, with holiday apartments and homes that have sea views on the southern side and views of the valley and mountains on the northern side. Prices here range between R750,000 and R3 million. For more information, contact Seeff Mossel Bay on 044 690 5227 or visit www. seeff.com.
Heading to the coast for the holidays? Check out Langebaan’s best buys by STAFF REPORTER Located less than an hour’s drive from the city and airport, the West Coast village of Langebaan remains a favourite holiday and weekend getaway for Capetonians and inland holiday makers, says Seeff Langebaan agent, Jaco Coetzee. The village has good basic infrastructure, a golf course and small casino with shopping malls, such as the West Coast Mall, a short drive away. Yet, he says, it remains a tranquil escape from the city. Most properties are close to, or a short distance from the stunning beach and lagoon area, he says. Apartment prices start at around R450,000 while a quaint three bedroomed, white-washed fisherman-style holiday cottage in Skiathos is on offer for R770,000. A large, four bedroomed home in a secure estate is on offer for R1.975 million and a stunning, large double storey home with a white-washed exterior and blue shutters reminiscent of the Greek Isles is on the market for R2.19 million. Vacant plots in Langebaan Golf Estate are now priced around R440,000 for 898sqm while sea-view plots of around 925sqm are on offer for R450,000. A 2ha small holding plot with sea views is on the market for R750,000. Sea view plots are now selling for between R450,000 and R1.575 million for a beach-front plot located on the rocks. Plots in the Gary Player designed Langebaan Golf Estate are selling for as low as R150,000. A sea view smallholding of around 2ha, is on offer for R685,000. At the top end, buyers
with a bigger budget looking to acquire a stunning seaside home could look at a modern, architectural home situated literally on the rocks overlooking the yacht-lined bay for R7,95 million. The design of this 420sqm residence is ultracontemporary with strong angles and stonework feature walls as well as large glass windows and doors that offer panoramic sea views throughout. It is built over three levels with large sundecks. A private lift connects all the floors. The living areas, located on the middle level, include a lounge with a wood-burning fireplace, dining room and large openplan kitchen. Glass doors open onto a large terrace with a lounge, bar area and braai facilities that overlooks a rim-flow swimming pool and the ocean. The home offers four bedrooms with en-suite bathrooms. Two of the suites are located on the top floor and a further two on the lower level. Added extras include a spacious study, huge wine cellar with oak floors and an entertainment area. There is underfloor heating throughout. For more information, contact Seeff Langebaan, Jaco Coetzee on 021 863 1616 or 082 882 6797. View at www. seeff.com, web reference 274491.
Addressed to impress: The Beaumont by STAFF REPORTER Just one block away from Cavendish Square (the Cape’s most successful shopping centre) an exceptional residential development will soon be rising from the ground. It won’t only be breaking new ground as the tallest, most luxurious block in the highly sought-after Upper Claremont area, but it will also be a superb example of modern architecture and contemporary lifestyle design. Features The Beaumont is a supermodel of a building – sleek, graceful and drop-dead beautiful. At 33.75m there’s no taller building in the area and there’s certainly no finer one either! To regard The Beaumont as yet another upmarket apartment block in Upper Claremont is to miss the essence of a carefully-crafted and intricately-planned solution to fast-moving modern lifestyles. From the concierge that greets you and your guests as you enter the reception area in the plush lobby, everything about The Beaumont answers the simple question: “How can we rethink the apartment block to make it optimally functional, social, smarter, luxurious and user-friendly?” The groundbreaking design of this iconic development has been described as “a contemporary interpretation of the Art Deco movement”, and draws inspiration from similar cutting edge developments across the globe.
Security Naturally, in a development like this, security precautions and surveillance will be of the highest order. Access will only be granted by biometric fingerprint recognition and concierges and guards will be on duty in the foyer round the clock, seven days a week. The parking basement, in turn, will only be accessible to people with the correct remote controls; while the property perimeter will be secured by electric fencing and monitored 24/7 by CCTV cameras and trained guards. Interior The 179 apartments in The Beaumont range from a highly affordable 33m² studio to a 238m² penthouse going for R5.2m – and everything in between. Depending on your needs, there’s also a broad selection of one, two and three-bedroom apartments, most of them with magnificent views of Devils Peak and the southern spine of Table Mountain. The apartments facing Brooke Street will also look over the attractive, landscaped St Saviour’s Church property – the ultimate in peaceful surroundings. In keeping with The Beaumont’s premium status, all apartments will be graciously appointed with fine fittings, finishes and craftsmanship. The bathrooms will be equipped with underfloor heating and heated towel rails. Kitchens will all come with slick
stainless steel ovens, hobs and extractors, and all counter tops will be hewn from the finest granite available. The lighting systems throughout the common areas and in the individual apartments have received special attention in terms of detail and styling. The development will have two levels of parking basements and each unit will be entitled to at least one parking bay.
colleges, schools, cinemas, nightspots and sports facilities within a few minutes stroll. The Jammie bus stop (that services UCT) is just 200m away and so are the local train and bus stations.
• Kingsbury Hospital – 900m • Virgin Active gym – 1.1km • Newlands Oval – 1.2km • Sahara Newlands Stadium – 1.6km • Grootte Schuur High School – 1.8km
Distances • Cavendish Square – 200m • Grove Primary School – 650m • Herschel School – 850m
For more information. please contact Rawson Developers at +27 21 658 7100 or email firstname.lastname@example.org
Location: With a spectacular array of retail, commercial, leisure and service options on its doorstep; as well as almost immediate access to all forms of transportation, The Beaumont could very well be the most conveniently located apartment block in the province. Besides Cavendish, there are a number of other shopping centres, medical suites, office blocks, gyms, restaurants,
Urban housing demand on the rise; Ask the Expert: Moving to the suburbs; Interest rates and the property market