Business Day Home Front 06 March 2015

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FRIDAY, MARCH 6 2015

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WORLD DESIGN CAPITAL’S LEGACY

THE SANDTON EFFECT

FOREIGNERS FOLLOWING SCHOOLS?

GETTING TO GRIPS WITH LEASEHOLD

Tshwane’s investment status elevates

A number of new big-money developments are seeing the City of Tshwane — and the Menlyn node in particular — growing their investment appeal WORDS: DAVID A STEYNBERG :: PHOTOS: PAM GOLDING PROPERTIES

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he City of Tshwane continues to grow, offering investors cherry-picked opportunities, such as the auction of 80 land parcels — which takes place later this month and from which the city expects to earn R46bn in capital investment — the proposed 80,000m2 Centurion convention centre, and mixed-use properties in the Menlyn node.

Thanks to infrastructure investment, including the R2.6bn bus rapid transport system and improvements to

Beverley, Sandton

Asking R12.5 million

Highly profitable, exclusive guest lodge for sale - conveniently situated with 10 individually styled luxury en-suite rooms, shady patio overlooking the manicured lawns, pool and tennis court. Contact: Sally 082 451 3111, Marilyn 083 415 8909 Office: 011 467 1031 Web ref: 797529 Each office is independently owned and operated

Clifton, Cape Town

Asking R65 million + vat

The ultimate panoramic view - Situated on the exclusive Clifton beach, this remarkable designer apartment is laced with opulent architecture, fully equipped, furnished & integrated with Apple iPad control system, climate control & under floor heating.

Contact Simony Santos 076 898 0359, Jolene Alterskye 082 447 6169 Web ref: 1013827

www.sothebysrealty.co.za

Hout Bay, Cape Town

the Garsfontein, Atterbury and Lynnwood highway access roads, the Menlyn node is expected to match, if not exceed, Sandton’s size.

This is according to the executive mayor of the City of Tshwane Metropolitan Municipality, Kgosientso Ramokgopa, who recently welcomed another development, The Regency luxury residential high-rise, to the growing Menlyn node.

CONTINUED ON PAGE 6

Asking R17 million

Modern masterpiece with mountain and sea views! Double volume entrance hall leading to an expansive entertainer’s patio, 4 reception rooms, 9 beds, 8 baths, modern European kitchen, state-of-the-art security. 2 Bedroomed cottage. 3 garages.

Contact: Ursula Heppner 083 457 5288 / Terri Steyn 082 777 0748 Web ref: 1036225

LIFESTYLE

March 6 2015

DESIGN

WDC leaves a tangible legacy When the Mother City cracked the nod as World Design Capital for 2014, it was about far more than celebrating aesthetic endeavours. It was a call to give Cape Town even greater international exposure than it enjoys, to the benefit of all its citizens WORDS: RIEKIE CLOETE :: PHOTOS: SUPPLIED

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f you ask any Capetonian to explain what exactly World Design Capital (WDC) 2014 entailed, chances are you will get a slew of different answers.

And they’d all be right on

“It offers the opportunity to market the city beyond the usual ‘Chardonnay and Table Mountain’” Alayne Reesberg, CEO, Cape Town Design NPC

the money, as this yearlong programme of events, workshops and initiatives to promote design thinking was varied and complex.

“Every design capital has a hard time with messaging around the esoteric meaning of ‘design’,” says Alayne Reesberg, CEO of Cape Town Design NPC, the implementation agency for WDC 2014. “Where design is well established, it is probably easier: Helsinki [WDC 2012] has a deep and rich history of design, but in Cape Town design is quite a new field.

Engineering and architecture are better established. We wanted to talk about design as

a problem-solving tool that enables multiple outcomes.”

Reesberg says that 460 projects came via public calls for submissions and that 38 volunteer curators helped with the selection.

Pitching and grooming sessions followed, project management training was offered and the Thundafund crowdsourcing platform raised R1.5m for winning pitches to take their projects to the next level.

SOUND INVESTMENT The next step? Marketing WDC 2014. “Our predecessor, Helsinki, warned us that it took until

LIFESTYLE March 6 2015

WDC2014 SOCIAL SPIN-OFFS

“It is estimated that by 2030, 70%-75% [of South Africans] will live in urban centres.

Design will be key in making this growth sustainable and economically viable”

City Parks Urban Gardening project: supporting community gardens (or food gardens) in parks or on unoccupied public land and offering practical advice Valhalla Park Family Recreation Centre: including a full-size synthetic soccer pitch, a clubhouse and community facility, a network of pathways and landscaped areas, a BMX track, outdoor gym areas, an outdoor library and various architectural landscape features Redesign of some youth development programmes: workshops in August 2014, held specifically to address unemployment and resulting in three pilot programmes being drafted, using social development funding Development of the Memory Centre in Khayelitsha, an eco-park in Hanover Park and new transport interchanges as far afield as Bellville and Bloekombos

Bulelwa Makalima-Ngewana, CEO, Cape Town Partnership, which spearheaded Cape Town’s WDC 2014 bid

August for the local Finnish media to really ‘get’ WDC, and that was our experience too,” says Garreth Bloor, mayoral committee member for tourism, events and economic development.

“It’s not an event such as a world cup, where there’s a brief and intense period of activity, so people often asked what’s happening.”

Still, WDC 2014 aced the challenge, according to Reesberg, and the programme’s overarching banner offered the city the opportunity to market itself beyond the usual “Chardonnay and Table Mountain”. And market the city it did. The total investment in WDC 2014 from the City of Cape Town was R60m, and to date the project has earned R1.8m in media coverage.

Many of WDC 2014’s projects had existed before, but the programme provided a mammoth platform for international media exposure, specifically in publications like Monocle, Icon and Metropolis.

Reesberg says that when they surveyed participants in June last year, more than 70% of them reported that WDC2014 had bolstered their businesses and was a pivotal launchpad to market their work.

where 151 designers showcased their work, to urban gardening initiatives and world-class recreational facilities in disadvantaged communities. Their benefits extend far beyond WDC 2014 (see sidebar).

Bloor says that WDC 2014 was instrumental in Cape Town’s being nominated by a number of influential international media houses (the New York Times, Telegraph and Lonely Planet) as a top destination in 2014.

Many international delegations visited Cape Town with their culturalexchange hats on, bringing

trade and investment links with them. Examples include the Dutch #CoCreateSA investment in social design, Guild (a collaboration of top-notch curators, designers and institutions, showcasing work from Africa, the US, the Middle East, the UK and Europe) and 100% Design.

LESSONS LEARNT The legacy of projects such as WDC 2014 includes teaching organisers how to streamline future events. “Next time, I’d recognise fewer projects,” says Reesberg. “The sheer scale and complexity of the projects didn’t make for

simple digestion of what we wanted to get done.”

Because of SA’s fragmented design policy, spread across science, technology, art and culture, the design institute and the SABS highlighted the need to align a national design policy. “Much remains to be done, but the Western Cape is the first of the provincial governments to approve a design strategy.

We’re very proud of that: it shows the local government is serious about enabling the design economy.”

For the city, it’s certainly a win-win situation.

DESIGN FOR ALL

The WDC2014 projects

ranged from the creation of the swanky Watershed bespoke shopping enclave at the V&A Waterfront, PUBLISHED BY THE CREATIVE GROUP IN ASSOCIATION WITH TMG

The Creative Group CEO: Shaun Minnie shaun.minnie@thecreativegroup.info

Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

EDITORIAL TEAM Editor: David A Steynberg david.steynberg@gmail.com Creative Director: Mark Peddle

A

BusinessDay PUBLICATION

Editorial Consultant: Bridget McNulty Chief Copy Editor: Yaron Blecher

ADVERTISING SALES Michèle Jones Sarah Steadman Yvonne Botha Susan Erwee Bradley Sparks Jackie Maritz

michele.jones@pamedia.co.za sarah.steadman@pamedia.co.za yvonne.botha@pamedia.co.za susan.erwee@pamedia.co.za bradley.sparks@pamedia.co.za jackie.maritz@pamedia.co.za

084 246 8105 (Sales & Marketing Manager) 082 334 4367 JHB (Property) 082 563 6685 JHB (Lifestyle) 083 556 9848 (Western Cape) 073 666 3842 (KwaZulu-Natal) 078 133 5211 (Garden Route)

The Signature An International Associate of Savills

ILLOVO

GAUTENG R14.9 MILLION This contemporary cluster offers security and outstanding accommodation with four generous bedrooms en suite plus flatlet.

Entertain in style from expansive reception rooms leading onto covered patio and formal garden.

Bedrooms 5 | Bathrooms 5 | Garages 4

Louis Green 082 820 3040, Lisa Daly 082 450 6594

WEB ACCESS HP1206106

DAINFERN VALLEY

GAUTENG R10.8 MILLION

This luxurious home is ‘smart’ as well as pretty. Situated on the river in a tranquil setting, this home has first-class features.

Jacuzzi, open fire place and outdoor boma are just a few of the features that will impress the most fastidious of buyers.

Bedrooms 4 | Bathrooms 4 | Garages 6

Sue Ralph 082 892 8772, Brenda Gilbert 083 251 4452

WEB ACCESS FW1193295

SENDERWOOD

GAUTENG R10.8 MILLION

Under roof 950 m² of palatial opulence with every conceivable luxurious finish imaginable. Marble staircase and windowsills; wooden flooring. Guest cloak, five receptions, housekeeper’s suite and sparkling swimming pool.

All this set on 1 495 m2.

Bedrooms 4 | Bathrooms 4 | Garages 3

Jeanette Grunes 082 852 6910, Yolande Goldman 083 381 8690

WEB ACCESS BV1179921

Collection www.pamgolding.co.za | m.pamgolding.co.za

CLIFTON

WESTERN CAPE R24.9 MILLION Enjoy an enviable lifestyle right on the beach. Spectacular front-facing apartment at the water’s edge with large living areas leading onto a wraparound entertainment terrace. 24-Hour security, fabulous views and direct beach access.

Bedrooms 4 | Bathrooms 4 | Parkings 2

WEB ACCESS PR1126170

Annette Hepburn 082 658 1116

CONSTANTIA UPPER WESTERN CAPE R24 MILLION

The ultimate in family living with a 2-bedroom cottage, generous staff accommodation and offering state-of-the-art security and spacious open-plan living.

Bedrooms 4 | Bathrooms 4 | Garages 3

WEB ACCESS KW1206290

Angie Bloom 083 678 7876, Arie Kadé 083 448 0488

ST JAMES

WESTERN CAPE R19.5 MILLION plus VAT. The St James landmark “Spray Cottage” has stood watch over False Bay since 1842 and has now been tastefully remodelled to maximise every aspect of its unique position.

Bedrooms 5 | Bathrooms 5 | Parkings 5

WEB ACCESS FH1203286

Sue Rosenberg 083 452 7990, Peter Lombard 072 713 4800, Christian Ligier 082 377 0022

INVESTMENT March 6 2015

Analyse it WORDS: PATRICK CAIRNS

The complex question of foreign property ownership

W

ith all that went on during the recent state of the nation address, it was easy to overlook what the president actually said — and there were a few things Jacob Zuma spoke about that deserve scrutiny.

One of those was confirmation of the government’s intention to stop foreign nationals from owning land in SA and allowing them to lease it only on a long-term basis. This is something that has been talked about since 2013, but it seems we are getting closer to actually seeing a bill presented to parliament.

However, a lot of concern has been raised about this policy. The impact this could have on foreign investment and tourism are the biggest worries, while there have also been questions about whether it would be constitutional to limit who you may or may not sell to as a property owner.

Gugile Nkwinti, the minister of rural development and land reform, later added to what the president had said, suggesting that the limit would apply only to farmland.

However, the biggest question that remains is, why is any of this is necessary?

How does the country benefit from stopping noncitizens owning local property?

We must accept that SA has a complex and ugly history in which the dispossession of land played a large part. We must also accept that land is an emotional issue, and we can’t ignore the need to address that.

However, we have to be pragmatic. Does preventing foreign nationals from buying property here make any real difference to the greater land question?

From what we know, it seems that noncitizens own only a very small portion of what’s out there.

What is critical to remember is that economics is a long-term game. Trying to find short-term political solutions to what are really complex long-term economic problems can, unfortunately, have lasting negative impacts.

One only has to look at the mess in which Greece finds itself to appreciate that.

Economics is also a global game. No country has ever succeeded by isolating itself

and cutting off the free flow of money and ideas. These are critical to economic growth.

The truth is that SA is heavily dependent on capital coming in from beyond our borders. We need foreign investment to fund our current account, otherwise our currency is at risk and inflation will get us.

We cannot compromise on that, particularly not in our current circumstances.

We must accept that SA has a complex and ugly history in which the dispossession of land played a large part.

We must also accept that land is an emotional issue, and we can’t ignore the need to address that

The department of rural development and land reform will be conducting an audit to determine exactly how much arable land is in foreign hands. At the moment, nobody really seems to know. In terms of

residential property, figures from the real estate industry suggest that about 3% is

foreign owned

CONTINUED FROM PAGE 1

Tshwane attracts investment capital Says Ramokgopa: “Menlyn has a highly vibrant, mixed economy. Financial institutions, law firms and a range of other professional service providers, as well as retailers, hoteliers and residents, are flooding into Menlyn. The creation of The Regency shows that residential development investors see the enormous potential of Menlyn as a mixed-use space. This is exciting news for Menlyn as well as the greater City of Tshwane. We are therefore delighted [about] this quality urban lifestyle space, for which there is a great need.”

Marketed by Pam Golding Properties, the development, due for completion in 2016, is aimed at a range of investors, including executives, professionals, students, foreign missions and local and international companies looking to accommodate their staff, according to Retha Schutte, Pam Golding Properties’ regional executive in Pretoria.

“Buy-to-let investors have been particularly interested in the opportunities that The Regency offers, including some international investors from overseas and other countries in Africa,” she says.

“There is a strong demand for luxury short-term rental accommodation in Tshwane, which is fuelled by the large number of embassies and trade missions in the region.

These institutions are often on the lookout for convenient, quality accommodation for their staff members.”

Buy-to-let investors will be glad to learn that fully furnished units come with a 7% guaranteed rental for two years, with two dividend payments during the year. There will be no levy payments for the period, and the developer will foot the bill for any repair and maintenance work.

“The city takes pride in joining the development community when it launches a new project,” says Subesh Pillay, Tshwane’s member of the mayoral committee for economic development and planning. “There is a vibrancy in construction activity in Tshwane, and the residential sector is buoyant

with phenomenal growth in the east of the city.”

The past 18 to 24 months have seen renewed optimism in the South African residential market, according to Pam Golding Property Group chief executive officer Andrew Golding.

“Today there is a chronic shortage of residential stock in the metropolitan regions

and house price growth is above inflation,” he says, noting that he expects growth to hit double digits this year.

“The letting market has come to the fore — this is a global trend — and rental yields are up. Mixed use has grown and residential property has differentiated itself as an investment class. The Regency is in the sweet spot.”

SUPERCITY

The development of the metros of Tshwane and Johannesburg are increasingly pointing to the establishment of one immense African supercity and the continent’s undisputed powerhouse.

This is according to the executive mayor of the City of Tshwane Metropolitan Municipality, Kgosientso Ramokgopa.

“I am gratified that my local government has been able to assist in this process and I am pleased to see that our spatial development framework of 2013 has been instrumental in injecting new dynamism into the local economy,” he says.

PROPERTY March 6 2015

RESTAURANT

Castles in the sky At the foot of Magaliesberg, Eat Out Chef of the Year Chantel Dartnall creates extraordinary dishes that look more like artworks. What is the secret of her success?

WORDS: GRAHAM WOOD :: PHOTOS: SUPPLIED

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uite a way outside Pretoria, close to Hartbeespoort Dam, in the Francolin Conservancy, is one of the country’s Eat Out Top 10 restaurants, Mosaic at The Orient. The chef there is the 2014 S Pellegrino Chef of the Year, Chantel Dartnall.

The restaurant’s decor is a tribute to the Parisian belle époque, while the hotel is an opulent Orientalslash-North African castle in a nature conservancy of rehabilitated grassland in the middle of nowhere. There’s a collection of Rolls-Royces on display, an entire museum dedicated to bronze sculptor Tienie Pritchard’s work and a private wine cellar that, with more than 30,000 bottles, is reputed to be the biggest on the continent.

Dartnall’s menu is seasonal, the food intricate, delicate and precise, while the flavours are bold and experimental in their combinations, jus and foams.

“I have always had a great love for art, and especially for art nouveau, and those artists also looked for their inspiration in nature,” Dartnall says. “That is why I like to refer to my food as ‘botanical’.”

Dartnall does more than plate food. Fish, for example, is served on a glass-topped beach scene with real beach sand underneath. On her

summer menu are quail’s eggs served with twigs and leaves in a bird’s nest. She calls it “bringing art to the plate”. With up to 12 items on the menu, you can enjoy her food at your leisure.

Isn’t it usual for eight or nine out of the country’s top 10 restaurants to be concentrated in the Western Cape? Doesn’t that region’s culinary success rest on the competition, the density of restaurants and the influence and proximity of excellence? The Orient

“Because it’s so hidden, there’s less cross-pollination with other local restaurants” Abigail Donnelly, judge, Eat Out Top 10 restaurants

PROPERTY

Unstoppable Sandton Sandton, the business powerhouse of Gauteng and SA, seems unstoppable. The increase in high-end residential development is testament to this WORDS: ANNE SCHAUFFER PHOTOS: SUPPLIED

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ne look at its skyline, and the dynamic status of Sandton’s present and future unfolds.

Says Steve Roberts, Chas Everitt’s Sandton branch manager: “Many of the larger companies either have or are in the process of relocating head offices to the

suburbs (Standard Bank and Sasol have opened offices in Rosebank) and numerous new commercial and highrise residential developments are springing up around the greater Sandton area, such as Steyn City, Waterfall Country Estate, Helderfontein and Galencia in Craigavon.

Hotel and the conservancy around it is the brainchild of Cobus du Plessis, life partner of Mari Dartnall, Chantel’s mother. Mari runs the hotel.

It’s a family affair. In this, perhaps, lies the unexpected secret of Chantel’s success

(apart from her travelling, learning tirelessly and being hard-working, and visionary).

What sets Mosaic apart is its lack of compromise. Said Kate Wilson, one of the judges at the Eat Out awards: “It seems unlikely that such a remote,

“Interest is peaking from developers in and around the Gautrain spine and into Rivonia. Cranes and construction abound, so it is clear that development is alive and well in the area. We have also noted an increase in interest from foreign buyers from Africa and China. We’re short of stock, especially good-quality properties correctly priced. They often sell on the first show day, but there’s still a perception among sellers that, because of the shortage, the market will pay unrealistic, nonmarket-related prices. But the market determines the price.”

Estate agents confirm that the increased demand for residential property around the Sandton business hubs is driving up prices.

Corporates are moving to the area and executives want to live close to work.

Says Ryan Chaitowitz, Sandton sales manager for

Jawitz Properties: “There is a demand for all kinds of properties, be it large family homes with spacious gardens or low-maintenance lock-upand-go high-rise residential units. Demand spans all price ranges, from entry-level one-bedroom flats at R1.5m, to R25m for a luxury home in a secure gated estate or a new executive penthouse.

The average price per square metre in one of the new residential high-rises ranges

over-the-top restaurant would be serving technically precise, delicious French food.”

Another judge, Abigail Donnelly, suggested that “because it’s so hidden, there’s less cross-pollination with other local restaurants. As a result, you get such a sense of Dartnall’s personality.”

Said Wilson: “She is cooking exactly the kind of food she wants to, relaying her culinary stories on the plate with skill and restraint in a totally unrestrained setting.”

Dartnall tends to agree: “It’s an extension of who I am as a person and an extension of who I am as a personality, and what inspires me, what intrigues me. At Mosaic I can live out my own creative freedom, so all the concepts I have in my head, and things that might inspire me from the conservation area, and from what I have around me, I can bring to life.”

Dartnall worked at a threeMichelin-star restaurant in London, Chez Nico, for chef Nico Ladenis, and tirelessly travels to explore her field around the world. But the fact that the conservancy, the hotel and the restaurant are run by a family unit pursuing its own interests and agendas has created an environment in which it’s unnecessary to compromise.

“What I’ve got is a whole support system who all share my passion and my vision, so we are all working towards a common goal,” says Dartnall.

It’s a story of how extraordinary patronage has led to excellence. Working on a wine farm or in a city, Dartnall might not have had the opportunity to pursue her vision with the uncompromising originality she has. It’s a lesson to parents — sometimes letting your kids do exactly what they want can be the best thing in the world, or at least in the country.

from R25,000 up to R30,000.

These developments offer a concierge service with private gyms, pools and restaurants and are in high demand owing to low stock levels.”

Says Roberts: “We’re seeing interest across the full spectrum, with emphasis on security, either in guarded communities or accesscontrolled complexes. Buyers want quality properties with larger stand sizes. Demand for sectional title units remains strong among first-time home owners and investors, but we’re seeing a tightening of the banks’ lending criteria, especially at the lower end of the market and on 100% bond applications.”

Says Chaitowitz: “That pause in the construction phase during the downturn is a thing of the past.

Construction is moving at a rapid pace, with commercial and residential developments throughout Sandton.”

ADVERTISING FEATURE March 6 2015

Elite luxury homes

Elysia Contemporary Luxury Homes in Bryanston offers a rare opportunity for exceptional family living in a secure setting WORDS: GRAHAM WOOD :: PHOTOS: SUPPLIED

ADVERTISING FEATURE March 6 2015

FOR MORE INFORMATION, CONTACT LYNN ESTATES:

Tel: 083 655 5539 E-mail: info@lynnestates.co.za Visit: www.lynnestates.co.za

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lysia Contemporary Luxury Homes is a rare offering of 11 remarkable residences that have been designed exclusively for gracious family living while catering to the dynamic modern family’s needs. The development is enviably positioned in the heart of Bryanston within convenient proximity to the area’s prominent schools, shopping centres, prime businesses and top golf courses.

“Elysia is an exceptional address and the perfect platform for a stylish and convenient way of life,” says Lynn Petzer of Lynn Estates.

These modern homes offer space, light and luxury, not to mention fine finishes and abundant space for entertaining.

Each unit features three or four en-suite bedrooms, many with their own private balconies, as well as masterfully designed, generously proportioned living areas and stylish contemporary kitchens.

The dynamic use of space and the seamless flow between the indoor and outdoor areas enhance the sense of expansive living.

Outdoor entertainment areas

include covered terraces, a sparkling pool with wooden deck and a garden. With additional features including a TV room/study, scullery, staff quarters and double garages, the homes at Elysia offer everything a modern family could dream of.

“These elegant family homes offer a peaceful hideaway in one of Bryanston’s most desirable locations,” says Petzer. “They offer stylish, sophisticated living with an appreciation for the finer things, but with a warm atmosphere to match.” Elysia sets a new standard in family living for the individual who won’t compromise on quality or lifestyle.

Elysia is being developed by iLynn Designs Property Development Specialists, the property development division of well-known Lynn Estates, which will also be responsible for marketing Elysia. iLynn Designs specialises in developing upmarket homes in Sandton’s most sought-after areas for the discerning few.

Lynn Estates has 26 years of experience and success in the marketing and selling of developments in the Sandton area, among them landmarks

and pinnacle projects such as The Michelangelo Towers, Sandhurst Towers and Sandton Skye.

Another service offered by this multifaceted enterprise is an exclusive, personalised interior design service by Jayd Designs, a subsidiary of Lynn Estates.

ELYSIA BRYANSTON FEATURES

11 exclusive homes Three or four exquisite en-suite bedrooms Sparking pool, deck and garden Double garages Staff accommodation Secure estate Desirable location with easy access off Grosvenor Road Easy access to shops, entertainment, prominent schools and businesses From R3.483m

“Elysia sets a new standard in family living for the individual who appreciates quality of life” Lynn Petzer, Lynn Estates

INVESTMENT March 6 2015

School’s out — in anyone’s language Are foreign-language schools driving demand for suburban homes nearby, or is the issue more complex than that?

WORDS: ANNE SCHAUFFER :: IMAGES: SUPPLIED

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here is little doubt that, particularly in the suburbs where traffic pressure is a player, it is becoming increasingly advantageous to live close to your child’s school.

Traffic matters. It is also about children being able to participate in extramural activities and after-school sports without parents having to pick up and drop off. That level of demand drives up prices, and it is affecting not only homes in the vicinity of elite private

schools, but anywhere close to schools that are considered “good”. Do the same factors apply to foreign-language schools? Are foreigners snapping up properties close by, or are the schools in desirable areas anyway?

Jason Shaw, area manager for Pam Golding Properties (PGP) Fourways, says the American International School of Johannesburg has increased demand for property in the area, but not predominantly among foreigners.

“Security is paramount for locals and foreigners and drives the need for secure estate living,” says Shaw. “Dainfern, Fourways Gardens and Cedar Lakes are popular with parents of children attending the school, and most will initially rent properties before electing to buy.”

Kimberly Dods, the PGP agent in Hyde Park, says demand in the Forest Town/ Parktown node close to the Deutsche Internationale Schule is high. Foreign

buyers prefer to rent homes in gated estates, and it is predominantly South Africans who buy here.

Charles Vining, MD for Seeff Sandton, says all four international schools are located in very good areas: Morningside (the French school), Parktown (the German school), Midrand, (American International School) and Bryanston (British International College). But these areas have been popular for many years for reasons other than the presence of these schools. There is a strong rental market, especially for corporate rentals.

Says Vining: “I think the expat demand sustains prices and property demand in these good suburbs. Closed estates in the Fourways area are often sought after by foreigners. Cluster complexes in Morningside and Bryanston are also popular with expats.

Few complexes exist in the suburbs near the German school, so expats choose secure freestanding homes.”

Retha Schutte, regional executive of PGP in Pretoria, agrees about foreigners preferring to rent, but her experience is a little different: “The German school in Willow Park Manor isn’t in a particularly prestigious area, but it’s easily accessible from good security estates.

German and French parents prefer security estates such as Silver Lakes, and because of their proximity to the school, rentals are particularly high. The average

rental is between R18,000 and R45,000 a month — at least a 15% increase in the past year.” She says tenants are either part of the diplomatic community or work at BMW, Siemens and other corporates.

Basil Moraitis, PGP area manager for the Cape Town City Bowl and Atlantic Seaboard areas, says it is primarily foreigners with young families, in the country for a limited period, who tend to rent. “It’s a different market to your swallows and holiday-home market. There’s a large and buoyant rental market,” he says. There are two foreign schools in his area and both have “outstanding reputations for academic excellence, so they’re popular with international residents as well as local parents”.

Tamboerskloof has always been a sought-after suburb, and the Deutsche Internationale Schule Kapstadt has enhanced its value. Other suburbs on the Atlantic Seaboard have benefited because the school is easily accessible via Kloof Nek Road. Says Moraitis: “The area surrounding the French school in Sea Point at the Bantry Bay end of Regent Road is undergoing an overwhelming transformation into an elite urban highstreet destination, with luxury shopping centres and residential developments such as the Point Shopping Mall, Piazza Da Luz, the Fairmont luxury apartment development (sold out before official marketing) and the

INVESTMENT March 6 2015

Orchards estate, all just metres from the François Le Vaillant French School.”

Ian Slot, Seeff’s MD for the same region, says Tamboerskloof is favoured by German residents, who are prepared to pay millions for a home close to the school.

Says Slot: “Germans were the biggest percentage of foreign buyers in the area last year, accounting for 15% of all sales, while French nationals accounted for just less than 5%. UK nationals account for more than 27%.”

The new International School in Hout Bay has greatly increased the demand for houses in the area in terms of sales and rentals, says PGP area principal

“The expat demand sustains prices and property demand in these good suburbs.

Closed estates in the Fourways area are often sought after by foreigners” Charles Vining, MD, Seeff Sandton

Patrick Maingard. “Previously without a high school, we now have an excellent one on the Independent Examinations Board circular, so children can move from one country’s international school to another,” he says.

The best example of how areas improve because of the schooling is Penzance, next to the informal settlement. Two years ago most properties there were priced below R2.5m. Recently a home sold for more than R4m, and R3m is now the norm. He predicts that its proximity to the school will make Penzance increasingly popular.

James Lewis, Seeff Hout Bay licensee, says: “Schools tend to be a big selling point and buyers are prepared to pay a premium to live close to them, more so if it is a ‘speciality’ school, such as a foreign language or international school.”

Lewis says Hout Bay is one of the popular areas among foreign residents, especially those from the UK and Germany. “Aside from foreigners already resident in the village, in the past year just over R231m in property was sold to foreign buyers, representing almost 25% of the total value of sales of about R933m in 2014.”

Given real estate stock shortages, those foreigners who choose to rent are at the mercy of high rental costs, but for short-term stays it is not an issue.

Even in the long term, they’re happy to rent before considering a purchase.

“In the past year just over R231m in property was sold to foreign buyers” James Lewis, licensee, Seeff Hout Bay

INTERNATIONAL February 6 2015

MECHANICS OF LEASEHOLD

How good an idea is leasehold?

What is leasehold? And has it proved successful elsewhere in Africa?

WORDS: ANNA-MARIE SMITH :: PHOTOGRAPHS: PAM GOLDING PROPERTIES ZAMBIA

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easehold as opposed to freehold in Sadc countries applies mostly to government-owned land, and 99-year leases are common. The South African government has recently announced similar restrictions on foreign ownership of agricultural land. The full impact this announcement could have on investor confidence in SA is yet to be seen. However, leading property agents have

questioned the applicability of leasehold in the absence of property legislation and in view of constitutional law, and they have reported negative sentiment among potential foreign investors.

Pam Golding Property Group (PGP) operates in the majority of the 15 Sadc countries and has explored freehold and leasehold operations in various areas, with freehold title increasingly answering to demand, as seen

in the Indian Ocean islands of Mauritius and Seychelles.

Said PGP CEO Andrew Golding: “Leasehold is not common, and there is a huge amount of understanding that would need to take place by delving into the detail of every aspect of leasehold; and this is against the backdrop of property legislation that must be subject to a constitutional challenge and the prospect of a long-term process of understanding and

communication.” Specifics are needed on proposed legislation on agricultural leasehold, in view of the difference between 99-year and 50-year lease periods.

Said Seeff chairman Samuel Seeff: “Notwithstanding the successful application of leasehold elsewhere, there is no need to tamper with existing legislation, and keeping matters in place as they are in SA is key to the country remaining open for business.”

The industry urged further consideration and clarity around the proposed agricultural land restrictions to avoid uncertainty among local farming operations or potential foreign investors, Seeff said.

FirstRand Bank’s head of valuations Francois Thevenau said: “If the property is a plot of land, the leaseholder is entitled to — and is often obliged to — erect buildings on the property, and buildings become the property of the owner at the end of the lease.”

Holders of long leases of up to 99 years which are registered at a deeds office are afforded more rights than tenants, such as greater access to mortgage loans. Owners of leasehold land can sell it during the lease period and the selling price usually excludes the cost to leaseholders,

The landowner (the government) rents land to the leaseholder, who pays for the right to use the property but never owns the land Leaseholders who obtain long leases from governments can then sublet to tenants or developers on a 99-year, 50-year or, in some countries, 25-year lease The financial instrument between landowner and tenant is a ground lease with a deposit, either for a monthly instalment or yearly fee, to pay for the right to use the land In terms of the lease, there are certain rights that tenants

including the capital outlay by a developer for erecting new buildings, or by tenants who had made improvements or additions to structures.

The University of Cape Town (UCT) and the University of Zambia are conducting a joint study called the Land Use and Rural Livelihoods in Africa Project, with Zambia as the research model for the dynamics of land reform and leasehold in Africa.

Dr Horman Chitonge of the Centre for Urban Studies at UCT said the study aimed to evaluate the colonial legacy of land alienation, including the elimination of legal title and freehold in Zambia, following the government’s conversion of customaryowned land to national land.

Findings of this study, including land-use patterns and influences on rural and urban livelihoods, and the role of traditional authorities

and developers hold to develop for specific use, namely residential, retail or commercial, for a limited period (from one to 99 years) Developers then sublet to cover capital expenditure, mostly under renewable terms that include options for both parties On completion or termination of the lease, the improvements to property revert to the landowner/government.

Since leaseholders never own the land, long leases of 25 years and more produce the best return on investment

in promoting democratic land governance, are due for publication next month.

Additional leasehold studies within other Sadc countries, such as Mozambique and Tanzania, are under way.

Collaborative relationships in the non-Sadc countries of Ghana and Uganda show that favourable investment environments attract major property investments.

Said Dr Chitonge: “The Ugandan government is attracting amazing foreign direct investment by offering an incentivised financial environment where the diluted terms of property ownership offers returns on profits of up to 50%.”

The consensus is that SA can benefit from the knockon effects of foreign direct investment if the government provides clear leasehold guidelines and the necessary legislation to support growth.

“Notwithstanding the successful application of leasehold elsewhere, there is no need to tamper with existing legislation, and keeping matters in place as they are in SA is key to the country remaining open for business” Samuel Seeff, chairman, Seeff

INTERNATIONAL February 6 2015

London rent control — tenants’ saviour or the city’s nemesis?

Can government intervention assist in housing more tenants across the UK? Rent controls are being spoken about in the halls of parliament WORDS: LEA JACOBS :: PHOTOGRAPHS: ISTOCK

R “Leasehold is not common, and there is a huge amount of understanding that would need to take place and delving into the detail of every aspect of leasehold; and this is against the backdrop of property legislation that must be subject to a constitutional challenge and the prospect of a long-term process of understanding and communication” Andrew Golding, chief executive officer, Pam Golding Property Group

Foreign ownership

3% — foreign ownership of residential property in SA

700 — property transactions by foreign investors out of almost 24,000 sales monthly Source: Lightstone

ent control is always going to appeal to tenants, but does it make economic sense to force landlords to toe the line and only charge what the government deems appropriate? That’s the question being asked in the UK, now that the Labour Party has raised the possibility that if it takes power in the next election, it will limit rent increases and force landlords to agree to three-year leases.

Labour’s rationale is that the move could help those who have until now been prevented from owning property by unscrupulous, overcharging landlords who hold them in their grip.

Although the arguments for rent control sound good, those opposing the move say

there is no evidence that the initiative will have a positive impact on tenants. They correctly note that not every tenant wants to become a property owner, and highlight the high number of Eastern Europeans who move to the UK temporarily to earn pounds before returning to their homelands to live.

The big question, of course, is whether rents in the UK are spiralling out of control, and if so, do they need to be controlled by the government in some way?

Well, yes and no. Those choosing to live in the heart of London may well find that rent is extremely high.

However, as often stated, the London market is a completely different animal to the rest of the country,

Those choosing to live in the heart of London may well find that rent is extremely high

which, according to the office for national statistics, has seen inflation outpace rent increases since 2006.

A report released by the House of Commons in 2013 and amended in 2014 showed that there was a clear split between the north and the south of the country. At that stage, those renting in the south were paying an average of £913 a month, while those residing in the north were paying only £501 a month.

The other concern is urban decay. Rent controls are not new in the UK. Introduced after the First World War as well as the Second World War, the initiative was dropped on new lets in 1989.

Unfortunately, although the decision to cap rents may have had a positive impact on the lives of tenants, it certainly didn’t do towns and cities any favours, mainly because landlords stopped maintaining their properties to acceptable standards.

It appears that cities such as London could be in the firing line for some form of rent control, given that the House of Commons report showed that in 2014 the average rent charged for a property in London was 102% higher than the national average.

What effect any form of rent control could have on the aesthetics of highly populated residential areas in the city remains to be seen, but it is worth noting that urban decay was a common problem before the controls were lifted in the late 1980s.

A number of commentators have pointed out that it’s not the rent charged that is the real issue but rather the UK’s major housing shortage.

Given that London is by far the county’s most popular city, it’s not surprising that rents have risen significantly in recent years. The question the politicians need to ask is, will political interference improve the situation?

Or will buy-to-let investors rather choose to put their money into something that offers a good return without the hassles associated with property ownership?

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Bedrooms 4 Bathrooms 4 Garages 3 Living Areas 4 Mileva Despot +27 (0)76 394 3936 www.ahprop.co.za web ref ADHS-1798

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Bedrooms 5 Bathrooms 5 Garages 3 Living Areas 4 John Ansell +27 (0)83 468 5353 john@ahprop.co.za www.ahprop.co.za web ref ADHS-1674

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Surrounding Herolds Bay is a large tract of coastal land of ±1 342ha that stretches inland adjacent to the Gwaing River on the western side and adjoins the access road to Herolds Bay on the eastern side. Dramatic coastal views and undulating agriculturally zoned land makes this an exceptional opportunity to own a wellpositioned gem of a property on the Garden Route.

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