Business Day Home Front 10 October 2014

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A DIVINE REVAMP ON CHURCH

CAN OUR CITIES COPE WITH DENSIFICATION?

RESIDENCY: ROOSTING IN PORTUGAL

BUBBLE TROUBLE DOWN UNDER?

Low-end property is the only double-digit performer

The low end of the residential market has posted annual growth of almost 15%, but the middle market is catching up WORDS: DAVID A STEYNBERG :: PHOTOGRAPHS: GETTYIMAGES.COM

R

esidential house price inflation grew by 7.58% year on year, according to Lightstone’s residential property indices, released at the beginning of October.

Gauteng and the Western Cape reported the strongest

annual growth of 7.9% and 7% respectively, while KwaZuluNatal achieved 5.6% growth, and the Eastern Cape 4.6%.

CONTINUED ON PAGE 8

MAJESTIC A word that conjures up regality.

One of stately dignity. It defines what is awe-inspiring, a landscape that takes your breath away with its vastness.

It is sky high mountains, neverending water and green pastures as far as the eye can see.

SEARCH FOR YOUR OWN “MAJESTIC” AT sothebysrealty.co.za

Each office is independently owned and operated

Property Lifestyle (TO BE FILLED IN BY Bday) Friday, October 10 2014

When provenance reigns

LIFESTYLE

What are the implications of purchasing a Heritage building and converting it to a retail concern?

Two Capetonian entrepreneurs find out in historic Church Street WORDS: GENEVIEVE PUTTER :: PHOTOGRAPHS: CANDACE MARSHALL-SMITH AND SUPPLIED

F

or Candace MarshallSmith and Amy Ellenbogen of SMITH, a new fine-art gallery scheduled to open in February next year, the acquisition by MarshallSmith and other investors of one of the historic pakhuisies (depots) in the Cape Town CBD was a real victory.

Marshall-Smith and Ellenbogen were looking for space to rent, but when they learnt that the double-storey building at 56 Church Street was about to go on auction, they jumped in before the hammer could fall. The building’s dimensions of 6.5m by 43m, they observed, was ideal for a gallery space.

Says Marshall-Smith: “There is a great amount of uncertainty in the auction process, and it seems that the sellers valued an offer in the hand more. The purchase price before commission was R3.9m.”

Before the building changed hands, it had been a widely known prop house owned and managed by the Velk family, and serviced the local film industry.

During the refurbishment process — which was spearheaded by Studio Urbain & McGee Architects — Marshall-Smith and Ellenbogen noticed that the building’s shopfront included a completely demountable entrance opening its full width onto Church Street.

“It was later discovered that this was to allow for vehicles to enter the building, suggesting that it was at one stage a showroom of sorts — something that wasn’t found on record.

This will be reinstated and will be a major coup come gallery-opening evenings,” says Marshall-Smith. (smithstudio.co.za)

“Church Street as a whole is rather unique within the context of the CBD. One can really feel the benefits of its 1980s pedestrianisation. It has retained its human scale, and offers an interesting precedent for inner-city rejuvenation” Alexander McGee, partner, Studio Urbain & McGee Architects

The architects: Studio Urbain & McGee Alexander McGee and Reanne Urbain of the newly formed partnership Studio Urbain & McGee took a “learn-throughunravelling” approach when restoring and renovating the SMITH premises.

Says Urbain: ‘The building gave us many clues and guiding principles along the way. Little was known for sure on the exact history of the building; however, working with specialist

craftsmen and Heritage consultants, we adopted this strategy before the main contract was tendered.

This involved peeling back the layers during the on-site restoration in order to determine appropriate site responses.”

Urbain and McGee consulted with Gawie and Gwen Fagan of OH Architecture, and there were some key checkpoints that they needed to reach.

Says McGee: “Retaining the original character of the building, as well as creating safety, natural light and ventilation, have been the driving principles. It has been the careful integration of these elements within the historical context that the proposal has been met favourably by Heritage Western Cape and the planning authorities.”

(072 711 2168)

Property Lifestyle (TO BE FILLED IN BY Bday) Friday, October 10 2014

The Heritage custodian: Laura Robinson, director, Cape Town Heritage Trust CAN YOU PROVIDE A BRIEF OVERVIEW OF THE HISTORY OF CHURCH STREET’S BUILDINGS? Many of the buildings date from the mid- to late-1800s and the street is therefore an important part of the early development of the city. Most of the buildings started out as warehouses that were later altered to accommodate businesses of various kinds.

Some of the original buildings were demolished, mostly during the 1950s and 1960s, and there have been some really unfortunate “new” buildings erected, such as the one that houses the Christiaan Barnard hospital. This large and obtrusive building was originally built in 1969 to house the municipality and was an insensitive approach by the local authority to the

The property broker: Sia Thomatos, commercial broker, Broll Properties CAN YOU GIVE US AN OUTLINE OF THE PROPERTY LANDSCAPE IN CHURCH STREET? Church Street has its own charm as a walkway with Heritage buildings on either side. The upgrades some years ago of Newspaper House and Mandela Rhodes Place as well as the new Food Lover’s Market have all added value to the area.

Properties have to show a reasonable return, and the Heritage properties, such as those in Church Street, present many limitations when it comes to returns; for example, not being able to change the facade of the building, having to go through the Heritage council to get approvals to do necessary renovations and, normally, these buildings come with little or no parking. So, sales prices will depend on the yield, and in a node like Church Street, owneroccupiers will spend a bit more than an investor.

Investors would like to achieve a return of about 9% to 10 % or so, and an owner-occupier may accept anything between 7.5% and 8.5% return. Sales prices of older properties in the Church Street area would probably sell anywhere between R8,000/m2 to R14,000/m2 — and at the R14,000/m2 end there would probably have to be a retail component.

“The whole of Church Street falls within the conservation area of the central city, and so careful attention is placed on any proposals that involve changes to the buildings” Laura Robinson, director, Cape Town Heritage Trust

historic fabric of our city.

This has, of course, changed completely, and the city now has an active Heritage resources section that oversees all the historic and Heritage properties within the metropole.

HERITAGE PROPERTIES ARE BECOMING INCREASINGLY DESIRABLE. WHY IS THAT? Over the past 20-odd years there has been a tremendous upswing in the interest in Heritage buildings because they have personality and add value to the environment of the city. They adapt well to a variety of uses and can accommodate retail, commercial and studio space easily. Parts of Church Street were pedestrianised in the 1980s. This makes the street attractive to small businesses such as restaurants, coffee shops and galleries. The Church Street Antique Market is a successful operation that is now an established destination for locals and visitors alike. (heritage.org.za)

YET HERITAGE PROPERTIES REMAIN VERY MUCH IN DEMAND… Cape Town is a small city with limited land and property.

I would say that the demand exceeds the supply of these properties; it is not often that a freestanding Heritage property comes onto the market for sale. When they do, the sellers always try to achieve top price, which makes things difficult.

There are buyers, but since they are educated they are not willing to purchase a property with a very low return, so it is always a bit of a struggle to keep both happy.

Spaces in older buildings such as those in Church Street are more affordable to lease and purchase than newly developed space. The average purchase price for such spaces is between R8,000/m2 to R14,000/m2, whereas a newly developed property in the CBD will go for about R21,000/m2, including a parking ratio of about two to three bays per 100m2. So there’s quite a substantial difference.

(Broll was not involved in the SMITH deal. broll.com)

“Spaces in older buildings such as those in Church Street are more affordable to lease and purchase than newly developed space” Sia Thomatos, commercial broker, Broll Properties

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Property Lifestyle (TO BE FILLED IN BY Bday) October 10 2014

TRAVEL

Summer sail

There’s a world of travel inaccessible to all but the few who have private yachts WORDS: GRAHAM WOOD :: PHOTOGRAPHS: SUPPLIED

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he exclusivity that comes with owning a yacht has to do with more than just being able to afford one. It’s also a matter of where you can go once you have a yacht. Because when it comes to travel destinations, exclusivity and inaccessibility often go hand in hand.

It’s counterintuitive, though, that inaccessibility doesn’t necessarily mean far-flung destinations. The yachting meccas of the world — the Mediterranean and the Caribbean especially — might seem like overcrowded, overdeveloped, overpriced

tourist destinations, but yachters love them for a reason. Their warm breezes, calm blue waters and natural beauty are characterised by archipelagos, and if you have a yacht, it’s easy to drift away from party central to any number of smaller islands.

In the Bahamas you can venture north to the Abacos Islands, many of them featuring well kitted out marinas. Likewise the Exumas offer some of the best yachting in the world.

St Vincent and the Grenadines is a cluster of 32 islands, many of them uninhabited, and with a yacht you can claim one for the day.

Even on some of the bigger islands, such as St Barts, there are places you can’t get to without a boat. Colombier Beach on the northwestern tip is a ridiculously beautiful strip that’s all yours if you sail there.

The Mediterranean is a yachting paradise for similar reasons. The Adriatic (off Croatia) is prime boating territory away from the glutted centres of St Tropez and the like, and there are thousands of islands. The Aegean, off the coast of Greece, is also ideal for island-hopping. Navagio Beach, on the northwest coast of Zakynthos, is especially noteworthy.

Closer to home, The Mozambican islands are emerging as a fantastic yachting destination.

In the Quirimbas Archipelago, for instance, Ibo Island is a pristine haven nominated for World Heritage status.

Off the coast of Zanzibar, too, about 20 different islands — including Mnemba Island, Changuu Island, Bawe Island and Chumbe Island — require a boat.

The thing about yachts, though, is that the pleasure of exploring and sailing is as much about the yacht as it is about the destination.

This month, the 2015 Fairline Targa 48 became available in SA for the first time. It sleeps four to seven people, has a retractable

canvas roof, a generous entertainment cockpit and an inviting sun pad.

Its interior finishes include leather seating and teak-laid cockpit floor and side-decks.

Powered by the latest Volvo IPS drives, it is fast and easy to handle.

In the unlikely event you ever want to find your way home, the Fairline Targa 48 comes equipped with the latest electronics, including radar autopilot and GPS.

The thing about yachts, though, is that the pleasure of exploring and sailing is as much about the yacht as it is about the destination

WINE

Perfect tint

Winemaker Danie Malan explains the business rationale behind the creation of Allesverloren estate’s Tinta Barocca Rosé WORDS: KATY CHANCE :: PHOTOGRAPHS: SUPPLIED

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n my ongoing quest to find the perfect pink — especially as it is suddenly summer — I found myself in Riebeek Kasteel in the Swartland a couple of weeks ago. It is known for its olives as much as its wines, but its most famous estate is Allesverloren.

Synonymous — for as long as I have been drinking wine — with great Shiraz, the estate also consistently produces some of the country’s best “port-style” wines (for as we know, the word ‘port’ is verboten to local producers).

Says winemaker Danie Malan: “In the1970s the English banned the import of South African ports into the UK. We were left with a large number of Portuguese cultivars on the farm. Instead of

uprooting the vines, my father, Fanie, made experimental table wines of them.”

So all was not lost: the Malans created wines from varietals Tinta Barocca and Touriga Nacional. It is the former that interests me, for Malan uses it to make the Allesverloren Tinta Barocca Rosé.

“We have 35ha of Tinta Barocca on the farm and did not want to do just another rosé. It was actually developed as a food wine — more a light red than a typical rosé.” This is reflected in the colour. A rosé, for me, is drunk first with the eyes; the Allesverloren rosé is a deep, almost strawberry red of rich promise that follows through to the palate. Dry, it has such great primary fruit

flavours that it is borderline sweet on entry, and has a plush mouthfeel. It is an incredibly generous wine, which can be rare in a rosé, especially those coloured as “hint o’salmon”.

Says Malan: “I am a firm believer in the optimum ripeness of the grapes. It gives you those ripe fruit flavours that are just a lot nicer to drink.”

He allows that the rising demand for quality rosés played a role in its making: “I was asked by my Swedish

importer to make an Allesverloren white wine.

In Sweden the rosé market was booming, so I made Allesverloren’s first Tinta Barocca Rosé in 2012 instead.

The choice of cultivar was an easy one: we wanted something different.”

And he got it. The wine is big-hearted and rewarding.

It sells at the cellar door for R60, but Makro assures me it stocks it at just R42.95, making going to the store a lot cheaper than a trip to the Swartland.

“In Sweden the rosé market was booming, so I made Allesverloren’s first Tinta Barocca Rosé in 2012 instead. The choice of cultivar was an easy one: we wanted something different” Danie Malan, winemaker

Property Lifestyle (TO BE FILLED IN BY Bday) October 10 2014

PROPERTY

Focus on Burgersfort

Burgersfort gets its buzz back

Lizl Grimbeek, architecture and property manager for Pam Golding Properties in Burgersfort, explains why property demand is so high there.

WORDS: MEG WILSON, DAVID A STEYNBERG :: PHOTOSGRAPHS: PAM GOLDING PROPERTIES BURGERSFORT AND REALNET BURGERSFORT

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he once-booming real estate market in Burgersfort in the Mpumalanga platinum belt is building up momentum again after setbacks caused by protracted strikes in the mining sector.

So says RealNet’s local franchisee, Elsa de Bruyn, who reports that demand for residential homes as well as rental units is picking up fast, and that buyers are currently favoured by prices that moved sideways during the strikes.

“Recently built onebedroom apartments are now selling easily at prices just under R500,000, for example, and there is major demand for homes in the R800,000 to R1.1m price range, most of which are

About 3-million, within a 30km radius of Burgersfort.

families where the husband works on the mine and relocates after about five years to better work opportunities.

What residential stock is popular?

Is the buy-to-let market healthy and competitive?

Rental properties. There are too few properties for all the people, resulting in extremely high rental prices, especially for one- or two-bedroom units, which are popular among the 20- to 40-year-old mine employees and contractors.

Yes. Rental prices are extremely high for small properties.

What is the approximate population of Burgerfort?

about five years old and offer 140m2 under roof on stands of about 800m2.”

She says high-end properties targeted by professionals, businessmen and managers at the mines are selling for between R2m and R3.5m, and that homes in exclusive security estates, such as Swallow’s Crest, are in high demand.

However, the real market action is in the rental sector, where strong demand has created a severe stock shortage and paved the way for renewed residential development in the town.

Lizl Grimbeek, the Pam Golding Properties agent in Burgersfort, says that several developers have recently bought agricultural land,

with an eye to rezoning and building housing to cater for the high — and rising — demand for rentals.

“Rental demand is mostly for relatively small threebedroom, two-bathroom homes, which presents an ideal and lucrative opportunity for developers, as units such as these can be built for under R1m and can be let for about R10,000 to R11,000 a month, mostly to people with fiveyear contracts to work on the platinum mines that surround Burgersfort.”

Grimbeek says her office is negotiating a transaction in regard to 3ha of land zoned for 78 units, half of which will be sold. The other 50% will be let out.

The vast majority of people who come to Burgersfort stay for about five years. These are mostly contractors in need of affordable weekly accommodation, as well as

What is being done to meet demand?

Developers have spotted the opportunity to develop townhouse complexes. There are affordable housing projects in the pipeline too. Some opportunists even rent out caravans and Wendy houses, which they park or erect on 1ha stands they own.

LOCAL NEWS Friday, October 10 2014

CONTINUED FROM PAGE 1

Low-end property is the only double-digit performer SOULA PROXENOS, MANAGING PARTNER AT INTERNATIONAL HOUSING SOLUTIONS

“The estimate is that there are 600,000 fewer units than there is demand.

This deficit of supply is anticipated to increase by about 100,000 units a year at current supply rates” Soula Proxenos

Studying the price bands, we see that the low-value market (properties valued at less than R250,000) outperformed the others, posting growth of 14.9% year on year. The low-value market is also the only one achieving doubledigit growth.

“Values in the low-value market grows off a low base, so volatile double-digit growth spurts are expected to occur from time to time. However, since 2006 it has been consistently outperforming the rest of the market and has been continually achieving double-digit growth since the start of 2013, indicating that real capital growth is taking place,” says Paul-Roux de Kock, analytics director at Lightstone. “This market segment is most likely fuelled by a constant flow of new buyers moving from informal property to formal low-value housing. The majority of these transactions are cash sales, so it is less influenced by bank risk appetite and increased interest rates.

As homeowners in the lowend market start looking to upgrade, the mid-value market should be next in line to receive a flow of buyers that can drive up prices.”

Early signs seem to indicate that the middle market (R250,000 to R700,000) is indeed ready for more aggressive price growth, with year-on-year inflation currently at 8.2%. This signals wealth creation through property investment.

“What is interesting is that the mid-value market segment was growing below the national average until about a year ago, when it was sitting at just over 5%,” he says. “Since then it has picked up quite nicely and overtaken the high-value

(R700,000 to R1.5m) and luxury markets (more than R1.5m) as the second-fastest growing market segment after low-value.”

Soula Proxenos, managing partner at International Housing Solutions, attributes the strong performance of the lower-end market to demographics and pent-up demand that is not being met quickly enough.

“The demographics point to a continuing demand for lower-income properties,” she says. “If you look at the 60th to the 90th household income percentiles currently, the estimate is that there are 600,000 fewer units than there is demand. This deficit of supply is anticipated to increase by about 100,000 units a year at current supply rates.”

Lightstone forecasts residential price inflation to end 2014 between 5.6% and 7.8%.

The Lightstone method Lightstone applies the “repeat sales” methodology to reviewing and reporting on property data. In contrast to “average house price” indices, repeat sales indices provide a measure of the actual price inflation of houses that have transacted twice within a particular period.

The main benefit of this methodology is that it is less influenced by the mix of transacting properties, and so the index will remain a true reflection of house price growth. (If many cheap properties are sold in one year and more expensive properties the next, then a typical average-value index will be overstated.)

Five bestperforming small towns

What’s driving the supply-demand imbalance?

Kleinzee in the Northern Cape saw lots of activity, with 214 transactions taking place on residential properties in the past year. The town has 290 identified residential properties only, giving a trade ratio of almost 74%. Other small towns with high trade ratios include De Doorns (36%) in the Western Cape; Salt Rock (20%) and Ballito (13%) in KwaZuluNatal; Hoedspruit (17%) in Limpopo; and Wolmaransstad (15%) in the North West.

A growing middle class that can afford this type of housing.

First-time homebuyers now make up the majority of buyers.

Shrinking household sizes.

More, and smaller, homes are in demand.

Urbanisation. This is typical of an economy that is emerging from agriculture and commodities to manufacturing and services — as is the case with most emerging economies.

The top suburb in each market segment for each of the major provinces PROVINCE

SUBURB

HOUSE PRICE GROWTH

Luxury

Western Cape

Table View Ext. 13

16%

Luxury

Gauteng

Mill Hill Ext. 2

15%

Luxury

KwaZulu-Natal

Zinkwazi Beach

12%

Luxury

Free State

Heuwelsig

7%

MARKET SEGMENT

High value

Western Cape

Crawford

15%

High value

KwaZulu-Natal

North Beach

14%

High value

Free State

Noordhoek

13%

High value

Gauteng

Killarney

13%

Mid-value

Gauteng

Soshanguve B

30%

Mid-value

KwaZulu-Natal

Umlazi

30%

Mid-value

Free State

Phuthaditjhaba A

21%

Mid-value

Western Cape

Hornlee

16%

Low value

KwaZulu-Natal

KwaDabeka

25%

Low value

Western Cape

Vrygrond

24%

Low value

Gauteng

Devland

20%

Low value

Free State

Bohlokong

15%

OPINION Friday, October 10 2014

Suburb or city?

With the pendulum swinging to bricks and mortar, should investors choose suburbs or CBDs?

In Cape Town, flats in the trendy CBD and City Bowl areas are in high demand and offer capital growth of about 11% a year, but generally require quite a large initial investment and possibly rental subsidisation for several years

WORDS: MEG WILSON :: PHOTOGRAPH: ISTOCKPHOTO

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he fallout from the collapse of African Bank has once again underlined the attractiveness of property as a relatively secure and simple investment and has given the residential market a boost, according to Rawson Property Group chairman Bill Rawson.

“I am not claiming, of course, that there is no risk, but generally with property investment what you see is what you get, and this, together with the fact that most purchases can be geared using bank finance, makes buying an investment flat or house feel relatively safe,” Rawson says.

“The demand from tenants exceeds supply in most major urban areas, which means low or zero vacancies and rising rentals.”

The question, then, is not whether to buy an investment property (or two) but where?

The metros of Johannesburg, Tshwane and Cape Town appear to be the best options for most investors, as they offer a variety of properties to suit different investment budgets. In some cases, new public transport systems have substantially boosted tenant interest in areas where property is still relatively inexpensive.

However, every investment decision is a balancing act and this is particularly the case when trying to choose between an inner-city or a suburban property.

In Cape Town, flats in the trendy CBD and City Bowl areas are in high demand and offer capital growth of about 11% a year, but

generally require quite a large initial investment and possibly rental subsidisation for several years. This is underlined by statistics from Lightstone that show that the average purchase price for sectional title units in the CBD over the past 12 months has been R1.35m, and research by the Cape Town Central City Improvement District, which show that rentals in the area range from about R4,800 a month for a studio to about R14,000 a month for a threebedroom flat or penthouse.

The advent of the MyCiti rapid bus service on the Western Seaboard has, however, made the CBD easily and quickly accessible from areas such as Milnerton, Table View and Blouberg, which are seeing strong

demand for rental property and where it is cheaper to buy.

In Table View, Lightstone figures show, the average sectional title property price has jumped 24% in the past 12 months, but is still just under R1m.

At the same time, rentals here start at about R4,000 a month for one-bedroom apartments and can reach R9,000 or R10,000 a month for two-bedroom units.

Similarly in Tshwane, the Gautrain rapid transport system has encouraged many of those seeking to invest in high-demand student accommodation to shift their focus from the inner-city Hatfield area to suburbs such as Lynnwood and Menlyn, which both offer better value for money and higher capital growth.

Living Large

P

roperty ownership has always signified a certain level of social status. This was true even centuries ago when, particularly in Europe, only the upper classes had the means to own property, which could then be bequeathed to the relevant (that is, male) progeny while the unwashed masses were busy wearing rags, collecting mud, and keeping the property of those “above them” washed, for which service they would gratefully accept a pittance as payment. These are known as “the good old days”.

Today many countries measure their macro-wealth by how many own their

homes. The UK at one time, before that pesky global financial crisis, boasted that with 60% of its citizens owning their homes, the Brits had never had it so good. This strikes me as odd when, as here in South Africa, to own a home usually means to have our name assigned to the large bill that arrives every month and which, should we decide to forgo its payment, will swiftly render us homeless.

Ever since property became more about big business than having a roof over one’s head, it has become intrinsically linked to status, which today is more about one’s budget than breeding. However,

In Joburg, investors are finding excellent value and good rental returns in newly revitalised parts of the CBD, such as the Maboneng Precinct and the Fashion District, where they can buy stylish loft apartments in well-managed and secure buildings for between R350,000 and R650,000.

These rent for between R3,500 and R8,000 a month and, according to Lightstone, have more than doubled in value in the past year.

In the renewed suburb of Killarney, flats cost an average R1.43m (only about 8% up on last year, according to Lightstone).

Monthly rentals start at about R9,500 a month and can reach R17,000 a month for an unfurnished two-bedroom unit.

WORDS: KATY CHANCE

since money is the new social benchmark, notions of class have been compromised.

This should be a good thing, given the repellent class-based oppression that Britain has seen fit to impose for far too long. In the US, money has always signified class, or at least entitlement, and look how well that is working for them.

But if status means wealth, and wealth means property ownership, nothing denotes having arrived more than this simple phrase: “my realtor”.

People can talk about holidaying in the Hamptons/ Plett; speak about their new cars; drink French Champagne, which they

never, ever, refer to as the tasteless “bubbly”; wear monogrammed cuff links; or eat fois gras for breakfast (Banting would approve). But nothing screams rich and

Ever since property became more about big business than having a roof over one’s head, it has become intrinsically linked to status

rubbing your nose in it like having one’s own realtor.

To have an individual whose sole purpose is to service one’s real estate needs, to maintain one’s property portfolio, to bargain on one’s behalf about buildings in which you may or may not want to actually reside but are determined to own, is to signify that you are beyond reach, financially. It proves that the vagaries of stock markets and banks too big to fail failing miserably do not concern you unduly.

It shows that you did not fall for Ponzi schemes, but understood that bricks and mortar is where the real money lies. That you

need something concrete with which to secure your future and that of your (now mixed) progeny, and that you smartly and smugly recognised that property — immovable assets, not those hedgy fund things which uproot so capriciously — is the only investment that can ensure this reality.

They should be congratulated, these people with their own realtors, and if I knew one personally, I would, indeed, congratulate him. And offer him a lot of bubbly, and gratefully offer to keep his properties washed — if the pittance accepted would help keep me from a life of home-owning penury.

INVESTIGATIVE Friday, October 10 2014

Dense living In 2010 SA’s urban population measured nearly 31 million — significant in a country whose total population measured 49.1 million in the same year WORDS: TAMMY SUTHERNS :: PHOTOGRAPHS: ISTOCK AND SUPPLIED

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A’s population is an estimated 54-million people. Many of them are flocking to urban nodes, which raises the questions: is densification enhancing or destroying these areas, and can the country’s aging infrastructure cope with the increasing demands being put on it? What are the advantages and disadvantages of urban densification?

SA’s urban form is largely a consequence of its history. Says Johannesburg Development Agency (JDA) CEO Thanduxolo Mendrew: “The city grew with the automobile, extending its edges with motorised mobility. Apartheid planning contributed further to the urban sprawl, with racebased townships deliberately developed on the periphery of the city, away from opportunity and resources.”

Johannesburg remains very much a divided city, with places of work that are far away from where the majority of the population lives, such as those living in the south of the city who travel north for work.

South African Cities Network’s (SACN) 2011 State of Cities report includes threedimensional density maps conveying the socio-spatial inequalities of each city.

Says Stacey-Leigh Joseph, programme manager for SACN: “The maps show the highly fractured and variable densities of cities, where land uses are separated and commute distances between work and living are high. Understanding the base from which cities are working is important to inform how cities respond to densification challenges.”

Advantages Professor Ivan Turok is the higher deputy executive director in the Economic Performance and Development Unit of the Human Sciences Research Council (HSRC). He says that density and compact urban development are more efficient in terms of bulk infrastructure and therefore more economical. “It is also good for the environment, because people have to travel shorter distances to get to work, shopping or recreation.

Denser neighbourhoods improve the viability of public transport and therefore improve accessibility and encourage people to shift from private cars, which has environmental and social benefits,” he says.

Denser neighbourhoods also create more opportunities for sidewalk trade, with thousands of potential customers. “It comes down to making more efficient use of land and other resources,” says Turok.

Mendrew says a compact urban form improves

liveability, inclusivity, resilience and sustainability. He explains that the State of World Cities Report for 2011 identified access to equal opportunities and improvements in the quality of life of the poor as being important to the creation of an inclusive or equitable city.

Says Mendrew: “By building a more robust network of sustainable and competitive economic nodes and highdensity movement corridors that are well served by public transport, it will be possible to increase access to markets and jobs for more people, and ensure optimal use of land and energy resources. It is also important to create new activity nodes in marginalised areas in order to bring markets, services and employment opportunities to these underdeveloped parts of the city.”

Marginalised communities may refer to poorer areas, such as Johannesburg’s inner city. Says Joseph: “Many cities have adopted a transit-oriented development approach to

spatial planning, which will support densification and allow for improved access to public transport. In the long term this supports spatial transformation of cities by making core areas more accessible to poorer or marginalised communities.”

Johannesburg’s Rea Vaya Bus Rapid Transport (BRT) system is an example of the movement towards these kinds of nodes that are well served by public transport. The city has received funding from the Department of Transport to implement the Strategic Public Transportation Network. This will consist of special public transport lanes and intersections, running north to south and west and east. Transport interchange nodes will be created, where commuters will be able to switch from one form of transport to another. They will also eventually be able to buy a single ticket, making travel via the different means of transport — rail, bus and taxi — a simple affair.

The first phase of the network took the form of the Rea Vaya BRT system, with its dedicated trunk bus ways running from Thokoza Park in Soweto to Ellis Park, and an inner-city distribution system of dedicated lanes and bus stations.

The JDA has found that the most efficient urban form is compact mixed land use with an extensive public transport network that includes highintensity movement corridors and attractive environments for walking and cycling.

Densification in numbers The United Nations projected that half of the world’s population would live in urban areas at the end of

2008.

Average densities within the Johannesburg metropolitan region indicate 521 people/km2.

Average densities in the Johannesburg inner city are estimated to be 2,270/km2 within a 10km radius, but it is likely this is an underestimation.

Statistics SA estimates that the annual urban population growth in South Africa between 2010 and 2015 will be 1.2%.

In 2011, statistics showed that 62% of the total population in SA was urbanised..

Disadvantages Disadvantages of urban density tend to result from a lagging supply of social and community facilities to serve the rising residential population, and from urban management challenges, including increased crime and environmental health concerns as a result of overcrowding or inadequate housing, says Mendrew.

Turok says there may be more pressure on public services and infrastructure from higher levels of utilisation.

Joseph says that when areas densify naturally, it may develop at a faster pace than the supply of infrastructure or the demand of service is higher than was originally planned for. Examples include overused sanitation systems, where the physical infrastructure in place is simply unable to cope with use and may cause breakages, overflows or unplanned breakdowns.

The recent water shortages in Johannesburg are an example. In September the suburbs of Malvern, Benrose, Denver, Wesdene, Coronationville, Winchester Hills, Whiteridge and Waterval, among others, all experienced extreme water shortages owing to depleted water supplies in four reservoirs in the city. The city’s water services had to set up temporary water tanks in those areas in an effort to alleviate the problem.

INVESTIGATIVE Friday, October 10 2014

Infrastructure

The future of SA’s urban nodes

SA’s older infrastructure can be an issue when it comes to an increased population; however, Turok says that in many places there is spare capacity built into the system, for example in the Northern Suburbs of Johannesburg and the inner Eastern Suburbs of Pretoria. These include storm water systems, sewers, water pipes and electricity networks. “This is probably true of many older suburbs in all South African cities, which were built to a high specification. They could accommodate additional development, like a granny flat or additional house built in the garden, without great difficulty. The only issue may be if the spare capacity has been poorly maintained,” Turok says.

A challenge, Joseph says, is to stretch cities’ budgets to provide access to services not only to people and households that previously were denied these services, but also to new residents. Maintaining and upgrading the infrastructure is another challenge.

Says Turok: “Where there is spare capacity and the infrastructure is in reasonable condition, it makes an awful lot of economic sense to encourage higher density development because the bulk infrastructure is essentially free.

‘Intensification’ is a useful word to cover the efficiency gains from higher densities.”

IVAN TUROK, HUMAN SCIENCES RESEARCH COUNCIL

“Where there is spare capacity and the infrastructure is in reasonable condition, it makes an awful lot of economic sense to encourage higher density development because the bulk infrastructure is essentially free” Ivan Turok

Service delivery Despite water shortages, electricity load-shedding and deteriorating roads, urban density can, in theory, improve services in SA. Says Turok: “Densification can make public amenities and services more viable, because there are more households within easy reach. This ranges from public transport, libraries and community centres to parks, recreational facilities and public swimming pools, among others.”

Across SA, city improvement districts have

shown their commitment to improving urban areas and embracing densification.

Johannesburg’s Braamfontein area, KwaZuluNatal’s Umhlanga area and the Cape Town CBD are examples of this: each has seen urban nodes flourish under an improvement strategy.

The JDA agrees that services can be improved in alignment with people flocking to urban nodes.

Says Mendrew: “Services and infrastructure can be optimised for higher density

land uses. It costs significantly less per capita to provide water and sanitation as a result of shorter pipes and reduced distances that must be serviced.”

In Johannesburg, new middle- and high-income private housing projects have been built on the periphery of cities, often in security complexes.

“This has imposed high costs on public infrastructure, roads, traffic congestion and the natural environment,” says Joseph.

Says Turok: “We have been slow to encourage higher density development in SA, unlike in many other parts of the world such as European cities, London, Manchester and Leeds. For the future we should start with a thorough assessment of the capacity and condition of our basic infrastructure to identify areas where densification is possible at modest extra cost.” In Australia and Canada, for example, there has traditionally been low density, but they have been promoting higher-density development around their transport nodes for several decades and have had considerable success.

The South African plan should identify areas with different levels of priority for new development, according to the spare capacity in the network. Developers should be encouraged to focus on vacant sites and redevelopment opportunities along key transport corridors and nodes where public transport is available and the underground infrastructure can accommodate more households.

The City of Johannesburg, for example, has launched the Corridors of Freedom transit-led development strategy that starts with an investment in mass transit infrastructure and services along key prioritised development corridors. It is aimed at shifting people

closer to jobs, shifting jobs closer to people and linking jobs and people.

Turok says, “We need to persuade people that higher-density living is more convenient and interesting, and that it doesn’t mean more crime and grime.

And we need to persuade developers to be more creative and innovative, rather than continue to build low density suburbs.”

He says sprawling low-density residential developments are inefficient and unsustainable. “The larger-scale problems are the middle class and the RDP dormitory settlements. The government is in charge of building the latter, so there’s no one else really to persuade.

“For middle class suburbs it’s about persuading developers and households.

One way of persuading them is by building a few highquality showcase projects that demonstrate all the benefits of higher-density living.

This is beginning to happen with innovative projects like Maboneng in Joburg.”

Joseph says that greater integration of settlements within each metropolitan area is important to improve functional efficiency and fairness. “Fragmented cities need to be knitted together more effectively through strategic investments in transport, housing and economic development,” she says.

INVESTMENT Friday October 10 2014

Portugal an easy fit for South Africans WORDS: DAVID A STEYNBERG :: PHOTOGRAPHS: MONARCH & CO

Citizenship by investment programmes are not new, but Portugal is giving foreigners a reason to invest there over its neighbouring states WORDS: DAVID A STEYNBERG :: PHOTOGRAPH: MONARCH & CO

S

outh Africans looking to gain EU citizenship status are increasingly interested in the land of the rooster — Portugal. While there does exist a number of doors to the region for South Africans to both live and work in the 28 member states, Portugal seems to be the easiest and most logical fit.

This is according to James Bowling, founder CEO of Monarch & Co, a turnkey services company that assists southern Africans — and Nigerians, more recently — with 10 residency programmes, including the US, Canada, the EU and Mauritius.

Each country has its own set of hoops through which applicants need to jump, and most require investment in real estate — except for the US and Canada, which, respectively, allow for passive investments in regional centres and job creation, and government bonds.

With Malta having received the lion’s share of interest from foreign nationals looking to gain EU citizenship pre-2009 — thanks to some fortuitous loopholes in its legislation — it was forced to place restrictions on its residency programme because it was so highly oversubscribed, says Bowling.

Monarch & Co also offers citizenship and residency services in Cyprus, Grenada, Bulgaria, the UK and Greece.

“There is no one country that is better than another.

It’s just about each person’s requirements and reasons for wanting to gain citizenship or residency,” he says.

Surprisingly, many of his clients — aged 45 to 70 years old — are not buying property overseas for rental returns or capital appreciation but for another reason.“We call it ‘lifestyle hedging’,” he says.

“They want the property as a hard asset should they need it, as well as for First World health care, education, social security and the ease of travel.

Often we find clients buying into our programmes for their children and grandchildren.”

Pam Golding Property Group has also cottoned on to the citizenship-by-investment opportunity in countries such as Portugal and cities such

INVESTMENT Friday October 10 2014

“In Lisbon, the Algarve or Cascais you can get an oceanview, two- to three-bed apartment for at least €500,000” James Bowling, founder CEO, Monarch and Co

The price of citizenship PORTUGAL Purchase of properties worth more than €500,000.

The investor can purchase more than one property to make up the investment amount of €500,000.

CYPRUS Direct investment of at least €5m in the purchase of one of the following: a property, business or companies, or financial assets.

,

Investors need to maintain ownership of the assets for three years. as Miami. But the group’s chief executive, Andrew Golding, sees the programme as an investment option with lifestyle benefits.

One of the programme’s requirements is that a foreign investor spend at least €500,000 (about R7m) on real estate to get a visa, and after six years could receive Portuguese citizenship. (Other requirements include staying in Portugal for a minimum of seven days during the first year and 14 days over the next two years.)

What does that buy you in Portugal’s popular markets?

“In Lisbon, the Algarve or Cascais you can get an ocean-view, two- to three-

bedroom apartment for at least €500,000,” says Golding. “If you go the buyto-let route, your return is a gross of 5% and a net return of 2%. So there is a financial return in that market.”

One of the risks of the programme is over-inflated real estate, according to Golding, who says those in Portugal know of the programme and may not be afraid to exploit it for their own gain. “A property worth €400,000 can quite easily be bumped up to €500,000 and suddenly it qualifies for the visa programme,” he says. “Due diligence is therefore vital.”

Citizenship by investment is nothing new. The island nation

of St Kitts has had this sort of programme since 1984, while a host of other islands and mainland countries have used similar schemes to attract foreign direct investment to prop up sluggish economies and finite markets.

To paint a rosier picture, Portugal’s Golden Visa Programme has sold more than 1,000 visas since its inception in late 2012. That works out to a minimum of €500m, which has helped shore up Portugal’s real estate market.

With existing stock being bought up, and with continued demand for international hedging and citizenship benefits, new development is sure to follow.

GRENADA Real estate investment of $310,000, made up of a shareholding in the ownership and operation of a qualifying hotel development in Grenada.

MALTA The value of the immovable property has to be at least €275,000. However, when the property is in the south of Malta or Gozo, the minimum value is €220,000.

Applicants will also be eligible if they rent property for €9,600/year in Malta, or €8,750/year in the south of Malta.

MAURITIUS Under the Integrated Resort Scheme and Real Estate Scheme, a minimum of €500,000 is required in the acquisition of immovable property for residence.

ST KITTS The property purchased must cost a minimum of $400,000, must be situated in a pre-approved real estate development area and must be owned and maintained for a minimum of five years.

Depending on the development, property registration, processing fees and taxes (0% to 6%) must be paid in addition to the property purchase price.

“We call it ‘lifestyle hedging’,” he says. “They want the property as a hard asset should they need it, as well as for First World health care, education, social security and the ease of travel” James Bowling, founder CEO, Monarch and Co

INVESTIGATIVE Friday, October 10 2014

Trouble brewing Down Under?

“In our efforts to stimulate growth in the real economy, we don’t want to foster too much build-up of risk in the financial sector, such that people are overextended” Glenn Stevens, governor, Reserve Bank of Australia

Demand brought about by short supply is hampering new residential development in some of Australia’s cities WORDS: ANNA-MARIE SMITH AND LEA JACOBS :: PHOTOGRAPHS: ISTOCKPHOTO

S

“Increased demand over the past 12 months is seeing Chinese developers buying and converting large commercial properties into luxury residential apartments in Sydney” David Rees, head of research, Jones Lang LaSalle Australia

peculation of a perceived property bubble in Australia emphasises the role of the country’s stable banking sector. Economists are supporting the banks’ solid, modest approach, which so far has prevented Australia from entangling itself in subprime mortgage issues.

As illustrated during the global financial crisis, a lenient banking sector — where increased consumer spending and greater affordability of mortgage repayments are driven by low interest — can cause a bubble to grow and burst.

Australia has enjoyed sustained economic stability since 2009 ,with inflation at 3%, record-low interest rates at 6% and the secondfastest wage growth of any developed economy over the past 13 years. The Bank of International Settlements reports that the country’s house prices are the highest among the world’s most expensive, yet with flat real price growth in the long term.

The Reserve Bank of Australia (RBA) recently warned of its intention to prevent location-specific asset bubbles from developing, as seen in Sydney and Melbourne.

From a real estate perspective, says David Rees, head of research at Jones Lang LaSalle Australia (JLL), the development or imminence of a bursting bubble depends on which definition is applied

in individual economic models. “Current speculation implies that property values have lost touch with reality; whereas in a historic context, growth in Sydney’s housing market is coming off a decade of undersupply, indicating the low base from which prices are rising.”

Notes Saul Eslake, chief economist at Bank of America Merrill Lynch: “The RBA is not saying we have a bubble, only that we could do — if the current dynamics continue for much longer.”

He says that bubbles require unsustainable growth in debt, and price growth that rests on a self-fulfilling and irrational belief in rising prices, but that the former does not apply to Australia.

This is becoming increasingly evident in the RBA’s efforts to prevent Australia’s financial stability coming under threat from rising house prices.

Says RBA governor Glenn Stevens: “In our efforts to stimulate growth in the real economy, we don’t want to foster too much buildup of risk in the financial sector, such that people are overextended.”

Fiscal control as stated by the Australian Prudential Regulation Authority reflects that just 0.6% of banks’ housing loans are delinquent in some way, and have been falling steadily since 2010.

Non-performing business and personal loans represent 2%.

Rees says house prices in Sydney have been at high levels for a long time, owing to a protective tax system that encourages buying.

Levels of entry into the market are driven upwards by increased demand and growth, in particular from a wealthy and nearby source such as China. But, he says,

reduced rental vacancies owing to short supply are discouraging construction, despite rising rental prices and income growth of 2% to 3%.

Kelly O’Dwyer, who is leading a parliamentary inquiry into the impact of foreign buyers on the market, says that big builders such as Mirvac and Australand claim that up to 20% of new flats are being purchased by foreign investors. “But expert submissions we’ve received are divided over whether foreign demand helps locals, by encouraging new supply, or boosts prices because of added competition, especially for new apartments.”

From a pure investment perspective, says Rees, reduced exchange controls in China and Hong Kong are driving location-specific demand in Sydney. In the University/Downtown area, Chinese parents are willing to pay high premiums to set up their only children in a secure, convenient flat.

“Increased demand over the past 12 months is seeing Chinese developers buying and converting large commercial properties into luxury residential apartments in Sydney,” says Rees. At the same time, he notes, investments in New South Wales and Sydney,

which require commuting, are performing poorly in comparison with Victoria’s Melbourne, which offers a balanced investment portfolio amid strong infrastructure development.

Melbourne residents, who are in the company of four major banks, various universities and a strong manufacturing sector, are well-placed, if one considers New South Wales’ and Sydney’s agricultural and mining sectors’ exposure to global economies. Savills Australia last month reported stable rentals in Melbourne, with a 10% jump in values and improved rental yields in central locations, where strong demand continues to draw the interest of international investors.

The Economist Intelligence Unit’s International Index ranks four of Australia’s cities among the world’s top 10 in terms of liveability: Melbourne came in first for the fourth consecutive year, followed by Adelaide in fifth position, Sydney in seventh and Perth in ninth spot.

Can you afford a home Down Under?

Is Australian property overpriced? The short answer is yes; homebuyers are going to struggle to get a foot in the door, but they are not alone.

Even those who have owned property for years and want to buy something new are going to battle to find a suitably priced home in Melbourne or Sydney. Property prices in these two cities have

rocketed: the average home now costs about 30% more than it did 15 months ago. (Prices in Perth have remained a little too static.

The median price of property has remained unchanged for the past five years.)

The Economist recently noted that if property prices are measured against average incomes, then Australia ranks higher than Canada, New Zealand or France.

Overpricing is even more evident when property prices and rentals are compared.

Nor does it help that well-known US economists such as Harry Dent have predicted that Australia’s property market is bordering on collapse and that when it goes, prices will drop by around 50%.

Many Australian economists disagree, citing a number of reasons, including an ongoing housing shortage and a rapidly growing population, as mitigating factors.

What should the South African investor consider before ploughing money into an Australian property?

First, try to stay away from mature property markets such as Sydney and Melbourne, where prices and rentals are high and accommodation is relatively scarce.

The other factors that need to be considered are the rand/A$ exchange rate and the restrictions on transferring capital to another country.

The South African authorities allow R8m a family unit.

A quick internet search reveals that you are in twobedroom-one-bathroom territory in this price range in Sydney. Not everyone will have the full R8m allowance to spend on a property, either. Immigration costs are high, as are the costs of transferring your family and household possessions.

It certainly would not hurt to adopt a wait-and-see approach in the short term.

News (TO BE FILLED IN BY Bday) Friday, October 10 2014

Walking 1,200km for conservation

B

renda Gilbert, an estate agent at Pam Golding Properties’ Fourways office, will have walked 1,200km to raise funds for the Eden to Addo Corridor Initiative by the end of October.

“The Eden to Addo Corridor Initiative entails

educating landowners and farmers on the creation of corridors, which are strips of land connecting protected areas. These corridors enable animal migration and ensure key ecological processes, such as pollination and seed disposal, across different types of habitats are maintained.

GoGlobal now Stenprop They therefore enhance the long-term survival of species,” she said. “This is the third time I have done this walk since it was first undertaken in 2007.”

Eden to Addo is a yearly event where 24 individuals hike for 400km over a period of 18 days in the Eastern Cape.

“The Eden to Addo Corridor Initiative entails educating landowners and farmers on the creation of corridors, which are strips of land connecting protected areas”

G

oGlobal Properties, which is listed on the Bermuda Stock Exchange and has a secondary listing on the JSE’s AltX, has acquired the €667m Stenprop portfolio. Following the deal, GoGlobal’s name will be changed to Stenprop Limited.

Stenprop now owns a property portfolio valued at more than €700m and comprising 53 buildings: 26 in Germany, 13 in Switzerland and 14 in the UK. The total lettable area is 230,000m², weighted predominantly in the retail (46%) and office (32%)

sectors. Total rental income is about €46.4m a year.

CEO Paul Arenson said: “Stenprop has excellent retail and office assets with sustainable quality income.

We intend to build on this foundation by acquiring additional earnings-enhancing properties. The focus of Stenprop’s business plan is to deliver a sustainable and growing dividend stream to shareholders. We are looking forward to continue engaging with existing and potential shareholders to support our strategy.”

Brenda Gilbert, Pam Golding Properties

Buyers still calling the shots

B

uyers are determining the price of homes, despite renewed confidence in the real estate sector. Sellers, therefore, need to price their homes at market-related levels.

“Buyers are still price sensitive and are looking for value-for-money properties that cater to their specific accommodation requirements and have good finishes,” said Debbie Justus-Ferns, manager of Renprop Residential Resales.

“Buyers won’t even bother putting in an offer on a home that is overpriced, and will rather look around to find something with a more realistic price tag.”

She says that high-balling — overpricing a property ­— can drive away potential buyers, who now more than ever mean business. “The days of curious onlookers attending show days are over.

More than 80% of the buyers currently in the market are

Birchfield exceeds expectations

T

he Birchfield apartment complex, near Grand Central, Midrand, is performing better than expected, and its second phase is selling out fast.

Glen Fisher, Seeff’s development director in Sandton and Midrand, says: “The owners of units in Birchfield are getting better returns than we originally predicted. Two-bedroom units are generating a rental income of around R6,500 per month, where only R5,800

to R6,000 per month was expected. One-bedroom apartments are renting rapidly for R4,800 per month, with no resistance from the rental market, whereas it was predicted to generate only R4,200 per month.”

Apartments are priced between R510,000 and R670,000 for one- and two-bedroom apartments, respectively, and range in size from 41.8m2 to 64.6m2.

Fisher said 60% of purchasers were first-time homebuyers.

“Two-bedroom units are generating a rental income of around R6,500 per month, where only R5,800 to R6,000 per month was expected” Glen Fisher, Seeff

serious and don’t want to waste time on overpriced homes,” Justus-Ferns said, adding that in the Northern Suburbs of Johannesburg there still exists a 10%-20% variance between asking and selling price.

This is, in part, the result of buyers being well informed about the property market and doing extensive research on suburbs and sales history.

Well-priced sectional title homes in Johannesburg’s Northern Suburbs are selling within two weeks of coming onto the market, and about 90% of buyers are investors with a buyto-let portfolio, she said.

In the freestanding-home market, a severe stock shortage is spurring on demand. “Anything priced under the R2m mark in the northern Johannesburg area is selling in a relatively short period of time, as long as it is correctly priced,” said Justus-Ferns.

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A north-facing family home set on 2 130 m offers the perfect dual living. Very private cottage with own entrance. Main house compromising of 3 bedrooms, main en suite, large open-plan kitchen/ family room, very spacious living area with great entertainment flow.

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Light and airy modern family home tucked away in a quiet cul-de-sac in Bloubergsands, West Beach. Generous high ceiling, double-volume openplan living areas with fireplace.

Bedrooms: 4 Bathrooms: 3 Garages: 2 Web Access 1TV1178203 Rosemary Louw 082 743 5915

ATLANTIC SEABOARD: Atlantic Prestige +27 21 439 1614, Camps Bay +27 21 438 3444, City Bowl +27 21 423 2150, Sea Point+27 21 439 7415 SOUTHERN SUBURBS: Quadrant +27 21 673 4200, Newlands +27 21 685 7759, Tokai +27 21 701 0191 SOUTHERN PENINSULA: Fish Hoek +27 21 782 6440, Noordhoek +27 21 789 1921 Simon’s Town +27 21 786 1612 WESTERN SEABOARD: Big Bay +27 21 554 0033, Blouberg +27 21 557 1115, Sunningdale +27 21 556 2362, Sunset Beach +27 21 551 8640, WEST COAST: Britannia Bay +27 22 742 1001, Langebaan +27 22 772 2196/9066, Paternoster +27 22 752 2668, Saldanha +27 84 517 3290, St Helena Bay +27 22 742 1001, Veldrif +27 22 783 1511, Yzerfontein +27 22 451 2188 HOUT BAY: +27 21 790 5940

www.pamgolding.co.za

R5.995 million

Stunning residence. Sea and golf course views. This triple-storey home is positioned at the highest point in Shelley Point commanding breathtaking vistas. Views of the bays and the lush, green golf course laid at your feet, this sleek, contemporary residence is simply stunning.

Bedrooms: 4 Bathrooms: 4 Garages: 2 Web Access LA1190687 June Perrett 082 419 0098

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WEB REF: 3209018

STONEHURST ESTATE • R 6 395 000 NEWLY BUILT FAMILY HOME This newly built family home is in a super position overlooking green-belt area. Double storey home, 3 bedrooms all en-suite upstairs.

Downstairs is a study/tv room, guest bathroom and open plan kitchen, dining room and lounge area opening up onto covered patio and veranda which overlooks the well maintained indigenous garden.

MARION BOLTON 082 408 5041 marion@everitt.co.za SALLY GRACIE 083 459 9523 sally@everitt.co.za 021 712 5029

WEB REF: 3209088

WEB WEBREF: REF:3140053 2559587

WEB REF: 3230199

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BEDFORDVIEW • R 14 800 000 PALATIAL HAVEN FOR THE CONTEMPORARY ENTHUSIAST! This residence presents 4 regal bedrooms (all en-suite), sumptuous bathrooms, finely-honed receptions too numerous to mention and grand entrance hall. This residence is an entertainment spectacle to be admired with an extravagant kitchen to dine and excellent security.

NATALIA 072 392 8421 • natalia.dias@everitt.co.za LUZ 082 444 9763 • luz.vazzana@everitt.co.za • 011 453 5599

BEDFORDVIEW • R 11 900 000 IN A CLASS OF IT’S OWN IN AN EXCELLENT POSITION! Featuring soaring ceilings in finely honed receptions, 7 generous bedrooms with affluent patios abound flowing out onto rim-flow pool and landscaped garden, a remarkable cottage and double SQ makes this home ideal for executive living.

NATALIA 072 392 8421 • natalia.dias@everitt.co.za LUZ 082 444 9763 • luz.vazzana@everitt.co.za • 011 453 5599

WEB REF: 3229729

BROADACRES • R1 500 000 LOCK UP AND GO UNIT 2 Bedroom and 2 bathroom loft apartment. Kitchen and open plan dining room. Included in the sale: Fridge, washing machine and dishwasher and outdoor garden furniture set. The loft area comprises of 2 living areas and an entertainment area on the 2nd patio.

SUE BROWNLIE • 083 450 1600 • sue.brownlie@everitt.co.za 011 463 2033

BROADACRES • R3 600 000 A TIMELESS CLASSIC A timeless classic home in an upmarket secure estate.

Clubhouse includes swimming pool and tennis courts. This lovely home comprises of a 4 bedrooms, 4 en-suite bathrooms, guest cloakroom, study and open living area. The kitchen has granite tops, double automated garage and covered entertainer’s patio.

Beautiful landscaped garden which is easy to maintain.

SUE BROWNLIE 083 450 1600 sue.brownlie@everitt.co.za 011 463 2033

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WEB REF: 3231419

NORTHCLIFF EXT10 • R3 200 000 HOME OF DISTINCTION The entertainment area and wonderful garden makes this a very private bit of paradise.

This lovely 1876m², family home offers 4 bedrooms, 2 bathrooms and a guest loo.

Private guest suite with an en-suite bathroom. Study, family kitchen, pantry, spacious lounge, dining room and family room of which all opens out to a well maintained garden with a borehole. Covered patio with built-in braai area which overlooks a sparkling pool.

Wine cellar, super modern staff accommodation. Dougle garage. Good security.

ZANDREE 084 810 5622 zandree.lill@everitt.co.za MIRANDA 072 252 3856 miranda.philip@everitt.co.za 011 801 2500

WEB REF:3200418

WEB REF: 3167870

WEB WEBREF: REF:3140053 3140053

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SOLE MANDATE BOKSKRUIN • R3 100 000 LUXURY SECURITY COMPLEX Gracious entrance hall, 3 open plan reception areas that flow onto covered entertainment patio, which overlooks pool and garden.

Generous kitchen, separate scullery and pantry. 3 bedrooms, study, 2 bathrooms and guest cloak. Staff suite and double garage.

LYN • 082 893 2413 • lynm@everitt.co.za 011 792 5685

NORTHCLIFF • R4 900 000 DELIGHTFULLY ELEGANT Reception rooms are molded around stunning central atrium. 4 Bedrooms, 3.5 bathrooms, 3 lounges and dining areas. Patio and pool. Kitchen, separate laundry/scullery, wooden deck and garden.

Triple garage. Double staff room. Excellent security.

ANDRE 082 377 6439 • andrej@everitt.co.za DEBBIE 072 225 3351• debbie.rosz@everitt.co.za • 011 801 2500

WEB REF: 3140053 3230631

WEB REF: 3230610

PLETTENBERG BAY • R8 500 000 TURTLE CREEK GOLF ESTATE Exceptional views from this superb Turtle Creek residence on the world renowned Goose Valley Golf Estate. The location, state of the art security and extensive leisure facilities make this one of Plett’s finest investments.

JOHN FULLER 082 905 1516 • johnf@everitt.co.za 044 533 5250

WEB REF: 3177072

SOLE MANDATE CAPE TOWN CBD • R 2 200 000 SPACIOUS 2 BEDROOM WITH VIEWS This 2 bedroom apartment in Greenmarket Place is stylish and spacious. Lounge/dining room with open-plan kitchen. Lovely scenic front balcony allowing heaps of natural light into your entertainment area. 1 Reserved under-cover parking bay in a neighbouring building.

PETRICK FOURIE • 083 443 1929 • petrick.fourie@everitt.co.za 021 434 8755

CAPE TOWN CBD • R3 000 000 POPULAR HISTORIC BUILDING This modern unit is spacious and consists of 3 en-suite bedrooms and an open lounge/dining room. The kitchen is open-plan with granite counter tops and space for a washing machine. Bonus: 2 direct access, under-cover parking bays.

PETRICK FOURIE • 083 443 1929 • petrick.fourie@everitt.co.za 021 434 8755

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PLETTENBERG BAY • R1 100 000 – R1 300 000 LYNNWOOD ESTATE 15 Prime North facing stands left in this prime new development on the superb Goose Valley Golf Estate. 10% deposit secures with 4 years to build. Modern contemporary designs. Downloads on our Home Page at www.everitt-plett.co.za.

JOHN FULLER 082 905 1516 • johnf@everitt.co.za 044 533 5250

Exquisite, furnished, designer pad for buyer wanting tranquillity and perfection. Set on the rocks overlooking Moses Beach. Open plan lounge, dining room and study with spectacular views. Your choice of comfort level from the air-conditioning, gas fireplace and underfloor heating. Convenience of same level secure parking, communal pool and direct beach access. Glenn Goldberg 083 658 3427 | Stacey Janit 076 337 4888 | Sandra Scher 083 456 2737 | Web Ref: 83577

Clifton – R12.5 million

Magnificent home in the Avenues! Enter this beautiful home and be welcomed by an elegant entrance hall flowing into formal lounge and classical dining room, high ceilings throughout. Gourmet kitchen leads onto lovely family room opening onto large patio and tranquil garden. Upstairs comprises of 4 beds, 3 baths and open plan study. Excellent security and staff accommodation. Charne Shipper 083 274 6336 | Gregory Kruyer 071 477 0434 | Web Ref: 83592

Upper Constantia – R9.999 million

The winding driveway leads to this one of a kind masterpiece. Exquisite interiors showcase all the public and private spaces. Home boasts 4 beds, 2 lounges, formal and informal dining and offers seamless transition between indoor and outdoor living. Gracious patio, mature landscaping and glistening pool make this the perfect home for entertaining. A quality of home that many would say far exceeds the price! Norma Robinson 082 554 7260 | 011 656 0888 | Web Ref: 84420

Morningside – R5.9 million

Contact: Liana Joubert: 083 411 4537 / 011 880 3550.

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