Business Day Home Front 12 August 2016

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BDlive.co.za | @BDliveSA

FRIDAY, AUGUST 12 2016

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MABONENG: ART AND RETAIL REPURPOSED

REAL ESTATE’S ONLINE REBELS?

APARTHOTELS AND OTHER TRENDS

NEIGHBOURLY NEED TO KNOW ON BUILDS

Building for the future Technology, clean building techniques and using every available space for greenery are key trends in environmentally sound property development WORDS: GEORGINA GUEDES :: PHOTOS: ALAMY STOCK PHOTO AND ISTOCK

CONTINUED ON PAGE 8

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LIFESTYLE

Friday August 12 2016

“I like to think of The Cosmopolitan as an elegant old lady” Jonathan Freemantle, co-director, Hazard Gallery

Maboneng’s Cosmopolitan space A hotel built in 1899 is the latest building to be cleverly repurposed by a pair of passionate developers as an artistic venue in Johannesburg’s vibrant destination precinct WORDS: JULIA FREEMANTLE PHOTOS: KARL ROGERS

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rban regeneration and a return to city spaces have never been more in vogue. And rarely do they come in as presentable a package as Maboneng’s latest lifestyle project, The Cosmopolitan. The brainchild of art gallery directors and business partners Jonathan Freemantle and Daniel Liebmann, who together run Hazard Gallery just off Fox Street, The Cosmopolitan developed out of their desire to curate beautiful products together with art and display it in a setting that would elevate the city centre’s retail offering. They are a formidable combination. Freemantle has a background as an artist and is one of the co-founders of the Edinburgh International Fashion Festival, and Liebmann has a passion for fashion and experience in retail and clothes — he has had a shop and started out selling vintage clothes at markets. But it is their love of the city that will make The Cosmopolitan a lifestyle destination. Dividing his time between Cape Town and Johannesburg, when Freemantle is in Maboneng he lives in the loft area of Hazard Gallery, a compact but ultra-cool space that immerses him in city life. Liebmann lives close by too, and together they spend much of their time, when not in the gallery, networking

at local restaurants and coffee shops with other business owners in the area — Maboneng’s answer to meetings. “This place is full of amazing success stories and fascinating tales,” says Liebmann. From Bheki Dube, owner of the local backpackers, to a former car guard turned master printmaker, the area is an incubator for entrepreneurs. FASHION AND BEAUTY The building, a circa-1899 beauty of grand proportions and ornate detailing, began life as a hotel. Now its rooms upstairs have been transformed into fashion and beauty boutiques, as well as pop-up spaces for local artists and collaborations. Extending the gallery’s ethos of quality work and local luxury, the two have concentrated on sourcing brands with a point of difference that are sophisticated but honest — from specialist milliner Crystal Birch and perfumer Agata Karolina to top-end tea label Yswara. The original bar downstairs, an iconic space where legend has it Charles Glass poured his first Lion Lager, will be revived with sophisticated food by local restaurateur Dario D’Angeli, who is also moving the celebrated Cube Tasting Kitchen to The Cosmopolitan. Despite all the cutting-edge content coming on board, Freemantle and Liebmann


LIFESTYLE

made a conscious decision to leave the exterior of the building as untouched as possible, honouring its history while turning it into a space conducive for contemporary brands. “I like to think of The Cosmopolitan as an elegant old lady,” explains Freemantle. This has informed the treatment of the space as well as the

aesthetic of the garden. It is an unexpected profusion of English country prettiness — roses, hydrangeas, cherry trees and birches. Amid the gritty urban sprawl, it becomes an oasis. This outdoor area will house the sculpture exhibition that will rotate every three months. This idea of change and growth is central to The

Cosmopolitan and the area as a whole — staying relevant within the context of the city centre’s rich heritage. With the past and the future bookending the project, art at its core and luxury as its focus, The Cosmopolitan is set to add a big dose of beauty to Johannesburg’s retail landscape.

Developer’s notes As Maboneng’s principal developer, Propertuity has singlehandedly changed the face of the area. CEO and founder Jonathan Liebmann provides a snapshot.

How has property performed in Maboneng over the last year? The prices in the area have increased, completely outperforming the rest of the Joburg market.

MABONENG IN A NUTSHELL Maboneng is a Sotho word meaning “place of light”. The precinct is in the southeastern corner of the Joburg CBD, clustered along Fox and Main roads and surrounds. Old buildings and warehouses are being repurposed to create a hip urban environment. It is a mix of art galleries, restaurants, retail and studio space, offices and flats. Arts on Main and Main Street Life are the main building complexes. Developer Jonathan Liebmann bought old

Friday August 12 2016

construction offices and warehouses dating from the 1900s in 2008. He turned them into Arts on Main with architect Enrico Daffonchio.

What is the makeup of the area? Maboneng is approximately 65% residential, 15% offices, 15% retail and 5% industrial. How is the lifestyle aspect developing? It has grown hugely and is increasing all the time. Currently there are more than 40 restaurants and bars in the neighbourhood, from large to kiosks or hatches. What impact do you see The Cosmopolitan as having? The Cosmopolitan lends itself towards our movement of achieving critical mass in the area. This particular development also reinforces Maboneng’s commitment to heritage, art and design.

Main Street Life is a transformed 1970s industrial building that opened in 2010. The 12 Decades Johannesburg Art Hotel is on the top floor. Main Street Life includes flats, a rooftop events venue and retail stores.

What can a first-time buyer expect to pay for a twobedroom flat? The prices vary dramatically: you can find something from R290,000 up to R3.5m. Typically you’re looking at about R980,000.

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DESIGN Friday August 12 2016

Analyse it WORDS: PATRICK CAIRNS

Beyond the richest real estate

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Leather updated Leather has a timeless appeal in décor and design, but cutting-edge designers are putting a new spin on it by using the material in interesting and unusual ways WORDS: CHRIS REID :: PHOTOS: DARK HORSE

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racking furniture trends for the past few seasons, there is an interesting shift in the use of leather in international shows and markets. While there will always be a place for the old-school leather couch as a status piece in interiors, more cutting-edge designers are using the material in different ways to give it an updated appeal. One of the main things we are seeing in more conceptual product design in terms of leather is treating the material in single, flat planes or sheets. Traditional

“This trend is tied up in the shifting perceptions around materials more generally. We are seeing a marked focus on leather alternatives”

Chesterfield designs and even the more contemporary slouchy leather treatments are more mainstream in their pitch at the moment, and structural leather is the order of the day for directional pieces. PARED DOWN Internationally, Nendo leads the way in this almost geometrically pared-down approach to leather design, but we are seeing local applications of the trend too. Cape Town leather goods and furniture studio Dark Horse is known for its interesting treatments of the material, and its new Metropolitan chair is a great local interpretation of this trend. It also features the leather plus metal combination that

we are seeing a lot of internationally, contrasting structure with tactility. This trend is tied up in the shifting perceptions around materials more generally. We are seeing a marked focus on leather alternatives in international trade shows — whether it is with designers using fish leather or synthetic options — and while that does not mean traditional leather will be superseded, it does mean people are reconsidering it in their material palette. These new kinds of treatments revere and elevate the material rather than taking it for granted. It is a conscious, intentional use of leather, and something we should be seeing more and more of in the future. dark-horse.co.za

ast month the International Monetary Fund (IMF) revised its growth forecast for SA for this year. It is now expecting the country to only just avoid a recession, and is predicting the economy will only grow at 0.1% in 2016. Other analysts are less optimistic. There are a number of predictions that SA’s economy will in fact shrink in 2016. Yet you would not get the impression that this country’s economy was in trouble if you visited Sandton or the V&A Waterfront. They each may be only a few square kilometres in size, but they make up the richest real estate in Africa. New buildings are going up, roads are being widened, and inside the shopping malls there is no apparent shortage of people spending money. This is the South African dichotomy. There are nodes where economic activity is booming, yet elsewhere a very different story is playing out. If you were to study the types of companies that are moving into the offices around Sandton and the V&A Waterfront, you might find some kind of explanation for it. Almost without exception, these areas have become home to local and multinational financial services and legal firms. The quality and depth of the services offered by them is one of the reasons why SA remains an appealing destination for foreign investment. Having this expertise and ability to facilitate big deals is an important part of building a stable economy. However, there is also another side to the growing dominance of these industries. As much as financial and legal services facilitate the growth of an economy, they do not actually make anything. On their own, they do not create economic growth. There are even arguments that when these kinds of firms grow beyond a certain size in an economy, they can become an impediment. This is because they continue to absorb more resources but are no longer able to add any further value.

This is not a criticism of these industries, but rather an important reality check. Sandton and the V&A Waterfront cannot continue to thrive without growth in other sectors of the economy behind them. That requires stimulating industries in the real economy such as manufacturing and agriculture, and further developing services industries that do create direct value, such as tourism and information technology. There has to be more effort put into supporting and growing these sectors. Yes, there are success stories such as the motor industry, but there are not enough of them. The lessons that have been learnt there need to be applied elsewhere. And that is when growth will begin to spread beyond just a couple of square miles of the richest real estate in Africa.

“You would not get the impression that this country’s economy was in trouble if you visited Sandton or the V&A Waterfront”


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SUSTAINABILITY

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reen building is not only about materials and sustainability, it also looks at how development can respond to social influences. As in all aspects of modern life, technological advances are also playing a critical role in shaping green building considerations of the future. Some of these issues were highlighted at the Green Building Convention, hosted by the Green Building Council SA (GBSA). While delegates did not focus solely on green building technologies, they also discussed societal, environmental and building trends that would influence how we created residential and business spaces, in line with green principles. Five key trends were highlighted at the convention, held in Sandton last month.

GARDENS WILL COMPETE WITH SOLAR PANELS FOR ROOF SPACE There is no question that residential and office building roofs will continue to be breeding grounds for solar panels, as renewable energy becomes more cost-effective and practical to install and

Building for the future store. But there is another use for roofs that is attracting a lot of attention, and that is for rooftop gardens. Using hydroponics, people such as Gary Smith, MD of Ubuntu Business Consulting, create rooftop gardens, training and maintenance as CSI projects for corporates. The company is helping communities — both rural and urban — to establish gardens in available spaces. In high-density city areas, this means rooftops. “We can set up gardens so that they are completely sustainable — completely off the grid — and provide

business coaching for people responsible for the gardens — recruiting them from communities,” says Smith. The creation of these urban gardens gives their communities access to fresh vegetables and allows them to sell the surplus to provide them with a source of income as well. MODULAR HOUSING WILL BECOME MORE OF A TREND When people think of modular housing, they tend to imagine extremely simple, box-like designs, but modular buildings — prefabricated units built off-site and then

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SUSTAINABILITY

Friday August 12 2016

“People from the green building had a cognitive function that was almost 300% higher than those in the normal building” Terri Wills, CEO, World Green Building Council

electric cars almost certainly will be. Evan Rice, Tesla Energy’s South African business development manager, suggests that all new green buildings should incorporate car charging infrastructure as standard in preparation for this trend. GREEN BUILDINGS LEAD TO GREATER PRODUCTIVITY There is no question that green buildings are better for the environment. That is, after all, their purpose. But increasing numbers of studies are showing that using natural systems for ventilation and lighting have extensive benefits for the people working inside the building as well. “A peer reviewed Harvard delivered to the site and placed on the foundation — are taking off in Europe and the US as cost-effective, easy building solutions that are beautiful to look at and extremely functional spaces. Hotels, offices and even McDonald’s restaurants are now using modular buildings. They are made of raw materials that can be repurposed and reused, and are favoured for the efficiency of the build, but also for the appeal of the final product. Wesley Nel, MD of Dynamic African Projects, has invested heavily in modular building in SA, because he believes the trend is set to take off in a big way locally. Says Nel: “In the UK, modular building is a £4bn industry. It can save 50% of the building time. It can use 90% less labour on site. There is limited disruption in the vicinity of the construction site — less noise and less dust. The off-site construction generates up to 90% less waste than traditional building methods. And most of the materials used in modular building can be recycled.”

CARS ARE GOING TO CHANGE EVERYTHING One of the greatest green trends that highlighted how buildings would be different in future had to do with cars, more specifically with driverless cars. Futurist Graeme Codrington, co-founder and international partner of TomorrowToday Global, a firm of futurists and business strategists, pointed out that all the privately owned cars that brought people to the convention were sitting in a nearby parking garage, wasting space and time. Imagine if an individual used their driverless car to get there, and then let it drive around on its own making money and getting people to their destinations while the owner was at a conference. It does not take too big a leap, then, to realise that any car will do, rather than an owned car — and once that trend is realised (which is Uber’s plan for world domination), residential and office parking ceases to be necessary and those parking areas can be used for other things. However, before driverless cars become ubiquitous,

study had people do cognitive tests in two buildings — one green building with lower carbon dioxide, and another a building as usual with higher carbon dioxide levels. Some of the people from the green building had a cognitive function that was almost 300% higher than those in the normal building. “The results of this and other studies are clear; being in a green building is much better for employees and for productivity,” said Terri Wills, CEO of the World Green Building Council. RENEWABLE ENERGY OPPORTUNITIES EVERYWHERE People who ignite their gas heaters using a little piezo ignition switch, or who use

a no-touch soap dispenser in a public bathroom, are already making use of renewable energy without realising it. In the heater, it’s the click of the switch depression that generates a spark to light the gas, and in the public bathroom taps, tiny watermills are turned, providing enough charge to power the sensor and decant the soap. Norman Jackson, CEO of Age Technologies, heads a Joburg company that tracks advances in these technologies around the world. He says it is likely these technologies will become more widespread, capturing energy wherever there is an opportunity, and powering a small household or office function.

“In the UK, modular building is a £4bn industry. It can save 50% of the building time” Wesley Nel, MD, Dynamic African Projects


PROPERTY PORTALS

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Real estate disruptors? Residential and commercial sellers and buyers are turning to real estate online platforms. Ever accessible, they could be disrupting the traditional way agents and brokers do business WORDS: GEORGINA GUEDES:: IMAGES: ISTOCK

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nline is the first

touch for 60% of residential properties, according to research from Rawson Property Group. Several property portals are capitalising on the growing use of the internet for research and shopping. Property Fox officially revealed its online sales platform on May 19, whereby clients can list their own property on the site, essentially cutting out the agent. The company’s model offers sellers one of two payment structures: either 1.5% commission on the sale or a R25,000 payment

upfront. Including the “soft” operation five weeks before the formal launch, Property Fox has attracted 35 listings and concluded its first three sales. A fourth was pending at the time of going to press. “We’ve been branded as disruptors in the market,” says co-founder Crispin Inglis. “However, we don’t see ourselves as direct competition to traditional agencies. Many clients would still like the service of an agent — we are offering a slightly different service. Yes, we might be disrupting the industry, but there is still room for agencies.”

“Brokers still need to play their role. Buying a commercial property is not the same as buying a bicycle” Wayne van der Vent, co-founder, Quoin Online

Property Fox takes sellers from their property listing to the submission of an offer. Bond application and approval, as well as property registration, still have to be carried out through a bank or bond originators and conveyancers, although Property Fox has partnerships with the relevant service providers. Once the listing has been created, it is submitted to every property portal in the country, including IOL, Gumtree, Private Property and Property24. All activity is measurable. The team can tell sellers how many people have viewed their listing, how many of those views led to a phone call and how many converted into physical visits. If a buyer is interested, Property Fox verifies their information before arranging a viewing with the seller. It follows up with all the potential buyers to facilitate an offer. The

successful buyer then applies for a bond and the process is handed over to conveyancers. Property Fox’s first two sales saved its clients significant amounts in commission. A house in Moreleta Park, in Pretoria was sold for R2m. The 1.5% commission saved the seller R93,000 if compared to an agent’s commission of about 7%. The second sale, a flat in Claremont, in Cape Town, sold for R3.5m and saved the seller R220,000 (she opted for the R25,000 payment upfront). LOW COMMISSION While the intention of Property Fox might not be to put traditional agencies out of business, it certainly seems that low commission rates will be an appealing value proposition for many sellers. The residential property transaction, however, is — generally speaking — far



PROPERTY PORTALS

more complex and nuanced than is usually appreciated, according to Dr Andrew Golding, CEO of Pam Golding Properties. Says Golding: “Our view is that the interest of the buyer and the seller are unquestionably best served by a professional, competent, trustworthy agent, someone who has the necessary experience and knowledge to conclude a transaction successfully concerning what is usually an individual’s biggest asset.” This is best achieved when the agent is supported by a reputable company that offers peace of mind and comfort to both the buyer and seller — neither of whom are likely to be property experts, he adds. He points out that during the property transaction process, there are multiple interventions and skills-set required, including valuation, marketing, negotiation skills, local area knowledge and the individual agent’s experience, which help the buyer and seller in navigating potential technical and legal pitfalls. HOMEOWNERS ADVERTISE Private Property claims to be the first South African website offering sellers a way to advertise their homes themselves. The site still offers this option, but according to CEO Simon Bray, only a small portion of its market feels knowledgeable enough to do this without the assistance of an estate agent. “Disruption will only occur if real estate agents lose sight of what is important to their clients,” says Bray. “Those who focus on delivering good customer service, leveraging property marketing platforms to the maximum and engaging directly with their own

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desks; they are networkers and people connectors.”

networks will always be relevant. Some sellers may be willing to use a lowcost alternative, but most will be more comfortable using an established real estate brand.”

WAYNE VAN DER VENT

“We don’t see ourselves as direct competition to traditional agencies. Many clients would still like the service of an agent” Crispin Inglis, co-founder, Property Fox

COMMERCIAL PROPERTY Another property site being branded as a disruptor is property trading portal Quoin Online, which targets commercial property. But again it offers buyers and sellers a fully automated process, along with online access to the relevant reports and valuations for due diligence. Sale offers are

CRISPIN INGLIS

all standardised for ease of comparison and sellers can opt for an open-bid system (which facilitates a kind of auction) or a closed-bid system, which is simply the traditional sales process. However, Quoin Online offers its services in line with the same type of commission structure as traditional brokering agreements. It believes its key differentiators are process automation and the fact that its site provides national access to clients hoping to develop their commercial property portfolios. “Brokers still need to

ASHLEY JAMES

play their role. Buying a commercial property is not the same as buying a bicycle. Brokers have relationships with clients and can provide advice on the area, the economy and how the property itself compares to others,” says Wayne van der Vent, cofounder of Quoin Online. The site offers brokers the ability to showcase properties instead of having to collect and e-mail the relevant images, documents and reports. Says Van der Vent: “This allows the broker to play a more analytical role and takes away the marketing admin because it is all automated.” But how do property brokers feel about this automation? “This kind of functionality is a great idea, as long as it’s user-friendly — especially for brokers and agents, who generally have personality types that aren’t hugely focused on admin,” says Peter Collins, MD of Ikon Offshore Property. “They don’t enjoy sitting at

NATIONAL OPPORTUNITY While the technology behind the site is disruptive, the business itself is not a disruptor, according to Van der Vent. “We are not aiming to undercut the brokers. Instead, we want to offer property owners the opportunity to access national property deals without being tied into a big brokerage firm,” he says. Quoin Online launched in August 2014. After nearly two years in operation, about 95% of properties listed on the site have been sold. Where a sale did not go through, it was not as a result of the site methodology. As Van der Vent points out, that’s a pretty high hit rate for commercial property. ONLINE FIRST Van der Vent believes the property market is increasingly ready for online services. “More and more people are accessing sites from their phones and can do it at times when they are available, rather than during business hours. This kind of automation has changed the way that small investors can buy shares on the JSE. “Now property buyers can dabble in investment in the evenings after watching Game of Thrones.” As more transactions take place online, clients will become increasingly comfortable with the convenience of this space. That means brokers and agents will have to step up the human touch and depth of expertise in the services they offer, or they may find themselves losing buyers to the ease of the alwaysavailable cyber world.



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esign: The character of this home with interiors designed by ARRCC, is in keeping with Pearl Valley’s style and also has the Stefan Antoni and ARRCC signature of crafting contemporary interiors which captivate and move. Strong horizontal lines and floating elements create an interesting play with the more traditional pitched roof maximising views and natural light through the clerestory windows. Integration of inside and outside is a strong design feature in terms of the large glass sliding doors that open up to green courtyards and the estate’s beautiful natural surroundings. The home is built for the perfect balance between family living and entertaining guests with an open-plan layout, centered around the indoor braai area. Natural modern materials are used, such as exposed timber rafters, off-shutter concrete and natural stonework, which contrasts against the crisp, clean white plastered walls and modern joinery.

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HOTEL DEVELOPMENTS Friday 12 August 2016

Staying power Tourism is just one of the factors that can affect the hospitality industry and hotel property development. HTI Consulting CEO Wayne Troughton talks about trends driving the sector WORDS: KIRSTEN HILL :: PHOTOS: SUPPLIED

CAPITAL MIRAGE

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otel development in

SA is growing steadily thanks to limited entry of new stock since the hotel “glut” of 2010, allowing the market time to absorb an oversupply of rooms, according to HTI Consulting CEO Wayne Troughton. Hospitality and tourism specialist HTI Consulting analyses market and financial data to conduct in-depth feasibility studies and assist with operator selection, business and marketing strategies and development concepts for hotel, residential, real estate, leisure, conference and integrated resort developments in Africa and the Middle East. Its clients include the V&A Waterfront, Pareto, Starwood, Marriott, Accor and Verde Hotels. “In light of the more positive hotel trading environment, new property developments are coming online,” explains Troughton. “However, to ensure maximum project viability and long-term sustainability, forward-thinking developers are now embracing key global hospitality trends driven by changing consumer preferences. “The local hotel market weathered the challenging tourism year of 2015 well, with STR Global data indicating that occupancy for the country as a whole increased from 62.5% in

2014 to 63.4% in 2015,” he says. “Although a small growth percentage, overseas and African travel to SA declined by 4.9% and 7.3% respectively, which highlights the strength of the domestic market in driving local hotel demand.” STR Global reported that average daily rates and revenue per available room across the country also showed positive increases of 6.5% and 8.0% respectively. These are Troughton’s key trends in hospitality property development: Mixed-use hospitality With factors such as safety, security and convenience becoming a priority for consumers, hospitality offerings within mixeduse developments are increasingly in demand and often tend to perform at higher levels than their standalone counterparts. People are also rediscovering urban areas, seeking them out as places to live and places to stay when travelling. Walkable neighbourhoods offer residents ready access to civic, economic and social nodes, to which local hotels can provide access for guests. Melrose Arch in Johannesburg, and the V&A Waterfront in Cape Town, are two standout mixeduse developments where, through strategic planning,

“In light of the more positive hotel trading environment, new property developments are coming online”

local developers have created dynamic precincts able to offer residents and visitors all of life’s conveniences within walking distance. Research in 2016 found that some of the properties at the V&A Waterfront achieved respective occupancies and average daily rates 18% and 52% above their standalone counterparts. Historically, mixed-use developers have limited their exposure in the hospitality

market through the security of annual rentals. However, with positive returns and oversupply in some residential and office nodes, big developers are turning their focus towards hospitality products. Increasingly, they are seeking to take more risk with the potential for higher returns. Rezidor’s Radisson Red (opening in Cape Town in 2017) at the V&A Waterfront is a case in point. This development introduces a new, contemporary and youthful offering which fills a much-needed gap that targets the up-and-coming millennial group. The millennial shift Although still lagging their global counterparts, hospitality brands in SA are continuously evolving to attract, satisfy and retain the attention of millennial travellers. Locally, the urban and edgy Marriot’s Protea Hotel Fire and Ice brand successfully targets youthful trendsetters with its chic developments in Cape Town, Melrose Arch and Menlyn. Internationally, brands such as Starwood, Rezidor and Hyatt have introduced new offerings to cater to this influential generation that, in short, seeks valuefor-money, customised experiences, digital convenience and innovations. Each has launched brands — Starwood’s Aloft, Hyatt Place and Rezidor’s Radisson Red — to cater specifically to these needs and include social areas such as kids’ zones, Wi-Fi zones, business zones and chill-out areas. Appealing to a generation that has never known a world without the internet, technology is at the forefront of these brands, with selfservice check-ins and plugand-play connectivity often ruling the day. Going green Eco-friendly hotel concepts are the way of the future. As environmental concerns grow, travellers have become increasingly aware of their need to use and support eco-friendly technology, as well as sustainable and responsible tourism practices. More than twothirds of world travellers indicate they prefer to stay in eco-friendly hotels, according to a recent Tripadvisor survey. Launched in 2013, the award-winning Hotel Verde, a few hundred metres from Cape Town International Airport, markets itself as “Africa’s greenest hotel”. It is also the only hotel on the planet to have received a double platinum certificate from an American authority for “going green”. Its myriad sustainable practices and efficient features garnered it media exposure of R25m after two

years of operation and it is hugely popular with guests. Older hotels are also fast embracing greener practices, with iconic developments such as KwaZulu-Natal’s Oyster Box Hotel now featuring everything from energy-saving lights to a sophisticated building management system for maximum energy efficiency at all times. The aparthotel Globally, serviced apartments, also known as extended stay or hotel apartments, is the fastestgrowing hospitality sector, accounting for 9% of total hotel rooms worldwide. There are only about 20 such properties in SA. The Capital Hotel Group owns 40% of these, mostly in Johannesburg’s northern suburbs. It recently launched the Capital Mirage in Cape Town’s De Waterkant. The group says it plans to open nine luxury apartment and hotel developments between now and 2018 in the subSaharan region. The serviced apartments sector is expanding rapidly and exploring new areas in an imaginative way. The concept is attractive to developers as the product can operate in the real estate or the hospitality sector. As they are built more like flats, they provide developers with an alternative exit strategy, enabling them to be sold as residential products. While some are teaming with high-end hotels, others are looking at the work-leisure combination. Last year, Marriott announced the signing of the 200-unit Marriott Executive Apartments at Melrose Arch. Along with an adjacent hotel, these developments will be the first Marriottbranded properties to be developed in SA. Carlson Rezidor further strengthened its presence by announcing the Radisson Blu Hotel & Residence Cape Town would open early next year. It is in the heart of Cape Town’s Foreshore, only 500m from the Cape Town International Convention Centre. The landmark property will comprise 214 rooms and 124 flats, including a luxury penthouse. Says Wolfgang Neumann, Rezidor president and CEO: “Hotel residences are becoming an increasingly important offer for business and leisure travellers alike. This new property will allow us to add value for our guests and to capture additional market share.” These products will take the supply of hotel apartments in SA to a new level and, in the process, add diversity to the country’s overall accommodation offering.


PROPERTY

Expansive Hermanus home with Walker Bay views

Why invest in this internationally sought-after destination? It has a 27-hole golf course, tennis, bowls, squash and paragliding, as well as wine tours in the beautiful Hemel and Aarde valley and further afield. There is also shark cage-diving, whale watching, walks in the Fernkloof Nature Reserve and contour paths, as well as the meandering cliff path from Blue Flag Grotto Beach to the New Harbour and more. Hermanus offers a superb infrastructure

and health facilities. We are privileged to offer this prestigious property situated on a corner stand of 1,400m² on Millionaire’s Row comprising: • Lounge-bar area on both levels with outstanding views. Five spacious, sumptuous en suite bedrooms also with expansive sea views. • Considerable attention to detail in the solid wood finishes in all the bedrooms as well as in the bars and magnificent wine cellar.

Friday August 12 2016

Other features: • Study, gym, protected private pool adjoining a glass-covered barbeque area ideal for entertaining in all weather. • Views of both Walker Bay in front and the Klein River mountain range behind. Easily convertible to a guesthouse or B&B. Price: R40m

Telephone (+27) 28 314-0050 | Fax (+27) 28 314-1280 | Cell (+27) 082 425 0451 P.O.Box 2080 Hermanus 7200 | Email: peterstigling@hermanus.co.za

PROPERTY ON SHOW THIS WEEK The following areas have On Show properties listed on the portal: Gauteng Pretoria Johannesburg Centurion Western Cape Cape Town Garden Route Boland KwaZulu-Natal Durban Dolphin Coast KZN South Coast North West Hartbeespoort Dam Rustenberg Klerksdorp Mpumalanga Nelspruit (Mbombela) Witbank Middelburg Eastern Cape Port Elizabeth Jeffreys Bay East London Limpopo Bela-Bela Polokwane Hoedspruit Free State Bloemfontein Northern Free State Eastern Free State Northern Cape Kuruman Upington

On Show now The joint On Show initiative between Private Property and the Sunday Times Neighbourhood takes the headache out of house hunting WORDS: BRIDGET MCNULTY :: PHOTOS: ISTOCK

U

ntil recently, if you wanted to know which properties were on show in your area, you had to trawl through listings online or in print, or rely on estate agents to send you updates. But now there is a dedicated property portal for On Show property — a first in SA — that makes planning weekend house hunting significantly simpler.

JOINT INITIATIVE The portal, found at privateproperty.co.za/ on-show, is also unique in that it is a collaboration between Private Property, an online portal, and print, in the form of the Sunday Times Neighbourhood. The On Show section lists on show property from both companies and has created the largest property marketplace in SA. Show days are essential for property buyers, particularly finding out about them easily and timeously, so the portal has proven instantly popular. “It allows property shoppers to view all On Show property in one place,” explains Simon Bray, CEO of Private Property. “They can tailor their search using the on-site filters to find the exact type of property they’re looking for in their desired location. They can even set up On Show property alerts to be e-mailed on a Friday, so that they can plan their viewings well in advance.”

“They can tailor their search using the on-site filters to find the exact type of property they’re looking for in their desired location” Simon Bray, CEO, Private Property RESPONSIVE SOLUTION The On Show section is also fully responsive and users can have the same seamless experience regardless of what device they are using. It takes the best of print, highlighting properties’ features and making it obvious when you can view them, and the best of digital, a convenient, easy-to-use platform for searching property, and combines them into one simple solution for searching which properties are On Show on the weekend. The result? A more direct route to finding the perfect property.


HOME SENSE Friday 12 August 2016

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Residential rights to privacy Do you have options if your neighbour decides to build a second storey or an expansive deck that obscures your view or destroys your privacy? Before work even starts, check that the bylaws are on your side ANNE SCHAUFFER :: PHOTOS: ISTOCK

F

irst things first. Beware

the telltale brick pile on the verge — even if your neighbour is within his legal rights. With any construction, there are municipal bylaws. These range from the standard meterage that must exist between the dwelling and the surveyed boundary line, to the floor ratio area, in other words, the ratio of a building’s total or gross floor area to the size of the piece of land upon which it is built. There are other issues such as height restrictions and materials — some structures and materials are considered temporary, and different rules apply. The best advice is to pay attention and wise up on the

bylaws before construction begins. It is far tougher to galvanise anybody to intervene once it is under way. If there is a sign up on his wall, or you have received notification of alterations that requires your signature — in other words, he needs your permission to break the standard rules — treat it seriously. It is too late to object once you have passed the expiry date. If you and your neighbour reach a stalemate, arbitration via a professional arbitrator is an option — work out a compromise — but that is not always easy. If your neighbour is given the green light by the municipality to forge ahead, forget about him.

“The two drivers here are your privacy and retaining the value of your property. One is about the here and now, the other is about the future — both matter”

Focus on yourself. Deal with your own property and retain your power. The thing is, your neighbour may promise to retain the hedge at a particular height, and honour that. But that agreement holds no water when he sells and the new owner prefers tar to greenery. When it comes to reclaiming your privacy, it is dependent on the lay of your land and, indeed, how much garden or vacant land you have between your home and your neighbour: ample space equals numerous options. Unless you are blocking their grand view, neighbours will feel more kindly towards greenery than

something impenetrable and ugly. You may be given more leeway in terms of building regulations. There are restrictions on height with structures, but none with greenery. If you are not creative or good with your hands, bring in people who are. The two drivers here are your privacy and retaining the value of your property. One is about the here and now, the other is about the future — both matter. CLEVER IDEAS Fully grown trees — choose those best-suited to your area and climate. There are companies that transport and plant. Screens and trelliswork

— consider professional advice or installation because of the elements. They can be cleverly angled or arranged to improve screening. Fences and hedges — speak to a nursery or a landscaper. Consider fast-growing and dense plants, not tiny seedlings. Pots — large, thin or tall customised pots are possible, even elevated on to a plinth. A variety of materials can be custommade to suit your purpose. Consider which plants will work in that shade or sun, soil and depth. Wrought-iron structure (attractive panels). Fencing on which to grow a creeper.


PROPERTY NEWS Friday August 12 2016

OceanDune marks start of Sibaya

T

ongaat Hulett has officially handed over the first site at Sibaya Coastal Precinct, on the North Coast, giving the new landowners and developers, OceanDune Developments, the green light to begin construction on the sold-out OceanDune development. Tongaat Hulett’s infrastructural construction is

due to commence this month. OceanDune set a benchmark in terms of its reported R900m sellout within four months of launch, with the majority of buyers being permanent residents, according to Sithembiso Mthembu, Sibaya development executive for Tongaat Hulett Developments.

“The response to OceanDune has affirmed our long-held understanding of the demand for both residential and commercial opportunities that reside within Sibaya,” he says. A retail element at OceanDune will bring the total investment value to an estimated R1bn. Mthembu says OceanDune will

Rate of house price growth mildly positive

T

he FNB House Price Index for July increased by 7.1% year on year, slightly slower than the revised 7.2% rate recorded for June. This may be signalling a turning point in house price inflation after some mild acceleration in prior months. Examining house price growth month on month suggests that a period of slightly better, or slightly “less weak”, economic performance during recent months may still be driving relatively solid house price growth compared with a dip in late 2015/early 2016. In real terms, when adjusting for Consumer Price Index (CPI) inflation, the rate of house price growth remains mildly positive, having recorded 0.9% in June. Examining the longer term real house price trends (house prices adjusted for CPI inflation), the level at June 2016 was +5.7% up on the October 2011 post-recession low. However, the average real house price level remains -18% below the high reached in December 2007 at the back end of the residential boom period. The average price of homes transacted in June was R1,082,605. In July 2016, the year-on-

year inflation rate in the bond instalment on the averagepriced home measured 13.3%. In real terms, adjusting for CPI inflation, the June bond instalment inflation rate was a very significant 10.9% (July CPI data not yet available). The FNB Valuers’ Market Strength Index (MSI) remains above 50, which points to a good market balance with the Valuers Demand rating still slightly higher than their Supply Rating. But looking forward, the ability of the market to maintain its balance depends on the economy. Ongoing year-on-year decline in the South African Reserve Bank Leading Business Cycle Indicator suggests that general economic weakness looks likely in the immediate future.

Mildly positive real house price inflation suggests a market still very well balanced between supply and demand. However, many other non-price housing market indicators point to a broad slowdown, raising the risk that the market can move slowly away from “equilibrium” in the near term. FNB’s valuers, in their FNB Valuers MSI, edged slightly weaker in July. On a month-on-month seasonally adjusted basis, the revised Residential Demand Index has been in decline since July 2015, contributing to a diminishing rate of decline in the MSI. In June and July the pace of decline accelerated, possibly slowing house price inflation further in the near term.

FNB House Price Index - Real and Nominal Growth Source: FNB

14% 8.6%

Jan-08

Jan-10

Jan-12

Jan-14

Precinct will offer something for people at various stages of life, including residential offerings and services, leisure facilities, as well as a measure of retail development to serve local residents. Other complementary uses of education, medical and retirement are also on the cards. OceanDune provides new

flats and penthouses and is one of a range of products that will become available within Sibaya Coastal Precinct. Close to Umhlanga and King Shaka International Airport, Sibaya combines coastal forest, beach and hilltop vistas within a short distance from the rest of Durban.

Council rates can eat sale profits

T

he increase in municipal rates and service charges will mean higher running costs for homeowners, as well as higher holding costs for home sellers. There is good demand for properties being sold by empty nesters seeking to downsize, says Berry Everitt, CEO of Chas Everitt International group. “Potential buyers will just avoid any properties they regard as overpriced and these homes will then stick in the market, causing the owners’ holding costs to mount up and eat into their potential profits,” he adds. Holding costs include everything you have to pay to own and run your home, such as the bond repayment, insurance, maintenance costs, any monthly levy that you pay and, of course, municipal rates and service charges. Every month’s delay in selling your home effectively

diminishes the profit you stand to make on the sale, says Everitt. “If your holding costs total R25,000 a month, for example, and your asking price is R100,000 above the current market value, any benefit that you might have derived by achieving that higher price will soon be completely eroded. “What is more, your property may still be unsold and racking up holding costs, because even keen buyers with all their finances in order are extremely price and value conscious at the moment, and they will literally just ignore listings that they regard as overpriced in comparison to similar properties.” On the other hand, he says, sellers who work with a reputable agent who can help them get their asking price “just right” will sell their homes in the shortest possible time and maximise their

potential profit. Municipal rates and service charges increased in July 2016.

“Potential buyers will just avoid any properties they regard as overpriced and these homes will then stick in the market, causing the owners’ holding costs to mount up and eat into their potential profits” Berry Everitt, CEO, Chas Everitt International group

7.1%

3%

4%

be the first development in the 1,000ha precinct. Sibaya was conceptualised to work with the landscape, with 60% of the Sibaya concept plan being made of up green space. This includes existing coastal forest but also rehabilitated landscape. Ultimately Sibaya Coastal

Jan-16

-6&

-16%

FNB House Price Index - year on year % change Real House Price (Adjusted for CPI) - year on year % change

City/% increase

Rates

Water

Electricity

Refuse

Sanitation

Johannesburg

5,9

13,2

6,9

6

13,9

Cape Town

6

9,75

7,78

5,38

9,75

Ethekwini

6,9

12,5

7,64

7,9

9,9

Tshwane

10

12

9,5

10

12

Source: Chas Everitt



NO MATTER THE WEATHER

Y O U R O W N C E N T R A L PA R K

IN THE HEART OF JHB 1 6 8 A C R E P R I VAT E C E N T R A L PA R K O N T H E H O U G H T O N A J A C K N I C K L A U S S I G N AT U R E G O L F C O U R S E

ON SHOW DAILY

LUXURY APARTMENTS - OPPORTUNITIES FROM R5,2MILLION

Houghton on 12th, 53 Second Ave, Houghton - Show apartment 12423 ALAN BECKER – 082 718 8100 || WARREN BECKER – 082 302 3004 || EMAIL – alan@thehoughton.com


GAUTENG TO THE MANOR BORN On 4957 smq of magnificent gardens, sits an impressive 1400 smq historical home in a boomed road. With sweeping views over surrounding areas, the home offers gracious reception areas, expansive patios, 5 bedrooms plus guest cottage, pool and court, borehole, 3 en suite staff and 4 garages BEDROOMS: 5 BATHROOMS: 4 Joan Mendelsohn 083 267 3124 Lynne Baker 082 493 1006 Web Ref: 103877

ATHOLL R17.9 million

WESTERN CAPE MAGNIFICENT OPEN-PLAN ARCHITECTURE AND MAJESTIC MOUNTAIN VIEWS Beautifully positioned on a level 3460m2 of manicured gardens, this bright contemporary renovated home offers 5 open plan reception rooms, including a fitted pub with wine storage and large entertainment room. Superb flow to the garden, sparkling pool and wrap-around patios with stunning north-facing mountain views. A glamorous master suite and separate guest suite complete the accommodation of 5 bedrooms and 3 bathrooms. The heart of this lovely home is the large modern kitchen with centre island. Computerised irrigation with borehole, superior level of security, double garage plus 12 car parking.

UPPER CONSTANTIA R12.9 million

BEDROOMS: 5 BATHROOMS: 3 Ingrid Hoaten 082 490 6246 Charne Shipper 083 274 6336 Web Ref: 104734

GAUTENG A BALANCE OF CONCRETE AND WOOD IN THIS DOUBLE STOREY DELIGHT!

WATERFALL ESTATE R7.95 million

A charming home with upmarket finishes and a personal touch, not to be missed. As you enter through the pivot door, you’ll notice the stylish Lafarge Artevia concrete floors. To the right, a private study and formal lounge, with gas fireplace, both open onto the deck area overlooking the garden. The open plan living space includes a large dining room leading to the garden. The kitchen, with walk-in pantry and Caesar stone topped central island, features a Smeg gas/electric oven. The huge lounge and bar overlook the pool, making it a superb entertaining space. The covered patio, with built-in braai, overlooks the large garden, with a deck. Upstairs is the master suite, with walk-in dressing room and luxurious bathroom. Three more bedrooms, sharing a full bathroom, all open onto a balcony. Two of the triple garages are extra length. BEDROOMS: 4 BATHROOMS: 3 John Conradie 082 859 0940 Corlia Reuter 082 859 9853 Web Ref: 106220


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