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FRIDAY, MARCH 20 2015
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RENOVATING THE HEART OF THE HOME
2015 TRAVEL TRENDS
THE BENEFITS OF LEGACY EVENTS
INVESTING IN REAL ESTATE IN INDIA
Steyn City: selling a pricey dream WORDS: DAVID A STEYNBERG :: PHOTOS: SUPPLIED
Steyn City is unlike anything the Fourways node has ever seen, and the prices reflect that. Will investors and homebuyers bite?
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he imposing half-circle estate gatehouse is still undergoing minor construction on Erling Road, a kilometre or two from Dainfern in Fourways, Johannesburg. Steyn City, an ambitious 809ha township development made up of three parcels of land, will set the bar high for residential projects in SA. Indeed, in the Fourways area, a new price ceiling has been attained. The prices of flats start at R1.65m for a one-bedroom unit of 74m2 — or more than R22,000 a square metre. Just how much more is Steyn City asking for, and why? Pam Golding Properties (PGP) enjoys sole mandate on all homes in Steyn City. Says the development specialist for the Fourways and Dainfern areas, Lambert Bezuidenhout: “Steyn City is a complete lifestyle offering and the asking prices reflect that. At this point they are still 40% lower than any new stock coming onto the market in areas such as Sandton and Rosebank.” But according to Lightstone data, the two highest prices per square metre were for sales in Fourways Gardens in 2011, where two 300m2 properties sold for R8,400 a square metre. Buyers from Gauteng, the Free State and KwaZuluNatal have shown an interest in Steyn City, says Bezuidenhout, but there have been no presales as yet.
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LIFESTYLE
March 20 2015
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ontemporary kitchen designs are a guaranteed way to increase the value of your home, provided you stick to one maxim: select an open-plan kitchen
KITCHEN TRENDS
Turn up the heat
TOUCHY-FEELY Ramon Casado, design director, Bulthaup SA The trend is towards openplan living, with the kitchen taking its rightful place at the heart of every home. Kitchen spaces need to flow seamlessly into the living areas without an obvious change in appearance. Functionality with smooth, clean spaces is another trend and is what Bulthaup prides itself on, namely, finding ways to combine design, aesthetics and function. Optimising space and expressing individuality are important: people want more than perfection and functionality; they want something sensual and emotional. We are also seeing the mixing of new materials, owing to clients becoming more adventurous and juxtaposing old against new. High-end appliances have never been more in
Three experts advise on the latest trends in kitchen design, countertops and appliances WORDS: GENEVIEVE PUTTER :: PHOTOS: SUPPLIED
demand, not only because of their technology, but also their aesthetics. That is why Bulthaup has partnered with Gaggenau Appliances. In SA, it’s so exciting to be able to design open, magnificent kitchens that are so in tune with the lifestyle here. When designing in London or Europe, one tends to be constrained by space, but here one is able to build beautiful kitchens on a scale you don’t usually see in the northern hemisphere countries, as showcased at our new showroom in Kramerville, Johannesburg. It is 350m2 in size, making it one of the largest Bulthaup showrooms in the world. Our most popular design is the Bulthaup b3 kitchen system, a state-ofthe-art kitchen combining functionality and ergonomics in a minimalist, light-looking form. It not only creates precise functionality, but also has a sensual, sculpted character and is the result of engineer-driven thinking and passionate design. livingkitchens.bulthaup.com
BULTHAUP’S RAMON CASADO’S TOP FIVE TIPS FOR KITCHEN RENOVATIONS
BULTHAUP. IT’S NOT INSIDE — IT’S ON TOP Lisa Aspeling, advertising manager, International Slab Sales Marble has been trending for more than two years and is showing no signs of letting up, because it’s the most classic material to use in interior design. However, although marble is breathtaking, it’s not the best choice for a countertop surface because it is quite a soft stone and rather porous, which makes it susceptible to cracks, chips and stains. But engineered countertops inspired by marble are ideal. Caesarstone’s Supernatural
range offers the beauty of marble with all the durability of engineered quartz, as does Neolith, with its compact, sintered surfaces that are perfect for countertops and are available in new colours, Calacatta and Pulpis. Concrete has become a popular addition to many urban kitchen designs. This trend is confirmed by market-leading surface manufacturers that are adding concrete-inspired colours to their collections. Matt-finish countertops are gaining traction internationally, and we’re expecting to see a growing demand for matt finishes here in SA.
In terms of countertop thickness, we’ve seen a swing from 30mm tops to 12mm tops, with some really chunky tops popping up in between. Most surfaces can be built up or cut down to create the illusion of a thinner or thicker top, so it’s really up to the designer and the home owner’s preferences. The past three years have seen warmer tones entering kitchen design, with a focus on natural materials. Marble has played beautifully into this shift, while Caesarstone and Neolith have responded to the call for nature-inspired materials by offering earthy, organic designs and textures. interslab.co.za
KNOW YOUR SLABS Lisa Aspeling of International Slab Sales outlines the differences between the most popular countertop materials. Granite and marble are natural stones, which means they’re sourced from the earth’s crust, cut into slabs and then polished or given a matt treatment before being installed as countertops or in another application. All natural stone is porous and requires regular sealing and maintenance, with marble
being the most sensitive to wear and tear as well as stains. Caesarstone is the original engineered quartz surface — the first man-made quartz surface. Made from 93% quartz, one of nature’s hardest minerals, it is put through a specialist manufacturing process that creates a hard-wearing surface
with exceptional qualities and which requires minimal maintenance. Caesarstone is stain-, chip-, crack- and heatresistant and comes with a lifetime warranty. Putting Caesarstone in your home increases its perceived value and can therefore influence a property’s selling price.
1. Take the time to develop a proper vision for your kitchen renovation. Think your needs and desires through. 2. The rule of thumb is that the kitchen budget should be about 10% of the value of the property. 3. Research the companies that deliver the highest
“Concrete has become a popular addition to many urban kitchen designs. This trend is confirmed by marketleading surface manufacturers that are adding concreteinspired colours to their collections” Lisa Aspeling, advertising manager, International Slab Sales
quality and value for a kitchen that will last 20 or more years. 4. Choose a company that uses certified fitters and has processes for managing all the details before, during and after installation. 5. If it’s part of a larger renovation, start in the planning stages.
LIFESTYLE March 20 2015
BEAUTY, BRAWN AND BRAINS Stephen Brookes, MD, Smeg SA Savvy home owners are looking to buy for the long term and are therefore investing in designer kitchen features that exude classic style and timeless charm while offering outstanding value and premium quality. Interest has also skewed strongly in favour of ergonomic and compact integrated appliances, which ensures a more efficient arrangement and a homogenous look. Smeg is known for its retro appliance ranges. Beyond the unmistakable design, curvaceous retro styling and array of vibrant colours, what has made Smeg’s 50s Retro Style range famous all over the world is the company’s innate view of domestic appliances as working pieces of art. Each 50s Retro Style piece melds old with new in a feat of fluid design to fulfil its function in a new guise that goes beyond appearances to become something more. It’s thanks to the perfect synthesis of everyday statement style, personality and technology that these working pieces of art are recognised as cult objects the world over. smeg.co.za
SMEG.
Each 50s Retro Style piece melds old with new in a feat of fluid design to fulfil its function
A WORD ON COLOUR FROM SMEG SA’S STEPHEN BROOKES With more and more home owners expressing a desire for a shot of colour or a point of difference in their otherwise monochromatic kitchen colour palettes, Smeg’s colourful approach to kitchen appliances provides the perfect antidote to the minimalist blues experienced over the past decade, and brings to life the true expression of style. In addition to bold statement colours, pastel hues, monochromatic
shades and the ever-popular stainless-steel designer appliances, we are seeing a resurgence in white appliances in everything from refrigerators to cookers, ovens and hobs. State-ofthe-art white appliances, complete with shiny stainless-steel handles and grey accents, are striking and can open up small or dark spaces to create a light and airy feel as well as a clean, seamless look.
INTERNATIONAL SLAB SALES. PUBLISHED BY THE CREATIVE GROUP IN ASSOCIATION WITH TMG
The Creative Group CEO: Shaun Minnie shaun.minnie@thecreativegroup.info
Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130
EDITORIAL TEAM Editor: David A Steynberg david.steynberg@gmail.com Creative Director: Mark Peddle
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BusinessDay PUBLICATION
Editorial Consultant: Bridget McNulty Chief Copy Editor: Yaron Blecher
SMEG.
ADVERTISING SALES Michèle Jones Sarah Steadman Yvonne Botha Susan Erwee Bradley Sparks Jackie Maritz
michele.jones@pamedia.co.za sarah.steadman@pamedia.co.za yvonne.botha@pamedia.co.za susan.erwee@pamedia.co.za bradley.sparks@pamedia.co.za jackie.maritz@pamedia.co.za
084 246 8105 (Sales & Marketing Manager) 082 334 4367 JHB (Property) 082 563 6685 JHB (Lifestyle) 083 556 9848 (Western Cape) 073 666 3842 (KwaZulu-Natal) 078 133 5211 (Garden Route)
An International Associate of Savills
BLAIR ATHOLL GAUTENG R19.5 MILLION Immerse yourself in natural surrounds at this grand country manor, featuring landscaped indigenous gardens frequented by wildlife. The home’s elevated position affords sweeping views of the Magaliesburg mountains, while its architectural design ensures an effortless flow through the interior rooms towards the outside, encouraging a relaxed and peaceful lifestyle. Bedrooms 5 | Bathrooms 5 | Garages 3 Jo Lotter 083 297 7992
WEB ACCESS FW1166600
BRYANSTON EAST GAUTENG R8.3 MILLION Light and spacious, this charming family home is set within a leafy garden with gorgeous rim-flow pool guaranteed to entice you on hot summer days. The design is emphasised by classic finishes, such as cherry wood floors, cornices, dado rails and fireplaces. Staff accommodation is also included. Bedrooms 4 | Bathrooms 4 | Parking 2 Win Doody-Pestell 083 309 0770, Francois Rohlandt 078 392 6947
WEB ACCESS HP1201340
BRUMA GAUTENG R8.6 MILLION Arrive in style at this Mediterranean-inspired villa. The palatial entrance welcomes you inside and leads easily to the lounge. This large property can easily accommodate 2 families. A separate guest cottage affords your visitors some privacy, while the garden and swimming pool are a delight in summer. Bedrooms 8 | Bathrooms 6 | Garages 2 Marie Keefe 083 354 9387, Richard Keefe 083 206 8000
WEB ACCESS 1JE1209097
www.pamgolding.co.za | m.pamgolding.co.za
BISHOPSCOURT WESTERN CAPE POA This sprawling double-storey mansion is found in the heart of Bishopscourt, nestled in a verdant and secluded garden. The luxurious space is further emphasised by the property’s prime position and mountain views, while discerning buyers will appreciate the quality finishes and craftsmanship. Bedrooms 7 | Bathrooms 7 | Garages 4
WEB ACCESS KW1209883
Myrna Duveen 082 443 8417, Christiaan Steytler 082 658 0071
FRANSCHHOEK WESTERN CAPE R30 MILLION This exceptional home has spectacular views and allows the discerning home owner a mix of contemporary and country living at its best. Bedrooms 6 | Bathrooms 5 | Parking 3 Doug Gurr 074 610 7208, Jeanine Allen 082 410 6837, Shelly Schoeman 083 301 8833
WEB ACCESS FWI1202709
FRESNAYE WESTERN CAPE R13.5 MILLION This historical gem is situated on a double plot in wind-free Fresnaye, with park-like grounds and swimming pool. Old World charm, quality craftsmanship and many unique features. 3-Spacious living areas, staff suite and parking for 5 cars. Great potential for extensions. Bedrooms 3 | Bathrooms 3 | Garages 2 Jackie Rosenberg 083 414 6600, Janice Toay 082 770 1510 WEB ACCESS PR1083655
INVESTMENT March 20 2015
Analyse it
Steyn City by the numbers
WORDS: PATRICK CAIRNS
R22,000 —
The disjointed world economy
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verybody accepts that the global financial crisis of 2008 had a profound impact on the world economy. The recession it triggered has led to what is now probably the longest slowdown in global growth since the Second World War. According to Dr Martyn Davies, CEO of Frontier Advisory, since 1945 the average time it took the world economy to recover after a crisis was just short of five years. So, by that historic measure, we should already be comfortably back in growth mode. However, that is far from the case. Europe is still stagnating, Japan can’t seem to find a way out of the malaise it has been in for decades and many commodity-exporting emerging markets, such as SA, are struggling to reignite their economies. China, at least, remains a bright spot. Its growth may have slowed, but it is still managing to expand quicker than the developed world. And the US is starting to show signs of getting back into gear. But the picture is very disjointed and this is, perhaps, one of the most significant consequences of the financial crisis. Davies’ research shows that back in 2007 just three countries in the world recorded negative growth rates: Zimbabwe, the Democratic Republic of Congo and Fiji. Of the 180 others, 114 grew by 5% or more. Before the crisis hit, the world economy was incredibly synchronised. The good times were felt by almost everyone, not least of all because confidence was soaring. Since then the picture has changed dramatically. Like a child who is learning to ride a bicycle and thinking she has worked it out goes charging down the driveway only to suffer a horrible fall, economic confidence has been badly dented. And it is a long, wobbly process trying to get back onto the bicycle. What this means for a country such as SA is that we now have to work harder for growth. There is not a worldwide flood of money and confidence that is taking everyone along for the ride, and so we have to attract that money and build that confidence on our own merits.
That requires a lot more than talk about how we are “open for business”. It needs concerted action to build an environment where the government, business and labour all understand that they can’t keep pulling in different directions. Success and growth can only be achieved through common understanding; otherwise, we will continue to sit among the parts of the world that growth has forgotten.
Selected growth rates from 2013 show the fragmented world economy: Italy:
-1.9% France:
0.3%
Japan:
1.6% SA:
1.9% US:
2.2% Brazil:
2.5%
China:
7.7%
Source: World Bank
cost per square metre for a 74m2 onebedroom unit
CONTINUED FROM PAGE 1
Steyn City: does it represent value? “The prices quoted at Steyn City are considerably higher than the surrounding areas in Fourways and are more in line with prices in the Sandton CBD or the Melrose Arch and new Rosebank products,” says Brian Falconer of the local Chas Everitt office. And Falconer should know, having operated in the Fourways area for more than 20 years. “However,” he says, “the scale of the investment in Steyn City in terms of the development per se and the infrastructure upgrade has never been equalled in the greater Fourways area. This has fuelled the interest in the development from a broad public base. “It is also widely believed that the Steyn City development is going to have a positive effect on property prices in the neighbouring Dainfern Golf Estate as well as the broader geographical area.” The first of four phases, costing R6bn thus far, has seen R900m pumped into the upgrade of the R511, whereby the dual-lane thoroughfare has been transformed into a six-lane strip connecting the N14, Diepsloot township, Fourways and the N1. The R73.4m upgrade to the bulk sewer pipeline from Dainfern to a new pump station, and Steyn City’s own R35m water reservoir, which will store 30Ml and form part of Johannesburg Water’s master plan for the upgrading of the region, are additional improvements that Steyn City is making to the area. As much as these suburbs need the infrastructure upgrades, are they enough to encourage buyers to take up properties and stands in Steyn City? Glen Norton, CEO of RE/MAX Masters in Bryanston, says this question is impossible to answer, owing to the uniqueness of Steyn City: “The pricing is very high, but the demand for secure ‘lifestyle living’ is in demand and buyers are prepared to pay a premium. I believe it will take a long time to sell out the proposed 9,500 units. I also envisage Steyn City as remaining a construction site for the next decade.”
Despite the future construction headaches, a number of the exclusive fairway and river frontage stands have been reserved, and the developers expect completed homes on these sites to be valued in the R40m-R60m range. But with SA’s finance minister predicting growth of 2% in 2015, is there even a market for properties in this bracket? “Most of the river frontage and fairway stands have not been sold or reserved and they are not all selling at R16m,” says Bezuidenhout. “It is true that buyers of these bigger and more expensive stands will be building homes with values commensurate with the cost of the stand, but to put values to such homes at this point would be speculative. “Clients buying at these prices are not as
sensitive to fluctuation in GDP growth. Some of the interested companies and financial interests are of an international nature and they are often not affected by the low growth rate. Steyn City is not priced to sell out quickly — we are more concerned with achieving growth for our clients steadily.” At the time of going to press, sales stood at 50% of available stands and 90% of available apartments had been sold.
R26,000 — cost per square metre for a 149m2 unit
R575R5,000 — price range per square metre for stands measuring from 800m2 to 4,000m2
“The prices quoted at Steyn City are considerably higher than the surrounding areas in Fourways and are more in line with prices in the Sandton CBD or the Melrose Arch and new Rosebank products” Brian Falconer, agent, Chas Everitt Dainfern
“Steyn City is not priced to sell out quickly — we are more concerned with achieving growth for our clients steadily” Lambert Bezuidenhout, development specialist Fourways and Dainfern, Pam Golding Properties
PROPERTY March 20 2015
TRAVEL
Where to from here? There are five trends to watch out for as airlines and accommodation operators vie for your travel rand WORDS: RICHARD HOLMES :: PHOTO: SUPPLIED
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etting from A to B is the first battleground as airlines tempt travellers to trade up. Premium economy is making its presence felt on most international carriers, with the likes of Lufthansa, Cathay Pacific and Virgin Atlantic overhauling their “Goldilocks” cabins to entice economy passengers to move closer to the sharp end. The same applies to first class, where airlines are offering ever more luxury, privacy and opulence. The Residence, by Etihad Airways, took it to a new level in late 2014 with high-flying
apartments complete with private bathroom suites and a dedicated butler. On the ground, wired airports will increasingly play a role in managing our travel. Apple’s Passbook uses geolocation to automatically load boarding passes, and airports continue to turn to to Bluetooth beacons to alert travellers to gate changes and travel-related services. Airports are becoming destinations too, offering entertainment that makes stepping aboard an aircraft seem almost like a distraction. Examples are ice-skating rinks at South Korea’s Incheon
PROPERTY
Johannesburg’s Rosebank in bloom For corporate and residential properties, entertainment, schools and medical facilities, Rosebank is reputedly second only to Sandton WORDS: ANNE SCHAUFFER :: PHOTOS: SUPPLIED
International, free cinemas at Singapore’s Changi Airport and celebrity chefs opening restaurants at Heathrow terminals two and five. On the accommodation front, smartphones could
soon replace your room key at tech-savvy hotels. Both Starwood and Hilton offer a room key app that allows you to unlock your room with just a swipe of your smartphone. Online check-
Smartphones could soon replace your room key at tech-savvy hotels
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ld buildings are giving way to new ones as numerous head offices, including those of Nedlac, Sasol, Absa and Standard Bank, are moved to Rosebank, Johannesburg. The progress has been speedy, and the streets are packed with municipal workers who are busy upgrading the area’s infrastructure. Convenience and accessibility are Rosebank’s primary draw cards. It is a 10-minute commute to the Joburg and Sandton CBDs and three minutes to the M1. Rosebank’s border roads of Jan Smuts, Oxford and Bompas/Glenhove are considered major arterial routes into the city. The Gautrain station is a 15-minute walk for the furthest resident, a single stop from Sandton and a stress-free 20-minute ride to Pretoria. Rosebank has always been known for its shops, and its new retail node is divided into four: the Rosebank Mall, the Zone at Rosebank, the Firs and the Mews of Rosebank. Top hotels are all based within walking distance of the Gautrain. RE/MAX Central Sandton broker/manager David Williams describes this 0,82km2 suburb as “one of the oldest and safest in Joburg,
constantly evolving into an elite mix of commercial and residential property”. “There’s a mix of residential buyers: those buying to retire because it has all the necessary facilities within walking distance, and young first-time buyers who work in the area and buy the bachelor flats. But the bulk of owners are investors who rent out the homes and flats,” says Williams. “The rental market here is always buzzing, and with the numerous new residential developments, companies are buying up the flats as investments. We have a list of qualified buyers wanting to buy flats as soon as they come on the market. Those properties within 100m of the mall rarely go on sale, but when they do they are snatched up, with some selling for more than the asking price. “There are five new residential blocks. Some are about to start construction and others are about to go to market. They range from three to 15 storeys, with some replacing existing residential blocks and others replacing corporate buildings.” Vanita Allie, sales associate at RE/MAX Central, says properties are in short supply: “With freehold properties, people are eager to sell,
in and room selection are also becoming widespread. “Travellers can use their smartphones as boarding passes to get to their seats on an aircraft, so it is only natural that they will want to use them as a way to enter their hotel rooms,” said Christopher J Nassetta, president and chief executive officer of Hilton Worldwide. Hotels, meanwhile, are no longer the only option for high-end travellers looking for a place to stay. Self-catering accommodation is becoming more upmarket, offering the facilities of a boutique hotel as well as the flexibility
but ‘only to a developer’. Some properties have been rented out and allowed to deteriorate, while others are well looked after. “Residents want highly inflated prices because of the developments, but developers won’t pay their prices. Major developers aim for three to four properties that then form a demarcated pocket of land.”
Everything seems to begin and end with proximity to the mall and the Gautrain; certainly, prices do
of staying in your own flat. Airbnb’s Superhost feature flags the top-tier locations on the site, while overseas booking service BeMate will rent a flat for you, book a babysitter, store your luggage and provide room service from partner hotels nearby.
Premium economy is making its presence felt on most global carriers
Everything seems to begin and end with proximity to the mall and the Gautrain; certainly, prices do. Allie lists the costs of a few of the new residential developments as “R1.9m for 50m2, in the main road, two minutes’ walk from the mall; R1.75m for a 48m2 flat that is a 15-minute walk to the mall and the Gautrain; and R4.1m for a 126m2 flat that is a 15-minute walk to the Gautrain. Some start at R2.2m on Jan Smuts Avenue, a main artery. “In terms of price increases, at the Rosebank Retirement Village, a 15-minute walk to the mall, a 90m2 unit sold for R1.1m in 2013 and for R1.51m in 2014; at Broadlands, about a five-minute walk to the mall, a 78m2 unit sold for R780,000 in 2013 and for R1.2m in 2014.”
ADVERTISING FEATURE March 20 2015
Buh-Rein Estate offers the best bet for first-time buyers MSP Developments’ CEO Riaan Roos reports on how the community lifestyle centre at the popular Buh-Rein Estate is coming along and how it is set to further boost buyers’ capital gains WORDS: RIAAN ROOS :: PHOTOS: SUPPLIED
ADVERTISING FEATURE March 20 2015
GET IN TOUCH
MSP Developments 021 914 6703 sales@mspd.co.za www.mspd.co.za www.buhrein.co.za
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onstruction and sales continue to flourish at Buh-Rein Estate, the new suburb created by MSP Developments. Situated just 25 minutes from Cape Town central, 15 minutes from the wine estates of Stellenbosch and adjacent to the business hubs of Durbanville, Tygerberg and Bellville, the estate offers its residents a relaxed country atmosphere. It is exciting for me to see this community come into existence. Since the launch of the estate, investors and owners have seen steady capital appreciation of just more than 9% a year. The overall improvement in the residential property market, coupled with the construction of a number of additional amenities on the estate, should further stimulate capital appreciation. For first-time buyers, Buh-Rein Estate offers an unparalleled choice of homes. All Buh-Rein Estate properties are provided on a turnkey basis, which means you don’t pay until you stay. Our pricing structure enables us to include bond and transfer costs in the purchase price and, as there is no deposit or upfront booking fee needed, the impact on buyers’ cash flow is kept to a minimum. Our developments within Buh-Rein Estate are selling solidly, and entry-level flats are proving to be most popular with investors, owing to the sustained demand for rental properties in the R4,500-R7,000 a month price bracket. Statistically, this segment of the rental market has been proven to have the lowest vacancy and default rates, so it is no wonder that savvy investors are jumping at the opportunity.
Between December 2014 and January this year, MSP Developments sold out all 44 units on offer at Trinity Lane; meanwhile, of the 68 two-bedroom flats in Alente, only two remain unsold. Villa Milon has likewise proved popular and is more than 67% sold, leaving only eight units to choose from. Our townhouses are also selling fast, with sales primarily driven by young families looking for affordable estate living and enhanced security. Villa Pierro is almost completely sold out, with just two units out of 28 still available, while San Michele is 75% sold out, with just nine units still on offer. Bortoli Villas, with its proposed 65 spacious duplex townhouses, each with a double garage, is positioned very well within the estate. The good news for buyers is that a number of banks are now providing 100% bonds on properties priced up to
R1.7m, so you can come in, choose what you like and pay nothing until you have taken occupation of your new home. Construction of Buh-Rein Estate’s new community lifestyle centre is progressing well, and we expect it to be completed in time for spring, and those who wish to shape up for summer can do so without having to leave the estate. The centre is next to the multipurpose sports field and will include a gym, a large swimming pool and a dedicated play area for children. There will also be a tapas-style food and beverage service to cater for residents who are lazing on the deck chairs around the pool. Buh-Rein Estate offers exceptional value for money. This, coupled with the overall improvement in the residential property market, leaves us confident that our buyers will soon begin to see double-digit capital appreciation.
“All our homes are provided on a turnkey basis, which means you don’t pay until you stay” Riaan Roos, CEO, MSP Developments
INVESTMENT March 20 2015
Games governments play
Do events such as the Commonwealth Games and the 2010 Soccer World Cup leave a lasting legacy for the host countries, or are they a flash in the pan? WORDS: GRAHAM BARLOW :: PHOTOS: TEBOGO LETSIE/SUNDAY TIMES, SHELLEY CHRISTIANS/SUNDAY TIMES AND SUPPLIED
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his may come as bad news for the communistically minded members of society among us, but the expression “commonwealth” has nothing to do with the sharing of assets. A commonwealth is a community that exists for the common good of its members. The term stems from the 15th-century “commonweal”, meaning well-being (as opposed to a healthy bank balance). The original commonweal stemmed from the Roman “res publica”, or “republic” in today’s terminology, where the supreme power was vested in the people. The modern Commonwealth of Nations is a voluntary association of 53 independent sovereign states, most of which were members of the defunct British Empire. This short, free lesson in etymology and history stems from the pending and, to many, exciting news that Durban is bidding for the 2022 Commonwealth Games, a step that is seen as a launchpad for the even larger potential hosting of the Olympics in 2024 or, more feasibly, 2028. No African country has ever hosted either the Olympics or the Commonwealth Games, and should Durban’s bid be successful, it will open the doors for Africa
to take its rightful place on the world’s athletics stage as a host to the games and not only as an incubator of some of the most successful athletes of the modern era. Given that Edmonton, Canada, the only other country to bid for the 2022 Commonwealth Games, has withdrawn its bid, Durban appears to be a shoo-in for the honour, which will be announced in New Zealand on September 2 this year. The bid is seen by some as controversial, given the unemployment levels in the country and the potential costs, which the government is not disclosing. The head of the South African Sports Confederation and Olympic Committee, Gideon Sam, believes that the bulk of the infrastructure is already in place and that only an athlete’s village and a world-class shooting range need building for the games. SA might not have hosted a localised international event as yet, but it has seen the successful national running of the 1995 Rugby World Cup, the 2003 Cricket World Cup and the 2010 Soccer World Cup. Such events bring the country and the host cities sharply into international focus. Looking at legacy events from a property
INVESTMENT March 20 2015
“We always embrace these events because they put an area that might otherwise have been overlooked onto the global stage” Carol Reynolds, principal, Durban, Durban North and La Lucia, Pam Golding Properties
sales perspective, can Durban and other South African cities affected by the additional tourism to the country expect a boost? The last major event to come under the spotlight was the London Olympics, but an in-depth analysis of property sales in the city and surrounds immediately after the games showed no appreciable spike in sales. The London Housing Market report covering the years 2007 to 2014 included graphs where house sales mirrored economic growth. This rules out the Olympics as a market driver. (Experian Data was the source of this information, as supplied to the Greater London Authority.) London, though, is an enigma. Tourist figures for 2014, at 16.8-million visitors, outstripped the 2012 influx by the considerable margin of more than 2-million, so it perhaps unsurprising that there was no shift in property sales. Is this indicative of what SA can expect? Was the hosting of the 2010 Soccer World Cup any different, and can Durban expect the Commonwealth Games to have an impact on property sales? “Yes, and absolutely,” says Matt Mercer, Hout Bay manager of Knight Frank Western Cape. With its head office in London, Knight Frank is one of the world’s leading independent real estate companies and is ideally placed to comment on legacy games as it has experienced similar events across four continents. “During the 2010 Soccer World Cup, the short-term benefits for the property market were actually misplaced, with people hoping to cash in on B&B opportunities. The duration of the 2010 soccer event was far too short for that, and many burnt their fingers through misunderstanding the impact. But the longterm benefits were palpable to agents across SA. We have never had a busier viewing period than in those couple of months.” So, did sales actually increase, or was it merely window-shopping? “You have to understand that
advertising is a mysterious force in the property market,” says Mercer. “The view the world got of SA during the games is impossible to quantify in terms of longterm property sales, but there is no doubt that the free publicity generated by international news and sports broadcasting crews has had a very beneficial effect on property sales. The people who travelled here and took an interest in the sports event fall, by and large, into the upper income bracket — and they are your international property purchasers.” Mercer points out that we cannot discount events such as the yearly Cape Town Cycle Tour either: “It may not be a true legacy event, but the reality is that it brings in billions of rand to the Western Cape each year, and Knight Frank can testify to the fact that there is a substantial property sales spin-off each year.” Carol Reynolds, Pam Golding Properties area principal for Durban, Durban North and La Lucia, is equally upbeat: “In my experience the impact on the market is neither direct nor immediate. What we have seen in Durban since the 2010 World Cup is the upgrade of the beachfront and increased publicity and exposure for the city. This has resulted in a resurgence of buyer and investor interest in property in the area. These events showcase the beauty of the city and are a wonderful marketing opportunity for the area as a whole, which ultimately filters back into the buyer pool.” Will the costs of hosting the Commonwealth Games have a positive effect? “Definitely,” says Reynolds. “Durban offers spectacular opportunities for investors to buy on the beachfront at very reasonable prices. From an international investment perspective, there are very few places in the world that offer beachfront property on a prime promenade for R1m. Better value for money and a better lifestyle offering you simply won’t find. We always embrace these events because they put an area that might otherwise have been overlooked onto the global stage.”
“The free publicity generated by international news and sports broadcasting crews has had a very beneficial effect on property sales” Matt Mercer, Hout Bay manager, Knight Frank Western Cape
INTERNATIONAL March 20 2015
The best returns in India Predictions for growth in the previously stagnant smart-city investment havens of New Delhi, Mumbai and adjacent countryside regions are set to benefit investors WORDS: ANNA-MARIE SMITH :: PHOTOS: ISTOCK
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reater transparency and improved economic stability that followed the appointment of a new government after the 2014 national elections in India continues to promote significant improvements in market sentiment. Reduced interest rates, increased development, a largely stable pricing structure, improved job opportunities and greater income prospects have brought relative improvements to the midmarket and top residential sectors that experienced low demand in 2013. “Demand is driven by investors who are looking for an opportunity to make healthy capital growth returns on exit, and hence location and proximity to growth corridors is imperative,” says Anuj Puri, chairman and country head at Jones Lang LaSalle (JLL) India. End-user demand for housing is driven by a choice of lifestyle for the higher income group and, for others, by proximity to amenities and good connectivity. Affluent buyers and diplomats resident in the northwestern city of New Delhi, which changed places with Kolkata in 1910 to become the national capital, enjoy access to a super-prime property market that affords a superior-quality lifestyle. The desirable lifestyle further south in the commercial capital of Mumbai relates as much
to gentrified living in a Bollywood film city environment as to an escape to green open spaces while still feeling the pulse of a densely populated city. Puri says the most dominant buying group falls within the midincome segment. Buyers are investing in upcoming locations to ensure healthy capital appreciation. The higher income group prefers premium and luxury housing projects and row houses in tiny residential areas in the prime city. Another factor to consider is geographic locations. Says Puri: “Mumbai, New Delhi and most of the prime residential locations here will offer a mix of rental income, though capital growth will be limited as they are already the most expensive areas in their respective geographies.” The emerging and growth corridors in both these cities, primarily in the suburbs, will offer the scope of returns through capital appreciation. Puri says suburban or emerging locations amid existing and upcoming infrastructure and employment generation will create the right environment for capital growth.
Recent market activity and future predictions of the renewed macroeconomic impact on India’s economy is reported in PWC’s Emerging Trends in Real Estate Asia Pacific 2015. The report shows Mumbai’s acceleration out of 22 cities, from last place in 2014 to 11th place both for improved development and investment prospects. New Delhi is rated 14th for investment and 15th for development. Investors remain largely in favour of traditional housing. Says Puri: “While houses remain the preferred investment option, owing to their low availability and high prices, most investor interest is towards apartment projects.” Completed housing projects and row houses offer similar rental returns. Mix-use developments are yet to show their mettle — even the ability of developers to deliver such projects is yet to be proved. Continued market confidence among crosssector developers can be seen in high-demand areas. Oberoi Realty recently announced its commitment to two premium residential developments in Mumbai. Vikas Oberoi, chairman
The emerging and growth corridors in New Delhi and Mumbai, particularly in the suburbs, will offer the scope of returns through capital appreciation
and managing director, has expressed confidence in India’s new government. Industrialists and old business families who favour exclusivity are afforded limited investment opportunities in suburban areas, such as billionaire’s row along Altemount Road in South Mumbai. The latest addition to this street is a 27-storey private home that is valued at $1bn and includes six levels of parking, three helicopter pads, a ballroom and a theatre. The luxury of country living and weekend holiday getaways close to large cities remain a popular option for city dwellers. Puri says Delhi home owners who prioritise proximity buy countryside properties in suburban locations in North India or in nearby holiday destinations. Investors in second homes and holiday houses enjoy access to good bargains, such as townhouses and time-share developments. JLL predicts that the knock-on effects that are having an impact on the homebuyer market in 2015 will continue to affect mid- and high-end projects. It notes the change in developer apathy toward right-sizing, better pricing and more efficient designs. Market predictions are that India will see the best improved foreign direct investment environment since 2005.
“Demand is driven by investors who are looking for an opportunity to make healthy capital growth returns on exit, and hence location and proximity to growth corridors is imperative”
ANUJ PURI, CHAIRMAN AND COUNTRY HEAD, JONES LANG LASALLE INDIA
INTERNATIONAL March 20 2015
Affluent buyers and diplomats resident in the stately northwestern city of New Delhi, which changed places with Kolkata in 1910 to become the national capital, enjoy access to a super-prime property market that affords a superior quality lifestyle
Swings and roundabouts A The demand for high-end property in India is growing as prices of luxury homes in London drop WORDS: LEA JACOBS :: PHOTO: ISTOCK
The Indian Express reports that 500 luxury units in Mumbai, costing an average of about R39m, were sold between January and October 2014
lthough it has been reported that the prices of upmarket homes in London have fallen by 4% in the past few months, the luxury property market in India appears to be holding its own as the demand for homes in this sector continues to grow. London homes priced at the £4m (about R73m) mark have been hit by the British government’s stamp duty reforms as well as the Labour Party’s threat of levying a mansion tax should it be voted into power. A property costing £24.5m (about R448m) that would have attracted taxes of £1.5m (about R27m) before the reforms will cost the buyer just less than £6m (about R110m). It is worth noting that 11,115 properties sold in the UK for more £1m each. The most expensive property was a flat situated close to Hyde Park that sold for £50m. In India, Mumbai still houses the most expensive property in the world, Antilia. Forbes has estimated that the construction costs of the skyscraper home were between $1bn and $2bn. The Indian Express reports that 500 luxury units in Mumbai, costing an average of 200-million rupees (about R39m) were sold between January and October 2014. A luxury property in the city and upmarket areas of New Delhi could cost as much as 1-billion rupees (about
R195m), but the bulk of transactions in this sector hover around the 200,000- to 250,000-rupee mark. Those who buy high-end homes in areas such as Bengaluru or Kolkata can expect to pay anything from 50-million to 150-million rupees. The demand for luxury accommodation has caught the attention of the likes of Donald Trump who, despite stating that the Indian government has not always encouraged foreign investment in the past, is in the process of building two projects there: the 75-storey Trump Tower in midtown Mumbai and the Pune, which comprises two adjacent 23-storey buildings. Prices of a three-bedroom unit of 187,29m2 in the Trump Tower start from 80-million rupees (about R15.6m). Fourbedroom units of 218,23m2 are priced from 93.9-million rupees. Amenities include swimming pools, an Evander Holyfield gym, banqueting halls and a mini-theatre. The twin towers in Pune include 44 luxurious fivebedroom condominiums, each measuring 566,15m2 and priced at 167.5-million rupees (about R32.7m). The development includes a swimming pool, gym, library, art gallery and children’s play area. The development offers 360-degree views of the city and features interior styling by award-winning designer Matteo Nunziati.
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NEWS March 20 2015
St Francis prices remain under pressure
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ales to the value of R105m for Pam Golding Properties’ St Francis Bay were achieved for the financial year to February 28 2015. This is the agency’s highest-ever turnover and gives it a market share estimated at more than 30%. “About a third of our sales involved local St Francis residents buying and selling, upgrading or downscaling, as well as lots of trading,” said Richard Arderne, Pam Golding Properties St Francis Bay. “Otherwise, not unexpectedly, there were many Gauteng, Cape Town and Durban families buying for holidays, or Port Elizabeth families for weekends, as well as couples in their 50s and 60s buying for semi-
retirement or full retirement.” He said that while turnover was up, prices were still under pressure, with more sellers than buyers.
“About a third of our sales involved local St Francis residents buying and selling, upgrading or downscaling, as well as lots of trading”
Bill Rawson, chairman, Rawson Property Group
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he Cape metropolitan property market has for the second consecutive year exceeded that of Johannesburg in terms of transaction volume and value as demand continues to outweigh supply. With about 11,487 property transactions worth about R20bn, it generated 40% more value than the Joburg metro, which yielded just under R13.7bn (11,307 transactions). “Average prices in the Cape also continue to appreciate at an inflation-beating pace,” said Seeff chairman Samuel Seeff. “According to the latest
Richard Arderne, Pam Golding Properties, St Francis Bay
Local still lekker for Rawson “The annual capital appreciation on overseas property investments is often low, in the region of 3% or 4%, well below what South African properties would yield”
Cape’s property values pip Joburg’s
FNB Western Cape House Price Index, Cape property appreciated at about 14.9% on average, well above last year’s national average of 6% to 8%. “The average price of sectional title property is now about R1.5m, significantly more than the R800,000 for the Joburg metro. Freehold property now sells for about R1.8m on average, about 20% more than Johannesburg’s R1.5m.” Strong demand is linked to rising bank lending and buyto-let investments, which now accounts for about 10% of all activity, up from 6% in 2012.
Constantia homes average R5.4m
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any property publications regularly promote overseas properties, but Bill Rawson, chairman of Rawson Property Group, is less enthusiastic about the idea. He said there are “many varied and often exciting” opportunities available in SA, especially recently as innovative developers bring good projects to the market and demand reaches an all-time high. Said Rawson: “The big arguments often put forward in favour of overseas property investment are that the capital appreciation will be more or less assured and the investment will become particularly attractive if the rand continues to lose value or remains weak in relation to stronger currencies. “However, the annual capital appreciation on overseas property investments is often low, in the region of 3% or 4%, well below what South African properties would yield, and I have often found that the rental return can also be very low. “It is also worth noting that many people are now predicting that the rand will, in fact, strengthen — say R8 or R9 to the US dollar — as SA overcomes its infrastructure and energy supply problems.”
With about 11,487 property transactions worth about R20bn, it generated 40% more value than the Joburg metro, which yielded just under R13.7bn (11,307 transactions)
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ropStats, the Institute of Estate Agents Western Cape property data service, said the average sales price of homes in Constantia in 2014 was R5.45m, an increase of more than 13% on 2013, which averaged R4.79m. “It is also interesting to note that there was a spike in prices achieved in the fourth quarter of 2014,” said Lanice Steward, managing director of Knight Frank Residential SA. “Basic economic rules will always apply, and where there is strong demand and low supply, prices will continue to rise. “We hope the stock shortages will be alleviated soon, as agents are battling to find homes to sell to the many buyers they have on their books.”
Lender confidence on the up
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ccording to February property statistics released by bond originator Ooba, there has been continual growth in residential property prices and increased competition among banks to offer home loans.
Ooba reported year-onyear price growth of 4.8% to R1,004,120 on average. The first-time buyer purchase price showed a year-on-year increase of 5.2% to R766,129. Indicators of banks’ increased appetite for
extending credit for home loans included the fact that average deposits were down year on year by 8.5% to an average 14% of purchase price; the average approved bond size of R863,310 was up 6.4% year on year; the successful
bond approval rate by one bank increased by 3.4% year on year to 58%; the total bond approval rate was 76.7%, up 0.4% year on year; and the average interest rate was prime plus 0.37%, a 20-basis point improvement.
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EAGLE CANYON • R5 595 000 UNIQUE IMMACULATE HOME IN EAGLE CANYON GOLF ESTATE This beautifully appointed home, with fine attention to detail offers a formal lounge, an eat-in kitchen, dining room, TV lounge, scullery and pantry. Downstairs: Separate study and a 4th bedroom with guest loo. Upstairs: Very spacious North-facing main bedroom with an antique bath and balcony. The 2 bedrooms are both en-suite. Pyjama lounge has antique fireplace. Covered patio, sparkling pool and garden. Open plan cottage/staff quarters, 2.5 garages and a long panhandle driveway . ROZ EVERITT 083 755 8933 • roze@everitt.co.za ZELDA REYNEKE 082 338 6219 • zelda.reyneke@everit.co.za • 011 801 2500
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Green Point – R11.85 million
Designer master build. This unique home offers 3 beds, 2.5 baths, balconies, pool, courtyard, Dbl garage & views that have been maximised to their advantage with floor to ceiling Dbl glazed windows, light wells and presented in a paired down cohesive aesthetic of whites and neutrals allowing the view to take centre stage. This is a home for those who enjoy beautiful architecture & fine build quality. Craig Robinson 082 519 9113 | Kerryn Du Rand 076 835 0410 | Web Ref: 88440
Atholl – R10.9 million
Sophisticated and elegant in every detail on 988sqm, this modern contemporary classic boasts double volume entrance hall, 4 spacious reception rooms overlooking patio and pool. Upstairs, 4 bedroom suites plus gym. Imported kitchen, triple garaging and staff suite. Joan Mendelsohn 083 267 3124 | Lynne Baker 082 493 1006 | Web Ref: 87639
Copperleaf, Centurion – R5.8 million
Beautiful double storey home in Copperleaf Estate. This home invites you inside with open living areas and Dbl volume ceilings. Modern kitchen with breakfast nook and integrated appliances. Walnut bar with two built in bar fridges. A large covered patio with louvre deck roof opens to heated lap pool. 3 beds, all with en-suite baths and pajama lounge. Outside shower, central vacuum system and built-in fireplaces. Marietjie de Jonge 082 412 6045 | 012 940 1219 | Web Ref: 88365 RESIDENTIAL SALES & MARKETING • RENTALS • DEVELOPMENTS • HOME LOANS