Business Day Home Front 21 October 2016

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HOMEFRONT OCTOBER2016 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 2113OCTOBER

MUST READ

Constantia’s food and wine finds PAGE 2

Is Menlyn the new Sandton? PAGE 8

Investment: going commercial PAGE 28

Pioneering estate living Education a big plus in Mauritius PAGE 34

SA has the highest number of residential estates in the world, popular for the security and lifestyle features on offer, as well as convenience and sense of community

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HOMEFRONT

Klein Constantia

FOOD AND WINE

Constantia Valley revival Constantia is sizzling as a culinary hot spot with a surge of experiences putting it on Cape Town’s gourmet map. And buyers are snapping up opportunities to indulge in a slice of Winelands lifestyle WORDS: RICHARD HOLMES :: PHOTOS: ISTOCK BY GETTY IMAGES, SUPPLIED

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ver the past decade, the Constantia Valley has made its mark on the Cape’s culinary map. While this is the oldest wine region in the southern hemisphere, with an uninterrupted history of wine production stretching back to 1685, for years it lacked much of a reputation for fine food. That has all changed. Today gourmands are spoilt for choice as an increasing number of chefs lay out the napery for astute locals who have chosen to invest in the lifestyle attractions of the suburb. Greenhouse at The Cellars-Hohenort Hotel was perhaps the first to put the suburb on the Cape’s culinary radar. And Relais & Châteaux grand chef Peter Tempelhoff continues to set the bar high with his inventive menu of modern Cape cuisine. Up the road at La Colombe, Scot Kirton is another star chef who has put down new roots in the valley, moving the restaurant to Silvermist Estate atop Constantia Nek in late 2014.

Executive chef Annemarie Robertson, Open Door

“Coming up here has inspired everyone,” says Kirton, who was named S.Pellegrino Chef of the Year at the 2016 Eat Out Restaurant Awards. La Colombe also bagged 76th position in The World’s 50 Best Restaurants Awards in New York earlier this year. This month, the doors opened at Foxcroft, Kirton’s new venture in the popular High Constantia Centre. Pastry chef Glen Williams has just returned from Paris and is heading the kitchen, with the focus on upscale yet relaxed all-day dining. Blanko restaurant has also opened at The Alphen. An Italian menu and marble tables aside, Blanko’s walls are designed to showcase work from contemporary South African artists, in collaboration with the Goodman Gallery.

PRIME REAL ESTATE It is just one of the latest openings in the suburb, with its current flush of food and wine investment — including the plans at Beau Constantia to open an outpost of Liam Tomlin’s popular city-

“You’re sitting in one of the prime locations in Cape Town. The hilltop views are stunning and their wines match what we do” Liam Tomlin, co-owner, Chefs Warehouse at Beau Constantia


HOMEFRONT centre restaurant, Chefs Warehouse, next month. Why Constantia? “You’re sitting in one of the prime locations in Cape Town,” says Tomlin. “The hilltop views are stunning and their wines match what we do. But one of the biggest drawcards for me is chef Ivor Jones. He’s been in the shadows of Luke DaleRoberts at The Test Kitchen for nine years and is one of the most exciting young chefs in the country. I can’t wait to see what he does. “The Beau Constantia wine tasting room is so busy, it makes sense for us to expand there. It’s also being completely renovated and the space is being extended, with a bigger section enclosed in glass to allow an 80-seater in winter. Every seat has a view. Plus we’ve put in a state-of-the-art open kitchen with all the latest technology — we’re probably the first restaurant to use the Bertha Charcoal Oven, a big but worthwhile investment. And, while we don’t accept reservations at Chefs Warehouse in Bree Street, we will do so at Beau Constantia.”

lights of the local restaurant scene. Further upgrades include a children’s play area and prepacked summer picnics. Locals have been thrilled to see the rejuvenation of once-tired places, particularly the historic Constantia Nek restaurant, into which the Harbour House Group has invested north of R14m. “The owners have always loved this iconic site and La Parada and Harbour House will maximise the beautiful location,” says CEO Grant Dutton.

WINE ESTATES Constantia Glen wine estate is also investing in its visitor facilities. The first vines were planted in 2006, expanding to include a wine tasting facility in 2010. In 2014, the estate was developed again to include an airy conservatory with spectacular valley views and interiors by acclaimed designer Graham Viney. While Constantia Glen is one of the newest wineries in the valley, Buitenverwachting has staked its claim to these soils since 1796. Under

chef-patron Edgar Osojnik, the Buitenverwachting restaurant has long established itself as a classic fine-dining destination. Current renovations look set to transform the estate’s wine tasting offering. “The new tasting area will include a large, 250m 2 limestone-tiled terrace with unique and rustic outdoor furniture, specially designed for Buitenverwachting,” explains MD Lars Maack. The estate has invested close on R3m in the new facility. “The Old Cellar will have a lounge section

Ivor Jones, chef co-owner, Chefs Warehouse at Beau Constantia

“Wineries get old — you need to invest in them all the time — and at Klein Constantia, an investment was long overdue” Hans Astrom, MD and partner, Klein Constantia

REVAMPED STALWART

Meanwhile, Constantia stalwart Peddlars & Co is continually upgrading and refining its offering: it now includes four distinct food and drink experiences. Notably, the flagship restaurant, Volare, has switched its focus from Italian to contemporary international cuisine, with popular chef-patron Brad Ball making full use of the expansive vegetable gardens near the restaurant. Further down the winding Spaanschemat River Road, successful Cape Town restaurateur Neil Grant, co-owner of Woodstock’s Burrata as well as Bocca in the CBD, has long had an eye for opportunities in the valley. With a groundswell of restaurants establishing a gourmet culture in Constantia, Grant and efs business partner Barry ntia Engelbrecht leapt at the opportunity to revamp the old River Cafe on Constantia Uitsig wine estate to create Open Door restaurant. The pair invested R6m in a total overhaul of the historic site, transforming the original farm schoolhouse into an elegant space that spills on to sheltered terraces and sun-splashed wooden decks. With chef Annemarie Robertson behind the kitchen, it has become one of the shining

Foxcroft fare

Steenberg winery

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HOMEFRONT and bar area, as well as a dedicated area for sampling vintage wines.” Since new owners took over neighbouring Klein Constantia — producer of the iconic Vin de Constance natural sweet wine — in 2011, the estate has also invested heavily in its vineyards and cellar facilities. In 2013, Wine Spectator magazine reported that Klein Constantia’s planned upgrades would eventually be the “biggest investment in a South African winery to date”. At the time, the farm had 80ha under vine. Hans Astrom, MD and partner of the iconic Cape estate, told Wine Spectator: “It’s not economical to make average wines on this sort of real estate.”

CELLAR RENEWAL Over the past year the estate’s entire production cellar has been rebuilt and expanded, along with a major overhaul of the 300-year-old manor house.

“Wineries get old — you need to invest in them all the time — and at Klein Constantia, an investment was long overdue,” says Astrom. “We are custodians of an important part of South African history and as an owner you have to commit money, passion and vision to the estate. Everything we do is about making Klein Constantia continue for another 330 years.” There is some immediate gratification for visitors to the estate, though: a refurbishment of the tasting room is scheduled for completion by mid2017 and will include an expanded food-and-winepairing experience.

RENAISSANCE Food and wine also go hand in hand at Steenberg Farm. Once home to the feisty Catharina Ras, famed for her hospitality on the wagon trail to Simon’s Town, today the estate includes two restaurants,

Blanko at The Alphen

La Colombe at the top of Silvermist Mountain Lodge and Wine Estate

“If there were any wine estates for sale in the Constantia Valley, you would not know about it until after it was sold. These deals are always highly confidential” Tara Whiting, Acquire Africa founder

Catharina’s at Steenberg a celebrated winery, a boutique hotel and an award-winning golf course. Part of that is the overhaul of the Steenberg Spa, as well as an expansion of the popular Bistro 1682. But it is at Catharina’s restaurant where the renaissance of Constantia as a food and wine destination is perhaps most apparent. Further to an innovative overhaul of the interior decor, chef Archie Maclean has added a new culinary aesthetic to this much-loved local eatery. Embracing a philosophy of contemporary heritage, the UK-born Maclean has tapped into his worldwide experience to create a menu that adapts global culinary trends to local flavours. The inclusion of crocodile, zebra and wild boar on the menu may have raised a few eyebrows at first but Maclean says it is nothing more than a tribute to the restaurant’s namesake. “Catharina is the adventurous one and I need to follow in her shoes,” says Maclean. “These dishes would have been on Catharina’s table time and time again. “I think we’ve forgotten just how good these other meats can taste.” It is a brave new direction for the restaurant, but one that will further entrench Constantia’s reputation as one of the finest food and wine routes in the Western Cape.

Harbour House

CAPE WINE VERSUS GLOBAL WINE PROPERTY If you look at the stats, local wine estates have made excellent investments for many South African highnet-worth individuals and foreign investors. According to New World Wealth, “the Western Cape is home to some of the most expensive wine property in the world, valued at more than $75,000 per hectare (source: Knight Frank)”. The most exclusive of these estates are located in Stellenbosch, Constantia and Franschhoek.

HOW DO YOU ACQUIRE A VINEYARD? Christie’s offers a vineyard acquisition service for wineries and vineyards around the world. In the Constantia Valley, however, there are only 10 wine estates. Says Acquire Africa founder Tara Whiting: “If there were any wine estates for sale in the Constantia Valley, you would not know about it until after it was sold. These deals are always highly confidential.” However, there is nothing to stop a buyer from buying a large property and growing a boutique vineyard similar to that at The CellarsHohenort Hotel (Klein Constantia manages its vineyards and makes a Vin de Hohenort dessert wine). But if you are looking for vacant land, Nikki Edenborough of Seeff

Constantia says it is in short supply. “It took three years to subdivide a plot in Van Breda Avenue — the land sold in 2013 for a total of R1.8m. When the new owner took transfer, we sold it immediately for R2.9m.”

WHO IS THE NEW BREED OF BUYER? Agents report that a new generation of buyers has piqued interest in Constantia. “They’re loving the rural ambience combined with magnificent vineyard views, greenbelt trail walks, wine tasting and a much bigger choice of restaurants. They no longer need to dine elsewhere as top restaurants are opening right here,” says Marie Durr, Constantia Upper area specialist for Seeff Properties. Faith Knight from Seeff Properties in Constantia says that, of their last 10 sales, three were to buyers from elsewhere in SA, one to a foreigner and the other six to locals. Says Whiting: “Each of the wine estates in the Constantia Valley has grown and developed new hospitality offerings in the last year, which is what makes Constantia such a desirable place to be for both locals and overseas visitors. I have lived in Constantia for 16 years and have watched it transform into a world-class destination, which has had a knock-on effect on property prices.”


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HOMEFRONT IS MENLYN MAINE THE NEW SANDTON? Menlyn Maine is also the new Pretoria business headquarters for Pam Golding Properties. “Menlyn Maine is emerging as a prestigious new business centre and the address of choice in Pretoria. We regard it as a logical step for us to make our new home in SA’s first green city, within the ‘Sandton of Pretoria’,” says Retha Schutte, Pam Golding Properties regional executive for Pretoria. The group is marketing Menlyn Maine’s flats. Schutte says the stateof-the-art tower block flats will be sold off plan, and that investors had an opportunity to reserve a unit before the launch this month for a R50,000 deposit, refundable if a sale agreement was not signed within seven days. The residential area will consist of two highrise blocks and three smaller buildings, built around a central park with outstanding views of the city. Menlyn Maine residential towers

GAUTENG FOCUS

Menlyn remodelled Menlyn’s many mixed-use retail and residential offerings will change the face of Tshwane and how its residents live WORDS: HELEN GRANGE :: PHOTOS: HELEN GRANGE AND SUPPLIED

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he Menlyn node in Pretoria East, with the R8bn Menlyn Maine green city development as its centrepiece, is poised to become one of SA’s most sophisticated lifestyle destinations, offering urbanites an ideal live, work, play balance. The 315,000m² Menlyn Maine, an easy distance from the N1 highway’s newly upgraded Atterbury and Garsfontein interchanges, is based on new urbanism principles. When it is completed by the end of next year, it will be a mixed-use hub of offices, shops, flats, luxury hotel, entertainment complex and parklands.

CENTRAL SQUARE Last month, Menlyn Maine’s Central Square opened, a R1.8bn shopping precinct with a piazza as its focal point. It features 50 handpicked retailers, as well as restaurants, Pretoria’s first

Virgin Classic gym and a Bounce trampoline park. Co-owned by joint investors Menlyn Maine Investment Holdings and the Government Employees Pension Fund, its tenant mix was curated by Flanagan & Gerard Property Investment & Development, which has earned a sterling reputation for leasing high-end niche malls such as Sandton’s Morningside Shopping Centre and Nicolway Bryanston. “Central Square adds a new dimension to the diversity of the retail sector in Pretoria, and complements the existing shopping offerings in and around the Menlyn node with a distinctive and unique experience,” says Menlyn Maine Investment Holdings architectural director Henk Boogertman. Boogertman says Central Square’s strength lies in its exceptional retail mix, convenience, design and location. “Central Square

is in line with the Menlyn Maine vision to create a modern, new urban city precinct, where everything is right on one’s doorstep. It is an entirely new and unique experience that forms the city centre of Menlyn Maine.”

NEW MENLYN PARK The nearby Menlyn Park Shopping Centre, meanwhile, is undergoing a R2bn redevelopment — due for completion at the end of this year. With more than 500 shops and a gross lettable area of 177,000m², Menlyn Park is set to become the largest mall in Africa. Zara, Hamleys toy store, Krispy Kreme doughnuts and H&M clothing are among the international brands that will soon open their doors. As these developments take shape, investors are enthusiastically prospecting for commercial and residential properties in

“Central Square is in line with the Menlyn Maine vision to create a modern, new urban city precinct, where everything is right on one’s doorstep” Henk Boogertman, architectural director, Menlyn Maine Investment Holdings

Menlyn Maine Central Square

Pam Golding Properties partnered with the developers at the inception of the Menlyn Maine project, helping with the purchase and assembly of 108 stands in Waterkloof Glen Ext 2 between 2006 and 2007, before construction began. Schutte says the company is looking to increase the number of real estate agents in the area considerably so “it can cover the length and breadth of the region in a more cohesive and effective manner”.


HOMEFRONT the area. Sectional title offices are in high demand in Menlyn, so the Park Lane West office block, in Menlyn Maine’s heart, is expected to enjoy a rush of buyers on completion next year.

FLATS AND HOTELS The residential component of Menlyn Maine will comprise 550-unit tower block flats, from studio to penthouses, with construction due to start in March next year. Nearing completion, and

Largest mall in Africa? Menlyn Park Shopping Centre

“Professional young people are definitely gravitating to this side of Pretoria because of what Menlyn has to offer” Benita van Straten, property agent, M&T Development

visible from Central Square, is the Capital Menlyn hotel. It will be followed in the new year by the Sun International Time Square casino, a five-star hotel and 8,000-seater multipurpose arena that will be linked by underground parking and pedestrian walkways. Says Thys Greeff, commercial leasing, sales and investment broker for Menlyn Maine: “It’s all about having everything on your doorstep: your office, shops, amenities, gym,

hotels, entertainment, and the Gautrain — so you don’t need to drive anywhere.”

INVESTMENT OPTIONS Another popular offering in Menlyn’s high-density node is The Regency, the first luxury highrise residential block in Menlyn. It is developed by Key Spirit Developments, and is due for completion in November next year. It is a hotel-style offering, with a restaurant, pool, gym and a 24-hour concierge, along with shuttle services to the Gautrain Hatfield station and Menlyn Maine. “The Regency is the best investor’s product in Pretoria at the moment, with a guaranteed minimum of 7% rental payable monthly over a two-year period for units selling for between R1m and R2.4m,” says Cathy Compion, property consultant at Pam Golding

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Properties Pretoria. Properties in Menlyn’s surrounding suburbs, including Garsfontein, Ashlea Gardens, Waterkloof Glen and Newlands, are expected to feel the benefits of Menlyn’s upgrade in a year or two, when the dust has settled. Says Benita van Straten, property agent for M&T Development: “Professional young people are definitely gravitating to this side of Pretoria because of what Menlyn has to offer. “I believe that within the next year or so we will see the fruits of these developments in increased sales.” The company markets homes in Rietvlei Ridge, about 8km from the Menlyn node. All going to plan, Menlyn Maine will become Pretoria’s choice address, and ultimately energise the entire Pretoria East region.


PLAN EARLY FOR COMFORTABLE RETIREMENT According to the latest New World Wealth Survey of wealthy suburbs undertaken in conjunction with MasterCard, Plettenberg Bay now ranks in the top three premier property locations in the country next to Cape Town’s Atlantic Seaboard and Sandton in Johannesburg. Jean-Pierre Nortier, says that contrary to belief, Plettenberg Bay is not only for the super wealthy. “On average 85% of sales in Plettenberg Bay are in the region of R3 million or less. These sales do not include transactions in share block schemes and properties purchased on a life right basis. Awareness of Plett is growing, both nationally and internationally.” He says there is an influx of buyers, specifically from Gauteng, who wish to retire to the Southern Cape. “There is already a shortage of retirement villages within Plettenberg Bay and by all indications, demand in the future will only increase.” The town and surrounds currently only offer two retirement villages with frail care facilities, Formosa Garden Village and Strombolis. The waiting list at Formosa Garden Village fluctuates, but is in the region of ±18 years.” “The Devmark Property Group has been involved in the development of retirement villages for the past 26 years and has an outstanding track record. All purchasers in these developments have seen significant capital growth since the acquisition of their property. I believe it will be no different with The Plettenberg Manor.”

artist’s impression of clubhouse interior

The Plettenberg Manor is the latest addition to a proud Retirement Portfolio by the Devmark Property Group. The development will consist of all the best elements and practices, based on 26 years of experience in the retirement market segment, where over 2300 retirees have put their trust in Devmark.

Nortier reckons investing in The Plettenberg Manor will ensure that you have a property where you can enjoy your retirement in a tranquil setting with excellent security, and fantastic facilities including a clubhouse, restaurant, ladies bar, coffee shop, convenience store, hair and beauty salon, library and a gym. Residents will have access to frail care, with a specialist section for Dementia, which offers enormous peace of mind. I’m of the opinion that secure retirement villages are the one area of real estate in Plettenberg Bay that are excellent investments.” The Plettenberg Manor is an extremely exciting project. “The homes have been

artist’s impression of 3 bedroom exclusive homes

designed for retirees and all units are north facing. Part of the property is a wetland that over the course of the development will be rehabilitated and will include board walks and bird hides. The beach is also within walking distance. The development will also include a limited number of apartments and assisted living suites.” The Plettenberg Manor will offer six accommodation types ranging from assisted living units to three-bedroom exclusive homes designed in a Cape vernacular style, juxtaposing the Cape South Coast’s rural charm with sophisticated modern functionality and open plan living. Prices range from R1 595 000 to R3 825 000.

artist’s impression of the Plettenberg Manor gatehouse

The sales office & show house are open Tuesday, Wednesday and Thursday 10h00 - 15h30 or by appointment.

www.theplettmanor.co.za



The retirement you’ve earned. Situated in the Cape winelands, Zevenwacht Lifestyle Estate shares its name with one of South Africa’s pre-eminent wine estates. Epitomising South Africa’s abundant natural beauty, this region offers spectacular views, temperate weather and an endless array of activities to explore.

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The images, perspectives and finishes shown are merely impressions of the proposed development and are therefore subject to change at the developer’s discretion. The developer will not be held liable for any changes.


HOMEFRONT PROPERTY TREND

Pioneering estate living SA has the highest number of residential estates in the world, popular for the security and lifestyle features on offer, as well as convenience and sense of community

WORDS: GEORGINA GUEDES :: PHOTOS: KARL ROGERS, ISTOCK BY GETTY IMAGES, SUPPLIED

S

A is a global pioneer in residential estate living. Despite lagging behind the rest of the world in other areas, it has more golf and lifestyle estates than any other country in the world, says Andrew Amoils, head of research at New World Wealth. Paul-Roux de Kock, analytics director at Lightstone Property, says

“there are 6.2-million residential properties in SA at a value of R4.3-trillion”. Estate residences make up 5.1% of that total volume but account for approximately 15.1% of the overall market value. “This is a noteworthy figure, especially when considering the increasing market activity for the estate property market over the past few years, which shows strong growth in both the volume and value

Val de Vie

Fancourt

Nieuwe Steenberg

of estate sales.” Lightstone’s research of about 6,500 gated communities and estate properties found that the total rand value locked up in the estate market was now close to the total value of all residential properties in Johannesburg. The company also concluded that 50% of estate properties were located in Gauteng, with a further 25% in the Western Cape.


HOMEFRONT THE LIFESTYLE APPEAL People are drawn to estates primarily because of concerns about safety. Developers and estate agents insist that it goes beyond this, however. “Living on an estate is about far more than security. There are numerous factors attracting people across all generations to an estate lifestyle,” says Andrew Golding, CEO of Pam Golding Properties. “The trend is towards so-called lifestyle estates, which encompass work, live, play and shop, all within a secure environment which provides a sense of community as well as easy access to schooling. Generally these estates are situated in metropolitan SA, including new metro growth nodes where the cities are expanding.” The fact that they are often located in these

Simbithi Eco Estate

Waterfall Country Estate

areas means that they are spacious. This is another strong aspect of their appeal: SA is renowned for the beauty of its natural environment and estates are often developed to take full advantage of this. And while many modern developments have a reputation for cutting costs, estate development has continued to appeal to elite buyers for the opposite reason. “Quality of build and design is not to be underestimated on the priority list for homebuyers,” says Golding. “Homes in estates are generally newer and more modern, with contemporary designs and finishes, and increasingly, with the latest technology and energy saving features.”

RETIREMENT VILLAGES Marketing director of Retirement Villages SA Marelize van Rooyen says the Retired Persons Act

establishes a minimum age for residents of a retirement property. It states that the property can be owned by a person of any age but that one of the residents must be 50 years or older. A particular village or estate may amend these stipulations, so anyone considering buying into a retirement village should familiarise themselves with its constitution and rules of conduct. The act also covers the type of ownership of the property that is allowed, including single title or freehold, sectional title or life-right purchase or rental. “In a single title development, all the traditional responsibilities and accountabilities of traditional home ownership would be applicable,” says Van Rooyen. “Importantly, the developer of a sectional title development carries no responsibility for the

“There are numerous factors attracting people across all generations to an estate lifestyle” Andrew Golding, CEO, Pam Golding Properties

WHICH TYPE OF ESTATE IS RIGHT? With so many options on the South African landscape, it can be difficult to pinpoint the differences and what they might mean for a buyer or investor. The most commonly listed types of estate on the market are golf, equestrian, wildlife, eco, lifestyle, super, mixed use, mega and retirement. Says Andrew Amoils, head of research at New World Wealth: “Estates can be tricky to define. The easiest ones to identify are golf estates but lifestyle encompasses wildlife, golf, equestrian and so on. Simply put, lifestyle estates are themed estates.” Golding says these estates

Gondwana Wildlife Estate

must also contain “live, play, work” elements as well as the feature around which they are themed. This then encompasses the definition of mixed use, with super and mega expressing a degree of size. But it can encompass more than its size, too. “We classify Val de Vie as a super-estate because it includes more than 100 stables, two polo fields, an equestrian area, a wine farm, a Jack Nicklaus golf course and a mountain biking park, as well as housing and office space,” says marketing director Ryk Neethling. “It’s like a small town, with the best facilities in the country.”


HOMEFRONT ongoing maintenance and cost management aspects once the development has been built.” For both a single and sectional title property, depending on the relevant village or estate constitution, a percentage may be due back to the village upon the sale of a unit. “Life rights offer precisely what the name implies: purchasers have a legal right to occupy the unit for the duration of their life,” says Van Rooyen. “Unlike sectional title developments, an advantage of life rights is that it is not a property transfer, there are no bond registration fees, transfer duties and no VAT payable, thereby avoiding the negative effects that such costs have on discretionary income and estate values.” Multi-Spectrum Property (MSP) recently launched its Zevenwacht Lifestyle Estate,

adjacent to Zevenwacht Wine Estate, on the Stellenbosch wine route. Says company CEO Riaan Roos: “MSP is delighted to be launching this offering, which is our first foray specifically into the market for the over-50s.” Options include Zevenwacht Lifestyle Homes, large freestanding residential retirement dwellings, or the Zevenwacht Lifestyle Apartments, smaller independent living units with easier access to the Zevenwacht Care Centre.

EMBRACING ESTATES Lightstone Property’s De Kock says that the estate housing market in general does not dip as low or peak as high as the rest of the luxury market. “We therefore expect it to outperform the luxury market during the current downturn,” he says.

With more than 6,500 estates to choose from across SA, the appeal they hold for investors and buyers has less to do with the regulations and more to do with their convenience and features, as well as personal preference.

THE 10 BIG ESTATES The top 10 residential estates in SA according to New World Wealth: 1. Val de Vie 2. Zimbali 3. Fancourt 4. Steyn City 5. Pezula 6. Whalerock Ridge 7. De Zalze 8. Atlantic Beach 9. Highland Gate 10. Arabella Zevenwacht Lifestyle Estate

“Quality of build and design is not to be underestimated on the priority list for homebuyers” Andrew Golding, CEO, Pam Golding Properties

Pezula Private Estate

Steyn City

Lombardy Estate

Val de Vie


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HOMEFRONT

SECTIONAL TITLE

The allure of sectional title There are clear reasons why South African sectional title developments are on the rise, and why they are drawing a greater number of buyers and investors than any other property type

WORDS: ANNE SCHAUFFER PHOTOS: ISTOCK

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here is little doubt that the range of sectional title models is proving the answer to many South Africans’ property needs. They speak of a particular lifestyle on a wide continuum, one which suits an entry-level flat owner in a compact surburban complex as much as it does a high-profile family in a multimillionrand freestanding home in a gated country estate.

NEED TO KNOW Globally there is a strong trend towards urbanisation and denser living, with Africa experiencing the world’s highest urbanisation rate. It is not just about fitting more people into smaller spaces nearer to the city; it is happening for reasons other than spatial and financial. It is about being part of a likeminded community, proximity to the economic hub, increased resistance to hours spent commuting, reduction of carbon emissions and, in SA, strong safety perceptions. More people contributing to a communal pot to fund security in an estate, means less individual funding. Sectional title living can be more cost-effective, and that appeals to many buyers. Maria Davey, partner at Neumann White Attorneys in Durban, suggests that prospective buyers into

an existing sectional title scheme make sure they tick a few of these boxes: “Look at the financials, and get copies of the last two to three years’ AGM minutes. Those will give clues as to whether any special levies are being contemplated, or whether there are any other issues in which the body corporate is involved. “Familiarise yourself with the management and conduct rules. And very importantly, make sure you know exactly what you’re buying — the sectional title unit might be just the home, so how do you get use of the parking bay or garage? Is it an exclusive use area (EUA)? Allocated in terms of the rules? Leased from the body corporate? Is the balcony part of the section, or is it an EUA? That would be relevant if it leaks into the unit below — if it’s EUA, it’s a body corporate problem, but if it’s part of the section, then it will be the owner’s problem.”

INVESTMENT Shaun Coetzer of Montague Homes says that over the past five years, investors have comprised 65% of buyers of the sectional title flats at Jackal Creek Golf Estate in Roodepoort, Johannesburg. “Our primary focus for investment apartments is the one and two bedrooms, ideal for a lock-up-and-go lifestyle.


HOMEFRONT The combination of freestanding homes and apartments here works in the investor’s favour, as lifestyle is a strong drawcard for prospective tenants — that means the investor is getting strong rentals which continue to grow year on year. “Our pool of buyers ranges from first-time home owners to investors adding to their portfolio and retirees looking for a safer, less risky investment that pays them monthly.” At Jackal Creek, where buy-to-let are key investors, prepaid meters were installed in all flats to help monitor costs. The newest have heat pumps and central boiler systems with heat tracers to reduce monthly costs.

CAPITAL GROWTH Multi-Spectrum Property CEO Riaan Roos cites the four major factors of estate living as security, convenience, lifestyle and value for money. At BuhRein Estate in Cape Town a 51m² two-bedroom flat bought for R424,900 in 2011 carries a price tag of R729,900 today, he says. “This equates to almost 72% capital growth over the five-year term, or just over 14% per annum. “For rentals, these apartments were initially rented out at R3,200 per month. Currently, the figure is R6,500. That’s a 103% growth in monthly rental over the five-year period, or 20.6% per annum,” says Roos. The Currie Group is marketing The Winston, a 40-unit luxury apartment complex in Bryanston, with starting prices at R3.28m. Says Brendan Raubenheimer, head of marketing for The Winston: “Every unit is premium, no entry level. The take-up is a mixture of owner occupiers and investors, many looking to downscale to a lock-upand-go environment.” Rawson Developers is focusing on Observatory in Cape Town, and bought some high potential erven

with the intention of demolishing the run-down warehouses, making way for two high-quality, hi-tech apartment buildings, the Paragon and Madison Place. Sales partner Brad Morgan says a few units remain for sale at the Paragon, and Madison Place is filling up quickly.

pool so less maintenance, a golf course, or common use land for walks. Certainly, shared, fixed costs (levy) can be easier to manage. For commuters working elsewhere, it is comforting to know that in a sectional title the family is more secure.

GETTING IT BACK From an investment perspective, Beaumont, its flagship Claremont development, has posted up to 50% growth in purchase prices since first occupation; at the Paragon (building since late last year) the first phase of buyers has already experienced a 30% increase in purchase price. In Observatory, there is the added incentive of the urban development zone (UDZ) tax deduction allowance, says Morgan. David Sedgewick, MD of Horizon Capital Residential, confirms the appeal of a UDZ: “Our Observatory development, The Eden, consists of a large number of buy-to-let investors because development falls within the UDZ. This essentially allows investors a tax write-off of 55% of their purchase price spread over 11 years, which makes it a highly attractive investment.

THE PROS AND CONS “In terms of our City Bowl and Atlantic Seaboard apartment block developments — The Elm (Vredehoek) and The Solis (Sea Point) — most of the purchasers buy primarily to live, however, want the option and flexibility to do short-term lets for periods when they are out of town.” There are pros and cons to life in a sectional title development, but many are easily discovered at the outset, such as not allowing pets, close proximity of neighbours, or not allowing building alterations to your property because you only own a section. But young families might relish the security and instant friends for children, a communal swimming

BASIC LEGAL ELEMENTS OF ALL SECTIONAL TITLES “The concept of sectional title describes the separate ownership of units or sections within a complex or development,” says Stacey Bartlett, director at Phatshoane Henney Attorneys. “When you buy into a sectional title complex, you purchase a section or sections together with an undivided share of the common property, known as units. A sectional title unit can refer to anything from a mini subtype house, a semidetached house, a townhouse, a flat or apartment to a duet house. Ownership of sectional title property involves a number of elements, bearing in mind that the unit consists of a section plus an undivided share in the common property. “The first element is the section, exclusively owned by the owner. The second is the common property, owned by all the owners in undivided shares, meaning you become a joint owner of the common property of the sectional title scheme. The third possible element is the right to exclusively use certain parts of the common property, for example a garage, a garden or a storeroom. Even though the owner does not own the exclusive use area, he is the only person who has the right of use.”

PUTTING PRESSURE ON PRICES Four categories of buyers are competing for a piece of Cape Town’s City Bowl or Atlantic Seaboard:

1 Young professionals after proximity to work.

2 Retirees downscaling to a secure lockup-and-go.

Source: Horizon Capital Residential

3 Semigration: upcountry buyers wanting Cape investments

4 International buyers recognising the value offered relative to offshore locations


EXPLORE TENONQ IN 3D HTTP://WWW.BLOK.CO.ZA/ DEVELOPMENTS/APP

Contact us for more information on this ground breaking new development. Visit the Blok Showroom in Sea Point at 51 Regent Rd from Mon to Fri 8am-5pm and this Sat from 10am-1pm.


HOMEFRONT

FOCUS ON THE SOLIS

Sophisticated urban living Sea Point’s The Solis offers stylish living designed to maximise the best that Cape Town’s Atlantic Seaboard has to offer WORDS AND IMAGES: SUPPLIED

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ocated in upper Sea Point, Horizon Capital Residential’s latest premium quality development, The Solis, has been designed for a panoramic urban lifestyle in one of Cape Town’s favourite neighbourhoods. Nestled in the popular Main Drive, The Solis is close to everything that the Atlantic Seaboard has to offer, from public artworks on the Promenade to golf at the Metropolitan Golf Course and shopping at

the V&A Waterfront. The exclusive block features 11 beautifully designed apartments, including two rooftop penthouses, which have been designed for buyers with an eye for a quality residence. The Solis reflects the hallmarks of every Horizon Capital Residential development: sophisticated design, lock-up-and-go convenience and high quality fittings. Each apartment has airconditioning, Smeg kitchen

appliances, floor-to-ceiling glass and aluminium sliding doors, engineered stone counter tops and heated towel rails. Says John Witter, CEO of Horizon Capital: “The Solis has been consciously designed to make the most of the prime northwest orientation. The terraces were strategically positioned to maximise the natural light and the views of Sea Point, the Cape Town Stadium and the Atlantic Ocean beyond.”


HOMEFRONT

“The terraces were strategically positioned to maximise the natural light and the views of Sea Point, the Cape Town Stadium and the Atlantic Ocean beyond” John Witter, CEO, Horizon Capital

CREATIVE STYLE Generous covered terraces and sliding doors allow seamless indoor-outdoor living while the neutral palette provides a blank canvas that can be transformed to suit a buyer’s own creative style. The building also has environmentally friendly features and initiatives such as low-voltage LED lighting, recycling facilities and solar geysers, which aim to reduce operating costs for the end user. Juan Bernicchi of BBB Architects was the architect for The Solis. He says: “From a design perspective the site’s angled front boundary provided a challenge which we turned into an opportunity to create a striking angular façade. We

created generous terraces along the boundary to optimise the building’s orientation. We also cut the boundary wall back, widened the street verge with planting and introduced a welcoming entrance portico. We designed every apartment to ensure maximum functionality and easy, open-plan living.”

ROOFTOP VIEW The two rooftop penthouses offer 360° views. Each has its own private sky-deck and swimming pool, as well as timber flooring, builtin gas fireplaces, heated towel rails and integrated appliances. Horizon Capital, a boutique property firm, specialises in local

and offshore property investment, management and development. Established 11 years ago, Horizon Capital has become a leading expert in commercial property. Its recently constructed flagship commercial property, Ibis House, was the smallest four-star Green Star SA rated building in Africa, which pioneered the way for environmentally sustainable development, proving that green building can be financially feasible on a smaller scale. Says Horizon Capital Residential managing director David Sedgwick: “Horizon Capital Residential focuses on designing and developing high-quality residential buildings that

meet the practical needs of future owners. “The buildings represent a commitment to conscious living, where design is crafted with mindful intent to create spaces that suit the modern lifestyle.” The four-storey building offers lock-up-and-go convenience with secure parking, CCTV, electric fencing and access control to offer owners peace of mind. The Solis apartments are

priced from R2.695m for a one-bedroom and R4.895m for a two-bedroom. No transfer duty is payable. The Solis is set to break ground in January 2017, with completion set for early 2018.

GET IN TOUCH Call Horizon Capital on 021 425 8586 or visit thesolis.capetown


HOMEFRONT FINANCE

The challenge of affordability Understanding how affordability affects the consumer during the prebuying and property searching phase is half the battle between success and a declined loan WORDS: ANNE SCHAUFFER :: PHOTOS: ISTOCK

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ffordability remains the foremost consideration for anyone contemplating buying a home in SA. This was the key finding of Homeowner Insights report, a partnership between Absa bank and Columinate, a digital market research company. The focus of the research was the impact of affordability on consumer behaviour during the two initial stages of buying a home, namely the prebuying and property searching phases. During these phases, prospective buyers not only have to consider the sheer size of the transaction and the duration of the commitment, but also the associated risks and their ability to service the home loan consistently over a long period of time. Homeowner Insights found that 87% of respondents were confident of their ability to afford their newly approved home loan at the time of searching for a property. However, in Absa’s experience, only 38% of applicants are granted home loans following the bank’s assessment process.

to reassess their needs once they started identifying suburbs and viewing properties they liked, with 37% citing affordability as the main reason.

LOW CONFIDENCE

CREDIT APPROVAL Despite its importance, the concept of affordability is often poorly understood. Says Carel Grönum, managing executive of Absa Home Loans: “Since the introduction of the National Credit Act (NCA), banks and other lenders have had to sharpen their credit approval process to ensure affordability. The act requires an understanding of a customer’s income and adds a detailed analysis of other credit commitments and living expenses.” The biggest challenge with the affordability assessment does not lie with the assessment process, but rather with the customer’s interpretation and understanding of their

“Since the introduction of the National Credit Act, banks and other lenders have had to sharpen their credit approval process to ensure affordability” Carel Grönum, managing executive, Absa Home Loans

own personal financial situation, he says. “There are instances where customers purposefully fail to disclose all their financial commitments to the bank in order to secure a higher home loan.” Neglecting to disclose minor expenses such as a gym contract or television subscription could significantly change the affordability position of an applicant. Similarly, store card, cellphone contracts and other recurring commitments that may seem insignificant to the buyer, apply and often result

in the request for finance being turned down, says Grönum. “If a home loan is assessed and granted based on nondisclosed information, customers could soon find themselves in a challenging financial position. Where customers have intentionally withheld information relating to their income and expenses, they will struggle to find protection under the NCA.”

LOAN DECLINED While credit records and conduct of accounts play a key role when assessing home loan applications,

affordability accounts for 22% of customers’ home loan applications being declined. In cases where applicants have healthy credit records and good financial conduct, some simply cannot afford the monthly instalment based on the bank’s affordability assessment. A further 35% are credit declines. Clearly, there is much more to assessing affordability than is understood by many consumers. More than a third of Homeowner Insights respondents said they had

In ooba’s 2016 Q2 oobarometer, its most recent round-up of SA’s property landscape, company CEO Rhys Dyer comments on affordability: “Slowing economic growth, increasing unemployment, escalating inflationary pressure and higher interest rates continue to erode consumer affordability. Consumer confidence is at its lowest level in years. With property price growth below consumer price inflation, we expect zero to negative property price growth in real terms for a while to come.” Consumer affordability pressure is confirmed by lower bond approval rates, down by 4.5% year on year from the second quarter of 2015. Lower approval rates indicate increased housing and mortgage finance affordability pressure on home buyers, along with the escalating costs of lending, he says. “The year-on-year increase of 16 basis points in the average interest rate in Q2 of 2016 illustrates the increased cost of credit. “Providing a sizeable deposit can make the banks look more favourably at a buyer’s home loan application because it reduces the risk to the bank. Banks are also more likely to be negotiable on the interest rate, because they are taking a lower risk with a deposit.” SOURCES: Homeowner Insights — Absa and Columinate Q2 oobarometer 2016 — ooba


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HOMEFRONT

COMMERCIAL INVESTMENT

Why commercial property makes sense Whether investing in retail, warehouses or offices, what do the bigger players watch out for, and what level of capital is required? WORDS: NICOLA JENVEY :: PHOTOS: SUPPLIED

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GETTING STARTED As with any investment, taking the plunge should only come after significant legwork and Stavros Anthias suggests potential investors do their homework before writing out that first cheque. Read the newspaper advertisements in the commercial property section to establish the going rates for various neighbourhoods. Watch out for auctions and attend as an observer to increase your knowledge of the market. Remember that as with any property acquisition, the key is position, position, position. Seek out an experienced property broker who can help with available properties and potentially negotiate the deal.

property poses a different opportunity for the adventurous spirit seeking a higherrisk return investment to the buy-to-let residential scenario, but the balancing act can be trickier. Commercial properties are any buildings used for business purposes, including retail space, shopping centres, office parks and industrial properties, with attractive investments for individuals or syndicates being commercial offices, small shops, and light industrial factories and warehouses. Storage facilities, given

the lack of these operations, are also gaining traction for investment purposes.

MONEY, MONEY, MONEY Smith Tabata Buchanan Boyes partner Stavros Anthias says commercial property is viable but has its hurdles, with finance the most significant. Commercial bonds are not easily secured and have a 10-year repayment period compared to 20 years for residential bonds. Banks also only lend 70% of the purchase price, forcing investors into a 30% minimum deposit — and Anthias warns anyone committing to these investments must have an

“Investors wanting exposure to commercial and industrial property markets are buying shares in the companies holding the bricksand-mortar investments” Stavros Anthias, partner, Smith Tabata Buchanan Boyes

agreement safeguarding their deposit if they cannot secure the bond. “While it is standard for residential property deposits to be refunded if the buyer cannot secure a bond, this does not apply to commercial acquisitions and investors risk forfeiting their deposits if they are not careful,” he says.

SYNDICATE OPTION Syndicates are a popular financial option in funding commercial property investment opportunities as the risk is spread across the members rather than a single individual. While the purchase price will dictate the syndicate size, Anthias

believes four or five people is ideal for a R5m property but less so for a R25m one. However, anyone wanting to walk into their local shopping centre and touch bricks proudly boasting they own that piece of the building will undoubtedly be hindered by the capital entry levels. Consequently, Anthias says it is more logical to invest directly in the listed property development companies or in the entities that have acquired stakes in unlisted property developers. “Investors wanting exposure to commercial and industrial property markets are buying


HOMEFRONT shares in the companies holding the bricks-andmortar investments. The indirect benefit is knowing the growth in property development provides subcontracting opportunities for emerging and smaller companies,” he says.

INVESTING IN OFFICES What do some of the bigger commercial property companies look for as investments? Abland MD Jurgens Prinsloo says the property development company strives to create sustainable developments, meeting its clients’ requirements both as investors and occupiers, and thus seeks out new growth opportunities for sustainable longterm value creation via

“Anyone wanting to walk into their local shopping centre and touch bricks proudly boasting they own that piece of the building will undoubtedly be hindered by the capital entry levels”

modern commercial office, industry and retail property development. Last year, the company announced it would build a 35,000m 2 A-grade office park in Parktown, Johannesburg — the first new such development in the node in the past decade — for R700m, a price that would be unrealistic as an individual’s investment. The company planned completion of the first of the four buildings in the Hill on Empire by June this year with a gross 6,800m 2 subdivisional lettable area. The whole development should come to the market by 2019. When the project was announced, Abland development manager Donald Majola said the company had identified

a market gap and was delivering a competitive product in an excellent location. Hill on Empire would be comparable to the A-grade office space associated with Sandton and Rosebank, but have more affordable occupancy costs and easy public and private transport access.

DIVING INTO RETAIL In May, RMB Holdings (RMH) announced it was diversifying its banking interests into commercial property by acquiring a 25,01% stake in Mall of Africa developer Atterbury. RMH CEO Herman Bosman said the move was the first step in creating a multibillion-rand property portfolio. The company intends gaining exposure to about R15bn worth of property in the next few years and may possibly list a separate property fund in the future as RMH plugs the two areas — asset management property developing and investing — in which management believes it was lacking.

AIMING FOR A-GRADE Growthpoint CEO Norbert Sasse says the group invests in properties in prime locations that can enhance its top-quality portfolio. That means acquiring investments worth R100m

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and higher and housing blue-chip tenants. Currently more than 75% of the company’s portfolio is A-grade or higher and includes 58 properties worth R28.2bn. “We continually upgrade and redevelop our properties to ensure they continue performing as an essential part of our quality asset base, are efficient and environmentally responsible, and remain suitable for our clients’ requirements,” he says.

GLOBAL PORTFOLIO Redefine Properties CEO Andrew Konig says the group’s diversified local property portfolio for the year ended February 2016 was valued at R54.3bn and the international real estate investments another R13.5bn. This portion of the total property assets provides Redefine with geographical diversification into the UK, Germany and Australia. Says Anthias: “The bottom line is, as with any property investment, position is the key and understanding the pitfalls — whether you are investing directly or leaving the investment choices to professionals — is essential to capital and wealth growth.”

MOWBRAY | R11 500 000 PRIME COMMERCIAL OFFICE SPACE Offices 12 Parking Bay 10 WEB 402290 5th floor of Perbro House (where the Rondebosch Medical Centre is located opp Children Red Cross Hospital. Total sqm is 483sqm. Includes 10 parking bays. Separate entrance from parking area. Currently has reception/lobby, 12 offices, a staff room, kitchen and male and female toilets. The complex is well situated to offer easy access to the N1 and the N2 highways. It is 13 km to the CBD and easy access to the airport. [O] 021 683 0731 CRAIG ALGIE 082 412 6683 | GEORGE CLELLAND 072 070 2576

BELVEDERE SQUARE 021 683 0731


Tranquillity, lifestyle and exclusive security estate homes a big drawcard for Constantia Upper The Constantia Upper area is now synonymous with an exclusive and almost unparalleled country lifestyle, yet with all the benefits of a big metro on your doorstep. Here, you are surrounded by leafy old oak trees, the magnificent Constantiaberg and some of the oldest and most exclusive vineyards. You can also enjoy hiking, cycling and horse riding and wonderful vineyard, mountain and landscape vistas, often as far as the False Bay coastline. You also have access to shopping centres, private schools, worldclass restaurants and other facilities nearby, yet you are 15 minutes from major business centres and the Cape Town International Airport, which offers direct flights to many destinations. INVESTMENT POTENTIAL Constantia properties are an excellent investment, with superb capital value growth and retention. The suburb consistently features in the top 10 most sought-after areas in the country, often ahead of swanky Sandton suburbs. Aside from a wide selection of luxury homes, there are highly sought-after security estates in the Constantia Upper area. This includes the exclusive Broughton Place in the soughtafter avenues of Constantia Upper.

The gated estate boasts eight exclusive Georgian-styled homes. One of these, Somerton House, which offers more than 700m2 of floor space on a 1,472m2 plot with an irrigated garden, borehole and swimming pool, is currently on the market for R24.9m. As you enter the home, you are struck by the fabulous views visible from the double volume entrance hall. The vast living area includes two lounges (one with a fireplace that also heats the upper level), a study, dining room and airconditioned family room with a coffee station. The large kitchen is equipped with many extras, including high-tech German

Miele and Siemens appliances, designer cooking facilities, fridges, a wine fridge and a separate scullery/laundry area. The living areas lead to an outdoor lounge with a fireplace/ grill. Wooden stack-back doors open to a wooden terrace, pool and garden. There are four spacious bedroom suites — three on the upper level and a guest suite on the lower level. The Hollywood-styled airconditioned master suite boasts a pyjama lounge, walkin dressing room and indulgent stone-floored bathroom with a window seat to enjoy the

fabulous mountain views, a double walk-in shower, marbletopped double vanities and a laundry cupboard with a chute to the downstairs laundry. MOUNTAIN VIEWS There are plenty of added extras and bespoke finishes such as rustic brick feature walls, engineered oak floors, designer chandeliers and lighting, a feature staircase that opens to a covered terrace with fabulous mountain views at the top, double volume sash windows with shutters and wooden stack-back doors finished in French grey, solar heating, a three-car garage and sophisticated security. Also in the area is the exclusive Silverhurst Estate, yet another highly sought-after estate. The 27ha estate comprises approximately 77 luxury freehold properties, a 24-hour guarded entrance and security cameras linked to a central system. There are park-like gardens with a meandering stream, ponds and paths where children can roam freely in a secure environment, tennis courts with an elevated pavilion with cloakrooms, a kitchenette and wooden deck with mountain views. The original 350-year old historic home with its slave bell is an added attraction.

Contact the Seeff Constantia Upper team: Priscilla Young on 082 324 3793, Marie Durr on 083 269 8608, Janine Stevenson on 073 168 4749 and Liza Snijman on 082 805 7005 / 021 794 5252 or visit www.seeff.com, web refs 404963 and 401633.

PET FRIENDLY The pet friendly estate is also home to bird life and small roaming wildlife such as goslings, ducklings, guinea fowl and francolins, offering an enviable, luxurious country lifestyle. On offer in the estate is a gorgeous family home that offers over 400m2 in floor space on a 1,535m2 plot with a leafy garden with old oak trees, a borehole, natural well and pond, an abundance of bird life, a double garage and excellent security. Priced at R24m, the double storey homestead offers lovely sash windows with shutters, a double volume entrance hall, two lounges, a formal dining room with a fireplace, a study/studio, wine cellar with a prep basin, an informal dining room with skylights and a wood-burning fireplace that is open-plan to the spacious Provençal countrystyled kitchen. There is also a loft room with an open-rafter ceiling. The living areas open to a veranda and the garden. There are four bedrooms, two on the upper level and two on the lower level, including the luxurious master suite, which comes with a spacious bathroom with double vanities, a shower and bath, as well as heated towel rails.


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Constantia security developments: also known as gated communities and lifestyle estates As a preferred living environment, security estates continue to rise in prominence. Buyers are investing into security estate lifestyles that provide peace of mind and excellent management, all within an exclusive living environment. Security for our families and loved ones is always paramount. The upmarket Cape Town security estates typically offer fenced perimeters with gated access and stringent access controls.

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This is backed up with a range of security measures that could include electric fencing, surveillance cameras and infrared beams. Most security estates will also have the benefit of 24/7 security guards, including armed response service/guards. Such state-of-the-art security ensures peace of mind for residents and allows for safe and secure open-door living with the following obvious lifestyle estate benefits: Joggers and walkers alike enjoy the freedom they have without the fear of being hit by speeding vehicles Children play in the open areas enjoying the friends they have made on the estate Many estates benefit from exceptional views and superb locations that offer a tranquil

for the discerning property buyer who looks for luxury, comfort, beauty, tranquillity and security. Properties in Silverhurst Estate are extremely rare and when they do come on to the market they are purchased within a relatively short period of listing.

manual to ensure that the estate maintains its character and that the properties are not over bulked. The estate has rolling lawns, manicured private gardens, a lake and mountain view walks, two tennis courts and a club house.

LUXURY LIVING IN THE AVENUES

Cape Town benefits from the following estates:

Silverhurst Estate is situated in one of the most exclusive pockets of Upper Constantia and achieved a record sale price of R38m in 2008.

1. The exclusive Silverhurst Estate – approx. 77 homes. Arguably Upper Constantia’s premier security estate and very much still the sought-after choice

The homes in Silverhurst Estate are architecturally designed for comfortable and gracious living with well-proportioned gardens with a Homeowners Design

2. Broughton Place. Such has been the demand for estate living in Constantia in recent years that a number of newly built mini-estates have been built by bespoke property developers and individuals, such as Broughton Place, which comprises eight classical Georgian double storey homes within a gated estate.

The Avenues is considered to be one of the most desirable areas within the exclusive suburb of Constantia.

environment in which to live Architectural guidelines are generally in place, allowing for individuality but ensuring minimum standards throughout the estate Amenities are often located within close proximity to the estate environment

These developments not only provide an exclusive and safe lifestyle, but also excellent returns on investment. Rental in excess of R50,000 per month can be achieved in these estates.


CONSTANTIA UPPER | R16 900 000 HISTORIC KLAASENBOSCH WINERY DATING BACK TO 1790 Bedrooms 4 Bathrooms 3 Garages 2 WEB 0000000 Evocative home wonderfully restored by a well known Cape architect with spacious 4 bedroomed accommodation and separate 2 bedroomed guest cottage, all planned around an inner courtyard with pool and delightful veranda’s. The pristine reception rooms (ballroom size) are stunning in their simplicity against the magnificent mountain backdrop. Plus – Farm style outside staircase to massive loft room. MARIE DURR 083 269 8608 | JANINE 073 168 4749 | LIZA 082 805 7005 | PRISCILLA 082 324 3793

CONSTANTIA UPPER | R24 500 000 CHARM AND HERITAGE. SPECTACULAR SETTING EMBRACING MOUNTAIN VIEWS Bedrooms 5 Bathrooms 5 Garages 5 Flatlet WEB 37466 You’ll build memories here! This gracious Cape Dutch is set in a private ±7000sqm lush borehole watered garden. This magnificent homestead offers lavish accommodation and reception areas on 3 levels boasting unique and special features such as double wood framed doors, double volume ceilings, imported tiled flooring and a large open plan entertainment room. PRISCILLA 082 324 3793 | LIZA 082 805 7005 | JANINE 073 168 4749 | MARIE DURR 083 269 8608

CONSTANTIA UPPER | R22 000 000

CONSTANTIA UPPER | R8 500 000

LUXURIOUS HOMESTEAD

UNIQUE THATCH!

Bedrooms 8 Bathrooms 8 Garages 3 WEB 346305 Magnificent 1400sqm Baronial Thatch in excellent location boasting exceptional accommodation is set in a large terraced garden with pool, tennis court and a stunning self catering ‘clubhouse’ with copious parking for visitors. PRISCILLA 082 324 3793 | JANINE 073 168 4749 | LIZA 082 805 7005 | MARIE 083 269 8608

Bedrooms 2 Bathrooms 3 Garages 4 WEB 397203 This picturesque home imbued with a sense of relaxation & peace is accented by wonderful touches offers easy flow to a broad covered verandah overlooking garden. This treasure offers the potential to expand. PRISCILLA 082 324 3793 | JANINE 073 168 4749 | LIZA 082 805 7005 | MARIE 083 269 8608

CONSTANTIA 021 794 5252


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LUXURY RESIDENCES WITH DIRECT OCEAN ACCESS FROM $592 000 * Prices are fixed in MUR and include all taxes and administrative fees.

Located only 10-minutes from the hub of Grand-Baie, St. Antoine Private Residence is a development ideally suited to the market’s demand for location, Mauritian residency, resort-style facilities and direct ocean access. Offering a rental management solution, which is further enhanced by an abundance of water based activities and secluded islands on its doorstep, St. Antoine Private Residence provides a level of ocean engagement that is unsurpassed on the island.

087 195 1047

BENEFITS

OF MAURITIUS

PROPERTY INVESTMENT

www.stantoinemauritius.com

• Mauritian Residency • Maximum 15% Income & Corporation Tax • No Capital Gains Tax & no Inheritance Tax • No exchange controls • Tax free dividends

• US$ based capital appreciation & rental income • Low mortgage rates • International schools & universities • Safe and secure lifestyle

087 195 1047 www.stantoinemauritius.com DEVELOPED BY:


HOMEFRONT INTERNATIONAL

Mauritius: knowledge hub There are numerous questions to ask if you are considering investing in Mauritius; a critical lure for families is the good state of education WORDS: ANNE SCHAUFFER :: PHOTOS: KESHAWVE JEEWON, ISTOCK BY GETTY IMAGES, SUPPLIED

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n 2012, Mauritius opened its doors to qualifying foreigners who want to invest in residential property and live in the country, too. By ring-fencing specific Integrated Resort Scheme (now known as Property Development Scheme or PDS) developments for foreign investment, a $500,000 real estate purchase gives the buyer and his or her immediate family Mauritian permanent residency. The move provided the economic injection Mauritius sought, and a highly attractive lifestyle for those wanting a stable, secure, beautiful country to call their own.

African Leadership College

For South Africans, Mauritius is a mere fourhour flight away, ideal for those who commute to their South African business interests. The country also has low inflation, tax rates, crime and unemployment, a stable political environment, free exchange controls and a low level of government regulation in the business sector. In short, it has almost everything SA does not.

EDUCATION OPTIONS Since Mauritian independence from the UK in 1968, the country has undergone a significant transformation as the economy has evolved from a low-income agricultural


HOMEFRONT to a middle-income country based on tourism, textiles, sugar and financial services. Today, that economy has diversified to include a wide range of sectors, including property development, education and training. With the political will, it looks set to continue the upward trajectory. Mauritius is consistently rated the best-run country in the Indian Ocean region, ranked first in Africa in the World Bank’s 2016 Doing Business Report and 32 on the global list. There has been a focused, collaborative and highly successful drive by the government to raise the bar on Mauritius. The accompanying economic growth has affected all sectors, education being a priority. It is not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education, the Tertiary Education Commission (TEC), is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to “position Mauritius in the region as a worldclass knowledge hub and the gateway for postsecondary education”. Over the past decade, Knight Frank’s The Wealth Report has provided a unique perspective on the interaction between wealth and the world’s prime property markets. A 2015 prediction pointed to the rise of education as a driver for global property investment. Its survey results have been borne out by the facts. For example, 42% of Chinese ultra-high-net-worth individuals were planning to send their children overseas for secondary education.

MAURITIUS V SA Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years. “Compared to the previous five years, the change in the past five or six has been exponential, particularly with regard to secondary school and tertiary education,” he says. In his early days there, South African expatriates with the means sent their children back to boarding school in SA. He believes perceptions have changed drastically and there is a strong sense that the secondary education offered

MAURITIUS GROWTH PATH The first Integrated Resort Scheme, which launched in 2006, gave foreigners the opportunity to buy property in Mauritius. Over a 10-year period, there has been capital growth of more than 300%. The number of US dollar millionaires living in Mauritius has increased by 340% since 2000 to reach 3,200 in 2015. Source: Pam Golding Property Group/ New World Wealth

“A 2015 prediction pointed to the rise of education as a driver for global property investment”

Middlesex University Mauritius’ new campus in Medine Smart City

in Mauritius is superior to that in SA. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are “cruising into any universities they choose, in the country they choose”, Geldenhuys says.

WHAT IS ON OFFER The current, somewhat fluid, South African political environment and its effect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. Says Geldenhuys: “It’s far more expensive to send children to study in the UK and Australia than SA, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon.” In Mauritius, school education, from primary to senior, is either public or private, English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE — A and O levels — and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north and Lycée des Mascareignes in the centre,

Middlesex University Mauritius


HOMEFRONT as well as Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures do not bear this out. The UK topped the list with 2,515 students (24.8%), followed by Australia 1,879 (18.5%), France/La Réunion 1,756 (17.3%), India 1,308 (12.9%) and China 1,108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. “It’s become part of the investment paradigm. Buyers may have children of [school-going] age — and when they sell, the [next] buyer could be someone with school- or universityage children,” he says.

SCHOOL DESTINATION The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), SA (10%) and France (6%). The Passport and Immigration Office details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2,900 in 2015. Tertiary education in Mauritius is not considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www. investmauritius.com/ investment-opportunities/ smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village

ACQUIRING RESIDENCY The Property Development Scheme (PDS) provides the unique opportunity for nonresidents in Mauritius to acquire freehold residential property at a minimum price of $500,000. This entitles the buyer and his or her immediate family to a residence permit. The PDS replaced the Integrated Resort Scheme and Real Estate Scheme from 2014. This scheme allows for the development of a mix of residences for sale to citizens, noncitizens and members of the Mauritian diaspora. www.investmauritius. com/schemes. Mauritius Sotheby’s International Realty recently launched Bagatelle Les Residences Belle Rive is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, it constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in Cascavelles, comprising an academic zone, student accommodation facilities and sports and leisure amenities. International institutions such as ESSEC Business School, ESCP Europe, SUPINFO and Université Sorbonne Assas are already delivering their programmes in the Talents amphitheatre. Furthermore, the Medine

Group is currently focusing on the development of the Medine Smart City project that will span 202ha. This project will include commercial facilities, business parks, a medical hub, sports hub, education (preprimary, primary, secondary and tertiary), student housing and residential facilities.

UK LINKS

“A number of international brands are establishing satellite campuses or a footprint in Mauritius”

Middlesex University Mauritius is an integral part of Britain’s Middlesex University, subject to the same rigorous quality assurance procedures and standards and which recently earned the highest

possible endorsement from the UK’s Quality Assurance Agency for Higher Education. In 2010, Middlesex opened in Mauritius (its second international campus). Some six years later, a joint venture between Middlesex and the Medine Group resulted in the construction of a state-of-the-art campus within Medine Smart City, due to be completed by September 2017. The new campus master plan is envisaged to benefit residents and students, aligned with the country’s Smart City philosophy. “We are creating the island’s first integrated and international campus on the west coast of Mauritius, which will be within a city in the making,” says Thierry Sauzier, deputy CEO of Medine Group.

WELSH PARTNERSHIP

St Antoine Private Residence luxury apartments and penthouses near Grande Baie

The UK’s Aberystwyth University recently set up a branch campus in Mauritius on 47,055m 2 of land in Quartier-Militaire. The campus will comprise various academic blocks, science and architecture laboratories, a gymnasium, an auditorium, an administrative block, accommodation facilities and various sports facilities. Phase one of the three-part project has been completed and can accommodate up to 500 students. The institution is already operational and delivers undergraduate and postgraduate courses awarded by Aberystwyth University in Wales. African Leadership College has set up a private tertiary educational institution in Beau-Plan Business Park along with Glasgow Caledonian University to offer undergraduate programmes to students. The institution has already attracted 180

international students from more than 30 African countries. In collaboration with Terra Group, the college is planning to construct a residential campus on 50ha of land in Pamplemousses.

BUILDING CAMPUSES Student accommodation in Mauritius is plentiful, either on campus or, in the case of Student Life Residences — developed by the Medine Group in September last year — customised student accommodation. Says the BOI: “The government of Mauritius is presently developing three university campuses (Reduit, Pamplemousses and Montagne-Blanche), which will accommodate polytechnic institutes in different fields such as information and communications technology, hotel management, tourism and healthcare services. This project is in line with the government’s vision to transform Mauritius into a knowledge hub by expanding access to quality higher education through the creation of state-ofthe-art infrastructure across the country.” Construction of these three university campuses is nearly complete. Mauritius as a knowledge hub is fast gaining traction. Students of the international-brand universities are acquiring a world-class education at less than it would cost if they attended the same university in its place of origin. And the opportunities for student exchange are not pipe dreams. They are happening — and that opportunity for travel and global interaction is a drawcard.


LONDON SQUARE STAINES UPON THAMES, TW18 4BY London-style studios, 1, 2 and 3 bedroom apartments from £340,000

LONDON PROPERT Y MARK ET UPDATE Join us for a London residential market update and exclusive access to a selection of some of London’s finest new residential developments. Developments include London Square Staines upon Thames, The Star and Garter in Richmond and

Smuts & Taylor are delighted to invite you to join us for a London Property Seminar at: The Oyster Box, Durban Wednesday 09 Nov 2016

Protea Hotel Balalaika, Johannesburg Friday 11 Nov 2016

Table Bay Hotel, Cape Town Wednesday 16 Nov 2016

London Square Streatham Hill. A panel of London property experts will provide an up-to-date market overview, including some of the most important factors influencing London’s housing market post Brexit, talk you through the buying process and key factors surrounding legal, tax and finance. Our expert panel will then be on hand to answer your questions. Meet the London property experts, have your questions answered and get the guidance you may need. Attendance is strictly by RSVP.

RSVP: info@smutsandtaylor.com +27 (0) 11 083 6366

+27 (0) 11 083 6366

THE STAR AND GARTER, RICHMOND HILL, TW10 6RR Exceptional two bedroom apartments from £1,750,000

www.londonsquare.co.uk

Whilst care has been exercised in the preparation of these particulars, Smuts & Taylor and the respective developer/landlord does not guarantee the completeness or veracity of the information contained herein. These particulars are also subject to change or to further conditions imposed by the developer/landlord and may be withdrawn without notice. Smuts & Taylor shall not be held responsible for any negligence, consequential loss or damage arising from the use of this information. No information contained herein is meant to form part of an offer or contract. Details and prices are correct at time of going to press October 2016. Computer generated images depict London Square Staines upon Thames and The Star and Garter and are indicative only.


Priced from R1.85 million. No Transfer Duty. One-on-Whiteley, the new residential phase of Melrose Arch, is the ultimate in luxury cosmopolitan living. When you invest in an apartment at One-on-Whiteley, you are investing in a secure, convenient and vibrant lifestyle. One-on-Whiteley provides an amazing opportunity to be part of the success and attraction that this unique new urban quarter offers. By owning an apartment in One-on-Whiteley, you open the door to 21st century living. On Show at the Pam Golding Office - No. 5 The High Street, Melrose Arch.

To be part of the ultimate in luxury cosmopolitan living, please contact: Victoria Russell 074 683 1222 • victoria.russell@pamgolding.co.za Peet Strauss 083 675 1212• pstrauss@pamgolding.co.za Tersia Taljaard 063 695 7571 • tersiat@amdec.co.za Office: 011 684 2995/6 • pamgolding.co.za/melrose-arch


HOMEFRONT

Marriott International and Amdec sign hotel deal

M

arriott International

has partnered with SA’s Amdec Group in a R3bn investment in five branded hotels, catering for different market segments for international and domestic visitors. Of this, R1bn is earmarked for the Johannesburg developments: Marriott Hotel Melrose Arch and Marriott Executive Apartments, expected to open in mid-August 2018. There will be three hotels in Cape Town: the first Marriott Hotel in the city; the first upscale extended stay brand in SA, Residence Inn by Marriott; and AC Hotels by Marriott, the first hotel under this brand for the Middle East and Africa region, aimed largely at the middle class market. First to open, in June 2018, will be the 189-room modern, design-led AC Hotel Cape Town Waterfront

PROPERTY NEWS

at The Yacht Club, a mixeduse landmark by Amdec that includes residential flats and prime grade offices in the Roggebaai Canal tourism precinct. Amdec’s mixed-use development, Harbour Arch — modelled on the award-winning Melrose Arch in Johannesburg — will be constructed in the bourgeoning Culemborg node. It will house the 200room Cape Town Marriott Hotel Foreshore as well as the 150-room Residence

Inn by Marriott Cape Town Foreshore. Harbour Arch, set to dominate the city’s skyline and act as the new gateway to the city centre, is expected to open in 2019. Marriott has been aggressively extending its footprint across Africa, opening its first branded hotel in Rwanda this month and announcing a series of expansion plans, propelled by the continent’s growing middle class, which is expected to drive tourism and business travel.

AC Hotel, Cape Town Waterfront

SA’s age hot spots A map of SA shows certain areas that are particularly popular with distinct age groups. Here are some of them WORDS: BRIDGET MCNULTY :: PHOTOS: ISTOCK

W

hile there is no rule saying that once you reach a certain age it is time to move house, different lifestyle phases — young professional, family, retirement — often necessitate a move. Here is where many South Africans are moving.

RETIREE ZONE According to Private Property, the most popular areas for retirees are the South Coast, Howick, the Winelands and Alberton. The KwaZulu-Natal South Coast around Scottburgh is favoured for its laid-back coastal lifestyle, which offers more affordable property prices than the coast around Durban Central and the North Coast. Howick, also in KwaZulu-Natal, has gained a reputation as “God’s waiting room” because of the high number of retirees — and retirement villages and facilities — in the area. In the Western Cape, the Winelands are perennially popular because of the relaxed lifestyle and beautiful scenery, with Somerset West also a focus for retirement villages. In Gauteng, areas such as Alberton and Moot are most popular with older

buyers, because of the range of appropriate facilities, the lifestyle options and, of course, the reasonably priced property.

FAMILY FRIENDLY Private Property’s data show that many families are gravitating towards lifestyle estates because of the facilities on offer, the high level of security and good returns on property investments. As a result, areas that have a high number of this type of property and are close to good schools are extremely popular. Areas such as the KwaZulu-Natal North Coast, Silver Lakes and Centurion are in demand. In the Cape, the southern suburbs are a perennial favourite with families because of the village-like atmosphere and excellent schools — but prices can be prohibitive. Many families are therefore looking at property in the Tableview and Blouberg areas.

LIFESTYLE FOCUS When it comes to the property buying habits of young professionals, they tend to gravitate towards the work, live, play lifestyle.

“And then there are areas that defy classification and appeal to buyers of every age” They want to live close to where they work and go out, so the most popular spots for this demographic are Umhlanga in KwaZuluNatal, Sandton and Rosebank in Johannesburg, and Cape Town’s City Bowl. And then there are areas that defy classification and appeal to buyers of every age. Areas that have a wide selection of property at different price levels and a range of amenities offer appeal across the board. An example of this is the property on Durban’s Berea, which ranges from starter flats for about R600,000 to luxury homes for up to R20m. The area also has a large number of excellent schools, entertainment and sporting options, and a convenient location, so it really offers something for everyone.

Marriott Hotel Melrose Arch, Johannesburg

App opens up rental market

T

wo Capetonian

entrepreneurs have launched the HouseME bidding and tenant screening app for SA’s home rental market. Its founders claim landlords can achieve greater return on investment on their properties through the online auction platform and access a database in which registered tenants are rated on their conduct. Since its launch in Cape Town and Stellenbosch in the first week of September, HouseMe founders Ben Shaw and Kyle Bradley claim it has served 30 new landlords a week, with a 100% success rate in securing rentals. They say landlords have achieved a 15.5% upside by listing their properties on the auction platform for five days or more, on average. The mobile application and web portal offers an online auction mechanism

where landlords receive bids on their rental properties from prospective tenants. At present, the market is locked by a process where landlords advertise their properties for a set rental, and often accept the first tenants to put a deposit down, says Shaw. “It’s clear that both landlords and tenants will benefit from a transparent bidding mechanism, particularly where a property is in high demand, and a fair price unknown.” Landlords are often anxious about the quality of tenants, and the condition their property will remain in. Users registered on HouseMe can establish reputations as solid, trustworthy and responsible tenants. Bradley says this is also an opportunity for landlords to cut their expenditure on high letting agency fees, because tenant suitability has already been

verified, and they can be confident that maintenance issues will be reported timeously via the app’s dashboard. Shaw says tenants are not always able to view properties before they arrive and that is why HouseMe claims to “verify every property listed and provide up-to-date photographs on the app”.


WE BUILD LUXURIOUS HOMES

IN THE SKY

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