HOMEFRONT 13JANUARY OCTOBER2017 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 27
MUST READ
A taste of France in Stellenbosch PAGE 2
Smart property investments PAGE 4
Insurance for the rental market PAGE 14
A show flat at soon-to-be-launched Hallmark House
Maboneng shows the way The impact of suburb on sales PAGE 14
The vibrant precinct in Johannesburg’s industrial inner city is a blueprint for urban reclamation and is bringing people, art and business to a space once viewed as a no-go zone
PAGE 8
HOMEFRONT LIFESTYLE
French flair in the bosch From traditional France to modern architecture in Stellenbosch, a Bordeaux family has added glass art, wine tasting and a bistro to their property WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
Bordelais Arthur de Lencquesaing on the refashioned Glenelly Estate in Stellenbosch Our family has been investing in wine property since 1783. My great-grandfather then returned from World War One at a young age. He and his brother bought a few Bordeaux properties in France, including a part of Second Growth Château Pichon Longueville Comtesse de Lalande, Third Growth Château Palmer and Cru Borgeois Château Siran.
My grandmother, MayEliane de Lencquesaing, inherited a majority share in Pichon in 1978 at the age of 53. It was tough. The farm was struggling to pay wages. Then we had a fantastic Bordeaux 1982 wine vintage. American critic Robert Parker rated the wine 100 points. The international wine market opened and my grandmother became a
big part of that, travelling around the world.
In 2003, my grandmother founded Glenelly Estate in Stellenbosch. In 1998, she took seven of her grandchildren to SA (including me). She introduced us to many South African people involved in wine. In 2007, Château Pichon was sold to Roederer Champagne and she devoted her time to the development of Glenelly. She is now 91, living in a house in Bordeaux and still very involved.
Glenelly is sort of my second job. I’m in charge of marketing and business development, while my cousin, Nicolas Bureau, is sales director. I work for a French fine wine online auction house in London, in charge of Europe, the
“They are made in a small village near Paris at Maison Drucker. They are traditional Parisian bistro chairs and the only ones worth having” Arthur de Lencquesaing, Glenelly Estate
HOMEFRONT Décor specs Top floor: Wine tasting area. The new private and public tasting area is separated only by glass, with abundant natural light and panoramas of the Simonsberg’s lower slopes. Handblown glass light pendants are suspended from ceilings inside this modern hillside winery. The Glass Collection wine range includes approachable, delicious Syrah, Cabernet Franc and Cabernet Sauvignon wines. The Glenelly Estate Reserve Chardonnay and respective red blend are a worthy step up, while the Lady May red blend is a beautiful wine to set aside for a few years.
Ground level: The Vine Bistro. An uncluttered ground-level space opens outdoors to vineyard views, with water features and a pétanque court. Some walls have white metro tiles above leather banquettes; one is painted ruby red. There are filament lamps, bare wooden tables and brass details. Chef Dehosse offers a flexible singlepage menu. “They wanted a fairly classic approach. There’s a strong sense of a traditional French family,” he says. “I cook
Basement level: The Glass Museum. Cabinets show off Madame de Lencquesaing’s extensive international selection of vases, vessels, bottles and glass art. Spanning 2,000 years, her personal artefact collection includes early Roman flasks, Prussian goblets, German painted enamel flasks and Chinese snuff bottles, Italian Murano pieces and exquisite French opaline glass in vivid colours.
“They wanted a fairly classic approach. There’s a strong sense of a traditional French family”
US and Asia. A year ago my grandmother called me and said: “I’m 90 years old. I’ve let you learn and learn. Now it’s time to share.” So I joined her part time. I come to SA about three or four times a year.
My grandmother liked Glenelly because it was a blank canvas.
Creating The Vine Bistro was a big project. We hired PRODUCED BY TIMES MEDIA PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130
Arthur de Lencquesaing
Christophe Dehosse, The Vine Bistro
Previously it was a fruit farm, so she could create quality wine from scratch. She briefed winemaker Luke O’Cuinneagain to create wines made to age, showing power, elegance and balance. She built a very modern gravity-flow cellar, which she could not have done in Bordeaux, with all its wine traditions and restrictions. When we built the wine tasting room upstairs we created the bar counter from the farm’s Cape granite stones. We excavated them when we built the cellar.
InHouse Brand Architects.
what I’m comfortable with and what I like to eat. There is nothing here just to look pretty.” A casual atmosphere attracts numerous Winelands locals as repeat guests. Starters include tuna tartare with crisp vegetable salad or chilled red pepper soup livened by chorizo and octopus. Mains range from classic fillet, béarnaise and pommes frites, to a hearty West Coast mussels and fish bouillabaisse reduction with haricot beans. Pork cheeks braised in herbs and red wine tastes comforting. Dehosse gives the traditional chewy Bordeaux canelé bake a twist, serving it with rooibos ice-cream and caramelised pineapple.
We started in summer 2015 and opened in November 2016. We spoke about the importance of food and wine pairing; we wanted a place to taste the wines properly and also to bring in a bit of France in the food – chef Christophe Dehosse was the ideal choice. We wanted guests to look at the view from outside but have shade from pergolas. In the bistro you will find the Drucker chairs. They are made in a small village near Paris at Maison Drucker. They are traditional Parisian bistro chairs and the only ones worth having. A
EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Craig D’Oliveira
PUBLICATION ADVERTISING SALES
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Michèle Jones Susan Erwee
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HOMEFRONT SMART MONEY
Investing in industrial property Industrial property returns are fairly uncorrelated with those from other asset classes, such as bonds and equities, which helps reduce the volatility of a portfolio. But what are the pros and cons? WORDS: NEESA MOODLEY :: PHOTOS: ISTOCK
WAYS TO INVEST There are three possible routes to investing in industrial property:
1. Invest in JSE-listed property stocks via online stockbrokers Brokerages typically offer you a trading platform and access to online research and support. Online brokers usually offer you interactive training courses and guidance. Online broker platforms include: Sanlam iTrade sanlamitrade.co.za PSG Online psg-online.co.za FNB Securities, First National Bank’s stockbroking division fnbsecurities.co.za Standard Bank Stockbroking securities.standardbank.co.za Nedgroup Private Wealth Stockbrokers nedbankonlinetrading.co.za
2. Invest via individual stockbrokers Similar to having a private banker at your disposal, this service is available to high-end clients and you need a minimum investment portfolio of R1m. 3. A single direct investment Invest directly in industrial property via a specialist industrial property broker such as GDP Industrial Property gdpindustrialproperty.co.za
A
n industrial property itself represents a solid investment in that the yield of the property is higher than the prime lending rate, providing the investor with positive cash flow from day one, says Robert Shaff of Nexus Property Group corporate real estate services. Investing in the right industrial property, he says, is an ideal way to diversify an investment portfolio, while ensuring a relatively safe source of steady income. Says Shaff: “South African commercial property continues to present attractive investment opportunities to discerning investors, despite challenging economic conditions.” Evidence of this lies in the strong performance of the South African listed property industry, which rose nearly 9% over the first nine months of last year — close to double what equities achieved, he says.
POSITIVES Guy de la Porte, specialist industrial property broker at GDP Industrial Property, says industrial property is favoured by private property investors as it is relatively simple to manage. The average lease on an industrial property ranges between three and five years. Property managers will charge you from 2%-5% to manage your property, says De la Porte. “A disciplined approach to managing your asset
can ensure that industrial property is a relatively hassle-free investment. If you have good tenants with good housekeeping practices, often all that is needed when tenants change is to clean the carpets and give the warehouse or factory a coat of paint,” he says. Shaff says that because the returns on industrial property are largely dependent on the strength of the tenant and their ability to make timely and consistent payments, investors tend to prefer blue-chip tenants who are likely to take out a long lease and are unlikely to default on rent.
NEGATIVES The major risk involved with investment property has to do with securing a reliable tenant, Shaff says. “The return potential on industrial properties is high, but investors run the risk of being untenanted for extended periods of time or getting stuck with unreliable tenants. Conversely, properties with a more established tenant provide more reliable income; however, the yield is relatively lower as the risk is lower,” he says. De la Porte says the most common mistake industrial property owners make is not recovering expenses in terms of the lease. “A typical gross lease allows for the recovery of rates increases over and above the rates at the lease commencement. Often the rates increase is a small
“A disciplined approach to managing your asset can ensure that industrial property is a relatively hassle-free investment” Guy de la Porte, specialist industrial property broker, GDP Industrial Property
amount and the landlord does not want to be petty in recovering it. The problem is that it becomes difficult to recover increases later in the lease and while it may only be a small increase in the first year this amount is compounded over the lifetime of the lease. Trying to recover back payments does not bode well for good relationships with tenants.” Another expense recovery that often gets neglected relates to water use, which should ideally be metered separately from electricity use, according to De la Porte.
“Prepaid electricity meters are a good idea but are not always possible or practical for large power users,” he says. A third risk is the possibility of the property requiring unexpected costly upgrades. Shaff says that unless these have been factored into the purchase price, upgrades to a large commercial property can eat into return and may even run an investor into negative territory. “It is therefore essential that investors do their due diligence when looking at a potential investment property.”
WESTERN CAPE Atlantic Seaboard 021 439 7415 / Southern Suburbs 021 673 4200 / Southern Peninsula 021 782 6440
Clifton / R85 million
Ref# AS1294343
Bedrooms 5 / Bathrooms 5.5 / Garages 2 / Opulent colonial villa completed to the highest international standards. Grand entrance hall with chandeliers, bevelled glass windows and oak floors throughout. Entertainment lounges lead seamlessly to undercover patio. Superb chef’s kitchen. 3 Spacious bedroom suites upstairs with private lounges leading to balconies with magnificent views. 2 Separate guest suites plus housekeeper’s suite. Lap pool in small tropical garden. State-of-the-art security. Direct access double garage plus additional parking for 4 cars.. Annette Hepburn 082 658 1116
Bishopscourt / R25 million
Ref# KW1296265
Simons Town / R10 million
Ref# SIM1299656
Bedrooms 5 / Bathrooms 5 / Garages 3 / Sensational in every respect with inspiring views. Located down a quiet cul-de-sac just off Bishopscourt's premier Klaassens Road, you will find this immaculate, well-maintained and presented lavish family home with quality finishes throughout. This home must be experienced in person to be fully appreciated as it offers mountain views and distant sea views, a floodlit tennis court, solar-heated pool, air-conditioned gym and more.
Bedrooms 4 / Bathrooms 4 / Garages 3 / Living the high life. This magnificent architecturally designed home situated in sought-after Simon’s Kloof in a wind-protected area with spectacular ocean and mountain views. Beautifully refreshed that has brought it up to the standard it deserves.
Exclusive Agents: Myrna Duveen 082 443 8417 / Christiaan Steytler 082 658 0071
Rosalie Jack 083 658 4187 / Alan Dunlop 083 415 4505
FOCUS ON BLUE HILLS EQUESTRIAN ESTATE ADVERTORIAL
Exclusive country living The perfect home is waiting for you at Blue Hills Equestrian Estate WORDS AND IMAGES: SUPPLIED
REDDFORD HOUSE PRIVATE SCHOOL Having opened within Blue Hills Country & Equestrian Estate in January last year with a 70% occupancy rate, the new Reddford House private school is a collaborative initiative by Century Property Developments, Graeme Crawford of Crawford College fame and the successful Reddam House private school situated in Waterfall Estate. “Noticing the demand for and importance of top-quality educational facilities within our communities, it was imperative to cater to this need of our clientele,” says Mark Corbett, CEO: Century Property Developments. Residents will benefit from the security and convenience the estate school offers and will be able to spend more quality family time together, as opposed to wasting time commuting in traffic. Reddford House caters for pupils of all ages, from toddlers through to Grade 12s. It offers an internationally respected academic curriculum as well as cultural and sporting activities, all within a secure, relaxed environment that promotes selfdiscipline while nurturing individuality, talent and self-assurance and prepares students to excel in the world of work.
“Residents will benefit from the security and convenience the estate school offers and will be able to spend more quality family time together”
FOCUS ON BLUE HILLS EQUESTRIAN ESTATE
V
isitors to the Midrand area and clients with their investment ear to the ground will know about Blue Hills Country & Equestrian Estate and the exceptional value which is being offered in this new development. With more than 75% of the stands already sold, savvy investors have recognised the unique opportunity to acquire a large country property within a secure estate close to urban centres. Located in Beaulieu, the large freehold stands range from 5,000m² to 15,000m² in size and are priced from just R2.8m. Clients are given the opportunity to choose their own architect and builder to construct their dream home. “Blue Hills Country & Equestrian Estate appeals to people who want an exclusive country lifestyle within the boundaries of extremely tight, nonintrusive security and, of course, a secure financial investment,” says Rob Emett, sales director: Century Property Developments.
URBAN HUB Apart from easy access to the main arterial highways, this development is situated in a new urban hub that includes the recently opened Reddford House private school, an upmarket convenience shopping centre and several business parks (to be launched next year) that will all be located near the entrance to the development. Century has found that Blue Hills Country & Equestrian Estate appeals to people working in Sandton, Midrand and Pretoria, as it is close to main arterial routes. The estate boasts 128 properties and some of the most magnificent fauna and flora in the area, with ample
greenbelts, natural dams and established indigenous trees attracting abundant birdlife. Residents can look forward to a unique dualism between country living and a cosmopolitan atmosphere. The estate and its abundant facilities are conducive to a safe, wholesome, family-friendly lifestyle.
R55 ROAD UPGRADE TO BEGIN The country atmosphere at Blue Hills Country & Equestrian Estate will soon be complemented by access from an upgraded R55 double carriageway that services the area.
COMPARISON Century is so confident in the success of this new development that it has made a direct comparison between Blue Hills and the exclusive Waterfall Equestrian Estate built by Century in the Woodmead area. At Waterfall, the 8,000m² properties sold for R2.8m in 2010; now, just five years later, they are valued at more than R10.9m, while the prices of completed houses range from R22m to a staggering R160m. Century expects to see comparable appreciation on Blue Hills Estate properties. Says Emett: “Waterfall Equestrian Estate is a prime example of how you can grow your property portfolio substantially by making a savvy investment decision. We envisage the same happening at Blue Hills Country & Equestrian Estate, where stands of 5,000m² to 15,000m² are selling from only R2.8m. One needs only to look at our history and trust us as a reliable developer with a proven record of achieving wealth through property investment. We are giving our clients golden opportunities on a platter.” It is not too late to invest at Blue Hills Country & Equestrian Estate. Don’t miss out: property values are forecast to increase dramatically, as they did at Waterfall Equestrian Estate.
“We are giving our clients golden investment opportunities on a platter” Rob Emett, sales director, Century Property Developments
Harm Schreurs of Century Property Developments has spoken to the Gautransappointed engineers SMEC, who confirmed that the detailed design for the R55 upgrade project has been completed. The environmental impact assessment has also been passed and the construction tender has been awarded. This will see 5km worth of the road (from the T-junction with Main Road to the south, to join Summit/ Olifantsfontein roads to the north) upgraded to a four-lane road. Accessibility is an important aspect at Blue Hills Country & Equestrian Estate, with residents benefiting from multiple entrances, the soon-to-be-upgraded R55 road and a proposed Gautrain station within 1km of the estate.
FEATURES AND FACILITIES Reddford House private school Scenic walking and cycling paths Children’s playgrounds Tennis courts Space for equestrian pursuits Breathtaking views Century Property Developments’ signature infrastructure
HOMEFRONT
Arts on Main houses an artist’s gallery, shops, restaurants and accommodation
URBAN REGENERATION
Maboneng shows the way The vibrant precinct in Johannesburg’s industrial inner city is a blueprint for urban reclamation and is bringing people, art and business to a space once viewed as a no-go zone WORDS: GEORGINA CROUTH :: PHOTOS: SUPPLIED AND REAL ESTATE
T The Cosmopolitan, originally a hotel and now a gallery, restaurant and boutiques
he Maboneng development in downtown Johannesburg has changed from a destination for the young and trendy to a mixed-use neighbourhood that integrates residents and visitors from all walks of life. In March, Hallmark House, the newest addition to the precinct, will open. It will offer what the
developers describe as a “curated lifestyle” — a jazz bar, rooftop venue, boutique hotel, flats and space for small to medium enterprises. It is a collaboration between Jonathan Liebmann, urban entrepreneur and founder and CEO of development company Propertuity, and international architect David Adjaye. For Maboneng, Hallmark
HOMEFRONT “It’s a great selling point to have the Maboneng restaurants and shops just down the road” Rian Reyneke, CEO of Ithemba House comes at a tipping point. This is not to say that Maboneng is not flourishing — it unquestionably is — but Hallmark House represents the first dedicated high-end space in the precinct. Until now, Maboneng has been frequented mostly by young, hip, urban visitors and citizens, but the new building stakes its claim as a stomping ground for affluent individuals seeking a cosmopolitan destination in which to live, work, play and shop. Maboneng’s success has been a talking point in Johannesburg — and even international observers such as design publication Wallpaper have taken notice — to such an extent that it can be viewed as a blueprint for inner-city reclamation.
BIRTH Maboneng was the brainchild of Liebmann, who had taken a gap year before returning to Johannesburg. When he came back, he says he felt uncomfortable with the suburban environment in which he found himself. “I am very much an urban city kind of person and I had seen all these places around the world that were lacking in Johannesburg. In 2007, the inner city was a complete no-go zone. The only people using it were lower-income people. So I had this idea to find a way to introduce a more diverse mix of people into the city.” At a time when the only other inner city developers were creating low-income accommodation, Liebmann identified a space that ultimately anchored the broader development he envisioned.
ARTS ON MAIN That space, which opened in 2009, is Arts on Main. About 20% of the building is occupied by internationally regarded artist William Kentridge. Kentridge was the catalyst for the galleries, shops, restaurants and accommodation developments that followed in Arts on Main, driven by Propertuity. Liebmann’s vision was that these projects would bring increasing numbers of people into the area, creating walkable spaces
so that people could engage with the streets. Over the subsequent years, Liebmann bought 50 buildings in the formerly industrial neighbourhood, creating mainly residential spaces and offices, but also inviting in small retailers. “We’ve kept a lot of the industrial in the area because it’s important to have that mix,” he says. “We wanted to introduce small, artisanal retailers as a movement away from the branded franchise.” He has been careful to use only industrial spaces, and this part of town was previously 70% vacant.
OCCUPIED “We’ve elected to avoid buildings that were previously occupied by residents, because we see that as the role of the city. “Prices in the city make for good, affordable accommodation, and a third of our offering is that. But it is important that we try to introduce other types of accommodation, because opportunities exist between people who have money and those who don’t,” says Liebmann. “If we can integrate them into a seamless society, that will go a long way to addressing the disparities of income that are the cornerstone of the socioeconomic crisis that our country currently finds itself in.” However, while the Maboneng model clearly works, it has not attracted many other developers. “I wish I could say that more other people were involved and we’ve tried to encourage other developers into the neighbourhood, but they’ve realised that the business model is very difficult — more difficult than low-income housing because each rand is more work, but there are other smaller guys coming in.”
Hallmark House lease on The Cosmopolitan building in Maboneng with Liebmann’s brother, Daniel Liebmann, to create a gallery, says Maboneng has become an urban space such as those in Europe. “I lived in Europe for 19 years and it’s difficult to let go of the idea that you can walk out of your flat, go and buy a loaf of bread, and pop into a gallery along the way,” he says. “You just can’t do that in the suburbs. You get in your car and go to a mall
“We’ve kept a lot of the industrial in the area because it’s important to have that mix” Jonathan Liebmann, CEO, Propertuity
and tootle along a false high street. In Maboneng, the closeness of the community connects you to other people — you can go out into the street and see a vendor selling bananas while you’re on your way to a high-end tea emporium.”
FAMILIES The area is becoming family-friendly as well, with educational facilities such as the Spark School opening. Maboneng’s model of reclamation is being
UPLIFTMENT Two with an interest in Maboneng are Ithemba and Afcho. With Propertuity, they fund additional security, urban management and cleaning facilities for the precinct to help create a sense of security and desirability. “We all work closely with each other to bring upliftment to the area,” says Rian Reyneke, CEO of Ithemba, which is finalising the affordable accommodation development Eyethu House. “It’s positive for the area, so we welcome their involvement. It’s a great selling point to have the Maboneng restaurants and shops just down the road.” Jonathan Freemantle, who owns the Hazard Gallery and has taken a 20-year
Once a juice factory, Revolution House primarily offers residential units
replicated in a similar group of buildings by Propertuity in Durban’s Rivertown, between the beachfront and the convention centre. In Maboneng, Propertuity is also developing Market Up, offering 15,000m 2 of lettable office space. Another five projects are concluding in the coming months, including a shipping container development. The next big acquisition will be the six blocks next to Arts on Main. It is safe to say, you ain’t seen nothing yet.
BRYANSTON
Luxury Apartments
2,3 & 4 bedroom units from R3.3 MILLION
Close-by amenities 1. Virgin Active - 280m 2. Nicolway Shopping Centre - 900m 3. Hobart Shopping Centre - 900m Brescia House - 2km Bryanston Shopping Centre - 2.8km St Stithians College - 3.8km Sandton Mediclinic - 3.2km Riverclub Golf Club - 5.2km St Peters School - 9km
Bruton Rd
Bryanston Cross F?d
� / Sandton
Contact Brendan
M 073 343 2449 T 0861 777 725
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Prime location / / / / / / /
North-facing bedrooms Centralized water heating system Basement parking Lift access 24hr security Swimming pool Direct gym access
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thewinstonjhb.co.za
Currie Property Expertise since 1887
A/em Yeo1t, A/em llonie.l Balwin Properties is breaking the mould with its lifestyle centred developments in Johannesburg, Pretoria and the Western Cape, transforming the way people live.
In a time when personal security is the most important thing to you and your family, the 24 hour security in place at The Cambridge ensures that homeowners can enjoy the estate in safety.
The Cambridge is exclusivity at its best, a unique Balwin Properties development with only 440 sectional title apartments that are exceptional in design, price and quality within one of Johannesburg's top suburbs, Bryanston.
Each Wi-Fi enabled apartment comes with free appliances including a washing machine, tumble dryer, fridge and dishwasher, and has prepaid water, gas and electricity.
This upmarket estate delivers a secure, healthy lifestyle, ideal for young professionals, investors, couples scaling down and young couples starting a family. Balwin Properties' focus has always been and will always be on trendy apartment lifestyle living with an exceptional range of lifestyle activities in an environmentally conscious environment. The Cambridge proudly shows this off, boasting an entertainment area with a magnificent swimming pool, childrens play area, an Amici restaurant and a Training Science gym. The lifestyle centre also has free Wi-Fi and a conference room.
The Cambridge is perfectly situated close to Montecasino, Chilli Lane Shopping Centre and the Bryanston Organic Market. It is close to Rivonia road which is home to many top restaurants, fast food outlets and pubs. In addition to the comprehensive lifestyle facilities in The Cambridge, it is ideally situated close to Bryanston Primary and High school, Curro and Michael Mount Waldorf schools. Also, the Netcare Sunninghill Hospital is just a few minutes away. For any more information on any of our other developments in Johannesburg, Pretoria or Cape Town, please visit www.balwin.co.za
JOHANNESBURG
Tel: +27 11 450 2818 Private Bag X4, Gardenview, 2047 Block 1, Townsend Office Park, No 1 Townsend Avenue, Bedfordview
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Suite No. 10, Private Bag X4, Die Boord, 7613 Block A, F2, Stellenpark Business Park, R44, Stellenbosch
www.balwin.co.za
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 - The High Street, Melrose Arch. Saturday 11am - 3pm. Sunday 2pm - 5pm. Peet Strauss 083 675 1212, pstrauss@pamgolding.co.za Victoria Russell 074 683 1222, victoria.russell@pamgolding.co.za Tersia Taljaard 063 695 7571, tersiat@amdec.co.za
The Amdec Group is a privately-owned property development and investment business recognised as South Africa’s leading developer of New Urban lifestyles. Its pioneering portfolio includes the iconic Melrose Arch mixed-use precinct.
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 PROPERTY NEWS
Highland Gate sales pick up
C
onstruction of homes is well under way at the 774ha Highland Gate Golf and Trout Estate outside Dullstroom in Mpumalanga. When completed only 40% of the footprint will be developed, with 445 homes in total. It will be the only estate in the area with a golf course. Says Anton Greeff, area principal in Dullstroom for Pam Golding Properties: “The estate is fully fenced and gated, services installed, roads and clubhouse completed and the Ernie Els designed golf course fully operational and already extremely popular, being almost fully booked throughout the week. Currently 25 homes are completed with another eight in the process of being built. “Since July 2016 the demand for properties in Highland Gate has increased and in several recent months alone we concluded the sale of 12 stands for resale.” Highland Gate is being developed by Century21, developers of Waterfall Country Estate & Village. It
T was also recently rated by New World Wealth as one of the top 10 estates in the country, says Greeff. “Resale stands are very competitive, averaging in price from about R350,000 to R550,000 for 875m 2, as these were originally purchased between R500,000 and R1m. This presents an opportunity for speculative building as the market is large for weekend and holiday rentals. Catering for golfers,
“This presents an opportunity for speculative building as the market is large for weekend and holiday rentals” Anton Greeff, area principal, Pam Golding Properties Dullstroom
House price inflation falls
I
n early 2016, Lightstone Property forecast that nominal house price inflation would end at about 3.5%, resulting in real deflation of residential home values. Its prediction came close: house price inflation for the year ended at 3.38%. The property information company attributed the figure to a “lower than expected gross domestic product figure”. See the table and graph:
Year
National annual inflation 5.29%
National monthly inflation 0.48%
February
5.29%
0.49%
March
5.27%
0.51%
April
5.24%
0.51%
May
5.18%
0.50%
June
5.08%
0.50%
July
4.93%
0.50%
August
4.73%
0.48%
September
4.46%
0.45%
October
4.14%
0.39%
November
3.76%
0.30%
December
3.38%
0.21%
Month
2016 January
National inflation 3%
40%
3% 30%
2%
20%
1% 10%
1% 0%
0% -1% -1% April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December April August December
-10%
2001
2002
2003
2004
2005
2006
2007
Annual inflation
2008
2009
2010
2011
2012
Monthly inflation
2013
2014
2015
2016
Monthly inflation
Annual inflation
2%
2000
Suburb determines time to sell, not economy
one could easily achieve a rental income of R20,000 to R40,000 on homes with two to four bedrooms. Developer stands are also now selling from R675,000.” Buyers are mostly from the surrounding large cities such as Nelspruit, Pretoria and Johannesburg, acquiring properties mainly for leisure purposes and spending between R4m and R7m on building luxury homes.
he length of time that a property remains on the market appears to be driven more by the suburb in which it is located than by the prevailing economic environment, according to the Pam Golding Properties Research Summer 2016 study. Using recent Lightstone Property information research, the study says that the Western Cape may have experienced the highest overall growth in repeat home owners as a result of semigration, but the suburb experiencing the highest influx of repeat
buyers is in Pretoria. Homes in Garsfontein sell within 2.8 months of listing. In contrast, a property in Parkhurst, Johannesburg, typically stays on the market for 7.4 months. The length of time it took to sell a property increased during the last three quarters of 2016 as a result of softening demand and an easing of supply constraints. FNB’s recent Property Barometer research showed that the average time a home remained on the market increased from 11 weeks and a day in Q1 2016, to 14 weeks in Q3 2016.
Rent insurance available for tenants and landlords
J
awitz Properties and oobainsure, the insurance arm of bond originator ooba, have launched Rent Protector, created to help tenants who may not always be able to raise a deposit to secure a property, as well as safeguard landlords. Says Natalie Muller, regional head of rentals for Jawitz Properties in the Western Cape: “The product requires that tenants need not put down a deposit, and instead works as a rental insurance policy covering missed payments, legal expenses and offering a host of other benefits, making this a tangible and financially beneficial product for both tenants and landlords.” It is offered to the company’s landlords nationally and to tenants looking for alternatives to high deposits, she says. To illustrate, on a property for rent for R10,000 a month, a tenant would be required to pay at least R15,000 deposit, as well as the first month’s rent — R25,000. With Rent
“The product requires that tenants need not put down a deposit, and instead works as a rental insurance policy” Natalie Muller, regional head of rentals, Jawitz Properties Western Cape
Protector, the tenant will pay R11,000 a month, which covers the insurance side of the product and negates the need for a deposit. Says Alex Bartels, national sales manager for oobainsure: “That extra R1,000 per month protects the landlord from late payments or defaulting tenants. The landlord can claim up to three months’ worth of rent should a tenant miss payments or abscond, and oobainsure tends to the eviction process and covers up to R50,000 towards legal fees. Extra cover includes unpaid utility accounts and damages that occur during tenancy. The product is fully compliant with the Consumer Protection Act and is available to all tenants who pass the vetting process. “This zero deposit option for tenants who do not always have the ability to pay one or two months’ rent upfront to secure a lease, results in reduced financial risk for all parties involved.” The Rent Protector policy offers full cover from day one of the lease.
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18/01/2017 5:27 PM
HOUGHTON 2017
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