HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 8 MARCH 2019 WWW.BUSINESSLIVE.CO.ZA
MUST READ
African innovation at Design Indaba PAGE 2
Municipal valuation: are you objecting? PAGE 12
Barlow Park redesign on track PAGE 14
More solutions for home finance PAGE 14
Ballito on the north coast
KwaZulu-Natal’s coastal property surge Umhlanga and Ballito in particular are buzzing with development, while the south coast has its own robust residential market
PAGE 6
HOMEFRONT DESIGN
African answers Design Indaba 2019 brought some exciting Africa-centric solutions to the fore
WORDS: JULIA FREEMANTLE AND KIM MAXWELL :: PHOTOS: SUPPLIED
Beautiful IKEA stools in eucalyptus wood by Kenya’s Bethan Rayner and Naeem Biviji
C Fashion designer Selly Raby Kane of Dakar
reative thinking unique to the complexities of the African continent has become a prominent feature of Design Indaba programmes. This year’s line-up included a number of designers who look at the social, geographical and cultural makeup of their cultures to drive positive change — and beautiful design of course — through collaboration and innovation.
IKEA Överallt
Senagalese Selly Raby Kane’s IKEA basket is filled with a quilt co-designed by South Africans Sindiso Khumalo and Renee Rossouw
Mariam Kamara’s response to the housing crisis in the Niger capital — the Atelier Masomi Niamey 2000 project
An African first, this crossdisciplinary furniture and homeware collection launched globally at Design Indaba, and will be available in global IKEA stores from May. A Swedish word for ubiquitous or everywhere, Överallt is the result of two years’ work between African designers from fashion, sculpture, architecture and furniture design backgrounds, partnered with five Swedish IKEA designers. The creative group includes Senegalese industrial designer Bibi Seck, South African knitwear designer Laduma Ngxokolo and Ivory Coast architect Issa Diabaté. South African graphic designer Renee Rossouw worked alongside architect/ textile designer Sindiso Khumalo on a colourful quilt collaboration. IKEA wanted to shine a spotlight on the creative explosion happening on the African continent, while exploring modern urban rituals. The designers’ challenge was to produce an affordable bigger production volumes item. “We believe
that collaboration makes things better. Coming together adds new perspectives, new learnings and ideas and, in the end, makes for better products,” says James Futcher, creative lead at IKEA. The resulting collection identified modern rituals connected to socialising around food, indoor and outdoor living, expressing identity and sustainability. “Take the curved bench as an example; the idea came from a Kenyan evening ritual, when friends often gather, bringing their own chairs, to talk about their days and life in general,” says Futcher. Bethan Rayner and Naeem Biviji of Studio Propolis in Kenya produced these simple, elegant eucalyptus tables and curved benches. Senegalese fashion designer Selly Raby Kane created a black metal storage basket inspired by the tradition of weaving hair. “To me it’s a way to connect people,” she says. “It’s also a way of creating a small archive to braiding that for the people using it, connects a storage basket to African rituals.” ikea.com
Mariam Kamara | architect | Atelier Masomi Niger-born Mariam Kamara is a shining example of bringing vernacular architecture to the fore in Africa. Her work is a good case study of how local design methods and practices can combat social and practical issues. “The way they do architecture in Europe came from somewhere — their climate, geography and history. For me, vernacular architecture is about understanding our traditional
HOMEFRONT
South African Tshepo Mokholo co-designed the Ruhehe Primary School in Rwanda with the school’s children
“We need to stop looking for answers elsewhere, period” Mariam Kamara, architect, Atelier Masomi
techniques and rebooting them so that we can make new things,” says Kamara. Niger’s capital Niamey is growing at an exponential rate. This informed Kamara’s design approach for the Atelier Masomi’s Niamey 2000 project, a response to the housing crisis in the city. Rather than resorting to contemporary high-rise mass housing, it takes inspiration from pre-colonial cities in the region, all dense urban centres in their day. Drawing on these layouts, Kamara’s solution is not only affordable and culturally appropriate, but one that uses abundant local materials and passive building-cooling techniques to combat the extreme Niger heat. “We need to stop looking for answers elsewhere, period,” she says. “Design can be a powerful tool for subjugation, just like it can be a powerful tool for good. We can use design to represent ourselves.” ateliermasomi.com
Tshepo Mokholo | architect | African Design Centre One of this year’s Global Graduate speakers, Tshepo Mokholo is a full-circle Design Indaba story. Participating in the Emerging Creatives programme in 2018, he PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130
met speaker Christian Benima from MASS Design Group, which resulted in his selection as one of 11 fellows for the African Design Centre’s (ADC) inaugural fellowship. “MASS sees the architectural process as one that goes beyond just design and the building,” Mokholo comments on what drew him to the company’s work. “MASS highlights the importance of pre-design and community engagement as a driver for design and it always encourages the use of local and vernacular materials,” he says. Mokholo believes design can and should have a positive impact on communities. It can be done through incorporating those communities’ input in the design process, the success of which can be seen in his first built project as an architect — the Ruhehe Primary School in the Musanze district of Rwanda. The flagship project of the ADC, it poses the question: can a school’s design serve as an example for improving education? It also indirectly raises the standard of schools in the district. “We included the school children in the process as co-designers,” says Mokholo, allowing them to have greater A
EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand
ownership of the project. africandesigncentre.org; massdesigngroup.org
Nicole Nomsa Moyo | urban designer “Design is often associated with aesthetics and less as a means for problem-solving. But it can do both and I believe it is most effective when communities’ voices are reflected in the design,” says Nicole Nomsa Moyo. Her Ukubutha thesis proposes a system
designed for and built by the community — inspired by her grandmother’s home in Harare and the self-help attitude of that particular community. An urban designer by designation, Moyo describes her work as “socially driven architectural solutions”. The project development and research was done in Mamelodi and is proposed as a way to combat the many shortfalls of South African urban planning and lack of basic services (such as
running water, sanitation and energy). This innovative solution is designed to mobilise communities in informal and developing settlements to provide ways to convert waste to energy and empower them through a community-led water, energy and waste system. The design features wells, waste digesters, community gardens and open spaces to bring the community together to reflect its own traditions and cultures.
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HOMEFRONT Three other inspirational Design Indaba 2019 innovators •
Zipline founder Keenan Wyrobek is designing, building and deploying drones to deliver life-saving blood and medical supplies to some of the world’s most inaccessible places. Operating in Rwanda since 2016, Zipline’s drones will be expanding to other countries across Africa and Latin America. Wyrobek’s team, streaming live from Rwanda during Design Indaba 2019, demonstrated the launch of a drone supplying blood and medication to a rural area. His Zipline team completed its 10,000th blood delivery during the February event. “Rwanda is literally teaching the world how to use this technology and save lives,” says Wyrobek.
P R I V A T E
• Architect Dong-Ping Wong of Food, a US
design firm, is creating an Olympic-sized pool in New York. His thinking: is it possible to carve out a piece of the East River and provide a filter system to offer people a safe, clean place to swim? In the hope that it will change the way they think about New York’s East River and water in general. +Pool is coming to New York soon.
•
Is it possible to make an edible water bottle? This is what Spaniard inventor/ designer Rodrigo García González set out to do. He co-founded Skipping Rock Lab, a London-based startup with the goal of making packaging disappear. The result was Ooho. “We work with different brands to package their liquids in Ooho, our flexible, sustainable and edible bubbles made from seaweed. We thought: what about those sportsmen’s energy gels you can consume straight away? Or hotel mini toiletries such as shampoo, conditioner and hand cream. Or catering sachets for fast food brands.” This spherical packaging is slowly revolutionising the water-on-the-go market too.
E S T A T E
S I BAYA
cabanas and villas from R3.9 million The depictions herein are for illustration purposes only and are subject to change without prior notice.
Balize Private Estate is the first luxury estate in the sought-after Sibaya Coastal Precinct with ocean views from every home. Offering smart-ready 2, 3 and 4-bedroom luxury freestanding Villas, Cabanas and Penthouses, Balize Private Estate is designed to inspire a resort-living feel with highest-quality finishes, generous outdoor living and an ocean-front lifestyle.
u m h l a ng a umdloti
RAINMAKER 02|19
The depictions herein are for illustration purposes only and are subject to change without prior notice.
Contact our Development Consultants to set up your on-site appointment and experience the most exceptional views on the KwaZulu-Natal North Coast. John Robinson: 083 410 1536 | Charlene Anamourlis: 083 262 2200
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HOMEFRONT PROPERTY TREND
KwaZuluNatal’s coastal property K surge
Coral Point near Umhlanga
Umhlanga and Ballito in particular are buzzing with development, while the south coast has its own robust residential market WORDS: HELEN GRANGE :: PHOTOS: SUPPLIED
Zimbali Coastal Estate near Ballito
waZulu-Natal’s north coast is a hub of activity this year as developers invest billions into the 60km northern seaboard stretch, all the way from Umhlanga to Blythedale, north of Ballito. In a 5,089ha area between Sheffield Beach and Blythedale alone, Collins Residential director Murray Collins and local magnate Patrick Sokhela have earmarked R76bn for residential, resort and commercial property development, while other
established estates in the sought-after Umhlanga/ Ballito area — such as Sibaya, Zimbali and Brettenwood — continue to get bigger and better. Collins’ ambitious plan, revealed in December, is to develop its 16km coastline landholding alongside Sheffield Beach and Christmas Bay, expanding on the R2.5bn Zululami Luxury Coastal Estate and launching adjoining R10bn equestrian estate Seaton in June after the national elections. Seaton will comprise about 3,800 homes.
“Part of the plan for Seaton is a worldclass Olympic size indoor showjumping arena, polo fields and a horse training venue” Murray Collins, director, Collins Residential
HOMEFRONT
Saxony Sibaya near Umhlanga
The north coast master plan “This is the second phase of our greater north coast master plan which will consist of seven development zones,” says Collins. These will include beach resorts, retail developments, theme parks and commercial and mixed-use developments. Collins says when complete, both Seaton and Zululami will have access to unspoilt Christmas Bay, which will be a tremendous value add. “Part of the plan for Seaton is a world-class Olympic-size indoor showjumping arena, polo fields and a horse training venue,” he says. Offerings will include large smallholding opportunities. Fuelling the demand for KwaZulu-Natal’s north coast is the semigration taking place from neighbouring provinces, as well as a growing tourism and investment demand from around the world. Between 60% and 70% of buyers in Zimbali estate are from Gauteng,
according to Pam Golding manager Neil de Beer. In response, King Shaka International Airport is embarking on major upgrades and British Airways now flies direct to Durban from London. Tongaat Hulett, which prompted the property boom on KwaZulu-Natal’s north coast with Zimbali and Shoreline Sibaya retirement developments, is now focused on mixeduse developments in Umhlanga, specifically Sibaya, Ridgeside, Umhlanga Ridge Town Centre and the adjacent Cornubia urban node.
TINLEY MANOR “There are exciting plans around Tinley Manor (10km north of Ballito) for mixed-use and resort developments,” says Tongaat Hulett Developments planning director Rory Wilkinson. Another significant opportunity is the Durban aerotropolis around King Shaka airport and Dube Tradeport, he says, where there are plans for
“Sales at Coral Point have performed exceptionally well in both the end users and investor markets” Dan Gardner, regional director, FWJK Developments
residential, commercial and industrial activities.
Umhlanga Two premier addresses in Umhlanga are Summer Park in Ridge Town Centre, anticipating completion in April with units starting at R950,000, and Enigma Private Estate, which has become the fastest-selling gated estate in the greater Umhlanga area. Another hot seller is Le Boulevard, a designer apartment development in the heart of Umhlanga, with sales of R150m to date, and only 52 out of 143 apartments still available. Balize Private Estate is a secure, managed residential estate in Sibaya Coastal Precinct offering two-, three- and fourbedroom penthouses, apartments and villas, each with 180 0 sea views priced from R3.9m. “Part of the appeal of Balize Private Estate is that it offers something for families at different life stages — from young families with small children to retirees,”
says Balise sales director Butch James. To be completed in April is Sibaya’s latest addition, Coral Point, comprising 153 luxury apartments. “Sales at Coral Point have performed exceptionally well in both the end users and investor markets,” says FWJK Developments regional director Dan Gardner. Introduced recently was the much anticipated Saxony Sibaya, a 100unit luxury apartment development promising the best penthouses on KwaZulu-Natal’s north coast, at R7.6m for a threebedroom unit and R12.5m for a four-bedroom unit.
Ballito Balwin, SA’s largest residential sectional title developer, saw another gap in the KwaZulu-Natal north coast market — for a younger buyer with a budget of between R1m and R2m. In 2017 it launched Ballito Hills, a 1,320-apartment estate. “Not only has there been a massive surge in
younger buyers within the Ballito area, there is also a shortage of purchase opportunity within a Ballito gated estate for between R1m and R2m,” says Stefan Botha, director of Rainmaker Marketing. “This growing demand is one of the major reasons the Ballito market continues to sustain more than R2.7bn in residential sales, year on year, through various economic conditions.”
APARTMENTS Also doing well is Imbali Ridge, an apartment block on the ridge overlooking Zimbali Coastal Estate, consisting of 108 luxurious, ultra-modern apartments, while at Elaleni Coastal Forest Estate, 65 of the 90 Lush apartments have already sold off plan. Lush is to be followed by the launch — in August — of Elaleni’s Forest View Apartments, 45 units priced at about R2.95m. Also launching later this year at Sheffield Beach are 28 sectional title apartments on Brettenwood Coastal
RETIREMENT VILLAGE SURGE The rapid development of villages in KwaZulu-Natal is included in retirement village developer Evergreen Lifestyle’s national plans to build 5,000 units in the next three to five years. With the province on the map — it was the retirement destination of choice for many South Africans last year —the trend is set to continue in 2019. Evergreen is building 750 units in Zimbali, 640 in Umhlanga and 458 in Balize Private Estate near Umhlanga
Hilton to meet demand. “Despite a relatively large presence of retirement facilities in KwaZuluNatal, many are already oversubscribed. This strong, growing demand is in no way set to slow down, with significantly more capacity for quality retirement offerings,” says Evergreen Lifestyle brand marketing director Arthur Case. Other existing and expanding offerings on
the north coast include Shoreline Sibaya and Mount Edgecombe Retirement Village, and further north past Ballito, towards Blythedale, Brettenwood Coastal Estate and Palm Lakes Retirement Village. This trend is evidenced too by the robust sales of Lazuli Lifestyle & Retirement Estate’s sectional title apartments, launched in December and priced from R1.595m.
HOMEFRONT
Palm Lakes Family Estate near Tinley Manor Estate. “There has been a lot of interest in these already as they will cater for those in the R2.5m to R3m bracket,” says Gary Botha, GM of Brettenwood’s development company HDC. Another exciting development in Ballito is The Boulevard in the new R10bn Zimbali Lakes Resort, which will provide more than 2,700 residential opportunities
over the next 10 years. The Boulevard is a high-density mixed-use development that will feature a piazza with retail outlets, restaurants, beauty and hair salons, banking services and a filling station. Offices, medical facilities and a hotel will complete the offering.
COMMUNITY Zimbali Lakes Resort is a multigenerational estate with offerings for a broad
Renishaw Hills near Scottburgh on the south coast
“The housing market in Durban has seen a steady increase in activity in recent months” Michelle Burger, Durban principal, Pam Golding Properties
range of buyers, including a retirement village and an array of sports amenities. Other estates in this league include Palm Lakes Family Estate and Dunkirk Estate, which has just completed a community centre with a swimming pool and large play area for children. A new estate competing for the same market attention is Springvale Country Estate (known formerly as Birdhaven), a 58ha farm development with large plots, to launch later this year. “Our selling point is that our average price per square metre is half that of other estates at roughly R800/m 2 . Similar estates are closer to R1,600/m 2-R2,000m 2 ,” says Stuart Graham, director of developers Graham Projects.
South coast
Springvale Country Estate near Sheffield Beach
The Boulevard in Zimbali Lakes Resort near Ballito
KwaZulu-Natal’s south coast estates, generally less expensive than those on the north coast, have been equally busy. One of this region’s most prized estates is Renishaw Hills on the outskirts of Scottburgh, which quickly sold its sea-viewing maisonettes, priced from
R1.5m and launched last April. At San Lameer Estate, next to Southbroom, the villas are “always moving”, according to sales agent Erika Thomson.
Durban Meanwhile, Durban is attracting residential interest from younger first-time home buyers and families. Says Michelle Burger, Pam Golding’s Durban principal: “The housing market in Durban has seen a steady increase in activity in recent months. Well-priced listings are selling quickly, and close to the asking price.” This upward trend is bolstered by the R35bn facelift under way at the Durban Point Waterfront development, which will include an extensive promenade stretching along the beachfront from uShaka Marine World to Vetch’s Pier (on the harbour entrance channel), residential towers, a retail mall and hotel. The Durban Point Waterfront Development is a joint venture between the eThekwini Municipality and the Malaysianbased Durban Point Development Company.
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HOMEFRONT INVESTIGATION
Navigating municipal value objections It happened in Johannesburg. Now, with the February release of Cape Town’s new valuation roll, many property owners will have sharp municipal property rate increases from July. Those with higher valuations should start the objection process this month WORDS: MIRIAM MANNAK AND KIM MAXWELL: PHOTOS: NATASHA LASSEN
O
n February 21, the City of Cape Town presented its updated General Valuation Roll 2019. The individual municipal property valuations conducted during 2018 will replace current municipal valuations last calculated by the city in 2015. They form the basis for calculating new property rates that Cape Town property owners will be charged from July this year. For some, a big jump in monthly property rates could be the final straw when already absorbing increases in electricity and water pricing. In 2018, Johannesburg property owners went through a similar process. When the updated Johannesburg property valuation roll introduced in July 2018 resulted in
substantial increases in municipal values for some homeowners, there was a public outcry. The city received more than 50,000 objections from ratepayers.
AVERAGE A company named ValueCheck offers local property owners free online valuations. Referring to Johannesburg’s recent experience, ValueCheck executive director Andrew Watt says their research shows that on average the city’s municipal value of residential properties increased by 35% between the 2012 and 2017 valuation rolls. Yet he says Lightstone Property’s House Price Index shows that actual average market values for residential property in the city increased by only 23% in that period. “On average, for owners of a property valued
at R750,000, monthly rates increased by 12.5%. Meanwhile, ratepayers with property valued at R2m and R5m were seeing increases of 28.8% and 32.7% respectively,” says Watt. Watt says that with new values issued in 2018, some mid- to higher-value Johannesburg suburbs were penalised with much higher municipal valuation increases than market values justified. If based on actual increases in market value, these suburbs should have experienced “already punitive increases” of about 40%. But aggressive city revaluations resulted in municipal value increases of 60% for some higher-valued suburban homes.
Determine a value The municipal value, use of the property and tariff set by the municipality will determine the rates payable
by each property owner. For Cape Town, the municipal value is in effect the market value of the property from the municipal date of valuation (July 2 2018). Your property’s municipal value is determined by all its characteristics. “The five biggest contributors to a home’s purchase price are location, building size, whether you have improved your property, quality of finishes and the home’s condition,” says ValueCheck MD Johan Cloete. Security aspects and proximity to schools, roads and shopping centres also count. If time has passed since the last purchase date, valuers increasingly look at comparable sales data. “If the average value of similar properties in your area has gone up by 10%, your property will be worth 10% more too,” says Watt. “Sales data about willing-buyer
STEPS FOR OBJECTING TO A MUNICIPAL EVALUATION Find your current municipal property valuation. Your local municipality must supply the new municipal values to property owners via written notification. Or view the new municipal values on their website or at municipal offices. To know if the municipal value is accurate, find a comparative municipal value (for example, ValueCheck offers a free property valuation). If the municipal and online comparative values don’t match, an (optional) motivated objection is recommended. For every R100,000 difference in value, ratepayers could pay up to R100 more in monthly property rates. Objection forms can be found on the municipality website. Note: a property owner cannot merely say their municipal valuation is too high. The owner must put a value to the property and provide a reason. This is where an objection motivation report helps. Attach your (optional) objection motivation report to the municipality’s official property valuation objection form. Keep a receipt of the objection submitted to the municipality. Expect a result in 30 days to six months from the objection period closing date. The objection period for the City of Cape Town is February 21 to March 29 (in person) or from February 21 to April 30 (online). If the objection is unsuccessful, ratepayers can appeal against decisions by the municipality. Your municipality will outline the process and timelines to appeal against objection decisions.
HOMEFRONT CASE STUDY: A PREVIOUSLY UNDERVALUED HOME IN MIDDLE-CLASS TABLE VIEW, CAPE TOWN The median property value growth for Table View is estimated at 19% between 2015 and 2018. If a typical residential property was valued at R1.7m in 2015 by the City, the 2018 municipal value should be about R2.023m. If the rates tariff remains constant from the 2018-2019 to 2019-2020 financial years, monthly property rates will increase from roughly R951 in June 2019 to about R1,131 in July 2019, showing a R180 total increase. Or possibly bigger if the city increases the tariff, too.
municipal values for Table View were undervalued. If corrected in the new valuation roll, Table View average municipal values could increase by 26.5% instead of 19%. The result: an overnight increase of R252 in property taxes for the average Table View property.
How to object But what happens if you’ve checked your latest property valuation and it appears that a municipality may have overvalued your property? On what grounds can you object? A key ingredient in any property valuation objection is sound, detailed motivational information that proves an error was made. “You don’t need a lawyer at this stage. What you need is good evidence,” says Watt. “You could hire a valuation expert, which could cost you a few thousand rand, depending on the expert’s fees and the complexity of the valuation. Or use an estate agent. We recommend that you first use a service such as ValueCheck to help determine if a property’s new municipal value corresponds with its market value.” The company offers this free online market value estimate service to homeowners or estate agents. Should there be a noteworthy discrepancy in values, ValueCheck charges R200 to draw up an objection motivation report, featuring comparable sales data and other information
relevant to that objection. The report is submitted with the municipality’s objection form. If required, ValueCheck can recommend professional property valuation companies. In Cape Town, the deadline is March 29 for filing an objection in person or April 30 for online objections.
RESPONSE According to Cloete, there is no legislated response time for municipal valuers to respond. “The response time depends on the complexity of the case and the amount and quality of the information submitted by the objector,” he says. “It also depends on how many objections are submitted that year. Replies could take between 30 days and six months.” While the city assesses the objections received, homeowners have to pay the new rates. “When the authorities rule in the homeowner’s favour, they will read just their property’s value and rates accordingly and should refund any excess rates you have paid,” says Watt. If the objection process is unsuccessful, ratepayers can lodge an appeal with their municipality. Watt says roping in an expert property valuer or estate agent can be useful in this instance. “You can even hire a lawyer, as long as they know what they are doing.”
BRACE YOURSELF While most areas in Cape Town will be in for value — hence property rate — increases, research by ValueCheck suggests that in certain areas, average municipal value increases will exceed market value price performance between
“Sales data about willingbuyer willingseller is the most objective determination of property values in a particular area” Andrew Watt, executive director, ValueCheck
the 2015 and 2018 valuation rolls by quite a bit. This year they predict increases to be 30% higher in De Waterkant, 27% in Constantia Hills, 26% in Woodstock and 23% higher in popular City Bowl suburb Vredehoek. ValueCheck says in some of Cape Town’s higher value suburbs the picture is quite mixed, with Higgovale, Camps Bay and Bantry Bay among those likely to see punitive increases. But residents of Bishopscourt, for instance, could get some relative rate relief. Owners of units in some high-value Cape Town estates should also count on paying higher rates from July onwards. “Many of these suburbs and estates have seen significant development between 2015 and 2018. The increases in municipal value are not surprising,” says Watt.
AGENTS’ VIEWPOINT Mike Greeff, CEO of Greeff Christie’s International Real Estate, says it is important that homeowners know the consequences of the
Note: The above does not take into account the rates tariff policy of a city. Johannesburg kept its rates tariff constant when it released its valuation roll in 2018, resulting in rates increases corresponding closely to municipal property value increases from the previous valuation roll. If a tariff increases, ratepayers can expect property rate increases to exceed their municipal property valuation increases.
For example, a Crassula Road, Table View property had a 2015 municipal value of R2.1m. It sold in October 2017 for R2.7m and now has an estimated 2018 municipal value of R3.1m. A 48% estimated increase in rates will result in a rates bill of R559 a month. If
The problem: ValueCheck estimates that 2015
willing-seller is the most objective determination of property values in a particular area.” He says there shouldn’t be a big difference between current market and municipal values. “All a municipality does is establish a valuation estimate based on current market value factors,” Watt says. “Errors can happen as cities won’t look at every property in detail. They use various market valuation calculations to establish the new property values.”
the city overvalues this property for municipal rates purposes by only 10%, rates will increase by 62% to R732 a month.
city’s general valuation roll. “Some sellers prefer a higher valuation as it could lead to fetching a higher resale value,” he says. “However, with a lower valuation, the rates payable for buyers could be significantly lower. This creates an interesting Catch 22 scenario for both buyer and seller.”
INCREASES Basil Moraitis, Pam Golding Properties area manager for Atlantic Seaboard and City Bowl, stresses that municipal valuation increases of, for instance 50%, won’t necessarily lead to 50% property rate increases. It is not a tit-for-tat situation. “The city will need to determine the rate in rand first,” he says. “It is from this figure, which follows some time after the valuation roll is published, that the rand amount of the monthly liability for rates is determined.” But Moraitis makes an interesting observation about fluctuations in market demand potentially affecting
municipal prices. “Note that the municipal valuation is not based on current values, but on sales value as at June 2018, when the municipal valuation data was concluded. “The municipal valuation could be significantly more than the market value today as there has been downward pressure on pricing in the City of Cape Town. “If owners participate fully in the municipal valuation process and do their homework, there is no need for undue stress. Many owners will have perceived a lack of consistency in the valuation process, with some properties being assigned realistic values compared with current market values, while others are significantly over or undervalued.” Savvy property owners need to play their part. “It is in your own best interests to take the time to research property values in your area and satisfy yourself that the value set by the municipality is accurate,” says Moraitis.
Municipal value predictions in some Cape Town suburbs for latest general valuation Suburb
Number of properties
Average market value (2018)
Expected increase in municipal value (2015-18)
Actual increase in market value (2015-18)
Increase in municipal value in excess of market value
Bantry Bay
2,043
R6.2m
33%
21%
12%
Bishopscourt
353
R15.5m
10%
21%
-11%
Camps Bay
1,463
R10.1m
25%
13%
12%
Constantia
278
R10.45m
16%
12%
4%
Constantia Hills
234
R5.6m
38%
12%
27%
De Waterkant
2,249
R2.85m
43%
13%
30%
Higgovale
377
R10.55m
37%
21%
16%
Scarborough
621
R3m
51%
20%
30%
Vredehoek
3,161
R2.8m
40%
16%
23%
Woodstock
3,230
R1.8m
56%
31%
26%
Source: ValueCheck
HOMEFRONT PROPERTY NEWS
Barlow Park construction to start by mid-year
T
he R3bn mixeduse Barlow Park redevelopment in Sandton Central is due to begin construction before mid-year. The development at 180 Katherine Street includes 55,000m 2 of offices, 700 residential units and a roughly 12,000m 2 retail centre, as well as leisure, hospitality and recreation areas. It will transform the site from the sprawling corporate park that previously housed Barloworld’s corporate office and its logistics and equipment head offices. The project is expected to take between six and eight years to develop. The development is a
collaboration between three leading South African businesses — Barloworld, Atterbury and African Rainbow Capital. The site benefits from Sandton’s new road upgrades — for private and public transport vehicles as well as cyclists and pedestrians — directly around the property. Located at a major connection point to nearby Alexandra township, the developers say Barlow Park is well placed to have a positive impact on its immediate community through local economic and job opportunities, both during construction and after its completion.
Building begins at R900m Offshore property Somerset West estate investment 101
C
onstruction has begun in Somerset West on the exclusive R900m Mzuri Estate. The lifestyle estate’s initial offering will comprise 68 single-residential homes, 32 townhouses and 136 apartments. Durban-based Collins Property has appointed Lazercor Developments as development manager for the estate. The newly approved, updated site development plan for
Mzuri offers one of the last properties in the area with uncluttered views over False Bay. The developers say the Bizweni Avenue estate will focus on contemporary, eco-friendly design, innovative technologies, indigenous landscaping, up-to-date connectivity and security. Mzuri will be the first self-sufficient development in the Western Cape with its own wastewater treatment plant servicing
the water requirements of the estate. This will enable the development to treat its own water for re-use in irrigation and sanitary systems — significantly reducing consumption. Residential contractors Manor Homes has been appointed to construct the homes and townhouses in the first phase of the development. The threebedroom signature show house will be completed in September.
T
he surge in interest from South Africans wanting to invest in offshore property has prompted local estate agent Jawitz Property, in partnership with UK property developer SevenCapital, to present a series of classes on investing in the UK. Wayne Morris, business development manager at SevenCapital SA, says the UK Property Masterclass is designed to educate South
Africans on what to consider and how to go about investing in the UK property market to secure and grow their wealth. “For South Africans looking to invest their money outside the country, the UK property market can be both a safe haven and lucrative vehicle. But with London no longer the focal point, we assist potential investors with the knowledge of where to look.” Jawitz Property CEO
Herschel Jawitz says South Africans have traditionally been tuned into the London market. “However, there are many great investment opportunities outside London in Birmingham, Oxford and Slough, which one can get into at lower price points, but still offer good capital growth and a hedge against the rand.” The events will take place from March 11-16 in Cape Town, Durban and Johannesburg.
Bond originators extend financing options
S
outh African bond originators ooba and BetterLife Group have entered a partnership with Sentinel Homes to better meet the needs of those struggling to obtain home loans from banks. “Our solution provides finance of up to 95% of the purchase price of a home,” says Sentinel Homes CEO Renier Kriek. Sentinel’s model is based on instalment sale finance, the same concept used to finance motor vehicles and other moveable consumer goods. The buyer pays a monthly instalment for the duration of the repayment term, comprising the interest due on the principal, a portion of
capital and a monthly service fee. Interest is levied at competitive interest rates linked to the prime rate. To qualify for an instalment sale home loan, consumers who cannot access a mortgage from a bank need a good credit record and a secure financial situation. The instalment must also be affordable. The home being
purchased should fall in the R500,000 to R2.5m price range and be a single title or sectional title home in the Western Cape. Financing will be rolled out across the country in time.
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