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HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA WWW.BUSINESSLIVE.CO.ZA 9 JULY 2021
MUST-READ
Bond market buzz PAGE 2
Developers changing the game PAGE 4
KZN North Coast boom PAGE 9
SA’s super-rich spending spree
Redefining luxury living In an increasingly popular category, where ‘luxury living’ has become an overtraded and meaningless phrase, one development continues to stand out: Steyn City – recognised for changing how an investor defines lifestyle while creating new standards for convenience
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PARADISE FOUND 104 on Creek resort-style apartments at Steyn City offer everything you desire – and more. Get your adrenaline pumping on the 50km mountain bike trail or jog on the 45km promenade. Play a round of golf on our Nicklaus design championship course nestled in our 2000 acres of indigenous parkland. This piece of paradise has 24/7 security to provide peace of mind while you enjoy all the amenities you could ever wish for.
www.steyncity.co.za
RESORT STYLE APARTMENTS from R2.9m sTANDS from R4.5M
HOMEFRONT INVESTMENT FOCUS
Building bonds As the second half of the year gets into full swing, current bond movement shows substantial activity in the residential sector WORDS: ATLEHANG RAMATHESELE :: PHOTOS: UNSPLASH AND ISTOCK
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he global pandemic and the aftermath of the varying lockdowns continues to shake up bond movement in SA in a myriad ways. With improved affordability for consumers across a range of economic brackets and brighter prospects for new entrants to the market, bond application and transaction volumes are up while the appetite of first-time buyers continues to grow. Many factors including interest rate reduction, semigration patterns, K-shaped recovery and a shift in buyer lifestyle preferences continue to sustain activity in the residential market.
WHAT IS THE CURRENT MARKET LIKE? According to Ewald Kellerman, chief risk officer: home loans, ABSA Retail and Business Bank, there was a reduction in bonds in March 2020 when the Deeds Office closed and property transactions came to a grinding halt. It picked up very quickly with boosted prospects for newly
qualifying customers who couldn’t buy property before. “This is due to affordability conditions turning out to be quite positive,” he says. Some of the primary drivers of this new demand were the reduced interest rate and rent suddenly becoming a more expensive option. A surge in activity in the lower end of the market followed, as properties in the R500,000 to R1.5m mark covered a large portion of the market. The top end of the market was initially more reluctant to spend as the future of the economy remained uncertain, but it has since picked up. Kellerman therefore notes that affordability has improved across the board. “We are seeing that a monthly repayment of a normal bond is 25% less and allows the same customer to buy for 20% more than they would usually qualify for,” he says. He also notes a significant increase in 100% home loans for bonded properties. One of the consequences of this growing penchant for
property is a market saturated with buyers and not enough suitable properties to meet this demand, “As of May 2021, there has been about a 5% increase in property values and it is still accelerating,” says Kellerman. Bond application and transaction volumes have been considerably high across the market. According to Kellerman, application volumes are up to 20% year on year and there has been a 13% increase of registrations at the Deeds Office year on year. This is a good indicator that market activity could be up by 20% year on year in the future. Ashwin Frankie, CEO of property analytics and data company Knowledge Factory, notes that the key trend observed in the past eight to 10 months, other than the substantial increase of activity in the residential sector, is how many young people in their 20s and early 30s are using this opportunity to enter the market. This is also reflected in the growth in the
FIRST- TIME BUYER TRENDS IN A NUTSHELL
• R800,000- R1,5m
bond price band proving to be most popular. Black females account for an estimated 40% of first-time buyers in this price band. Properties below R1m in sectional title complexes close to busy metros countrywide continue to garner the most interest. There has been significant movement from Gauteng to Cape Town and KwaZulu-Natal as consumers chase a lifestyle change.
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Source: Knowledge Factory
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PRODUCED BY ARENA PROPERTY PUBLISHING
EDITORIAL TEAM Editor: Jason Whitehouse Designer: Samantha Durand
R800,000-R1.5m bond price band. Upon analysing the data, he has seen much movement at the R1m mark, particularly in sectional title complexes in busy metros. The data also shows increased activity in the R1.5m-R8m bracket, particularly in the R3m to R6m band, as higher end consumers are also taking advantage of the lower interest rate and falling into higher price bands. The profitability of investment in property to rent (“buy to let”) remains unclear in the current market. Kellerman notes that while the rental market took strain, it is recovering and will likely just need a structural adjustment as the need for renting remains. “There is still a big demand in SA to own property and rent it out because, even with lowered interest rates, it is still not possible or practical for everybody to own property,” he explains. Activity has also picked up in building loans, something Kellerman says can potentially be attributed to the supply and demand issues, but development of residential properties on both ends of the market is also picking up. Kellerman asserts that the change in the way we live and work due to lockdown will have a long-lasting shift in attitudes to residential property in general, especially as property location is no longer a top priority as remote working continues to be popular. People want larger gardens and upgraded office spaces. “Younger people are also moving out of the city and high-rise buildings and many more people are opting to buy in coastal areas. Typical holiday towns are even becoming business hubs with improved infrastructure and highspeed internet,” he adds.
PUBLICATION ADVERTISING SALES
Production: Lucea Goosen
Chantelle Balsdon
chantelle@augmentcreative.com
084 061 7888
FOCUS ON: PROPERTY GAME CHANGER ADVERTORIAL
Steyn City Parkland Residence Lifestyle estates, security villages, gated communities … call them what you will, they’re becoming an increasing feature on SA’s property landscape, driven by factors to the growing crime rate WORDS AND PHOTOS: SUPPLIED
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n an increasingly popular category, where “luxury living” has become an overtraded and meaningless phrase, one development continues to stand out: Steyn City – recognised for changing how an investor defines lifestyle while creating new standards for convenience. The reason Steyn City refuses to blend into this pack is simple, really: it’s not a golf estate or gated community at all. Rather, it’s a 2000 acre parkland residence. And it’s not surprising that, because it is not in the same league as these properties, its offering is far above them, too. This has been the intention of Douw Steyn since he first visualised the concept, and brought it to life with Giuseppe Plumari, CEO of Steyn City Properties. From the very beginning, these pioneers had a clear picture of how Steyn City would unfold. They knew that investors and prospective purchasers would be able to view all infrastructure upfront, so
that they knew precisely what they were buying into – without receiving any nasty surprises when promised amenities failed to materialise. They also knew that they would continue to build on these facilities as the development gathered traction, so that by the time Steyn City was ready to launch Phase 2, it would have established itself as an address entirely without parallel. All has gone according to plan, so much so that earlier this year, Steyn City was included in New World Wealth’s pick of the top 10 estates in the world, with special mention given to the development’s magnificent design, this owing substantially to the extensive preparation of these visionaries’ master plan. One of the reasons this design stands out is because Steyn City recreates the cities of old, where children could ride or walk safely, and their parents knew that they would see them again “at sunset”. This has been made possible through an accent on pedestrian living – a huge differentiator in a concrete jungle where people seem to live in their cars. Steyn and Plumari knew that this way of life had benefits beyond the obvious: by spending more time outside, and with their families or friends, people would enjoy the sense of community living that once marked our societies. It’s Steyn City’s remarkable size that makes this possible: six times the size of Sandton City, four times the size of Monaco and two and a half times the size of Central Park in New York, this is a place made for exploration.
A LIFESTYLE, NOT MERELY A RESIDENCE
GET IN TOUCH Sales Centre: 010 597 1040 www.steyncity.co.za
This is a true urban playground; a place where outdoors blends seamlessly with the indoors and the country-like atmosphere belies the proximity to the city’s convenience. This is another aspect that is in Steyn City’s favour: by investing in the surrounding
infrastructure, Steyn City Properties lit the spark which would see the location – once considered the urban edge – become the centre of a rapidly growing hub in Gauteng’s new north between Sandton, Waterfall and Midrand.
A PLETHORA OF AMENITIES There is no denying that the once barren quarry is now a flourishing 2,000ha indigenous planted parkland on which the development is built and gives it a certain irreplicable something, gifting every single resident with stunningly spacious breathing room – not to mention a safe, secure and well-lit promenade for walking, running and cycling. They have many other opportunities to enjoy the outdoors, too, with a purpose-built 50km MTB track, outdoor yoga and gym stations, a world class equestrian centre (complete with clubhouse), resort pools, fishing dams and 18-hole Nicklaus design championship golf course
(also with award winning clubhouse). Steyn City also offers a fully equipped gym, indoor aquatic centre, a choice of two eateries (bistro-style dining at XIX Nineteen Restaurant, and more casual fare at The Deli). Then there are the facilities provided to eradicate time-wasting commutes, such as AAA-
grade offices at Capital Park and the forward-thinking campus of the Steyn City School from Grade 000 to matric. The entire design from the original master plan has been carefully thought out to provide less hassle and more family/ personal time – which is why there are also features like a Skate Park and Dino
Park for children and teens. With so much accent on choice, it makes sense that housing is similarly versatile. From lock-up-and-go clusters, luxury apartments and stands to freehold homes, Steyn City has taken care to offer something for buyers at every stage of their life to enable them to live their best life.
HOMEFRONT INDUSTRY PLAYERS
Changing the game
We round up developers working on exciting projects who are invigorating the market with their game-changing energy WORDS: ATLEHANG RAMATHESELE :: PHOTOS: SUPPLIED
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n a market that currently favours first-time buyers and property investors, game-changing developers are making impactful strides to meet the demand, particularly in the residential sector. Between record sales and constant innovation and agility in an ever-changing market, the general sentiment seems to indicate a positive market outlook - with exciting upcoming projects to match.
CRAFT HOMES Rabie Property Group, Century City Hotel Bridgewater
Craft Homes, The Terrace at Sandton Gate
Cosmopolitan Projects, Sky City
Enjoying a successful year, including 15 active developments currently for sale and a few more in the pipeline due to launch later this year - Craft Homes offers a vast range of developments, their most common being two to four-bedroom duplex homes in sectional title properties in a range of great areas at affordable prices. These turnkey property developers have been making a tremendous impact and this is largely due to keeping a close eye on the market. Jessica Cabanita, Marketing Manager for Craft Homes, explains that while it was initially quite an adjustment and challenge to digitise their sales processes to accommodate some of the limitations imposed by the various lockdowns, they have now sold 1,500 homes purely online. Craft Homes online sales performance has been stellar of late. “We launched a development in Broadacres with 84 freestanding houses all around the R2m mark,
we sold all 84 homes in 65 minutes- all online without a brick laid on site. On June 24, 18 freestanding homes in Bryanston at an average of R2.5m all sold out in six minutes. " says Cabanita. Craft Homes’ formula has been to research the market effectively and respond accordingly. Cabanita believes that having the right prices in the right locations and ensuring that they are actually building what they have sold is one of the keys to their success. “We make sure that the end product looks exactly like the renders,” she says. Hot Property - Apartment building The Terrace (featuring 2-3 bedroom luxury apartments) within a Sandton precinct, Sandton Gate, selling from R1,8m. Construction has started and occupation is October 2022.
RABIE PROPERTY GROUP Rabie Property Group has had a dynamic development portfolio, one of the most significant being the establishment of Century City in Cape Town. Alongside Century City Property Owners’ Association, it has become a smart city and is indeed a game changer. Director Miguel Rodrigues says that they have been holistically ensuring that it is a world class place to work, live and play, “Since becoming the main developer in the early 2000s, we’ve been able to incorporate beautiful living spaces across various
residential developments, an office and leisure precinct where our Century City Conference Centre and Hotel spills out onto an urban square surrounded by offices and restaurants and much more,” he says. They are also currently working on the redevelopment of Ratanga Junction. “We’re creating an expansive water body with several islands and green space, surrounded by phased developments of different residential offerings. The first of the developments overlooking the water body is Bridgewater One, a mixeduse scheme which includes a hotel, apartments, offices and retail, he says. They will also be including a retirement development as part of this offering. Their retirement brand Oasis Life and lifestyle estate Clara Anna Fontein continue to gain traction. Rodrigues believes that people tend to buy where they see value, so he remains positive about the market and is excited about the projects in the pipeline. They have also seen good results from rapid adoption of digital property shopping. One of their key successes is their emphasis on creating an entire living experience. “Homes are where people live, dream and grow. We want to make sure we produce quality homes that allow their inhabitants to thrive and love where they live. It’s for this reason that we think that there is always a market to sell to,” explains Rodrigues. They are also positive about their developments that are exclusively for rental, as while there has been some strain on the rental market, it remains a viable sector.
SALES PERFORMANCE
(Rabie Property Group)
• Their two residential
developments on the market are doing really well, with only a few apartments left for sale prior to completion. Century City resales have had a great year. The development in Burgundy Estate launched digitally in October 2020 - with 60% of the scheme selling out in the first week. The R1m to R2m price band is very active, especially with the “younger” first-time buyers.
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COSMOPOLITAN PROJECTS It has been well documented that the reduction of the interest rate last year, among other factors, led to a surge in the first-time buyer sector of the property market. The affordable housing market, therefore, enjoyed a spike in sales. As one of the foremost developers in that sphere, Cosmopolitan Projects has been creating comfortable and connected living and full-title housing developments. Head of Communications, Alda Erasmus, says that this has a beyond favourable sales season for them, “Last year was our best year ever. 2021 has also been performing well. We have not seen a significant slowdown and continue to see good results,” she says. With an emphasis on providing connecting cities with an array of lifestyle amenities across Johannesburg and Tshwane, they have been at the helm of new affordable housing developments- some of which are mega mixed, use projects and lifestyle estates. One of the most notable is Sky City, situated near Alberton in the south of Johannesburg, a huge development with immediate access to education and child care facilities, retail and recreation that includes jogging trails and soccer fields, starting at R603,000 per month. The development also has fibre available and units come with a solar geyser. The affordable housing sector continues to boom and demand exceeds the supply, “There are only a few developers in this sector due to the huge operational and delivery constraints to overcome with contractors, suppliers, councils, deeds offices, commercial banks and development finance to deliver affordable full-title houses,” says Erasmus.
FOCUS ON: TRICOLT DEVELOPMENTS ADVERTORIAL
Trust in Tricolt Tree Tops Houghton
It’s not just the low interest rate that’s driven continued demand for Tricolt developments. Buyers are looking for quality apartments with hotel-style amenities that offer consistent capital growth - and that’s why investors keep coming back for more WORDS AND PHOTOS: SUPPLIED
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s the developers behind Tree Tops Houghton, Ellipse Waterfall, Brookfield at Royal, Eye of Africa in the South of Joburg, Serengeti Estates, The Houghton and the soon-to-be-launched One Rosebank, Tricolt’s developments cover a wide spectrum of areas in and around Johannesburg. However, despite their varied locations, there’s a common thread running through them that has enforced the company’s strong reputation. “Quality design creates properties of lasting value, provides great places to live and builds positive brand equity for our clients,” says Tim Kloeck, CEO of Tricolt.
Eye of Africa
RARE FINDS “We never launch an average product,” says Kloeck. “They’re all of exceptional quality, in convenient locations, with beautiful settings and views. While they are each unique, they are strategically positioned to not only deliver good returns to investors but also enjoy solid, consistent capital growth.” He says that Tricolt as an entity is in the envious position of having its own following, with investors tapping into their collective vision across offerings and not just in individual developments. “The demand is there for us – across the board,” says Kloeck. “We’re seeing buyers coming into our sales centre and not
Brookfield at Royal
GET IN TOUCH Tricolt developments Tel: 011 483 3655 Email: info@tricolt.co.za https://www.tricolt.co.za Houghton Residences
Ellipse Waterfall
just buying a unit in one property, but in our others as well. That’s down to the return on investment they’ve experienced.”
LIVE WORK AND PLAY Tricolt delivers an average of 400-500 units per year, but it’s not just the welldesigned, well-appointed apartments that draw buyers. Its developments are packed full of amenities. From restaurants, delis and clubhouses to gyms, lagoon and lap pools and play areas, careful thought has been paid to how South Africans want to live, work and play. “They want to be able to safely spend time outside, and entertain clients and friends in hotelstyle restaurants, bars and clubhouses,” says Kloeck.
LOOKING TO THE FUTURE The developer has just handed over the first 240 apartments in its Ellipse Waterfall development and has had an outstanding response from new owners. They’re not resting on their laurels yet, though. The latest Tricolt project One Rosebank will add 600 apartments to the trendy Johannesburg suburb of Rosebank and is well-positioned close to the area’s shopping district. Amenities play a huge part in the offering, says Kloeck. “Small apartments need serious amenities, so we’ve planned to add a Sky Bar, pool, clubhouse, gym and business centre, as well as e-bikes on street level. It’s a new development that I’m incredibly excited about!”
HOMEFRONT
PROPERTY TREND
Property market shows resilience And here’s how your retirement fund can help you get a foot on the ladder WORDS: SUPPLIED :: PHOTOS: UNSPLASH AND ISTOCK
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anks don’t always approve a home loan for the full property price, but Shameer Chothia, consultant at Momentum Corporate, explains how your retirement savings can help bridge the gap.
Although the world may have been flung into a Covid-19-induced economic recession, that hasn’t stopped some markets from thriving, despite the odds. Property is the perfect example of a market that has seen unexpected growth in a time of
expected decline. In fact, Standard Bank, which accounts for more than a third of SA’s home loan market, reported that home loans granted in SA increased by 13% in 2020. Without denying the reality of the current global recession, markets do
recover over time and, as property prices have come down, it definitely is a buyer’s market and property has remained an attractive investment. Deputy CEO of Momentum Metropolitan Jeanette Marais said recently on DStv money
show Geldhelde that property is the biggest investment most of us will ever make. She advises’ “Before investing in property, always speak to a qualified financial adviser to make sure this decision will benefit you on your journey to financial success.” But, with all these home loans being granted, many would-be property owners don’t realise that banks sometimes grant home loans for less than the listed property price. Chothia says that as with any big purchase, few of us have the reserves for a cash deposit and need to look at other possible avenues to access a loan. “One area many people overlook is a ‘pension-backed home loan’,” explains Chothia. Some retirement funds offer pension-backed home loans to qualifying members who plan to use it for a primary residence. As a member, you can get access to a portion of your accumulated savings as a loan towards buying property or land, or to pay for transfer and bond registration costs. Chothia explains that once approved and paid out, you pay this loan back over an agreed period. Some leading umbrella funds offer this facility through
the fund’s sponsor or insurer at even better rates than the banks. “A pension-backed home loan can also help existing homeowners who want to make improvements to their property to increase its value. It’s also a great time to fix up all the little bothers since many people are working and spending most of their time at home these days,” Chothia points out. He adds that pensionbacked home loans offer numerous advantages: No bond registration costs. Low initiation and monthly fees. Favourable interest rates. Instalments deducted directly from the member’s salary, with no debit order fees. Low risk of defaulting on the loan, as long as you’re employed and earning a salary. To qualify for a pensionbacked home loan, Chothia says you will go through the usual bank approval process, with the same requirements for supporting documentation. “You must be able to afford the monthly repayments, may not have any garnishee or administration orders against you, may not be under debt review or sequestration, and must have at least an acceptable credit score,” he explains.
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The size of the loan will vary from fund to fund, but Chothia says it will generally be a maximum of a specified percentage of the member’s withdrawal benefit.
BUT IS IT A GOOD TIME TO BUY? “We can take comfort in the fact that history has shown that markets recover,” says Chothia. He points to the 2008 financial crisis and other world economic crises, saying many property specialists have faith in the resilience of the South African property market and that it will ultimately recover. “People who bought property just after the 2008 crisis have had excellent returns on their investments. It’s just a matter of how long the current decrease in property value will last, but this could be the perfect time for buyers who are willing to wait out a few years.” Buying property is a big decision and a long-term commitment. Chothia highlights that many retirement funds have benefit counselling services to help you understand the pensionbacked home loan benefits you have with your retirement fund.
FOCUS ON: DEVMCO GROUP ADVERTORIAL
Desirable North Coast living Developer Charles Thompson reveals his secret to success and vision for the future. WORDS AND PHOTOS: SUPPLIED
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he KwaZuluNatal North Coast has transformed dramatically in the past 10 years. Many contributing factors have influenced the demand for this region, including the close proximity to King Shaka International Airport and coastal estates that are safe, affordable and provide residents with a quality of life that’s difficult to achieve while living in densely populated inland urban areas. Stefan Botha, Director of Rainmaker Marketing, says: “The significant growth of the property market within the North Coast absolutely flourished during a period when the economy, as a
whole, was under pressure. Contributing factors to this growth include the decreased interest rate the lowest it has been in almost 50 years. People are now prioritising lifestyle changes and semigration is happening in SA; individuals and families are moving from Johannesburg and Pretoria to coastal regions such as KwaZulu-Natal. Climate, positioning to the airport and working remotely have been affecting property choices since the beginning of lockdown and have now been accelerated post the hard lockdown.” Says Charles Thompson, Director of Devmco Group: “Devmco Group has
spearheaded many of the largest, most innovative mixed-use developments, including lifestyle estates across the KwaZuluNatal North Coast. Before we begin any project, we conduct extensive research with our partners at Rainmaker Marketing to understand the needs of the market, how we can meet those needs and design developments that stand the test of time by creating forwardthinking lifestyles. “From the development of the iconic Umhlanga Arch, to Pebble Beach and OceanDune and Gold Coast Estate, including recently launched Salta Sibaya which achieved a
sales record for the province in March 2021, Devmco is proud of the legacy we’ve managed to leave behind in collaboration with our partners. Most of what we do is driven by the demand for safety, convenience and close proximity to Gateway Theatre of Shopping, beaches as well as Umhlanga and the airport. “All of our developments have been driven by SMART technology and sustainability, including a strong desire to create beautiful spaces, homes and commercial options in the North Coast area – which has been relatively untouched until a few years ago,” continues Thompson. “In terms of our
contribution to the overall economy as well as job creation to date we’ve managed to secure 5,000 jobs locally (we anticipate a further 80,000 employment opportunities over the next 10 years) and we’ve implemented and steered the growth in the Sibaya Coastal Precinct which has achieved more than R4bn in residential sales within the first five years of development. Our strategic partnership
with Tongaat Hulett” Property has paved the way for catalytic growth in an area of interest to investors, and without their collaboration we wouldn’t be where we are today. “Looking ahead we have big plans to further develop the Sibaya Coastal Precinct to add hospitals and schools to better serve the growing, integrated community in this desirable area,” says Thompson.
GET IN TOUCH Tel: 087 550 1300 E-mail: info@devmcogroup.co.za https://devmcogroup.co.za/
FOCUS ON: ZIMBALI LAKES ADVERTORIAL
Property boom on KwaZuluNatal North Coast The property landscape of the KwaZulu-Natal North Coast is changing rapidly WORDS: FRED FELTON :: PHOTOS: SUPPLIED
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here is a huge amount of construction on the go at the moment and much more planned for the next 50 years in this area. The Cornubia Integrated Human Settlement Development is an integrated housing, industrial and retail development. It is being developed in partnership with eThekwini Municipality and Tongaat Hulett and various other private sector investors. Phase 1A and Phase 1B of the housing component have just been completed. Social facilities, amenities and community retail facilities are being implemented. It is situated north of Umhlanga. eThekwini Municipality Mayor Councillor Mxolisi Kaunda said these developments the city is implementing will have the potential of bringing in more than R14bn investment
into the city of Durban. As one moves up the north coast you will find more activity in the Sibaya precinct. Development is expanding not only inland but also on the beachfront side. North of Sibaya one will find the biggest development yet. The Dube TradePort Economic Zone is a property development that could take up to 50 years to complete. The main catalyst of this project is the construction of an aerotropolis, the first of its kind for KwaZulu-Natal. The whole economy of this area will be built around the airport. It features a vast array of projects including logistics and manufacturing infrastructure and support for a range of airportrelated activities. The zone also offers cargo operations, warehousing, agriculture and commercial real estate for office, retail and hospitality.
It’s owned by the KwaZulu-Natal provincial government. Dube TradePort is the province’s flagship infrastructural development and key priority, forming part of SA’s National Infrastructure Plan. It is linked to two of Africa’s major seaports and major national roads. The focal point of this development is King Shaka International Airport. It’s perfect for local and international transport routes. Dube TradePort is a 50-year master-planned airfreight and passenger hub, comprising five zones: Dube TradeZone will be a prime fully serviced industrial precinct of 77ha growing to 300ha, for electronics, pharmaceuticals and aerospace manufacturing, assembling and distribution. Dube Cargo Terminal will deal with cargo handling. Dube AgriZone
is an advanced agricultural precinct. Dube City will be a 12ha premium business and hospitality precinct, just three minutes from the passenger terminal. Dube iConnect features cutting edge telecommunications and cloud service options. It services the Dube TradePort precinct. When it’s completed the whole project aims to connect the Umhlanga, Sibaya and Dube TradePort area into one huge economic hub of activity. Further north adjacent to the ultra-luxurious Zimbali Coastal Estate one finds the latest Zimbali development being built,
namely Zimbali Lakes. Phase 1 of the development is more than 83% sold out and phase 2 has already achieved sales of 57% so it is clear there is much demand for these types of developments along the north coast. Zimbali Lakes is poised to meet the growing demand for homes and clusters in this epitome of refined coastal living. In May 2021 most of the construction for installation of services had been completed. Bulk earthworks is 90% complete, roads are at 70% complete, sewer pipelines are 85% complete, stormwater pipelines are 85% complete, water is 90% complete and ducting is 85% complete.
GET IN TOUCH T: (+27) 32 538 1205 | M: (+27) 84 202 8267 dave@zimbalilakes.co.za www.ifahotelsresorts.com
Construction of the new intersection which will serve the Zimbali Lakes Resort and the Boulevard precinct is under way. Construction of the circle is expected to be completed by Q3 2021. Zimbali Lakes is uniquely situated close to the airport and also to holiday hotspots such as Ballito. This makes it the perfect workfrom-home destination for buyers from Gauteng and elsewhere in SA. Zimbali Lakes sales and marketing manager Dave McGregor said the north coast corridor around Ballito is experiencing an unprecedented level of interest with about 50 families a month semigrating from the inland provinces to their former holiday destinations. The onset of Covid-19 has proven that working from home and quality of family life in a safe and secure environment is top of mind. McGregor said they sold more than R120m worth of property over the past three months and demand was not easing off. McGregor anticipates that within the next five to 10 years the Zimbali node will experience rapid growth given its proximity to King Shaka International Airport. McGregor also shared what is on the cards for this multigenerational way of living. There will be a bustling retail piazza, family focused facilities, serene green spaces, a golf course and vast lakes with a waterfront development and Beach Club. First transfers of property will take place in Q3 2021 and building activity of the next level of workfrom-home residences incorporating all the features of smart living will commence before year end. Further up the north coast another sizeable development is on the go. Phase 1 of construction for the R200m titanium dioxide plant has begun in Richards Bay. This plant is part of the Richards Bay Industrial Development Zone (IDZ). Once the plant is fully developed it will provide R4.5bn in investment. More than 1,000 jobs are expected to be created in the initial stages. Future generations that reside, work and play in the area will certainly get to experience this rapid property boom on the KwaZulu-Natal North Coast.
FOCUS ON: ELITE RISK ACCEPTANCES ADVERTORIAL
SA’s super-rich numbers set to grow But many fail to take adequate steps to protect their assets against risks WORDS AND PHOTOS: SUPPLIED BY CHRISTELLE COLMAN, MD ELITE RISK ACCEPTANCES, A SUBSIDIARY OF OLD MUTUAL INSURE
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he global pandemic may have changed the world, but for the super-rich, who spend their money on flash properties, fast cars, super yachts, luxury handbags and other goods, Covid-19 brewed pent-up demand, resulting in a spending spree. We also continue to see that the ultra-high net worth investor, informed by uncertainty, looks for alternative asset classes to diversify portfolios and provide resilient returns. This may explain why Hermes handbags were
the best performing luxury collectible for price growth in 2020, up 17%, followed by fine wine (up 13%) and exotic cars 6%, according to Knight Frank’s Luxury Investment Index. Furthermore, according to the Wealth Report 2020, SA is the largest wealth market in Africa and the 32nd largest worldwide in terms of total wealth held. It suggests that the SA luxury sector generates revenue of about $2bn per year. Yet, unique challenges plague SA’s wealthy when it comes to protecting their wealth against risks. Despite
spending mega money, we continually see high levels of underinsurance on high ticket items. In the context of SA, in which crime is rife and often sophisticated, this is risky. This can be attributed to the complicated risk management needs of the ultra-rich, who often make the mistake of overinsuring against low risk threats. This can be especially devastating for those with tangible collections of passion investments, whether it be classic cars, jewellery or art. Furthermore, investors
with sizeable collections often assign a substantial amount of sentimental value to their collections, but do not always realise their financial value. In SA, the wealthiest investors prefer to have collections in art, classic cars, jewellery, fine wine and watches. Watches under the Patek Philippe name brand, both classic and new, fetch the highest prices by HNWIs, according the SA Wealth Report 2020. Data suggests that many of the super wealthy are clueless as to the value of their collections, and
therefore don’t insure it. A US study suggests that of 2,475 investors who can be classified as wealthy, 44% have not had their collections insured. It also found that roughly 40% of wealthy collectors don’t know the full value of their collection, while 51% have never had their collection appraised. As the numbers of the super-rich rise, wealthy investors should carefully consider their unique risks and remember that it pays to insure collectibles and assets. The Knight Frank Wealth
Report 2021 suggests that there were 44,605 dollar millionaires living in SA as of December 2020. This number is expected to grow to 63,400 by 2025. It also suggests that Africa is expected to see the second biggest regional five-year growth in ultra-high net worth wealth investors (UHNWI), a rate of 33% – led by Zambia and SA. How can the super-rich take adequate steps to
protect their assets against complicated risks?
CHOOSE A SPECIALIST UNDERWRITER The most important thing to do is to work with a specialist underwriter who offers comprehensive and tailor-made solutions, given the sophisticated needs of the wealthy. This will allow the HNWI to have complete peace of mind and confidence that
their assets are adequately protected. Make sure that the specialist underwriter is able to provide access to a network of specialist services in various fields, as well as collectable valuators, security advisers and motor vehicle repair professionals. HNWIs must also ask their specialist underwriter whether their claim service is efficient and discreet, which is in keeping with the unique needs of collectors.
OWNERSHIP OF ASSETS HNWI tend to register ownership of their assets in private entities such as trusts, companies and closed corporations. Brokers must work closely with their clients to understand the ownership structures of all assets – as they would for ensuring a business with multiple entities – to ensure that insurance cover is properly coordinated and adequate risk protection is being provided.
SECURITY RISKS
GET IN TOUCH Tel: 086 011 1022 Email: reception@eliterisk.co.za Website: www.eliterisk.co.za
Security at home and during travel, including the risks of political turmoil and global conflict, remains a top concern for HNWI. For wealthy families with complex risk exposures, it is highly recommended that a security expert is consulted. These experts typically provide a full risk assessment that would minimise any security breach, such as home intrusions, a cyber-breach or any other issue that could put the family at risk.
HOMEFRONT
PROPERTY INVESTMENT
Crowdfunding and property investors
Why crowdfunding has so much to offer property investors WORDS AND PHOTOS: SUPPLIED
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roperty, one of the biggest and most trusted asset classes, offers investors a wide range of options, each offering something a little different. Crowdfunding and real estate investment trusts (Reits) are two options. As the golden rule of investing is to do your homework first, here are some of the benefits and downsides to crowdfunding and Reits to help investors make more informed decisions.
WHAT IS CROWDFUNDING? Crowdfunding involves a group of people joining forces to fund a project or venture together; it is also a form of crowdsourcing. It usually takes place online and each venture involves three groups – the project initiator, who comes up with the project; the individuals or groups that support the idea; and a moderating organisation who brings the parties together to launch the idea.
WHAT ARE REITS? Reits are specialised mutual funds focused on property and traded on stock exchanges, including the Johannesburg Stock Exchange (JSE) and New York Stock Exchange (NYSE). The investors do not own any of the actual property, but rather a share of the total fund that owns the property.
HOW CROWDFUNDING AND REITS COMPARE:
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property are not transferable and the money is received only at the sale of the project or during refinancing, making them a relatively illiquid asset, though online investment platform Wealth Migrate, for example, pays out quarterly dividends. Reits, on the other hand, are highly liquid, which is good news if you need to get your hands on funds quickly, but this liquidity comes at a cost as Reits are at the mercy of market sentiment. With crowdfunding, investors can vet the other members of the group and
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do thorough research into the project before signing up, so you know that the people involved in the project have the relevant experience and skills. Wealth Migrate uses its GIDDS System, a globally recognised system that gives investors access to partners in the right markets. “We are proponents of educating investors to ensure that
everyone is in a position to make more informed decisions,” says Wealth Migrate CEO Scott Picken. With Reits, where investors are buying shares in a fund that owns the property, it is difficult to get information on who is managing the property, for example. Managing property is expensive and, as every homeowner knows,
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neverending, but Reits do not spare investors from extra costs. The fee structure is often based on assets under management (AUM) and not necessarily aligned to investors’ long-term interests. There are also middlemen involved in selling and marketing Reits, which can dilute investors’ returns. Reits tend to be more of a hands-free investment,
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while crowdsourcing allows you to feel part of the project. Investors who prefer more of a hands-on approach may find investing in Reits unfulfilling. There are many ways to invest in property, but whichever one you choose, begin with good quality research and partners you can trust with your hard-earned money.
ABOUT WEALTH MIGRATE Wealth Migrate is a trusted global real estate marketplace which allows investors to safely invest internationally, in quality opportunities, thus achieving wealth preservation. They have members in 133 countries and have facilitated real estate investments of more than $600m on four continents with investors earning an average of 8% cash on cash in dollars for the past six years and IRRs of 13% to 20%. For further information please visit wealthmigrate.com @Wealthmigrate #Wealthmigrate
Wealth Migrate CEO, Scott Picken
HOMEFRONT PROPERTY TREND
Cutting-edge structural engineering
Out-of-the-box thinking results in 16 on Bree - where modern meets heritage WORDS: SUPPLIED :: PHOTOS: FWJK
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s a developer well-known for iconic and technically demanding projects, FWJK Developments knew that Zutari would be able to pull off the tallest residential and second-tallest mixed-use development in Cape Town in the past 20 years. As if this was not enough of a challenge, a key requirement for the City of Cape Town’s development approval was to retain the 12m-high existing heritage façade. Zutari had collaborated with FWJK Developments before as structural engineer
on the nine-level The Docklands mixed-use building, less than 200m from the V&A Waterfront Marina in the scenic De Waterkant Village in Cape Town’s sought-after Prestwich Street. The site had an existing office building with one level of semibasement parking, groundfloor parking and three levels above that. The challenge here was that, over and above the tight budget and time constraints, the new development required an additional two basement levels to be constructed below the existing fourstorey structure and three levels to be constructed on
top of the existing structure. Used to devising out-ofthe-box engineering solutions, Zutari came up with a lightbulb idea that allowed the centre of the building to be retained, while excavating and constructing new basement levels below and adding new floors on top. This was done by means of a novel “underpinning” method that included constructing new steel micropiles through the existing foundations in a four-pile group arrangement per column, and connecting the piles to the existing columns with transfer steel pods. The structure that was retained was then strengthened with steel additions to the columns to allow new floors to be stacked on top like a deck of cards. The Docklands project has been lauded as a significant paradigm shift in what is achievable in terms of structural engineering in SA. “It was technically challenging throughout. However, we managed to come up with a costeffective solution involving the contractor throughout to ensure it was buildable. It was a mutually beneficial and enjoyable working relationship with FWJK Developments, and as a result we were appointed as the structural and civil engineers for 16 on Bree,” says Nick Bester, Building
Structures Associate at Zutari. The rest, as they say, is history. At 120m and 36 storeys, FWJK Developments conceived the project as an iconic high-rise to meet the demand in the market for quality residential apartments. The main attraction of 16 on Bree is the combination of its height and location, offering residents unrivalled views of Cape Town’s natural beauty, while still being in walking distance of the V&A Waterfront and the central business district (CBD). As with The Docklands, there were tricky challenges to overcome, the first of which was preserving the heritage façade while constructing the superstructure behind it. Not only did this call for innovative, world-class structural engineering, it also had to fit within the project budget and time frame. Why was this such an important requirement? Bester points out that the existing building was deemed to have significant historic urban heritage value. In addition, retaining the heritage façade creates an eye-level experience that blends in seamlessly with the surrounding area, as conceptualised by the developer and architects. “The old and fragile exterior stone wall of the
heritage building around a portion of the site had to be preserved. In order to maximise building area, the new superstructure had to be built right behind the wall, which also meant that heavy construction machinery had to move around behind the wall in close proximity for the duration of construction,” says Bester. To give an indication of the extent of the façade, 12m high equates to four storeys. “The wall at that height was obviously not selfsupporting, especially if we were to remove everything else around it. The only viable option was to support it from the street side, but this was a limited to a 3m wide pavement width.” Zutari’s innovate solution to support the façade while construction carried on unabated behind it was to
install a steel bracing system with large counterweights on the street side that stabilised the wall. Another key consideration was that any support had to be temporary in nature so it could be dismantled quickly and easily. “The support had to come down so that the view of the heritage façade from the outside of the building was unobstructed and because the sidewalk needed to be accessible post-construction. We worked together with the contractor to develop a lightweight steel truss solution that could be removed easily after construction, once the wall was connected to and supported by the building,” says Bester. This sounds straightforward, but bear in mind that once the parking levels behind the wall had
been built, the wall had to be tied into the concrete floors using movementcompensating connections to accommodate any differential movements between the heritage façade and the superstructure. The challenges did not end there. Building within the CBD is tricky enough due to the small plot sizes and need to maximise every square metre of the site for feasibility due to higher land costs. Furthermore, sites within the CBD are typically too small to comfortably accommodate parking garages, which have specific geometric requirements. “If you have tried to park in the Cape Town CBD, you would have seen that parking in most of the buildings is extremely tight. To enable proper parking circulation in 16 on Bree, we had to design a
compressed lift-shaft core in the middle of the building,” says Bester. The core is the spine of the building that gives it structural stability, especially one as high as 16 on Bree. The taller the building, the more critical the core, and also the larger it needs to be as a result. “There are ways and means of getting around having a larger core. We did not have the luxury of a large core as we needed space and circulation for parking.” The ingenious answer was to use outrigger walls to stiffen the core by connecting it to enlarged perimeter columns on the upper levels of the building. This resulted in a “push-pull” effect between the core and the enlarged columns, greatly enhancing the lever-arm of the force-resisting mechanism. Another complication was that the original apartment layout had a passage around the lift core that would have cut off the critical connection of the outrigger walls to the core, meaning it would not have worked as a solution. Here Zutari collaborated with the architect and service engineers to reconfigure the access walkway so that some apartments are directly entered off the lift lobby, thereby freeing up sellable area, as well as allowing uninterrupted connection between outriggers and lift shafts. This not only resolved the main problem, but also allowed the architect to use the enlarged perimeter columns as an aesthetic feature, which is clearly visible on the northern façade. Zutari is one of the oldest consulting engineers on the continent. It was formerly known as Aurecon, the result of the merger of Africon, Connell Wagner and Ninham Shand in 2009. The latter can trace its history in Africa back to 1932 – operating for almost nine decades. In July 2020, the company was officially launched as Zutari, following the separation of the African business from the Aurecon Group. The global reach and size of Zutari remains impressive, with offices in Cape Town and Johannesburg, and in Dubai and Abu Dhabi in the Middle East. Its significant skills base allows the company to operate what it calls Global Design Centres, allowing it to tender internationally for design work it parcels out to all of its offices, meaning that due to time differences, any team anywhere can work on a project 24/7. It is an ingenious solution. But then Zutari prides itself on its capability to push the envelope. One just has to look at 16 on Bree, with its elegant heritage façade, preserved with the latest structural engineering solutions.
HOMEFRONT
HOT TOPIC
New property tech platform
PropertyClan CEO Michael Egner
App makes property investment opportunities accessible to first-time and seasoned investors alike WORDS AND PHOTOS: SUPPLIED
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esidential buy-tolet property is a much-favoured South African investment and now a new app provides you with the right tools so you can invest like a professional. The PropertyClan app provides a curated selection of off-market deals, complete with professional-level analysis, based on your personal investor profile. “We wanted to create an application that made investment-grade property investments accessible to anyone, regardless of their skills or experience,” says PropertyClan CEO, Michael Egner. The app was developed by dynamic young entrepreneurs Marnus Weststrate and Michael Egner who have pooled their considerable skills to address two of the biggest hurdles facing would-be property investors: sourcing the right properties and correctly analysing potential property investments. Westrate is a chief technical officer who was one of the youngest South Africans to complete a doctorate in engineering after completing undergraduate degrees in computer and
electronics engineering simultaneously. Egner is an investment analyst by profession and his expertise in deal-making and financial modelling is at the heart of the product’s design. The cofounders are experienced property investors in their own right, having had personal experience of the struggles people face when trying to get into the investing game.
HOW IT WORKS The platform simplifies the investment process in four ways: it finds suitable properties for you, matches them to your profile, streamlines the entire transaction and, optionally, manages the property for you. Instead of searching for properties online, contacting estate agents and visiting countless properties that don’t meet your requirements or preferences, the PropertyClan app brings pre-analysed deals to you based on your specific investor profile. Your investor profile contains important information about you such as your risk tolerance and specific financial goals. “We need to understand
our users to send the opportunities that are appropriate for them,” Egner says. Once you sign up, one of PropertyClan’s Investment Strategists will be in touch to assist you to create your profile through an in-depth discussion of your needs, preferences and risk appetite. The discussion helps to identify your financial aspirations and to determine what type of investment risks you are willing to take. “The risk of most investment products, such as unit trusts, is measured in volatility. Property isn’t so simple. Every property investment comes with multiple nuanced risks which can affect the investor in different ways – all of which we account for in our process,” says Egner. For instance, some investors are cash flow sensitive and will require investments to be profitable from day one, even if that means less capital gains. Other investors may be more aggressive and willing to accept short-term pain for long-term gain. An important component of property investing is having all the necessary information. PropertyClan
collects the data and crunches the numbers, providing you with the calculations you need to make an informed decision. This includes the estimated overall investment return which you can then compare to other investment opportunities you may be considering. The Google Maps integration on the app allows you to explore the area where a property is located. You can also view a 3D walkthrough of the property on the app. “You can participate in some of the country’s best opportunities from the comfort of your couch,” Egner says. Of course, if you prefer physical visits, these can always be arranged. To provide you with a reliable property-buying service, the PropertyClan team has lined up the best professionals in their fields – such as conveyancers, mortgage bond originators, and deal structuring experts – to deliver specialised services all via the platform.
HOW PROPERTYCLAN SOURCES PROPERTIES Many of the best assets don’t make it to public platform listing sites because they are
snapped up by professional investors before they get there, but now PropertyClan’s users can also have a bite at the cherry, he says. PropertyClan secures off market deals through its professional networks and partnerships. This includes offering properties that are about to be sold off by institutional investors and new developers. “More than 90% of the properties we analyse do not pass the screening criteria that are in place to protect our investors,” Egner says. “For first-time investors, we usually have lower-risk properties available that are already tenanted. Our number one priority with beginner investors is to get them off to a solid start on their investment journey and grow them steadily into confident professional investors,” Egner explains. PropertyClan will also soon offer fractional investments where you will be able to purchase a portion of a large building with multiple tenants in it. All the founders walk the talk and, as seasoned investors, have personally invested in each of the projects they have made available on the app.
WHAT IT COSTS Signing up with PropertyClan is free and you are not charged fees to use the app. Investors do not need to pay transfer duties or conveyancing and bond registration costs on most investment offerings. For repeat investors, PropertyClan has a paid membership called PropertyClan Prime. The perks include discounted property management and conveyancing fees and priority access to new deals. Prime membership costs R800 per month.
SIGNING UP ON THE APP Egner says investors are signing up at a rate of 10 to 20 per day. More than 25% of its subscribed investors are already experienced in property investing. You can sign up by downloading the PropertyClan app on your device’s app store. Once you have gone through the complimentary consultation with an investment strategist to determine your risk tolerance, you start receiving property deals via the app. You can then either evaluate the property opportunities yourself or
discuss them with one of PropertyClan’s investment strategists. “Signing up doesn’t commit you to anything. You can explore opportunities and discuss your interests with the team. You’re only committed
when you sign the final paperwork on a deal,” Egner says. Go to www.propertyclan.com and sign up today to get onto the wealth creation snowball effect property investing offers.