Business Day HomeFront 10 August 2018 by The Creative Group

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 10 AUGUST 2018 WWW.BUSINESSLIVE.CO.ZA

MUST READ

Designers fly SA flag in Paris PAGE 2

Johannesburg

Big ideas to transform Bellville PAGE 4

Cape Town

Portugal: hot EU investment haven PAGE 10

Foreign buyers keep faith

Cheaper office space alternatives

The Western Cape and Gauteng still appeal to foreigners for property investments

PAGE 6

PAGE 12

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HOMEFRONT DESIGN

Next stop Paris Nine South African designers are getting a leg-up at the world’s oldest and most trend-aware design fair WORDS: HILARY PRENDINI TOFFOLI :: PHOTOS: SUPPLIED

Cubic by Minima Rus stool by Vogel

wice a year about 3,000 design companies from around the world put up their stands for five days in a vast exhibition hall in Paris. Maison&Objet is a trade fair that has risen to the top of the design world since it was launched 22 years ago when seven Parisian design fairs joined forces. It provides designers with a platform to be noticed by international buyers looking for homeware discoveries. Besides its size and global reach, what makes Maison&Objet unique is its emphasis on artisanal craftsmanship. Which is why South African designers, who tend to manufacture their products, or at least have a hand in the production, are such a great fit at this fair. Whereas in the past it was the large stores that had the infrastructure to import from Africa, with modern technology smaller artisanal stores and design shops are beginning to import, direct from South African companies, designs that are

in fact functional artworks. Small businesses like these play a crucial role in creating income for communities. That is why the Dutch government’s Centre for Promotion of Imports from Developing Countries (CBI) is providing some of SA’s most savvy and imaginative design companies with mentorship and financial backing — including a stand on Maison&Objet. Nine local brands are exhibiting at the show in September.

PROCESS Maison communications director Philippe Chomat says the history and creation process of the objects they purchase increasingly intrigues consumers. “The trend is to replace the creator and manufacturer at the very centre of design and share their story with the rest of the world.” Dutch trends expert Irene Vermeulen runs the CBI’s Export Coaching Programme for SA with her Cape Town-based South African colleague Solly Levy, who notes that the explosion of creativity after

the stifling years of apartheid continues unabated. “Designers are looking to their own experiences and geographical uniqueness in creating work that has authenticity and integrity of provenance,” says Levy. A case in point is the Meyer von Wielligh furniture company. “Abrie von Wielligh finds inspiration in South African nature and the landscape,” says Vermeulen. “The company has immaculate craftsmanship. That they are designer-manufacturers appeals to Europeans.” Their distinctive signature is at its most striking in their exotic new Two Oceans cabinet, whose sculpturally handcarved, asymmetrical doors in American walnut put it on a fresh and original stretch of homeware turf. “Vogel is another designermanufacturer with an impressive factory,” says Vermeulen, “which also does hand weaving on its wooden furniture. John Vogel is brilliant, well known for his chairs and stools with handwoven seats.” Kudu

“Abrie von Wielligh finds inspiration in South African nature and the landscape” Irene Vermeulen, trends expert

Beloved Beadwork

HOMEFRONT

“You have to exhibit at Maison at least three times before European buyers take you seriously” Binky Newman, Design Afrika

horns are the inspiration for some of Vogel’s designs, while trees inspire some of Abrie von Wielligh’s.

HERITAGE South African flora get a design tweak on Skinny laMinx’s popular fabrics, and are an integral part of Evolution’s inimitable textiles, some of which are sun-printed using real plant material, and have unique heritage narratives. All will be in Paris next month. As will the chic and immaculately crafted modernist furniture of Saks and Indigi. “You have to exhibit at Maison at least three times before European buyers take you seriously,” says African basketry specialist Binky Newman of Design Afrika. “International buying patterns are changing. They’re placing orders more

Holo by Vogel

Umthi bar stool and stone drinks cabinet by Meyer von Wielligh PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130

Kalahari Grass by Design Afrika A

EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand

frequently and want new product more regularly. This fits our production capabilities.” It also means the eight Xhosa basket weavers she works with from Cape Town’s Dunoon township, and the 200 weavers in villages across southern Africa, don’t have to wait months for payment. “Baskets are key items in European interiors at the moment,” Vermeulen says, “and Binky’s stand always draws crowds.” These are gamechanger baskets. New shapes that appeal to the contemporary market while still employing traditional weaving techniques. Last year their striped gourd-shaped Kannitraki was the most frequently viewed product on the Maison website, while their Bulawayo garlic gourd baskets resembling heads

of garlic are in Conran stores in London and Paris. Minima’s simple, elegant digitally cut bamboo and birchwood lights also push boundaries, manipulating arcs and angles for lighting effects. Minima’s Jacques Cronje says CBI’s input has been invaluable in gaining knowledge of the EU market, product range development and awareness of trends, pricing and marketing.

FEEDBACK Cronje believes that, unlike First World companies where designers simply pass designs on to the manufacturers, our local designer-maker process results in feedback that leads to more creativity and experimentation. For Anna Richerby of the Cape Town-based jewellery collective Beloved Beadwork, it was the second year at Maison that made the difference to the sales of her company’s exquisite, intricately woven glass bead necklaces, earrings and bracelets. That was when they met their dream client, London’s V&A Museum Shop, and showed their first artwork along with their jewellery — a 2.8m-wide map of the world containing 380,000 beads and depicting 5,000 years of world trade in glass beads. Since then their business has grown enormously. Richerby believes SA is a great country from which to run a creative business. “SA is aesthetically rich. Where we can compete is in creativity and skill. We have that in abundance.” Maison&Objet runs from September 7 to 11 at the Parc des Expositions on the outskirts of Paris. mom.maison-objet.com/en

PUBLICATION ADVERTISING SALES

Managing Editor/Copy Editor: Michael van Olst Production: Joanne le Roux

Michèle Jones Susan Erwee

michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info

084 246 8105 083 556 9848

HOMEFRONT URBAN DEVELOPMENT

Why Bellville? Its inclusive growth model could become a successful African urban regeneration example and a second economic node to alleviate Cape Town’s congestion WORDS: RYAN CRESSWELL AND JUSTINE WESTWOOD :: PHOTOS: SUPPLIED AND NATASHA LASSEN

“The area’s strong music culture heritage should be harnessed to create a unique identity” Frank Cumming, director, urban catalytic projects, City of Cape Town

ities around the world are growing at an increasingly fast pace and as a result they are striving to re-imagine their urban landscapes and how we interact within them. The urban sprawl around Cape Town is a case in point. The Voortrekker Road Corridor (VRC) links the Tygerberg area to Cape Town’s CBD (Voortrekker Road runs 17km from Salt River Circle to Stikland bridge). The VCR is a major segment of this long-term transition and the city of Bellville is central to the plan. Speakers at a recent conference titled Why Bellville? pointed out that the metro forms a second economic node that could alleviate central Cape Town’s congestion. In recent years Bellville may have seen some capital flight and a pause in development, but under the auspices of an organisation named the Greater Tygerberg Partnership (GTP), inclusive and innovative ideas are being discussed to turn Bellville into a thriving

hub. Frank Cumming, City of Cape Town director of urban catalytic projects, says Bellville’s model of inclusive growth could become a successful African example for urban regeneration. This is how:

1. Potential Bellville offers an alternative to existing business areas and also potential for much more regeneration and development. Gershwin Fortune, acting commissioner of Cape Town’s transport and urban development authority, says developments should match residential and employment density in “closer proximity” to one another. The VRC is one of the economic backbones of the Cape Town Metropole and there is growing demand for more rental accommodation along its length. The corridor already has a high range of job opportunities across skill levels. There is a large concentration of academic institutions with thousands of students providing part of a broad consumer base. Bellville and nearby Parow

3. Possibilities

are well connected to public transport and good medical services. These factors can be used to enhance regeneration in an area that has seen some urban decay and economic stagnation. However, groups such as the GTP, which aims to revitalise this large node, are encouraging discussions around a distinct vision for the area.

2. Involvement Cumming says the City of Cape Town and the GTP are encouraging more stakeholders and private sector partners to become involved in driving Bellville’s development. Sanlam senior facilities manager Ian Erlank says the company operates its international business from its Bellville head office. He says corporate support for urban development is increasingly important and stresses that corporations should consider social issues. Development needs to encompass a wider range of participants and not just be profit-driven. Artists could also be involved to encourage innovative ideas.

GREATER TYGERBERG AREA FACTS

1979 Bellville was given city status

3,500 SMEs 2,500 industrial

businesses

350,000 citizens 100,000 students 10 hospitals 9 tertiary institutions 162,000 public

transport commuters

Design Lab principal Mokena Makeka says an off-the-shelf approach will not work for the unique problems of a modern African economic node. The development of cities of the future requires complexity of thinking to “imagine a city of possibility, not one of difficulty”. South African cities need to meet the challenge of inequality on several levels, from access to public transport to lifestyle and housing. This city of possibility would broaden existing 24-hour economy areas and integrate shops, the informal sector, accommodation and public services. Future cities should also optimise green spaces and leisure areas. Cumming says the area’s strong music culture heritage should be harnessed to create a unique identity. Bellville’s large youth demographic demands secure student housing and development with a safe and pedestrianfriendly CBD. Fortune says that transitorientated development

will focus on densifying the core of Bellville.

4. Flexibility Founding partner of SustNet Pieter van Heyningen says many South African cities are behind the curve of the rest of Africa in terms of inclusivity. He says stakeholders must invest collectively towards a “strong guiding vision, which is flexible to challenges”. Some investors have already committed to large projects in the Bellville area, including George Georgiou of Evolution Property Management, who announced a R2bn upgrade of a city block in Parow. Also important are government initiatives to promote investment such as the Urban Development Zone, a tax incentive implemented in 2003, which is applicable to the VRC until 2020. Fortune says transport plans on the cards include a Bus Rapid Transit (BRT) service along Symphony Way, projects to improve the Blue Downs Rail Corridor and a focus on linking academic institutions with public transport.

HOMEFRONT

Oceanhurst in Sea Point, marketed by Pam Golding Properties for R4.98m

PROPERTY TREND

Foreign buyers keep faith The Western Cape and Gauteng still appeal to foreigners for property investments WORDS: MIRIAM MANNAK :: PHOTOS: SUPPLIED

A remains an attractive place for foreigners to buy homes and investment properties, with the Western Cape and Gauteng topping the pile. New research shows that the two provinces accounted for more than three-quarters of all foreign purchases in January 2018. Foreign ownership of South African property continued an upsurge this year, showing confidence in the local investment landscape. While a slowdown was predicted, a new Lightstone Property study instead shows an increase of 42% in foreign property ownership in January 2018 compared with the same period in 2017.

Gauteng and the Western Cape accounted for 47% and 36% respectively of all foreign transactions. KwaZuluNatal ranks third at 9%. The Western Cape leads in terms of year-on-year growth, says Lightstone head of property professionals Hayley Ivins Downes. “The province has shown a steady increase in foreign sales in the past five years, which is sitting at just more than 7% of total sales to foreign buyers.”

GROWTH While popularity in the R2m to R3m value band remains high in both provinces, Lightstone data shows the most growth in the Western Cape in the R4m-plus price bracket. Gauteng saw

Observatory, Cape Town, marketed by Pam Golding Properties for R3.495m its highest growth in the R3m to R4m value band. John Loos, household and property sector strategist at FNB, says the bank’s research suggests that foreign sales have declined over the past year. “We have seen foreigner buying estimates as a percentage of total home buying decline from 5.72% as at the third quarter of 2016, to 4.1% of total home buying for the second quarter of 2018,” he says. “We have also seen agents estimating lower SA expat buying of South African homes, down from 2.65% as at the end of 2014 to 1.1% in second quarter of 2018.” Says Pam Golding Property Group CEO Andrew Golding: “International buyers tend to purchase property across all price sectors, weighting

Lonehill, Sandton, marketed by Seeff for R4.9m

HOMEFRONT

Century City sectional title, marketed by RE/MAX Living for R1.295m

Bryanston, Johannesburg, marketed by Pam Golding Properties for R3.699m towards the price band between R2m and R5m.” He notes that convenient lockup-and-go units in secure complexes and estates are most popular among the agency’s foreign buyers. Without disputing the Lightstone report, Golding also says Pam Golding has not seen an increase in international sales on an annual, national basis. “The temporary spike referred to by Lightstone at the start of 2018 was most likely because of increased investor confidence due to the change in government leadership,” he says.

DEMOGRAPHICS In terms of buyer demographics, the Lightstone report shows that most buyers are Europeans and Americans. Many are driven by the rand losing ground against the euro and the dollar, says Ian Slot, MD

of Seeff Atlantic Seaboard, Waterfront and City Bowl. “Western buyers represent more than 60% of our foreign sales, predominantly from Germany, the UK, Netherlands and the US.” Chas Everitt International Property Group CEO Berry Everitt says the demographics are changing. He has noticed an increase in inquiries from African investors. Reasons to settle in SA as opposed to, for instance, Lagos or Nairobi are the favourable climate, good financial infrastructure, relatively low cost of living and a good quality of life. “Lagos is the 28th-most expensive city in the world and ranks 212th on the quality of life index,” he says. “Johannesburg ranks 199th for living expenses and 96th out of 231 cities for quality of life.” Pam Golding Property Group confirms an influx

of African investors from Zimbabwe, Zambia, Namibia, Nigeria, Botswana and Kenya. “Many are business executives, either travelling regularly to SA or establishing bases from which to expand their operations in SA and other African countries,” says Golding.

LUXURY HOMES Everitt says SA is also becoming popular among buyers from other areas. “Indian and Russian investors are discovering that their rupees and roubles buy much more property here than in London or New York. We are expecting the demand for luxury homes to keep growing, especially in estates around Johannesburg and along the North Coast of KwaZulu-Natal.” At city level, Cape Town and Johannesburg

are the favourite metros for foreigners. Lightstone says pockets in the Cape Town City Bowl remain key foreign investment hubs. And Sea Point, which accounts for just above 7% of all foreign transactions, is still the city’s most popular suburb, despite dropping sales. The City Bowl’s popularity does not surprise RE/MAX Living sales associate David Spence. “Proximity to places of work, schools, excellent service delivery, the security infrastructure as well as the area’s infectious vibrancy are consistent drawcards,” he says. “With this in mind, property in the City Bowl remains a steadfast investment for foreign buyers.” Golding concurs. “Developments such as 16 on Bree allow for a livework-play lifestyle that has become synonymous with

“Indian and Russian investors are discovering that their rupees and roubles buy much more property here than in London or New York” Andrew Golding, CEO, Pam Golding Property Group

global cities. The 36-storey mixed-use residential development includes a creative workspace with formal meeting rooms and hot desks,” he says. Other popular suburbs include Rondebosch, where international purchases have doubled, Observatory and Kenilworth, of which the latter has shown a steady increase in foreign investments since 2016. Respectively, they account for about 7%, 6% and 5% of all foreign transactions.

SCHOOLS The demand in these suburbs is due to their good access to excellent schools, the University of Cape Town, historical sites, sporting facilities and other amenities. “Property values here have shown constant growth over the years,” says Greeff Christie’s International Real Estate CEO Mike Greeff.

PA R K M O R E

SEA POINT

PA R K H U R S T

Popular suburbs in Cape Town

Rondebosch, marketed by Pam Golding for R7.8m

Popular suburbs in Greater Johannesburg

HOMEFRONT “An investment in these areas is much more than just buying property. It is buying into the lifestyle.”

WESTERN SEABOARD

Parkmore, Sandton, marketed by Seeff for R2.85m

Table View, Cape Town, marketed by Pam Golding for R2.445m

The Western Seaboard including Table View is sought-after too, thanks to its beaches, excellent schools, malls, its status as a top kitesurfing spot and good accessibility. “The MyCiTi bus service has dedicated traffic lanes which offer direct routes to the city centre, avoiding traffic congestion altogether,” says Greeff. “This has also led to an influx of tourists.” David Britz, sales and marketing director of developer Multi-Spectrum Properties, says younger first-time buyers are investing in this area because the entry-level market in Observatory or Rondebosch is priced too high. Foreign buyers are also investing in Century City, Lightstone data reveals. Seeff Century City agent Helga Clemo confirms this. “Aside from its central location, Century City offers everything you need including schools and shopping malls,” she says. “Many foreign buyers go

PHOTO: ANTON SCHOLTZ

after apartments ranging between R2.5m and R4.5m. It is also popular for rentals. We have seen high demand from buy-to-let investors, from European to African buyers.” Lightstone data suggests that Cape Town’s water situation has not deterred foreign homeowners. Greeff is in agreement. “The drought may have had cooling effects among foreign buyers in the first quarter of 2018. The postponement of Day Zero should put the concerns of foreign buyers to rest earlier than expected,” he says.

JOHANNESBURG In Johannesburg, foreign property demand is concentrated in Northcliff, Observatory, Parkhurst and Glenvista, and in Sandton’s suburbs of Lonehill, Bryanston and Parkmore. Pam Golding Properties Gauteng regional executive Rupert Finnemore says Bryanston’s treelined streets and varied property types including clusters, sectional title units as well as executive apartments, have attracted foreign buyers. “This is because it is near the Sandton CBD, Fourways and Randburg.

Glenvista, Johannesburg, marketed by RE/MAX Living for R8.5m There are several public and private schools, shopping centres, eateries, Sandton Clinic and parks.” Sought-after units in the above suburbs include luxury three-bedroom apartments ranging from R4.5m to R6m. “In clusters, prices start from about R3m and can go up to R8m for a four-bedroom home,” says Finnemore. Johannesburg’s popularity isn’t a surprise

for some. “While the Cape has the allure of splendid surroundings with a desirable quality of safe living, hubs such as Sandton thrive in terms of industry and business,” says Spence. “There is availability and affordability in the property market to suit many foreign investor pockets. For those wanting a high yield or broad property portfolio, the high rental returns can be attractive choices.”

Coastal Property Investment Focus

What would make you retire to a coastal holiday lifestyle? Why is the semigration trend to the coast not dying out? Exploring the coastal properties that have not lost their appeal, as primary residential investments, holiday homes or rental properties.

It’s all in the August 24 Coastal issue

Page 1 Template BD_Homefront straussv 12:41:18 13/10/16

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA

w 0 o n 00 g n 519 i l l 1 e S R m o r f

Phase one SOLD OUT !!!

NEW DEVELOPMENT!! Tweespruit Estate - Stellenbosch!! Tweespruit offers a choice between 2 bedroom and 3 bedroom house plans AREA CALCULATIONS

AREA CALCULATIONS

GROUND FLOOR

60m2

GROUND FLOOR

93 m2

GROUND FLOOR

110 m2

GROUND FLOOR

109m2

GROUND FLOOR

Ground Floor Area

38 m2

Ground Floor Area

71 m2

Ground Floor Area

85 m2

Ground Floor Area

71 m2

Ground Floor Area

Garage Area

18 m2

Garage Area

19 m2

Garage Area

18 m2

Garage Area

19 m2

Garage Area

Covered Stoeps

19m2

Covered Stoeps

Covered Stoep

4 m2

FIRST FLOOR

43 m2

TOTAL AREA

103 m2

Covered Stoep

TOTAL AREA

3 m2

Covered Stoep

93 m2

TOTAL AREA

7 m2

110 m2

TOTAL AREA

109 m2

TOTAL AREA

UNIT TYPE 2

UNIT TYPE 3

UNIT TYPE 4

UNIT TYPE 5

UNIT TYPE 6

Artist’s impression only. All plans, elevations and areas are subject to final adjustments by architect and municipal/building regulations. For full disclaimer please see pg. 14

121 m2 85 m2 19 m2 17 m2

121 m2

- Tweespruit is a new up-market security village situated in the Stellenbosch winelands, consisting of 71 Free Standing 2 and 3 bedroom homes. - Each house has two bathrooms, a lock-up garage and beautiful modern internal ﬁnishings. The village also features state of the art security. • Quick access to Stellenbosch University and other business districts (eg. Cape Town CBD, Northern Suburbs and Boland). • Panoramic views of Simonsberg and Helderberg Mountains. • Tweespruit offers residents a secure environment with 24hour manned security and 2.1m high perimeter walls with electric fencing. • Each house has its own fully enclosed private lawned garden with a meranti side gate. • All houses have direct access to landscaped

•

• • • • •

communal open spaces. Every house comes standard with a single automated garage with ample space for a second vehicle to park at the front. Aluminium windows frames ensures low maintenance cost. 5 ﬂoor plans to choose from – all include 2 bathrooms. Granite tops in kitchen and built-in cupboards in bedrooms. High tenant demand and capital growth area. 7 Km from the Stellenbosch University

Levies: +- R1482 per month • Different types available with prices. PLEASE NOTE THIS IS NOT THE ONLY PRICE - PRICE DIFFER • SIZE AND HOUSE DIFFER AS WELL Well secured excellent for student accomodation / use as rental to generate extra rental income.

Loraine Louws 076 143 4981 • loraine@nspropertysolutions.co.za www.nspropertysolutions.co.za

HOMEFRONT INTERNATIONAL

Pushing for Portugal This EU nation is the fourth-most peaceful globally — one of several compelling reasons attracting investors WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED

he Institute for Economics and Peace listed Iceland, New Zealand, Austria, Portugal and Denmark as the world’s most peaceful countries in their Global Peace Index 2018 report released in June. Portugal is also a leading investment migration destination for South Africans drawn by the prospects of strong return on investment,

residency, potential citizenship, improved quality of life and freedom to travel in the Schengen area. The April 2018 RICS/Ci Portuguese Housing Market Survey, which monitors activity in Lisbon, Porto and the Algarve, says property prices are continuing their upward trend due to a combination of steady demand growth and a deteriorating flow

of fresh sales listings. “In the lettings market, also due to a persistent imbalance between demand and supply, rents are now rising at the fastest pace on record.” In fact the Portuguese real estate sector is booming, with house prices set to increase by 3% during the next 12 months and by 5% over the next five years. This increase, after last year’s 12.8% annual

growth, has cemented investor confidence in the Portuguese property industry.

FAST TRACK South Africans looking for the fast track into the EU will find appeal in Portugal’s Golden Visa Programme, which presents an opportunity to obtain residency and apply for citizenship after five years without

having to be permanently located in Portugal. With that comes the potential to live, work, study and travel freely within the Schengen area and apply for family reunification for their spouse, children or other dependents. “For most global investors, property acquisition has been the most popular qualifying investment,” writes real estate consultancy UrHomePT.

“Portugal is the best investment destination in Europe at the moment, and has been for the past 18 months,” says Pam Golding International MD Chris Immelman. “And we still see some longevity because of the massive regeneration going on there.” Two ways to qualify for the Golden Visa are to invest in real estate to the tune of €500,000 or €350,000, the

THESE ARE THE MAIN NON-EU NATIONALS INVESTED IN THE GOLDEN VISA PROGRAMME:

“Portugal is the best investment destination in Europe at the moment, and has been for the past 18 months” Chris Immelman, MD, Pam Golding International

China — 3,854 Brazil — 553 SA — 246 Russia — 219 Turkey — 213 Source: SEF Immigration and Borders Service

HOMEFRONT

latter being an investment in a building older than 30 years in an area of historical significance — Porto being one because it is a Unesco heritage site, says Immelman. The lower price has made it more accessible for South Africans. “Cascais and Estoril are like the Riviera. They definitely haven’t seen the growth that Lisbon has in the past 18 months because they were fully priced already,” says Immelman. “Porto is off a much lower base and has to play a bit of catch-up. It doesn’t have the cachet and investment credentials of Lisbon but there will be an opportunity for the next year for people to come in and fix prices at a level where they’ll see some good capital appreciation and make a good investment to underpin what we

think is the best residency programme in Europe.” Most buyers are not seeking another holiday house, Immelman says. They are looking for a solid investment where their money will work for them while they build up the years towards permanent residency and ultimately citizenship.

RETURNS “It must be bought in the right place, show capital appreciation and offer good rental returns. Those areas have been Lisbon and Cascais, with Porto slowly rearing its head. You won’t get a one-bed for under €500,000 in prime central Lisbon,” he says. “You’ll get a one-bed at the Rebello in Gaia from €220,000, which means you’ll have to buy two units to qualify for the Golden Visa scheme.”

In March this year, Portugal launched a new Start-up Visa Programme that aims to attract intellectual capital and grow its knowledgebased economy. Tailored specifically for entrepreneurs, there is no minimum capital investment requirement, but applicants are expected to focus their start-up on technology and to permanently live and work in Portugal. The success of their application will be based on the degree of innovation, management team capacity, market potential, business scalability, scope of creating qualified employment and the relevance of the applicant in the team. Applicants will also have to prove that they will move their business operations to Portugal.

SIX KEY ADVANTAGES WAYS TO QUALIFY FOR THE GOLDEN VISA PROGRAMME INCLUDE

1. Low physical presence requirement (seven days during the first year of residence and 14 days for the two subsequent years).

1. Capital transfer of a minimum of €1m into a Portuguese bank account.

3. Visa-free travel in Europe’s Schengen area. The right to live, work and study in Portugal.

2. Real estate purchase with a minimum value of €500,000, or €350,000 for the refurbishment of properties older than 30 years or in an area of urban regeneration, including the cost of renovations.

4. Eligibility to apply for citizenship after six years as a legal resident, while keeping other citizenship(s).

3. Creation of a minimum of 10 new jobs.

6. Family reunification.

2. Attractive taxation system.

5. High quality of life, local cuisine and wines, rich culture, mild climate and a high level of security. Source: Henley & Partners

HOMEFRONT

COMMERCIAL

Sandton oversupply Competition opens window for cheaper A-grade premises in SA’s other office centres WORDS: STAFF REPORTER :: PHOTOS: SUPPLIED

P-GRADE MONTHLY OFFICE RENTALS Umhlanga/La Lucia: R170 – R200/m² Century City: R175 – R195/m² Sandton CBD:

R220 – R250/m²

n oversupply of office space in Sandton, as well as competition from other office space hubs in the country, has led to more affordable opportunities for businesses seeking a presence in SA’s prime business and financial centre. June 2018 office market reports on various sectors released by Broll Property Group say it has become increasingly hard to ignore the advantages on offer in areas such as Cape Town’s Century City and KwaZulu-Natal’s Umhlanga/ La Lucia node. The report says Sandton landlords are finding it hard to compete in an oversaturated market. The Broll reports says overall vacancies are at 5% in Umhlanga/La Lucia, 8% in Century City and 16% in Sandton.

RESEARCH Latest research from the South African Property Owners Association vacancy survey for Q2 2018 shows that 34% of new office developments are going up in Sandton, the engine room of the South African economy. Second-hand A-grade office space in Sandton is

now much more affordable. Spire Property Management executive director Sean Paul says new A-grade office space lets for between R220/m2 and R242/m2, while second-hand A-Grade property is on offer from R130/m2. “Spire has vacant space in Upper Grayston Office Park, an existing five star Green Star rated building, available from R130/m2, gross rental. “This is an opportunity for many businesses which previously avoided Sandton, thinking it too pricey,” says Paul. “They can now secure A-grade office space in Johannesburg’s premium business hub for discounted prices.”

FOOTPRINT Corporates and innovative small businesses are negotiating harder or looking elsewhere to establish their office footprint. “The fact is, properties have been significantly overpriced and overvalued by sellers for years,” says Broll Auctions and Sales CEO Norman Raad. “However, this is just not sustainable with so many more secure and prudent investments available abroad or even locally offering

compelling propositions.” Citing an example, Raad says empty, older industrial buildings have shown an increase in vacancies, so it would be opportunistic to actively seek out such deals in a challenging period. He says commercial offices in outlying areas have possibly been the most affected investment, with buildings remaining empty for long periods of time. “At present however, investors are showing caution, with prudent and well-informed buyers looking for the right opportunity — which may not be simply based on chasing income. The number of properties coming to the market highlights the space we are in. Corporates, which have a responsibility to shareholders, and which have been holding on to noncore operations and properties that are costing them monthly holding costs, are now making the decision to sell all these types of assets.”

AMENITIES Comprehensive security, an eco-friendly landscape, smooth integration into the Cape Town transport system and a wide range of amenities

HOMEFRONT

“This is an opportunity for many businesses which previously avoided Sandton, thinking it too pricey” Sean Paul, executive director, Spire Property Management

are some of the reasons why Century City appeals to large corporate tenants. In Cape Town, Central City Improvement District (CCID) CEO Tasso Evangelinos says the inner city stands out from other business districts seeking to lure new companies and inhabitants. Even so, CCID communications manager Carola Koblitz says the area’s office vacancies are slightly up, from 9.9% at the end of December 2017 to 10.9% at the end of Q1 2018. The Umhlanga/La Lucia node has undergone enormous development in Umhlanga’s Ridgeside and New Town Centre, as well as in neighbouring Cornubia and the Sibaya Precinct to the north. Broll reports that a number of developments have recently come on to the market and that many new office projects

will be launched within Umhlanga/La Lucia in the next 12 to 24 months.

INNOVATION Broll says one positive of the oversupply in Sandton and the resulting pressure on rentals is that it has sparked an innovation trend, including the addition of quality mixed-used projects. Abland, with partners Giflo Developments and SOM, has begun work on new mixeduse precinct Irene Boulevard in Irene, south of Pretoria. This site will become the new home to Barloworld Logistics, a division of Barloworld, which will vacate its Sandton offices. “What started as a retail centre deal has now evolved into mixed-use precinct,” says Abland development director Thinus Delport. The project will bring a lifestyle and a 16,000m² shopping centre to the Irene market

with the Barloworld Logistics headquarters comprising 5,500m² of the property. The Amdec Group’s Melrose Arch in Johannesburg and the soon-to-be-developed Harbour Arch in Cape Town offer pedestrian-friendly precincts where office space is linked to restaurants, shops, hotels, banks, medical services, health clubs and entertainment. Umhlanga Ridgeside has a raft of top-end projects on the way. Among them is the R1.2bn mixed-use Umhlanga Arch development, which is central to the precinct. It comprises 163 high-end apartments, office and retail space and a hotel. “Proximity to King Shaka International Airport and the Durban CBD adds to Ridgeside’s desirability,” says Tongaat Hulett Development commercial director Chris du Toit.

EMIRA SWITCHES OFFICES TO APARTMENTS IN ROSEBANK In Emira Property Fund’s first investment in the residential sector, The Bolton welcomes residents to its new Rosebank apartments in August. Emira is a JSElisted REIT invested in a portfolio of office, retail and industrial properties.

Sasol) into a contemporary residential apartment development. The Bolton will plug its residents into social, retail and transport networks in a live-workplay urban environment. There is high demand in this business node.

The development is the result of Emira’s “valueenhancing conversion” of its Rosebank office property assets (formerly occupied by

“The Bolton residential conversion serves to repurpose and reinvigorate the former office buildings and the project furthers

our strategy to rebalance the portfolio out of the office sector,” says Emira CEO Ulana van Biljon. “We are confident that this is a much better use of the assets.” Van Biljon says The Bolton is receiving strong demand from young professionals and leasing is ahead of budget. The Bolton offers bachelor, one- and twobedroom apartments.

HOMEFRONT PROPERTY NEWS

Expats: what a home abroad will cost

Flexibility for retirees who break the mould

he older generation is opting for a more active way of life. “Apart from wanting to make a sound investment in an appreciating asset, they seek a flexible lifestyle that provides freedom, with medical facilities on hand,” says Pam Golding Properties Johannesburg development manager Peet Strauss. Heritage Estate offers

modern lock-up-and-go units with security and healthcare services, near the Modderfontein Nature Reserve and Modderfontein Golf Club, with Greenstone and Stoneridge shopping malls close by. Eastgate and Bedford shopping centres are also in the vicinity and a Gautrain station is planned for the Modderfontein area. The estate is to be

developed around Heritage House, built as a medical facility for employees by the Chamber of Mines and now renovated and converted into a clubhouse and health centre. This will include a library, business centre, dining hall, bar and card room. The estate has 126 units comprising The Firs and The Oaks. Prices start from R1.325m.

ew Research shows that about 900,000 South Africans were living abroad in 2017 — 210,000 in the UK, 190,000 in Australia and 100,000 in the US. What would an entrylevel home in these countries cost? Avoid the trap of converting to rands when doing your research — you are likely to be earning in your adopted country’s currency, says Adrian Goslett, RE/MAX of Southern Africa regional director and CEO. UK: In prime central London a studio apartment will set you back £300,000. “Invest in

smaller properties, such as one or two bedrooms. There are very good yields to be had from areas that are easily commutable,” says Roger Collings of RE/MAX Central in the UK. He says there are good yields to be had from areas a little further out of the city centre that are easily commutable. Australia: The median house price in Sydney is at roughly AUD 1.1m. In Brisbane, that number drops to about AUD 665,000. “The market is plateauing in these areas, with more owners looking to cash in on

their property gains and migrate to more affordable locations,” says RE/MAX Australia director Josh Davoren. “We may see a cooling off in prices in Sydney and Melbourne.” US: Florida and California have climates similar to SA, making them the most desirable states for expats. The California Association of Realtors’ website says the average price for an entry-level home in Los Angeles is about $530,000 and $1.62m in San Francisco. In Florida, entry-level homes start at about $283,000 in Miami and $240,000 in Orlando.

Estate geared for range of lifestyle requirements

indlewood Estate in Mount Edgecombe on the KwaZuluNatal North Coast is designed to meet the needs of all lifestyles and ages — from first-time buyers to retired couples.

The estate has incorporated sustainable design features such as grey water harvesting and solar energy and offers walking paths and wetland areas with indigenous flora and fauna. Leisure facilities include a

lap pool, tennis court and children’s play area. The development has electrified perimeter fencing, camera surveillance and permanent gate monitoring. “In just more than a decade, Kindlewood has

Stylish Johannesburg complex launched

36-unit apartment complex comprised of 28 twoand three-bedroom apartments and eight duplex penthouses has been launched close to Melrose Arch in Johannesburg North. Developer Jawitz Properties says the prime location of Latitude 49 gives investors access to Melrose Arch’s burgeoning live-play-work lifestyle. The development has

seven designs spread across five apartment blocks, with landscaped gardens, individual patios and rooftop terrace gardens. Two penthouse units have their own pools and landscaped terraces, while the remaining six units have the option of a jacuzzi, secure basement parking and a storeroom. Susan Jaffe and Gisele Cuyler at Jawitz Properties Dunkeld report that 20 units have been sold. They

say its central location makes Latitude 49 one of the most superbly connected developments in Johannesburg North, and it offers promising investment potential. Two-bed units are 112m 2 , three-bed units are 166m 2 and the largest penthouse is 452m 2 , with prices ranging between R3.95m and R12.8m. Buyers have a choice of two bespoke finishing styles by Stephen Rich Interiors.

grown into an inviting, environmentally friendly estate which has homes and facilities suited to every phase of life,” says Mondli Msani, development manager of Tongaat Hulett Developments. The estate

comprises Norfolk Valley, The Links, Kindlewood Crest, The Kindles, Kariwood, Edenwood, The Wolds and the newly launched Mount Edgecombe Retirement Village. The estate is close

to Umhlanga Ridge, the Gateway Theatre of Shopping and other evolving retail facilities, becoming a residential location of choice for many people working within the greater Umhlanga area.

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three bedroom, en-suite apartments, Prices from R7,9m

four bedroom, en-suite apartments, Prices from R18,5m

Supreme penthouse, a mansion in the sky,

5 en-suite bedrooms, cinema, games room, 2 bed cottage, pool, jacuzzi ... and so the list continues.

Come and view our luxury apartment 12733, OSBORN RD

HOUGHTON GOLF CLUB

2ND AVE

Available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ASHLEIGH SMITH 073 220 7357 | ashleigh@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12733