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MUST-READ
Smart bathroom makeovers PAGE 2
Best Winelands investments PAGE 6
Island lifestyle calling PAGE 7
The Okavango Delta, Botswana
Africa: the last frontier Balwin launches a mega city
HomeFront finds out who is investing where – and why – in sub-Saharan Africa
PAGE 7
PAGE 5
Invest in plan B It’s easy to obtain your lifetime residency or citizenship in a European country – simply invest in real estate in Cyprus, page 4
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here are more ways than one to spruce up your bathroom. It depends on what is required and the budget available. Keep in mind that major renovations usually involve unforeseen costs and that small and simple changes are often all that is needed for a smart makeover. We asked the experts for advice on how to make a bathroom look beautiful on any budget.
Renovating a bathroom may require a complete gut-and-rebuild or small changes that make a big difference. HomeFront looks at makeovers ranging from simple to extensive, all adding value and a new look to your home WORDS: DEBBIE LOOTS AND SARAH MARJORIBANKS :: PHOTOS: SUPPLIED
Blank canvas Erica Schalkwyk of Form Interior says the best place to start when renovating your bathroom is the floors and walls. “These are the canvas of a bathroom and set the tone,” she says. As tiles can easily date your bathroom, she suggests choosing neutral tiles that are timeless. “When in doubt, go white. It is the only place in the house where you can use white as freely as you want because it’s easy to clean and well liked in reselling,” says Schalkwyk. A bonus is that white creates an illusion of spaciousness. Should you not want to tile the walls, modern paint withstands moisture so painting the walls is an option.
Make a splash While there’s no doubt that baths have become less of a must-have owing to water restrictions, they’re still an important feature for families with young children. Moreover, Covid-19 has had an unexpected consequence in this sector. “The pandemic has reminded us to slow down and savour the simple things in life. What better way to relax and unwind than to take an indulgent soak in a comfortable bath?” says Joslyn Goodale Pickering of Victorian Bathrooms. Choose a bath that suits your lifestyle – a small tub for a compact space, a large soaking bath for two, or a bath that’s comfortable enough for long reading sessions. Victorian Bathrooms supplies a wide range of bespoke baths made in Cape Town for which clients are able to choose custom finishes.
BATHROOM MAKEOVERS ON A BUDGET Cailin Wandrag, interior stylist and owner of Studio Cailin, shares quick and inexpensive tips for giving your bathroom a fresh look. Tip 1: Declutter Get rid of personal items on the countertop. Instead, stick to a fragranced candle, a bottle of liquid handsoap and a small plant.
Future space No longer set apart from the rest of the home, the bathroom is now taking on a more comfortable and homely identity. Recent trends have also influenced sanitaryware and fittings: a washbasin or bathtub is now treated more like a a furniture piece rather than just a sanitary item. Comfort is key and so are products that enhance the time a user spends in the bathroom. Sanitaryware should be intelligently designed and functional yet also intuitive to use for optimum comfort. Duravit’s Happy D.2 Plus series by sieger design (above) consists of a ceramic washbasin and furniture piece that is designed without any overhang or recess to form a perfect unit.
Tip 2: Keep it simple Fluffy new white towels, a few works of art and a basket or two will add to the overall appeal.
door handle or towel rails with modern ones. Tip 5: Update countertops If yours is a dated granite, it’s relatively simple to change it to quartz, for instance. Tip 6: Paint Experiment with colour and take a few risks but steer clear of polarising choices. Tip 7: Lighting Ambient lighting is quite easy and inexpensive to install. Consider backlighting around your mirror or go bold with a lovely chandelier above your bath.
Tip 3: Hang a new mirror A large mirror makes the space seem bigger and better lit. Choose a mirror style and shape that suits the overall look. Tip 4: Change your hardware Replace the vanity, shower
Tip 8: Flooring If the floor tiles are outdated, choose a crocheted or cotton rug that is easy to wash. It will add warmth and texture to the space. Another relatively inexpensive option is to screed directly over tiles for an effect that is contemporary and timeless.
Vanity fair Balancing beauty with function, the vanity – a combination of a sink and the storage structure around it – is an opportunity to show off your personal style while creating surface space and storage. Lisa Millbacher of Bespoke Bathrooms says in a modern bathroom the vanity should be hung on the wall and include drawers in various sizes. “A shallow drawer is great for small items such as cosmetics, and a deeper drawer could hold towels,” she says. A vanity works best with an engineered stone countertop that complements the wall and floor tiles. “It’s one of the only bespoke products in the bathroom and will therefore reflect the owner’s unique personality and style,” says Millbacher. If you are trying to sell your property, it is wise to keep the appearance of the bathroom as neutral as possible, focusing on quality products and finishes.
Tap out Carefully considered fittings are essential in a bathroom – not only can a poorquality tap be spotted a mile off, but the style of the room, whether modern, minimal or eclectic, is determined by them. Joslyn Goodale Pickering of Victorian Bathrooms recommends upgrading the tapware to change the appearance and improve the functionality of the space. “Victorian Bathrooms has designed the high-quality Italian-imported Britannia tapware range [left]. Classic and clean, the range complements a wide selection of bathroom styles and incorporates water-saving features.”
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How to invest in Cyprus Buy directly from Aristo Developers, one of the leading property developers in Cyprus, and save thousands on your investment WORDS AND PHOTOS: SUPPLIED
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any South Africans are looking to invest in overseas properties, most of them seeking a Plan B as well as an investment opportunity. The island of Cyprus, a full European Union (EU) member state, is definitely an attractive choice, largely thanks to the plentiful advantages this European country has over other property destinations. A thriving real estate industry, a favourable tax system, fast and efficient immigration programmes through property investment, a safe environment and a strategic geographic location are some of the reasons property investors are drawn to Cyprus. This country has long established itself as a thriving business hub, with a vast array of investment opportunities in key growth sectors of the economy. The island’s advanced infrastructure, high quality of life and low cost of living are not only key reasons to live there but also underpin an investor’s choice to invest in Cyprus. The country is an ideal investment gateway to the EU and a portal for investment outside this zone too. It is an option that ensures safety and stability for investors, as well as market access to the EU. Cyprus has a simple and transparent tax system with multiple exemptions for both corporates and individuals. Benefits include: - Zero property tax - Zero transfer fees - 5% reduced VAT policy on first property purchase (standard VAT rate: 19%) - Zero inheritance tax - Low capital gains tax (20%) - Nondomicile tax incentive - Corporate tax in Cyprus is 12.5%
As a preferred property developer in Cyprus, Aristo Developers is recognised by a plethora of local and international organisations for its high-quality product. It is one of the few property developers in Cyprus to offer a variety of freehold properties at the
most exclusive locations. The group’s diverse range, including boutique apartments, townhouses, plots, luxury villas, golf properties and beachfront residences, is suitable for every taste and budget. As a key partner in establishing Cyprus as a world-class investment destination, Aristo Developers has been a popular choice among investors seeking Cyprus citizenship or permanent residency through property investment.
Cyprus citizenship - Examined within six to eight months - Minimum property i nvestment: €2m (about R40m) plus VAT, part of which (€1.5m) [about R30m] can be sold after five years or let in the meantime - Government donation: €200,000 (about R4m) - Covers the whole family, i ncluding dependents up to the age of 28 as well as the main applicant’s parents. The spouse’s parents can also be included with an additional property investment of €500,000 (about R9.9m) per family - Visa-free travel to more t han 160 countries - Freedom to live, work a nd travel within the EU - Valid for life - Dual citizenship allowed - No residency requirements (no need to visit or live in Cyprus)
Cyprus permanent residency - Issued within two months - Minimum property i nvestment: €300,000 (about R6m) plus VAT - Covers the whole family, i ncluding dependents up to the age of 25 and t he parents of both the main applicant and their spouse - Easy access within the EU - No residency requirements (besides v isiting Cyprus every two years) - Valid for life Contact Aristo Developers to find out more about your next property investment in Cyprus.
Cyprus has a simple and transparent tax system with multiple exemptions for both corporates and individuals
GET IN TOUCH ARISTO DEVELOPERS Tel: +357 26 841 800 E-mail: sa@aristodevelopers.com aristodevelopers.com
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MAJOR AFRICAN CITIES RANKED BY PRICE PER SQUARE METRE
Africa: the last frontier
Below are the highest prices of a prime 200m2-400m2 apartment in the best part of each city or town: Cape Town: $5,600 Umhlanga: $2,800 Sandton, Johannesburg: $2,600 Nairobi: $1,800 Marrakesh: $1,700 Tangier: $1,700 Casablanca: $1,500 Luanda: $1,300 Accra: $1,200 Lagos: $1,100 Abidjan: $1,000 Alexandria: $1,000 Maputo: $900 Cairo: $900 Kampala: $800
HomeFront finds out who is investing where – and why – in sub-Saharan Africa
Source: 2019 AfrAsia Bank Africa Wealth Report by New World Wealth; figures for December 2018
WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED AND SHUTTERSTOCK
A private beachfront villa in Grand Baie, Mauritius, marketed by Mauritius Sotheby’s International Realty
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f you’re thinking of expanding your property portfolio in sub-Saharan Africa, the 2019 AfrAsia Bank Africa Wealth Report could point you in the right direction. According to authors New World Wealth, the most expensive prime residential property in Africa is in SA. Cape Town topped the list for a prime 200m 2400m 2 apartment priced at $5,600. Umhlanga was second ($2,800), followed by Sandton ($2,600), Nairobi ($1,800) and Marrakesh ($1,700). The report states that residential property usually comprises 25% to 30% of the net assets of the average high net worth individuals (HNWIs) living in Africa. In terms of average wealth per person, the wealthiest countries in Africa are Mauritius, SA, Namibia and Botswana. For South Africans who want to invest, live or work close to their home country, Mauritius holds all the cards. Richard Haller, director for Pam Golding Properties (Mauritius) says: “Historically we’ve seen good capital growth over the long term for clients who invest early in the development phase. In the current environment there are also resale opportunities where some clients need to liquidate their investment. So it’s about choosing the best opportunity at the time. “Also driving the demand
Gerhard Zeelie, divisional executive: Property Finance Africa, Nedbank CIB
in Mauritius is the ability to do business from here. It makes sense for South Africans looking for a new lifestyle and business environment to route their ‘rest of Africa’ business through the island.” Pam Golding Properties (Mauritius) presents the northern part of the island as a fully serviced environment. “New infrastructure is increasing, which supports a growing South African and French contingency that is very community based. You see them enjoying the outdoor lifestyle, sitting at the coffee shops and restaurants, and on beaches and at sporting facilities. Many live in the suburb of Grand Baie, including Pereybere, whereas Mont Choisy brings another wave – I’d say 50% who’ve bought at Mont Choisy Golf and Beach Estate are now residing there permanently, while at other schemes it’s closer to 25%,” says Haller.
OFFSHORE PROPERTY The island government has made investing in Mauritius even easier and more attractive. Incentives to do business from Mauritius include attractive tax rates, tax-free dividends and no capital gains tax. Recent amendments include lowering the entry level for residency based on property purchased from $500,000 to $375,000. Several relaxations have also been applied to various investor, retiree and work
Le Jardin Secret in Marrakesh, Morocco
permit requirements, fuelling the increase in demand. “Mauritius is at the forefront of where South Africans are currently looking to invest in offshore property. It ticks so many boxes but most importantly it offers a hedge in terms of investment in a US dollar-, euro- or Mauritian rupeebased asset and provides the opportunity for permanent residency in a safe, proven and dependable jurisdiction,” says Mauritius Sotheby’s International Realty partner Timo Geldenhuys. “I recently acquired the Mauritius Sotheby’s International Realty licence for the island as I believe the demand will continue to grow, both from sub-Saharan Africa as well as from our other feeder markets in Europe and the Middle East.” The Pan-African real estate investment business Growthpoint Investec African Properties (GIAP) has a quality portfolio of prime income-producing commercial assets in key cities across Africa with a value of more than $500m. Its asset base is in four countries, largely consisting of prime shopping centres and office towers. In late August 2020, GIAP acquired a further significant minority acquisition of the Wings Office Complex, arguably one of the most desirable prime office towers in Nigeria, to achieve a controlling stake. This follows the
Richard Haller, director, Pam Golding Properties (Mauritius)
successful acquisition of 100% of RMB Westport Real Estate Development Fund Limited, possibly the largest transaction concluded in sub-Saharan Africa’s real estate market to date. “We are excited to add quality yielding assets in select cities to our asset base at competitive prices, with the potential to offer strong growth prospects. The business enjoys significant momentum and we expect this to aid in the delivery of sustainable long-term investor returns,” says GIAP MD Thomas Reilly. The company is expected to support the development of capital markets for real estate as an asset class across the countries in which it operates, thereby contributing to the wideranging developmental impact the real estate sector can have in such markets.
INVESTMENT STRATEGY Grit Real Estate Income Group continues to fly the flag for African real estate investment. Its strategy enables it to retain exposure to the growth potential of the continent’s emerging economies, while substantially de-risking it by leasing property to blue-chip multinational corporations and government embassies on US dollar- and eurodenominated leases. Grit’s model is focused on diversification of asset classes and jurisdictions, as well as counterparty
Timo Geldenhuys, partner, Mauritius Sotheby’s International Realty
strength. Jurisdictions are segmented into what the group calls investmentgrade Africa, comprising Botswana, Mauritius and Morocco, and high-growth Africa, which covers the balance of its investment countries. This is further augmented by a targeted exposure limit of no more than 25% of portfolio value to each of its asset classes. “I have always said Africa is the last frontier of growth,” says Bronwyn Corbett, Grit’s CEO. This is substantiated by the significant interest in Grit’s investment case and growth in its share register since it listed on the main market of the London Stock Exchange in July 2018. Grit delisted from the Johannesburg Stock Exchange in July this year to consolidate its capital market exposure. Most of the eligible shareholders opted to retain their shares and move their holdings to the London Stock Exchange or the Stock Exchange of Mauritius. The delisting was partially underwritten by Botswana Development Corporation and ZEP-Re (a regional African reinsurance company established by an agreement of the heads of state and governments of the Common Market for Eastern and Southern Africa [Comesa]), introducing new strong strategic shareholders to Grit.
HOSPITALITY ASSETS Says Corbett: “Although
our hospitality and retail assets were more severely impacted by various lockdown and travel restrictions, our light industrial, office and corporate accommodation assets performed exceptionally well.” Huge government support programmes in Mauritius have lent reassurance to the future viability of Grit’s hospitality assets, which comprise three Beachcomber hotels and a LUX* hotel. “If I wanted to sit on any hospitality investment in the world it would be Beachcomber and The Lux Collective because of the importance of these groups to the economy of Mauritius,” says Corbett. Concern about multinational office tenants has also been negligible. Ghana, Mozambique and Kenya closed for two weeks during the pandemic. This had no impact on Grit rentals and there were no requests for a reduction in office space. For the next chapter of its growth, Grit intends to grow its partnerships with embassies and financial services in Africa. The rest of the pipeline is mostly industrial sector-driven, with warehousing and distribution centres out of West and East Africa and Morocco. “Africa real estate is so exciting,” says Corbett. She warns, however, that asset devaluations as a result of the impact of Covid-19 will affect everyone across
Bronwyn Corbett, CEO, Grit Real Estate Income Group
the real estate sector. She predicts a devaluation in Grit’s hospitality assets purely from the point of view of prudence while Mauritius remains closed for business. And although she expects some retraction in the retail class, she remains bullish that it will not be sizeable. Gerhard Zeelie, divisional executive for Property Finance Africa at Nedbank CIB, says valuations of assets on the entire continent have dropped, along with expected cash flows, given the uncertain environment. “Although prices are lower, it is still too early to say whether assets offer good value. Our view is that a cautious approach should be taken,” he says. “The medium to longer-term impact on office space (working from home) and retail centres (online shopping) is yet to be understood. However, light industrial space offers significant opportunities given a rapidly developing logistics sector.” The Nedbank CIB Property Finance Africa team was established in 2018 with the intention of growing into Africa following its dominant commercial property finance position in SA. Since then the team has been involved in various landmark transactions on the continent and won the Best Real Estate Bank in Africa Award at the Africa Property Investment Summit in 2019.
Thomas Reilly, MD of Growthpoint Investec African Properties
HOMEFRONT
L’Ermitage Chateaux & Villas in Franschhoek
HOT SPOT
Living the Winelands life Estate living in the Cape Winelands continues to attract interest across the buyer spectrum – from overseas investors to city-dwelling families looking for a secure and tranquil environment and retirees ready to downscale to lifestyle villages
Acorn Creek in Somerset West
WORDS: HELÉNE MEISSENHEIMER :: PHOTOS: SUPPLIED
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popular retirement spot, the Cape Winelands now also includes estate living on multigenerational developments with adjacent retirement villages, golf and country estates as well as smaller boutique estates. On offer is everything from modest two-bedroom apartments to freestanding homes and smallholdings. In line with changing global trends as reported by New World Wealth, local developers are also creating small neighbourhoods within these estates. This allows for more open spaces and
parklands, unlike the old model where homes were spaced evenly around an entire property. Moreover, lifestyle estates are proving to be a secure property investment option that is sought after in these uncertain times. According to Chris Cilliers, CEO and co-principal of Lew Geffen Sotheby’s International Realty in the Winelands, the estate sector has remained fairly constant over the past two years even though economic turmoil has muted buyer activity in the residential property market. This is confirmed by the AfrAsia Bank’s SA Wealth Report for 2019,
which indicates that the Paarl, Franschhoek and Stellenbosch districts saw growth of 21% in the area’s wealth markets over the past decade. Residential estate living is on the rise, especially among the more affluent. New World Wealth estimates that more than 40% of South African high net worth individuals (HNWIs) live in or own homes on residential estates, says Pam Golding Properties senior research analyst Sandra Gordon. Property experts predict that lifestyle estates will be one of the sectors to continue drawing buyer interest despite the current economic
and political uncertainty. Dr Andrew Golding, chief executive of the Pam Golding Property group, highlighted an increasing demand for homes in secure lifestyle estates as one of the trends evident in the marketplace as lockdown restrictions eased. A consistently high level of buyer interest in Cape Winelands lifestyle estates has been reported. According to Ryk Neethling, marketing director for Val de Vie multigenerational estate near Paarl, projections indicate that it will have a good year, especially in the higher end of the market, as Val de Vie’s premium properties have
had the biggest increase in sales volumes.
GROWING POPULARITY The benefits of living on an estate development in the Winelands are ample. On offer is a high-quality lifestyle on a spacious and secure property surrounded by scenic beauty, close to a range of top amenities such as schooling, shops, entertainment options and a variety of outdoor activities. According to Cilliers, in recent years families are choosing to leave Cape Town’s bustling suburbs in favour of more peaceful estate living in the Winelands. They are attracted by the many good schools in the area, combined with easy access to the CBD and the Cape Town International Airport. “Convenience and on-site amenities are also a growing priority. The better lifestyle estates offer excellent sports and fitness facilities, cycling and hiking trails, gyms, clubhouses and even schools,” adds Cilliers. Modern benefits like a fast internet connection add appeal for the growing number of people who would choose to continue working from home after the lockdown.
DEVELOPMENT HUBS
Val de Vie near Paarl
The area between the historic town of Stellenbosch and adjacent Somerset West, amid the mountains and
False Bay, has seen a prolific development of lifestyle estates in recent years. Prices range from an affordable R1.75m (including VAT) for a two-bedroom house to more than R30m for an uberluxury home. Buyers are spoilt for choice both at established estates such as De Zalze Winelands Golf Estate and Welgevonden Estate in Stellenbosch and Schonenberg in Somerset West. New developments including Vini Fera at Anura and Welgegund Domaine Privé in Stellenbosch and Mzuri Estate and Croydon Gardens Estate in Somerset West are also popular, according to Katya Varga, assistant branch and projects manager for Pam Golding Properties Stellenbosch and Somerset West. Purchasers here include locals and the occasional international investor, whereas multigenerational estates such as Val de Vie are proving attractive to families, mainly from Cape Town, who are looking for a less stressful environment. Neethling says a new feature on the estate is the addition of office blocks for residents to rent or share. This is to accommodate the growing trend of de-urbanisation and remote working. Buyers from Cape Town and Gauteng are also relocating to lifestyle estates in Wellington and Franschhoek. The latter is popular, especially among
European “swallows” who stay for up to six months and favour the fine selection of world-class wineries and restaurants in the area. Franschhoek offers a number of smaller high-end security estates such as L’Ermitage Chateaux & Villas, a luxury lifestyle development with spacious two-bedroom villas in a French-inspired country village setting. According to Surina du Toit, Pam Golding Properties branch manager for Paarl, Wellington, Franschhoek and Elgin, more than 50% of the annual residential sales in Franschhoek are properties in security estates.
RETURN ON INVESTMENT Security estates are among the property investments that can show substantial price growth in the current economic climate and buyers are willing to dig deep for the privilege of living in one. Lightstone Property reports that selling prices for sectional title homes in the Cape Winelands increased by 152% over the past seven years, from R1.05m in 2012 to R2.65m in 2019. For the luxury of a quality lifestyle and top security, buyers are often prepared to pay a premium of 20% to 40%, says Samuel Seeff, chairman of the Seeff Property Group. According to him, it is not uncommon for top homes to sell for between R5m and R20m and even
much more, especially in high-end country estates in the Constantia Valley and in the Winelands towns of Franschhoek, Stellenbosch and Paarl. The rental market is strong too, but the average monthly rental rate varies greatly depending on demand and the availability of apartments to let, says Werner Scheffer, Multi Spectrum Property (MSP) Development sales manager. For instance, in Somerset West a twobedroom apartment in Acorn Creek Lifestyle Estate priced at R1,099,900 can achieve a monthly rental of R8,500 – a gross yield of 9.2% and a nett yield of 7.4% after monthly levies, rates and taxes. In Franschhoek a good quality two-bedroom apartment can bring in even higher rental rates of between R16,500 to R20,000 per month. This is because there is a huge demand for rental properties in the town and the scarcity has increased rentals substantially, says Gerhard Jooste, GM of new developments for IGrow Wealth Investments, the developers of L’Ermitage Chateau & Villas. Jooste says owners here have seen rental income in excess of R20,000 per month, with income returns of 8.5% and higher. “But what attracted a lot of investors is the capital growth of 152% over the past seven years,” he says.
HOMEFRONT PROPERTY NEWS
Cyprus appeals for living and investing C yprus is a popular choice among foreign investors looking to buy offshore. In 2019 the island saw a 65% increase from 2018 in property sales to foreign buyers. The island has a solid investment environment and property here offers great value for money compared with other European countries. The real estate and construction sector is a key economic driver in Cyprus. Building activity has increased to meet demand and include large-scale residential projects as well as infrastructure developments. In addition, the country’s quality of life, year-round
sunshine and natural beauty, ease of doing business and investment incentives are attractive to both investors looking to do business and homeowners who want a slice of island life. With a spot among the top five of the 2019 Global Peace List, which ranks the safest countries in the world, Cyprus offers families a secure and peaceful lifestyle as well as top schools and Europeancredited tertiary education. Other key drawcards include a favourable tax regime, world-class health and medical care facilities, excellent infrastructure, 64 Blue Flag beaches
and the cleanest waters in the Mediterranean. Aristo Developers has been a top property developer in Cyprus for more than four decades and is recognised for its superior service. It is one of the few companies on the island to offer a wide range of freehold properties at the most prominent locations. The company is a key partner in establishing Cyprus as a world-class investment destination and has a diverse range of properties available, including boutique apartments, townhouses, plots, luxury villas, golf properties and beachfront residences.
Retirement villages up for redesign T he rapid onset of Covid-19 has brought about a need for new ways of thinking about designing public spaces. Retirement villages in particular, where higherrisk groups of people interact in communal areas, are posing a unique set of design demands. Prior to the crisis, the elderly sector was already in a state of flux. The baby boomer generation, now entering its retirement years, requires a more active lifestyle and matching facilities. Yet
these enhancements, which centre around community activities and amenities, present a new challenge in a Covid-19 world. According to Evergreen Lifestyle head of developments Julie Morelle, the outbreak has forced architects to relook retirement village design to deal with the immediate situation and ensure safety in the long term. Besides the need for generous common areas, home designs should also be more compact and include personal outdoor
areas such as balconies and gardens, touchless access control, the use of longlasting materials that are easy to clean, sanitation stations, Covid-19 signage, increased health monitoring of staff and residents, and nurses living inside the villages to be available for continuous care. “The retirement estate construction industry must be refined at every level from the ground up,” says Morelle. “Construction sites were locked down for more than two months, giving us time
to implement increased safety precautions before reopening in June.” She says Evergreen is seeing the pandemic as an opportunity to reinforce the pillars of its offering – security, peace of mind, care, community and hospitality. It has also implemented new ways of interacting with village management, consultants, internal teams and potential and current residents. This includes virtual meetings, videos and virtual tours of sites and units.
Payprop rental index shows record lows A ccording to Payprop’s rental index, Q2 of this year saw the lowest rental growth since 2004. The year-onyear rental growth rates for April, May and June were 2.3%, 1.1% and 1.6% respectively, although the national average rent in Q2 came in at R7,746, up R115 from R7,631 the year before. While the Covid-19 pandemic is the main reason for the low figures, other factors are also responsible, says Lorraine-
Marie Dellbridge, rental manager in Cape Town’s Southern Suburbs for Lew Geffen Sotheby’s International Realty. She ascribes the Western Cape market’s added rental pressure to the drought two years ago, which hampered tourism and impacted the rental market. Dellbridge says since the peak of the drought, when a drop in tourism forced many Airbnb property owners to enter the long-term rental
market, the number of available properties has steadily increased. “A decline in semigration also significantly shrank the long-term tenant pool while stock continued to increase, much of which were still priced for a bullish market,” she says. “To compound matters further, many holiday apartments have been available impeccably furnished and equipped at considerably lower prices.” The record-low interest
Balwin heeds housing call with Mega City L ast month, Balwin Properties launched Mooikloof Mega City, a sectional title development that may be the largest in the world, with up to 50,000 apartments planned upon completion. Situated east of Pretoria, the new development is supported by the government as a strategic integrated project, with R1.4bn earmarked to develop infrastructure such as water, sewerage, electricity and roads. It is being constructed, project managed and marketed by Balwin. “We heeded the president’s call for inclusionary housing and are especially excited about what this development could mean for our country in the aftermath
of Covid-19,” says Balwin founder and CEO Steve Brookes. “Not only will it boost the economy but it will also create about 115,000 direct and indirect job opportunities. “Mooikloof Mega City has been designed specifically for the ‘gap’ housing market defined as housing opportunities for people earning a combined monthly income of between R3,501 and R18,000,” says Brookes. “They earn too much to get a free house from the government and too little to get a bond. Accordingly, first-time homebuyers and qualifying individuals will have assistance through the Finance Linked Individual Subsidy Programme, or Flisp, which grants firsttime buyers a subsidy
towards the purchase of a home of between R27,960 and R121,626.” The initial 16,000 apartments will be built in phases over the next few years and are valued at about R9.6bn. Extended to 50,000 apartments, the total value will be about R44bn. Unit prices will range from R499,000 to R799,000. Boogertman + Partners Architects, which has worked extensively with Balwin in the past, designed the development according to Balwin’s Green model, including the developer’s new Greenbarn Lifestyle Centre. In line with all Balwin’s Green developments, Mooikloof Mega City is Edge-certified by the Green Building Council South Africa.
rate has also affected the rental market, according to Dellbridge, as prospective tenants who qualify for bonds are taking advantage of this excellent window of opportunity. “Many have come to realise they now can enter the market as owners instead of paying off someone else’s bond.” She says that although there has been an increase in tenants in arrears since March, Payprop stats show the curve is flattening in most provinces.