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HOMEFRONT 13 OCTOBER 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 15 JUNE 2017
MUST READ
Sea Point finds it market mojo PAGE 2
Vienna offers foothold in EU PAGE 4
Crime batters property prices PAGE 16
SA rife with repos Durban port sites available PAGE 18
South African law, claims an expert, allows local banks to be among the most ruthless in the world when it comes to home repossessions
PAGE 12
HOMEFRONT
LIFESTYLE
Vibey new retail hybrid Sea Point’s Mojo Market is not just another pop-up story. Rather, it has the chops to go the distance WORDS: HILARY PRENDINI TOFFOLI :: PHOTOS: GRAEME ROBINSON
T
he deco sign on the block at the Bantry Bay end of Regent Street catches the eye immediately. MOJO. Fat geometric typography and unmistakable deco stripes. Trendy signage to highlight the fact that this is a new kind of hip and hybrid retail mix, filling the entire block both upstairs and downstairs — on the ground floor the Mojo Market and above it the Mojo Hotel. Covering about 2,000m2 of turf, it was originally an ugly duckling OK Bazaars building. Now it is a cool, vibey space. About 50 permanent food, homeware and clothing stalls cluster around the market’s roomy central dining area, which has a glass wall on the sea side. Adding potential consumer mileage is the hotel upstairs — 50 affordable rooms that cover the spectrum from self-catering studios to dorms and small crash pads. All have access to a rooftop terrace overlooking the ocean. This novel approach to urban retail is the brainchild of property developer Robbie Lessem
and partners Graeme Robinson and wife Tara Lerner. They are a dynamic trio whose mojo is clearly working, judging by the Friday lunchtime crowds.
VALUE
The stalls are open every day until 9pm; the coffee roastery is open 24 hours. A bonus is the night entertainment, guaranteed to attract locals and tourists. There are sea views from the market’s doublevolume central area in the mezzanine bar and the wood-slatted alcoves below, which are known as kissing booths by the decorator who designed them, Yvonne Kramer of Jade and Ginja. As Lessem puts it, following 22 years in the property sector and owning this particular building since the 1990s: “The potential of having retail/ specialty food/bars/free quality entertainment with good views in a prime high density area was just too good not to do. My knack is in the unlocking of value, and creatively exploring the potential of a property, and the Mojo Hotel and Mojo Market were ideal unlocks for me. We went through 30
“We went through 30 renditions from the original plan to get to the Mojo Market” Robbie Lessem, property developer, Mojo Market
renditions from the original plan to get to the Mojo Market. New ideas meant changes along the way. Some ideas are just too good not to do. “My motto is ‘Always keep an open mind’. If you achieve 80% of a building’s potential you’ve shot the lights out. Never close your mind. Even with an open mind you can still miss some of the most obvious unlocks,” Lessem says.
STALLS
Many of the stall owners are trestle table market traders, some of whom Robinson says he is happy to subsidise because they are a draw and add colour, such
as Lotia Kite who produces striking screenprinted fabric under the label Maradadhi. “We’re a small company,” says Kite, “and we’ve never been brave enough to have a homeware store. This is our first and we’re excited to be here.” What she particularly likes is the spaciousness — “some of these markets are very crowded and stressful. Here there’s room for people to hang out” — plus the fact that the traders have been handpicked. “It’s not just an odd assortment.” In Kramer’s view, it is the quality of the artisan stalls that makes this market special — stylish items such as Matsidiso’s handcrafted leather laceups, Galago’s African sandals and Natasha G’s one-of-a-kind silver jewellery — as well as the wide variety of global food. Nosh includes Hokey Poke’s trendy Hawaiian seafood poke bowls, Chilo’s Tex-Mex treats, El Greeyo’s Cuban tapas and Thai street food from All Thai’d Up. “You can go with a group of friends all wanting to eat something different, and then get together in the courtyard,” says Kramer. “It’s a great place for locals to hang out and connect.”
HOMEFRONT
Décor The hotel décor is vibrant with pops of colour and the stalls are eclectic and distinctive. “We’re aiming at the funky, young-at-heart demographic,” says Robinson. A former photographer with an artist’s eye, he is enthusiastic about Mojo’s murals — whimsical visuals created by gifted former Cape Town graffiti artist MakOne. “This has been such a colourful creative process, it activated everyone’s juices,” Robinson says. Megan Grauso of Indigo Fusion came in as the interior designer at the conception of the hotel,
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A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Samantha Durand
and as the market started to take shape, stayed on until her own baby was born. Kramer took over, designing many of the décor items produced by teams of inspired creatives. Bart van Vuuren of Sobeit Designs was responsible for the carnival-style barrow stalls, with wheels and awnings. Gabi Lee painted the birdlife and foliage on the columns. Cornelis Dumas made the large, quirky oyster shell light that hangs over the Mussel Monger and Oyster Bar. Jean Booyens and his carpenters at Crib Creations produced most of the cocktail bars, seating and mezzanine tree-look claddings.
PUBLICATION
Copy Editor: Lorraine Kearney Content Business Manager: Catherine Davis Production: Joanne Le Roux
ADVERTISING SALES Michèle Jones Susan Erwee
michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info
084 246 8105 083 556 9848
HOMEFRONT INTERNATIONAL
Cultural investment Known as the City of Dreams, Vienna is beautiful, musical, historic, expanding — and offering great value for Europe WORDS: GEORGINA GUEDES :: PHOTO: ISTOCK
A
ustria’s capital, Vienna, on the banks of the Danube River, is famous for its artistic and intellectual legacy — with historic residents such as Mozart, Beethoven and Sigmund Freud. The city has continued to be a home to artists and academics, and has held the number one spot in the Mercer Quality of Living index for the past seven years. A Knight Frank 2016 Report says: “Growing instability around the world is focusing buyers’ attention on cities such as Vienna. Germany is the economic powerhouse, but Vienna offers a secure investment along with the charm, history and cultural allure of Paris — yet on a small scale and with a lower cost of living. It is little surprise, then, that Vienna is gaining considerably in popularity among global buyers as a home and investment in the heart of Europe.” For these among many other reasons, South Africans are exploring Vienna as a property investment destination. With the recent election of political centrist Emmanuel Macron in France, many wait-and-see investors are more positive about European stability. “Macron’s victory is certainly good for economic stability and should boost investor confidence in
APARTMENTS IN NUMBERS To buy:
€6,531/m2 —
average city centre price
€3,477/m2 —
averagepriceoutsidecentre To rent:
€762 — one
bedroom in city centre
€526 — one
bedroom outside centre Source: numbeo.com
the region,” says George Radford, director of Africa for global property investment firm IP Global.
PROPERTY
Foreigners from outside the EU have to get permission from the government to buy a property in Vienna. While this comes with its complications, the process can be facilitated. “It is easier if the investor is planning to live in the country, but otherwise you will have to prove that you are able to provide some sort of benefit to Vienna’s economy or its people,” says Radford. “The majority of people from outside the EU buy through a company vehicle and lawyers can do this quite easily, but this naturally adds to the acquisition costs.” Over the past decade, Vienna has experienced a 10.1% population growth with a 27% increase expected by 2060. “The massive influx of population … has caused a considerable housing shortage, and triggered a
substantial number of new building projects,” says Georg Muzicant, Colliers International CEO. This steep population growth makes Vienna a compelling property investment destination. Market data shows a 50% supply deficit for onebedroom flats. Knight Frank says 44,000 new households were required between 2015 and 2017 yet only 32,000 completions were expected — a 27% supply deficit.
GROWTH
Property has experienced a 10.5% average price increase per year over the past five years, with an average flat price of €204,496 in Q1 2016. In the same time frame, new-build flats increased 10% year on year. Despite Vienna’s renown as an artistic and intellectual hub, it is a humming commercial destination. Its main industries are telecommunications, insurance, legal and tax, financial services and technology. About 300 international companies
have their Eastern European headquarters in the city, including Henkel, Siemens and Baxalta. It is number three on the Innovation Cities index behind London and San Francisco, and 8,300 new companies have been founded every year since 2004.
EDUCATION
Vienna is also home to the University of Vienna, the Vienna University of Technology, and the Vienna University of Economics and Management. There are 85,000 students at these three, with an additional 17 universities also calling the city their home. University is free for EU citizens, and costs $500 per semester for international students. The city is culturally diverse, with about a third of its population of 1.8-million having a migration background. It is also one of the wealthiest regions in the EU, with residents earning €47,200 per capita, which is 159% of the EU average. And yet, according to the QS Best Student Cities 2016, Vienna
is the most affordable city in the world’s top 20 after Berlin and Munich.
SUBURBS
The suburbs are organised into 23 districts, each with their own unique characters. Each district has a name but they are universally known by their number. The first district is closest to the city centre and the succeeding districts move further and further outside. ExpatArrivals. com recommends the following districts: District 1, Innere Stadt, is the most expensive place to live, but close to architectural and historic sites. District 2, Leapoldstadt, is significantly cheaper and more multicultural. Districts 3, 4 and 5 — Landsrabe, Wieden and Margareten — are urban districts with a greater choice of housing options. Districts 8 and 9, Josefstadt and Alsergrund, are popular with wealthy locals and are close to the University of Vienna. Districts 17, 18 and 19 — Hernals, Wahring and
Dobling — have more familyfriendly housing alternatives. All in all, Vienna offers a range of investment opportunities in a beautiful cultural setting that is more affordable than most other capitals or leading cities in Europe. “High quality of life, low cost of living — and a home to wine, music and historic beauty on every corner: no wonder they call it the City of Dreams,” says Alex Koch de Gooreynd, head of Austria at Knight Frank.
PROPERTY TAXES FOR FOREIGNERS 4.5% — entry costs 3.5% (2% for relatives) — transfer tax 1% — notary fee 1% — land registry fee €120 plus 20% VAT for each owner 20% VAT for a new-build, but not payable if the property is rented out VAT on rental income 30% — capital gains tax on exit
WESTERN CAPE AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200
Camps Bay / R22 million
Ref# BAY1313999
Bedrooms 4 / Bathrooms 4.5 / Parkings 2 / Backing onto the iconic Twelve Apostle mountains, this unique architecturally designed home offers breathtaking unparalleled views from every angle. Garden, pool, separate flatlet plus endless possibilities for further extensions.
Jodie Taylor 082 667 4770
V&A Waterfront / R14.5 million plus VAT
Ref# AS1316932
Constantia Rural / R30 million
Ref# KW1318808
Bedrooms 2 / Bathrooms 2 / Parkings 2 / Situated in the sought-after V&A Marina overlooking the canal, this apartment is well-appointed offering a spacious covered patio, ideal for outdoor living. Exceptionally furnished with top quality interiors and high profile finishes. Added extra: storeroom directly outside the front door. Enjoy the lifestyle and security which the Waterfront has to offer. 5 Communal pools, gym and onsite Home Owners Association office.
Bedrooms 5 / Bathrooms 6.5 / Garages 4 / Exceptional country beauty with panoramic mountain views. This sensational home offers a symphony of modern luxury and rural country ambiance. Exquisite receptions, his-and-hers study, entertainment/recreation wing and superb kitchen. 4 Luxurious en suite bedrooms plus a 5th guest studio. An entertainers’ dream and horse lovers’ paradise, this outstanding home offers exquisite detail and delight at every turn.
Paul Levy 083 300 3001 / Kim Bailey 083 448 2632 / Mariël Burger 082 372 2573
Angie Bloom 083 678 7876 / Mark Bayly 083 270 2446 / Julia Torrente 083 633 7614
CAPE WHALE COAST Arabella: 028 284 9385 • Betty’s Bay: 028 272 9145 • Hermanus: 028 312 1110 Kleinmond: 028 271 3423 • Onrus: 028 316 3390 • Pringle Bay: 028 273 8326
We are Hermanus
Fernkloof Golf Estate / R7.9 million Bedrooms 3 / Bathrooms 2 / Garages 2 Simply elegant sunny home in Prestwick Village with large open-plan spaces, mountain and golf course views. Perfect as a lock-up-and-go but also designed with every amenity for year round comfortable lifestyle living. Ref# HF1320530 Rose-Marie Marais 082 877 6160 / Sue Ralph 082 892 8772
Ref# ON1318687
Ref# ON1244264
Ref# HF1317219
Benguela Cove / R9.5 million
Vermont / R7.45 million
Kwaaiwater / R2.995 million
Bedrooms 4 / Bathrooms 4 / Garages 2 New release in exclusive estate. Set on a secure, private wine estate adjacent to the Botrivier Lagoon. Panoramic views of lagoon, Kogelberg Mountains and countryside.
Bedrooms 5 / Bathrooms 4 / Garages 3 Perfectly located in a unique position. Meticulously crafted to reflect sea and mountain views. Spacious living areas and secluded pool.
Bedrooms 4 / Bathrooms 4 / Garages 2 So much potential. Character home with mountain views. Great location close to the golf course with easy access and across the road from the cliff path. Northfacing patio with lots of sun.
Louise Momberg 082 553 0427
Niel 082 967 0813 / Dinita 082 898 4519
Ref# KN1318540
Allan Lotter 072 768 9984
Ref# KN1312129
Ref# WM1318229
Pringle Bay / R2.2 million
Betty’s Bay / R2.1 million
Welgedacht / R12.95 million
Bedrooms 2 / Bathrooms 2 / Garage 1 Double-volume entertainment area, flowing out onto a Balau deck, mature trees and shaded braai area. Perfect space to entertain a few friends and sit around the fireplace.
One of the last seafront plots currently available and with no time limit in which to build, this is an attractive offer. Enjoy an easy meander along the sandy path to the beach.
Bedrooms 6 / Bathrooms 5.5 / Garages 3 Elegant home situated in a cul-de-sac, overlooking a greenbelt with views of the Overberg. Well-proportioned spaces, good flow and beautifully finished. Private, enclosed garden with pool and an extensive patio.
Wendy Cilliers 072 340 8263 / Nicola Lloyd 082 443 8326
Mary-Louise 082 594 0949 / Peta 083 528 1290
Gené 082 975 2869 / Paige 082 901 7045
CAPE WINELANDS Franschhoek: 021 876 2100 • Paarl: 021 871 1480 • Somerset West: 021 851 2633 Stellenbosch: 021 887 1017 • Wellington: 021 873 4557
Franschhoek / R69 million Bedrooms 7 / Bathrooms 7 / Garages 2 Consummate masterpiece. Luxurious property located in a prime elevated position in the Franschhoek Estate, gazing over and beyond the beautiful valley of this world-renowned region. Ref# FWI1317249
We are Franschhoek
Doug Gurr 072 610 7208 / Jeanine Allen 082 410 6837
Ref# FWI1301604
Ref# TK1320429
Ref# TK1314743
Franschhoek / R9.9 million
Paarl / R16.95 million
Pearl Valley / R15.995 million
Bedrooms 3 / Bathrooms 3 / Garages 2 A magnificent home in the well known Le Ferme Chantelle Security Estate. A house set at the back of the estate for added privacy and complemented by a lovely rock pool and mountain views.
Bedrooms 5 / Bathrooms 6 / Garages 3 Well-designed, family home, in a central position high up against Paarl Mountain and carefully planned with ultimate finishes.
Bedrooms 4 / Bathrooms 3.5 / Garages 2 This immaculate northfacing double-storey is walking distance from the Club House and driving range. Enjoy breathtaking sunsets with the most exquisite mountain views from the pool deck and balconies.
Doug Gurr 072 610 7208 / Jeanine Allen 082 410 6837
Lana Du Toit 083 407 9659
Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492
Ref# TK1321931
Ref# WEL1320971
Ref# SW1315242
Boschenmeer / R8.95 million
Wellington / R3.65 million
Gordon’s Bay / R6.8 million
Bedrooms 4 / Bathrooms 4 / Garages 3 Step into this spacious home situated on a 1 320 m² plot. The imposing entrance hall leads to the perfect blend of open living space and kitchen area. The indoor braai area flows to a large garden with golf course and dam views.
Bedrooms 4 / Bathrooms 3.5 / Garage 2 Breathtaking views. This spacious home is perfect for the family who enjoy space and the Boland lifestyle. Large open-plan living areas flowing to an indoor braai overlooking the vineyards and mountains.
Bedrooms 3 / Bathrooms 4 / Garages 4 Luxury home for all seasons overlooking False Bay. This distinctive home is ideal for family or dual-living. Offering a separate spacious flatlet.
Igna 082 884 8492 / Hayley 082 926 8587 / Jordan 083 298 1481
Lynette Kannemeyer 082 672 1022 / Erika Odendaal 082 412 6964
Trish Hartley 082 929 7767
HOMEFRONT TRENDS
Pockets of growth despite flat market Although property growth has been muted in the past year, Private Property’s data suggest that certain areas and property types have bucked the trend
Provincial Overview
WORDS: BRIDGET MCNULTY
G
lobally and in SA, 2016 was a tumultuous year. Seismic events such as Brexit, the refugee crisis and the controversial American president spread uncertainty across the markets worldwide, and SA was no different. Private Property CEO Simon Bray says consumer confidence waned as rising living costs, political uncertainty and the worst drought in years took their toll. Property growth in general was muted, with the price of property coming to market showing a year-onyear price increase of just 2% or R30,000 nationally, for Q4 2016. But within this flat growth, certain pockets performed well. Says Bray: “Yet in spite of all this, the property market in SA showed remarkable resilience and activity levels. In 2016, property worth more than R695bn was listed for sale on the Private Property website.” Agents and individuals list residential properties for sale on a national basis on the Private Property website. The company collates its findings quarterly from these property patterns, in its The Property Report. The first report was published in March; the company will publish its report every quarter. Its statistics, however, are based on asking prices rather than sold prices.
Gauteng Gauteng
Cape Town is at the forefront of property growth, with a 5% year-on-year increase per square metre. The Atlantic Seaboard showed the highest growth of 29% per square metre, followed by the more affordable areas — by Cape Town standards — of Parow and Goodwood, with 19% and 15% growth respectively.
“The property market in SA showed remarkable resilience and activity levels”
WesternCape Cape Western
listings
Kwazulu - Natal KwaZulu-Natal
listings
Listings
listings
Listings
Listings
15%% 15%
59% 59% value Value
12%
12%
value
value
R386,238 m R386.238m
R144,962 R144.962mm
Value
R88,482 R88.482mm
Median Price
Median Price
Median Price
YOY price change
YOY price change
Medianprice R1,380,000 R1.380m
By metro: biggest growth in Cape Town
Value
Medianprice R1,950,000 R1.950m
YOY price change
YOY price change
Medianprice R1,500,000 R1.5m
YOY price change
3% 3%
YOY price change
14% 14%
4% 4%
Eastern EasternCape Cape Listings listings
3%
GP
NW
Value value
R16,276 m R16.276m
MP
KZN
NC
Median price Price Median
-9%
YOYprice pricechange change YOY
-10% -10%
WC
Free State Free State
Mpumalanga Mpumalanga Listings
National: biggest growth in Western Cape
Value
Value
Value
listings
0% 0%
value R2.539m R2,539 m
listings
2% 2%
listings
4% 4%
Limpopo Limpopo Listings
listings
1% 1%
Value
value R9.489m
R9,489 m
value R20.111m R20,111 m
R7.884mm R7,884 Median Price
Median price Median Price
R1.590m R1,590,000
Median Price
Medianprice
Median price Median Price
YOY price change
YOY price change
YOY price change
YOY price change -5% -5%
R19,344 R19.344mm R1,250,000 R1.250m
EC
YOY price pricechange change
Northern Cape Nothern Cape
3% 3%
Median MedianPrice price
R1,150,000 R1.150m
Listings
Ethekwini and Johannesburg tied with 7% year-on-year change per square metre, while Ekurhuleni reported only 3% growth per square metre, and Tshwane 2% on average. In the Ethekwini metro, the top two areas in terms of price growth per square metre were Hillcrest and Kloof. These are areas
Listings listings Value value
FS
Listings
Outside the five main metros, areas in the Western Cape dominated, with Somerset West and Stellenbosch showing 22% and 17% price increases respectively, followed by Mossel Bay with 14% growth.
North NorthWest West
LP
Simon Bray, CEO, Private Property
GROWTH PATTERNS By property type: biggest growth in smaller KwaZulu-Natal homes and Gauteng Within each metro, certain property types outperformed the rest. “If we look at the top three performing property types in each of the metros, it confirms the shift towards smaller sectional title type properties with flats and townhouses dominating the lists,” says Bray. This is a trend that will
Provincial overview
continue as affordability, running costs and security remain at the forefront of South African property buyers’ minds. “Smaller property is increasingly in demand as buyers look to save money by buying lower-priced property and sharing the costs of property ownership,” he says.
R999,000 R999,000 YOY price change -8% -8%
R1.290m R1,290,000 YOY price change -0% -0%
value
Medianprice
R1.295m R1,295,000 YOY price change
YOY price change
-4% -4%
Source: Private Property The Property Report Bray identifies as being where “buyers get more bang for their buck in terms of property size”. In the Gauteng metros, 2016 growth was muted, with Bedfordview and the northern Pretoria market performing best.
LOOKING AHEAD
So will this growth continue during 2017, or has it hit a plateau? “Based on the data
we’ve gathered, we believe it should continue,” says Bray. “Property in the exclusive areas will continue to be in demand by the wealthy who are less affected by the economic climate. The trend of buyers choosing smaller property will continue. “Buyers looking for space or more bang for their buck will continue to move further away from the city centres,” he says.
PROVINCIAL AND METRO BEST PERFORMERS Onaprovinciallevel,growth above the national average:
On a metro level, highest growth was in:
Western Cape (14%)
Cape Town (11%)
KwaZulu-Natal (4%)
Ekurhuleni (6%)
Gauteng (3%)
Ethekwini (6%)
RS
estlake
eco-estate m o d d e r f o n t e i n
HOMEFRONT
HOMEFRONT
IN JUST T WO YEARS, STEYN CIT Y HAS PROVED ITSELF A GAME CHANGER IN SOUTH AFRICA’S PROPERT Y INDUSTRY IN A COUNTRY WHERE GATED SECURITY ESTATES ARE HARDLY A PHENOMENON, STEYN CITY’S ABILITY TO DISTINGUISH ITSELF ON A NUMBER OF FRONTS SPEAKS VOLUMES.
Indeed, the lifestyle resort has proved that it is able to offer a lifestyle beyond compare, thanks not only to the variety and quality of facilities available, but also to the lifestyle that these facilities have helped to create. Most impressive of all is that all infrastructure has been available from the outset; from the moment the first would-be buyers viewed the developing lifestyle resort, they were able to experience Steyn City in its entirety, rather than waiting for the different components to come on board and hoping that they would live up to what had been promised. In the words of Steyn City Properties CEO Giuseppe Plumari, “We don’t just say. We do.” The lifestyle resort’s success therefore comes as no surprise. One of its most noteworthy accomplishments to date has been its inclusion, at fourth place, in New World Wealth’s 2016 ranking of lifestyle estates. The index considered factors such as security, facilities, activities, quality and design of houses, views, scenery, wildlife, appeal to wealthy buyers, resale and price growth potential. Steyn City’s excellence is evidenced by the fact that the top three estates all have a coastal location; moreover, they have been established for several years. The lifestyle resort has, additionally, been exceptionally well received by the
buyers – even at a time when the market is notoriously slow. Phase 1 has been a sell-out success, with all apartments, stands and the first cluster development snapped up by eager purchasers. The second cluster development, 65 on Park, is now under construction, and is halfway to completion with a new show home for those who wish to marvel at the breath-taking views of the Magaliesberg Mountains. Purchasers’ enthusiasm is explained by the sense of community that defines this lifestyle resort, and that manifests in every aspect. “Businessman and visionary Douw Steyn, was guided by the dream of creating a city like none other for all South Africans in order to
leave a legacy in his country of birth,” says Plumari. “As his friend and business partner, I was asked to create, execute and deliver the vision. The kind of city where people still greet their neighbours, where children can bike around safely, where time out means time outdoors, away from technology, and where cars play a secondary role,” he adds.
Purchasers’ enthusiasm is explained by the sense of community that defines this lifestyle resort, and that manifests in every aspect.
This has been achieved firstly by installing a top- notch security system. Steyn City boasts electrified perimeter fencing, stringent access control, a 24hour security nerve centre and a roundthe-clock troop of guards who patrol the entirety of the lifestyle resort. The environment itself is especially appealing. One of the first thing visitors to the lifestyle resort notice is the magnificent land art, created by local artists as part of a development programme. Also remarkable is the dense planting which has helped to create a parkland atmosphere: over half a million trees, ground covers and shrubs all contribute to a setting akin to a nature reserve.
Kids & Teens Wonderland • Private School • Sport & Recreation • Legendary Golf • Restaurants & Retail • Leisure • Equestrian • Innovative Infrastructure • City Living • Commercial • Retirement • Conservation • Security
Residents are invited to wander this beautiful location with a number of trails ideal for walking, running, cycling and even horse-riding. In fact, there are more than 15km of pedestrianised walkways (each of the Steyn City villages is accessed via quiet cul de sacs and crescents, with all traffic confined to the lifestyle resort’s main thoroughfare – an arrangement which gives mothers complete peace of mind when their children spend the day cycling through the development either on the boulevard or via the green lungs). Although many would consider the Jack Nicklaus-designed golf course, with its award-winning clubhouse, to be the highlight of the lifestyle resort, there are many more facilities on offer, catering to a variety of interests. The equestrian centre, for instance, is a fully equipped, world class complex answering the horse rider’s every need. There is also a gym, tennis courts, children’s playnodes and a skate park, as well as outdoor workout stations. In an effort to offer same the services, amenities and conveniences as a fullyfledged city (which it will one day be), Steyn City has a deli offering fresh, on-the-go meals and pantry essentials. Residents (and visitors) can also dine at XIX (Nineteen) Restaurant, managed by The Saxon. The most recent addition to the lifestyle resort is Steyn City Schools, set to open doors in 2018. Comprising an Early Years Centre, a preparatory school and high school campus, this facility has been designed in accordance with the latest thinking in education: spacious classrooms lead out on to balconies to create a variety of learning environments, while a science laboratory, media centre, aquatic centre (furnished with a learn-to-swim pool), multi-courts, sports fields and a pavilion complete the offering. Students will also be able to access Steyn City’s facilities, golf course and equestrian centre included, ensuring they will be able to develop their talents and abilities across a broad range of extracurricular activities. The school’s ethos and curriculum, meanwhile, lay significant emphasis on speaking to each individual’s unique strength, helping them grow in a school environment
where particular value is placed on oldfashioned values and ethics. The school is an independent educational facility and the preparatory school will adhere to CAPS assessment standards, while the high school’s syllabus will affiliated to the IEB. The staff is led by principal Brian Mitchell, who has extensive experience and success in developing schools. The campus will soon be joined by a City Centre, planned for 2018. This new node will offer apartments, restaurants and boutique shops. A commercial park is also in the pipeline. Naturally, a development of this calibre is a major undertaking. Steyn, Plumari and their team decided that they would work to make sure that it advantaged the entire community, as well as the region. Consequently, the construction of Steyn City has contributed not only to job creation in the area totalling over 13,000 jobs to date, but also to the massive growth of Johannesburg’s so-called ‘New North’. Steyn City Properties has also invested heavily in the infrastructure surrounding the lifestyle resort, entering a public/private partnership to upgrade major access roads around the development.
THE MOST RECENT ADDITION TO THE LIFESTYLE RESORT IS STEYN CITY SCHOOLS, SET TO OPEN DOORS IN 2018.
Plumari is satisfied with the way that Steyn City Properties has brought Steyn’s vision to life. “Of course, we’re proud of the attention and kudos the lifestyle resort enjoys, and more pleased still that this has translated into sales. But what makes us most happy is that we have created something very special for South Africans; a lifestyle that will be cherished by all who choose to make this their new address.”
Sales: 010 597 1040 | Mark: 082 559 2989 | Leanne: 072 078 9562 | sales2@steyncity.co.za | STEYNCITY.CO.ZA
HOMEFRONT REPOSSESSIONS
SA rife with repos South African law, claims an expert, allows local banks to be among the most ruthless in the world when it comes to home repossessions WORDS: SUNGULA NKABINDE :: PHOTO: ISTOCK
T
here have been reports of banks repossessing homes and selling them on auction below their values and for less than what home owners owe on those properties. Advocate Douglas Shaw, an authority on South African banking law, has seen cases in which people’s properties have been auctioned for as little as R100 following their repossession. In one case, a property worth R1.4m was sold for R10,000. In another, the bank foreclosed on an elderly couple who owed R100,000 on their R2m home. Shaw says the problem is partly due to the law, which states that there cannot be a reserve price when a property is sold on auction, meaning that
there is no minimum amount the sheriff must get for the house at an auction. Another reason, he believes, is that South African banks are simply nastier than those in other countries. He says South African banks foreclose on home loans at five times the rate of others, and at 20 times that of best practice countries. Progress is being made, however, in changing the law, with new rules proposing the inclusion of reserve prices.
RATES
“For every 1,000 bonds, our banks will repossess five times as many as the global average,” says Shaw. “This is not just in comparison to the developed world but also when looking at poor countries such as Mexico, Brazil … SA is the worst. “I haven’t found any
“Buyers who usually attend sheriff’s auctions of repossessed properties go there with the aim of buying those properties at the lowest possible prices” Berry Everitt, CEO, Chas Everitt International
country that is worse than us when it comes to the number of repossessions per 1,000 bonds.” Only countries that have had major crises in recent years — such as Spain and the US — approach the extreme level of executions in SA, even though the effects of the global financial crisis have been far less significant locally. Shaw says there are about 1.8-million bonds in SA, of which at least 4,000 are repossessed every year, while about 15,000 owners are served with sale in execution notices, which is a prelude to a sale on auction by the sheriffs. Of the 4,000, he estimates that only 5% are repossessed using best practices common in other countries. These are the cases in which repossession is indeed the
last option open to banks. Says Shaw: “There will always be a genuine need to repossess homes, but the rate should be much lower than what it currently is in SA because it is supposed to be the absolute last resort. “Maybe banks in other
BANKS’ OFFERINGS Before it gets to the point at which your property is repossessed,homeowners can approach banks and estate agents for help with a distressed sale. The banks and estate agencies actively participate in getting distressed sellers to join the bank assisted sales programmes, says Pam Golding Properties bank assisted sales manager Tania Smit. “It is a voluntary programme whereby the banks and agencies try to help the seller sell the property at the best possible price on the open market until it’s too late and the property is repossessed. As the bank provides shortfall assistance [writes off a portion of shortfall if the seller qualifies], and prescribes reduced commission rates to agencies, the seller is able to compete much more competitively in the open market.” The homes are valued by the bank and allocated to agencies at market related prices. Although the agent may price-counsel the seller, Smit says, price reductions must be properly motivated. “The banks also don’t allow offers lower than 80% of market value [with some banks 70%], unless the seller agrees and there are solid grounds that justify a substantialpricereduction. Sellingpricesarecontrolled very strictly by the banks to assure the best possible price for the seller.” The big four banks have assisted sales programmes: FNB Quick Sell Absa Help U Sell Standard Bank Easysell Nedbank Assisted Sales
HOMEFRONT countries would be equally nasty or even nastier than ours if their law allowed them to be, or maybe banks are just more ethical in those countries; I don’t know.”
HELP
Chas Everitt International property group CEO Berry Everitt says repossession is always the last resort for a bank. He says banks go to extreme lengths to help financially distressed home owners to stay in their homes; where that is not possible, they help owners to sell their homes in the open market so that they can pay off their bonds without the trauma of repossession. Actual repossession of a property only happens after a long legal process that the home owner can stop at any stage and come to an arrangement with the bank or with the bank’s attorneys. Everitt says if home owners ignore all communications from the bank and let the legal process continue until the sheriff of the court arrives to repossess the property, they should be aware of the consequences, including that the interest on their home loan debt will have been accumulating the whole time. “Obviously, the buyers who usually attend sheriff’s auctions of repossessed properties go there with the aim of buying those properties at the lowest possible prices, and their best offers may well be lower than market value — or lower than the total amount that is now owed to the bank. That is, the capital plus all the unpaid interest on the home loan,” says Everitt.
LOOPHOLES
Shaw is currently representing about 60
NEED TO KNOW Your home can only be sold once a bank receives a court order against you and you can defend that case. It is advisable to notify the bank as soon as you are unable to make a bond repayment so that an arrangement can be made. Only a sheriff is legally allowed to remove items from a home or take possession of a property — no debt collector, tracer, bank representative or agent may remove a single item from your home. Your home cannot be repossessed in the early stages of sequestration or if you are under debt review. Do not surrender your home when faced with eviction — even if the sheriff has a sale in execution court order; your possession of the property is your legal right until transfer has occurred at the deeds office.
clients who are suing banks for properties that were sold at a 60% discount on average. In some cases, such as those in which homes have been sold for a mere R100, foreclosures have simply been illegal. There are syndicates of unscrupulous attorneys who work with similarly unscrupulous sheriffs’
offices to enrich themselves using the loopholes in the rules and sometimes allegedly without even a court order, he says. “In Britain, the US, Canada, Australia and New Zealand, the bank is liable to pay the difference if they sell a person’s property for a substantially lower
amount than what it is worth,” says Shaw.
COSTS
Standard Bank head of home loans Andrew van der Hoven says it costs banks money to repossess homes. Selling immovable property is not their primary business and they only do it when all options
INDUSTRY EXPERTS have been exhausted. There are several reasons that sales in execution yield lower prices, Van der Hoven says. Properties sold in execution may be burdened with substantial outstanding levies and rates and taxes, which the buyer has to pay in order to have the property transferred. The condition of the property might also be poor as a result of the debtor’s inability to maintain it. “[Also] the property being sold in execution is almost inevitably occupied by one or other party at the time of the sale. The sheriff at a sale cannot guarantee occupation of a property and it is accordingly incumbent upon the buyer to arrange for vacant occupation,” says Van der Hoven.
Foreclosure rates Annual number of executions per 1,000 bonds Country
Number of bonds
SA
Average over 10 years
Increase of SA over countries
1,800,000
2.4
0%
Spain
6,768,000
2.5
-5%
US
80,600,000
1.9
28%
South Korea
47,600,000
1.8
34%
France
15,000,000
0.6
298%
Hungary
1,188,000
0.6
329%
Bulgaria
115,200
0.4
512%
UK
11,300,000
0.3
800%
Cyprus
255,584
0.1
4,261%
Denmark
2,420,000
0.04
5,681%
Singapore
792,000
0.01
18,820%
Source: The Legality of The Law of Sale for Substantially Less Than Market Value — Doctoral Thesis by Douglas Shaw
“There will always be a genuine need to repossess homes, but the rate should be much lower than what it currently is in SA” Douglas Shaw, advocate
RE/MAX offers the International Certified Distressed Property Expert Professional Designation (CDPE) course to its brokers, owners and agents. RE/Max Southern Africa chairman Peter Gilmour says a certified distressed property expert is a real estate professional with specific understanding of the options available to home owners in order to avoid their property being repossessed by the bond holder. Pam Golding Properties bank assisted sales manager Tania Smit says there is a difference between repossessions and distressed sales. “With repossessions the bank [as the bond holder] sells the property to recover their own debt, and the seller has no rights or say in the price. The bank does not have any incentive to help the seller achieve the best possible price as they just want to limit their own loss. “With distressed sales the seller joins voluntarily, and makes all the decisions — the bank and agents just help the seller during the process,” she says. Gilmour says there are more than 120,000 families in distressed situations in SA and this number is growing every month. “With these numbers being a reality, a significant proportion of these distressed properties need to be sold to reduce the debt of the financial institutions. “It is anticipated that more than 30% of all property sales over the next three years could be distressed properties.”
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HOMEFRONT
STATISTICS
How crime rates affect property values The lower the crime rate, the more attractive an area and the higher the prices commanded WORDS AND IMAGES: SUPPLIED
S
Provincial residential crime
Average rate per 1,000 households
60
50
40
30
20
10
0%
Western Cape
Source: Lightstone
Northern Cape
Gauteng
Free State 2013
Eastern Cape 2014
2015
KwaZulu-Natal 2016
Mpumalanga
North West
Limpopo
afety is a key consideration for anyone looking to buy property. Generally speaking, areas with lower crime rates are more attractive to buyers and renters, which means that as a property owner, you can ask more for your property in an area where crime is lower. Property analyst Lightstone used data from the police to explore the impact of crime on the property market. It provides statistics on crime rates in residential and commercial areas from national through
provincial to suburban level, from 2013 to 2016. The latest crime statistics from the SAPS, released in March, track crime from April 1-December 31 2016. At national level, Lightstone’s data shows there was a drop in residential and nonresidential crime in 2016 compared to 2015, both in terms of absolute values and as a percentage of the population. In its report, Lightstone classifies malicious damage to residential property and home burglary as residential crime. Burglary, shoplifting and robbery
HOMEFRONT “Security is a major factor for people who are looking to buy property in major metro suburbs”
By far the largest proportion of suburbs (44%) are located in a metropolitan area, and it can be reasonably assumed that the people living in these suburbs are wealthier, on the whole, than those who live in the suburbs of small towns or rural areas.
Absolute and relative national crime rates per 100,000 people Crime category
Per 100,000 people
Absolute values 2015
2016
Growth %
2015
2016
Growth %
Residential crime
789,318
782,654
-0.84%
1,436
1,399
-2.54%
Nonresidential crime
329,710
326,984
-0.83%
600
585
-2.52%
SECURITY
at nonresidential premises is classified as nonresidential crime.
THE RESULTS
The Western Cape has the highest average residential crime rate per thousand households. Although it has dropped slightly in the past two years, it is still much higher than the next most crime-ridden province, the Northern Cape. Limpopo has the lowest provincial crime rate. This could be the result of an increase in access to police stations in the province’s developing rural areas. Drilling down into suburbs, metro suburbs have the highest residential crime rates by far, followed respectively by the suburban areas of large and small towns, and then inner-city residential areas.
Security is a priority factor for people who are looking to buy property in major metro suburbs. Complexes and estates are perceived to be more secure, which is why gated living is so popular — and why these properties are so much more expensive. Pretoria Central had the highest number of vehiclerelated crimes in 2016, followed by Sunnyside. The Johannesburg and Durban CBDs also feature prominently, as do Khayelitsha and Gardens in Cape Town. In conclusion, Lightstone says, residential crime rates in major metropolitan areas, combined with the concentration of vehicle-related crime rates in the business districts in these areas, is a toxic combination for property prices.
Source: Lightstone
Suburbs with the highest vehicle crime rates in 2016 5 64 223
187
45
7
0 71
196 200
0 81
263
162
851 Gauteng Pretoria Central
704 Gauteng Sunnyside
496 Gauteng Johannesburg Central Theft from vehicle
595
541
726
609
Western Cape Khayelitsha
Gauteng Joubert Park
KwaZulu-Natal Durban Central
Western Cape Gardens
Theft of vehicle
Car jacking
Source: Lightstone
AGENTS MOVE TRANSACTIONS FORWARD No home is a perfect fit – not for the seller, not for the buyer. Registered estate agents know how to overcome objections on price, date of occupation, and all the nittygritty elements that make up a property transaction. Registered estate agents have the experience to move the transaction forward.
Another good reason why you should use an estate agent
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REAL ESTATE BUSINESS OWNERS OF SOUTH AFRICA
HOMEFRONT PROPERTY NEWS
Helderberg Manor fast selling out
B T
here are nine flats left for sale in the Helderberg Manor Retirement Village in Somerset West, a collection of houses, garden flats and assisted living suites. The complex is situated in Heritage Park, a 200ha private estate, complete with its own houses, schools, shops, places of worship, parks and waterways at the foot of
the Helderberg Mountain. Hein Ehlers, founder and group CEO of the Devmark Property Group, which is developing the estate, says most of the construction and landscaping have been completed, which means buyers can move in immediately. He says there has been a significant increase in interest from buyers wanting to move to Cape
Town and surrounds. “Many upcountry people are moving to Cape Town due to the quality in lifestyle and security it offers. Helderberg Manor is the ideal retirement option for anyone over the age of 50,” Ehlers says. There are six twobedroom flats on offer for R1.595m each and three one-bedroom flats for R1.295m each.
Plexus Wealth launches new fund L isted property specialist Plexus Wealth has launched a second property fund, the Plexus Wealth BCI Flexible Property Income Fund, which mirrors the company’s model portfolio offered to private clients. Although predominantly invested in local listed property stocks, it also gives exposure to Redefine International and Polish listed property company Echo Polska Properties, adding an element of rand hedge
to the portfolio. Says Plexus Wealth CEO Eric Jones: “With the potential to provide an escalating income starting at 7% per annum after fees, the fund is attractive to investors who want a high income and retirees who seek to maximise their pension in SA’s high inflation environment.” Says Plexus Wealth portfolio manager Amanda de Wet: “Property has consistently outperformed local equities, bonds and cash over the past 15 years.
“The fundamentals for listed property remain solid even though the growth in distributions is now more in line with inflation than the doubledigit figures delivered by several listed property companies over the past five years. We believe that a forecast total return of 10% to 12% is very attractive in the current low-growth environment.” Investors can invest monthly amounts from R1,000 or lump sums from R25,000 in the new fund.
Go online to find or rent storage space W ahi Space Share has gone live. At this peer-to-peer online marketplace, technology connects owners of storage space or parking with potential renters. Founded in 2016 by Cape Town entrepreneurs Michael Hodgson and Daniel Bailey, wahi.co.za offers both commercial and
residential rental space. Wahi means “get” in Swahili and “space” in Maori. The founders say the start-up aims to change the accepted status quo of SA’s self-storage industry, giving South Africans the opportunity to become earners. “We give property owners the opportunity to generate bonus annuity
income from their spare space and also allow renters to achieve cost efficiency and convenience by converging online,” says Hodgson. “You could see it as the Airbnb of spare space, where the commodity is something many of us own — without even knowing it — and many others — often our neighbours — also need.”
Port of Durban properties available T
ransnet National Ports Authority (TNPA) is offering new lease agreements for more than 30 properties and operational sites in the Port of Durban, in its Ship Repair and Bayhead Precincts. According to the TNPA, the commercial sites, which will be leasable for a minimum of five years, present opportunities for new entrants who have a minimum of 51% black ownership to participate in
port-related activities. Says Port of Durban port manager Moshe Motlohi: “This is the [TNPA’s] first real estate lease application exercise of this magnitude.” The commercial sites range in size from 14m2-5,000m2 and are mostly used for port- and logistics-related activities such as light industrial engineering workshops, repair operations and storage sites. The properties include a restaurant that caters
for the Bayhead industrial workers’ market, as well as some sites suitable for local sporting bodies, boating clubs and fishing clubs. Says Port of Durban real estate manager Gary Young: “The Port of Durban has been leasing these properties on a month-tomonth basis to a group of businesses for more than 20 years. This will now change, as most of the lease agreement terms will be [for five years].”
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