HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 22 NOVEMBER 2019 WWW.BUSINESSLIVE.CO.ZA
Special Property Investment Focus
MUST-READ
Multigenerational estates' wide appeal PAGE 14
No checkout: new mall trends PAGE 18
Joburg’s luxury sales on the up PAGE 22
Ellipse Waterfall’s new development consist of four high-rise towers: Galileo, Cassini, Newton and Kepler
Home sanctuaries Large or small, people are choosing spaces that offer necessary Savvy investment: respite from the outside world affordable housing
PAGE 5
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Retire to the tranquility of the Paarl Winelands Perfectly Located in Paarl | Unique High-Tech Security | Impressive Healthcare Options Leisure Lifestyle Centre | Green Building Designs
2-4 BEDROOM FULL TITLE
NOW AVAILABLE FROM R3 225 000 NO TRANSFER DUTY Jaco van der Merwe Reon van der Merwe
083 235 0241 082 896 2747
Werner Pieters Marius Pieters
082 363 6089 082 566 0853
sales@grootparysestate.co.za | www.grootparys.co.za |
Developed by:
Development Partners: and Groot Parys Development Trust
URBAN LIVING with all the accessories
SMEG kitchen a ppliances worth R65,000 included with p urchase
BEDFORDVIEW FRONTIER The new residential development ticks all the boxes for an unbeatable lifestyle, with luxuriously kitted-out apartments and access to a host of amenities. Just on the border of the affluent suburb of Bedfordview, you’ll find the Bedfordview Frontier Residential Estate. The new development has been designed with superb attention to detail, offering its residents a high quality of life, both inside its spacious apartments and within its communal spaces. The Estate’s many lifestyle features include an onsite convenience store, a daycare facility and a clubhouse with private pool. A gym and a kids’ play area are also in the mix, and the 24-hour security provided is state-of-the-art. The entire estate has fibre connectivity, and there’s also ample parking. When it comes to the apartments on offer, it’s all modern luxury and elegant finishes. Bedfordview Frontier’s one-, two- and three-bedroom apartments have been designed with practical flair, and are spacious and thoughtfully designed. Buyers can personalise their homes by selecting their choice of porcelain floor coverings and kitchen materials.
SPECIAL OFFER FOR NOVEMBER AND DECEMBER! Purchase a Bedfordview Frontier apartment in November or December this year and you’ll get SMEG appliances worth R65,000 FREE included in your apartment (terms and conditions apply)! To qualify, just WhatsApp or SMS 082 853 3139 with the words “BEDFORDVIEW FRONTIER” to receive your promotional code. Present this code to the Bedfordview sales agent on duty when signing your offer to purchase.
Contact Us
074 382 1000 www.bedfordfrontier.co.za
Bedfordview Frontier Residential Estate is ON SHOW EVERY DAY from 1pm to 5pm, at the corner of Langemann Drive and Smith Road, Kensington. Selling from R1,099,950, which includes VAT and transfer fees, the development has been approved by all major banks. Occupation is set for the last quarter of 2020.
E PL
M CO TI O N 3
Q 20 21
HELLO TABLE MOUNTAIN NEW DEVELOPMENT FOR SALE STARTING FROM R2.495 MILLION
WELCOME TO A CONNECTED WORLD WITH INCREDIBLE VIEWS IN ORANJEZICHT CAPE TOWN
KEY FEATURES: • 15 apartments • 3 exclusive penthouse apartments • Panoramic Table Mountain views • Communal landscaped terrace with jacuzzi • 5 minutes drive to Camps Bay and Clifton • Short-term letting and pet friendly
www.TheCedar.CapeTown
Office - 021 425 8586 Maxine - 078 452 5559 Catherine - 074 384 3127
CO NSCIO US LIVING
HOMEFRONT SECTIONAL TITLE
Home sanctuaries Large or small, people are choosing spaces that offer necessary respite from the outside world WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED
Balwin Properties' The Blyde at Riverwalk Estate, Pretoria East
R
ecent reports tracking residential sales across SA reveal that sectional title properties account for almost half of national sales from October 2018 to September 2019, whereas freehold sales have dominated in all price bands. Sectional title properties priced from R400,000 to R800,000 are being snapped up, with just over 40% being sold for between R800,000 and R1.5m. The FNB Market Strength Index suggests the market is still moderately oversupplied, particularly in middle- to upper-income areas. The oversupply in the sectional title market is consistent with the surge in construction of new flats and townhouses, while demand and supply of freestanding properties is relatively evenly balanced.
“There is ongoing demand for sectional title homes, more compact homes with lower maintenance and operating costs, and homes in convenient locations close to schools, the workplace and amenities – thereby allowing homeowners and tenants to avoid traffic,” says Pam Golding Property Group CEO Andrew Golding. “This is particularly evident in growth nodes such as Menlyn Maine in Pretoria, Sandton, Cape Town central and Umhlanga. “More single people are buying, which also drives demand for sectional title living. Aside from the younger generation, sectional title buyers include downscalers, professionals who travel often and retirees,” Golding adds.
Mortgage advances have outpaced house prices
%y/y 4
"Ramaphoria"
2 0 -2 -4 -6 2010
SMALLER SPACES
2019
Sources: South African Reserve Bank, FNB Economics
The growing cost of living has influenced the trend
EDITORIAL TEAM Editor: Debbie Loots Designer: Samantha Durand
2016
Mortgages – house price index
A
PRODUCED BY BLACKSTAR PROPERTY PUBLISHING
2013
PUBLICATION ADVERTISING SALES
Copy Editor: Christine de Villiers Production: Joanne le Roux
Susan Erwee
susan.erwee@thecreativegroup.info
083 556 9848
HOMEFRONT towards smaller spaces. “Higher LSMs are finding it more difficult to sustain their lifestyle,” says Rui Magalhaes of Bedfordview Frontier Residential Estate. “They would rather downscale their homes and keep their annual holiday to Mauritius. The lifestyle associated with sectional title developments compared with living in fortified cocoons helps them justify their decision.” Developers understand this, says Magalhaes, and are expanding the convenience and lifestyle features at larger sectional title developments. “At Bedfordview Frontier we have provisioned a crèche, a clubhouse, a gym, a restaurant, a convenience store and hi-tech security.” Horizon Capital MD David Sedgwick believes the downscaling trend among local buyers will continue, partly because they want to spend more time on leisure than the maintenance responsibilities of owning a large home. Moreover, downscaling to an apartment block or estate offers the peace of mind associated with community living as well as security, he says.
“Many still want something spacious with views and the indooroutdoor lifestyle they’re used to. To accommodate them, most of our penthouses include a private deck with a pool or Jacuzzi and plenty of outdoor space,” says Sedgwick. “Apartments at The Cedar, our development in Oranjezicht, Cape Town, for example, have integrated appliances, underfloor heating, fireplaces, electric blinds and air-conditioning to create the perfect retreat.”
COCOONING Technology is feeding the movement towards cocooning, the term coined by futurist Faith Popcorn for the need to spend more time at home and escape the negative outside influences. “The world is very much available to people online,” says Rob Stefanutto, MD of Dogon Group Properties. “As global trends change towards smaller homes and apartments, it is the design that sells.” He cites The Rubik in Cape Town as an example of “true thought going into the product the developers build”.
The penthouse interior at Horizon Capital's The Cedar in Oranjezicht
Rabie Property Group has specialised in the development of sectional title homes for decades. Clubhouses and swimming pools feature in some of its developments, whereas others include schools for convenience and reducing travel time. “We always try to build homes that are more spacious than the average downscaling model,” says Rabie director Miguel Rodrigues. “By offering accommodation that is secure and has pre-installed fibre and ample green spaces and often its own braai area, we believe home becomes a great place to be.” The Amdec Group has found that residential properties within its major developments ‒ One on Whiteley in Melrose Arch, Johannesburg, and The Yacht Club and Harbour Arch in Cape Town ‒ are popular with buyers who plan to let their units.
FURNISHED APARTMENTS “The majority of purchasers at this type of development are investors who are
Skywood is a new sectional title development in Bryanston by Zotos Construction
Legaro Property Developments' The Emerald in Hyde Park
“As global trends change towards smaller homes and apartments, it is the design that sells” Rob Stefanutto, MD, Dogon Group Properties
Inside The Rubik, a new mixed-use building in Cape Town, developed by Abland and marketed by Dogon Group Properties
HOMEFRONT
“We do a lot of bespoke interior design for clients who need to have their apartments furnished, often from the other side of the country or the world” Chris Weylandt, founder, Weylandts Spaces
The Bedfordview Frontier Residential Estate offers ample green outside spaces buying to let,” says Tersia Taljaard, sales consultant for the Amdec Group. “Some have bought as many as 10 apartments in a single development, and buyers even form consortiums to buy together. There are also those clients who prefer the ‘buy to live’ option. They are typically scaling down from larger properties or purchasing a second property for use on regular business trips.” Weylandts Spaces founder Chris Weylandt says the demand for fully-furnished apartments has grown significantly. “We do a lot of bespoke interior design for clients who need to have their apartments furnished, often from the other side of the country or the world,” he explains. It is an investment that is worthwhile. People buying to live in these apartments are typically reducing the furniture they’ve accumulated over the years and therefore simplifying their lives. Retirees face a
similar process when they decide to downsize, which typically involves relocating from a freehold home to one under sectional title or life rights ownership. The life rights model for retirees secures the right to occupy a property in developments such as Evergreen Lifestyle Villages for the rest of their lives. In exchange, they get the benefit of a sense of community, top security, continuous healthcare and an array of activities and amenities.
WHERE TO BUY “We are expecting our new KwaZulu-Natal development, Sibaya Sands, to be well received as it caters for an investor clientele and the end-user market, with prices starting from under R2m. Umhlanga sectional title is also sought after,” says Golding. New value-formoney developments in Krugersdorp on the West Rand are attracting investors despite the commute to
The New York-style interiors of the ICONYC development in Benoni
Johannesburg and Pretoria. At Copperhill Lifestyle Estate, a three-bedroom, two-and-a-half-bathroom sectional title home of 165m2 with a single garage, a carport and a sizeable private garden costs R1.7m. Investors who hanker after a beach setting inland can get it at Balwin Properties’ award-winning Blyde Estate in Pretoria East – the location of the first and only crystal-clear water body by Crystal Lagoons in sub-Saharan Africa. “I am immensely proud of what we have achieved as it ticks several boxes – a quality product that is environmentally friendly and delivers value for money for our customers,” says Balwin CEO Steve Brookes. The water usage of a crystalline lagoon such as this has far less impact than that of a swimming pool. It can use any type of water (groundwater, saltwater and even brackish water). Crystal Lagoons’ water treatment technology
operates in a closed circuit, minimising the use of scarce resources such as water and energy, and providing a sustainable, ecofriendly solution. “Balwin’s developments appeal to couples investing in their first home, retired people looking for safe lock-up-and-go apartments, young families who can let their children be children, and investors who are attracted by the return on investment that the one-, two- and three-bedroom apartment developments offer,” says Brookes. Ellipse Waterfall launched its second phase of development at the end of October. Located at Waterfall City, next door to the Mall of Africa, the development comprises luxury apartments in four high-rise towers, namely Galileo, Cassini, Newton and Kepler. A defining attraction is their magnificent views of the Gauteng skyline. High ceilings, light-filled interiors and environmentally
friendly features enhance the space.
SIGNATURE STYLE Legaro Properties is big on ecofriendly too. It is aiming for an Edge Green Building rating for the recently launched 38 on Morsim in Hyde Park. The 12 ultra-luxurious duplexes are oriented to make the most of solar energy and positioned around existing mature trees so as not to disrupt the peaceful nature of the grounds. The homes are shaded by pergolas for energy efficiency, their design maximising evaporative cooling in summer whereas closed wood-burning Morso fireplaces make them cosier in winter. The Big Apple comes to Benoni through the ICONYC, the epitome of city living thanks to the visionary design of the developers. Apartment interiors capture the signature New York style, which includes high ceilings, an open-plan
Rabie Property Group's Bridgewater One is a new development in Century City
layout and double-glazed windows, while the outdoor environment channels a Central Park feel. What’s more, the ICONYC promises the fastest broadband in SA. Commercial growth in Rosebank and Sandton has given rise to sectional title developments in surrounding areas. Skywood, the latest freestanding sectional title project by Zotos Construction, is located close to the Rivonia CBD. Comprising 29 freestanding three-bedroom duplex townhouses designed with understated luxury by Mark Laburn, it holds equal appeal as a buy-to-live-in option or an addition to your property investment portfolio. Zotos business development manager Walter Panto says Skywood is about compact, elegant luxury. “The homes are finished in natural greys in different textures and shades to harmonise the space, with white highlights. The imported European double-glazed aluminium door and window frames are done in a textured charcoal Qualicoat,” he says. Demand for student accommodation extends to beyond urban areas, such as Port Alfred, home to a Stenden University campus and the 43 Airschool. Sale prices of sectional title units in Port Alfred range from R500,000 to R4m, whereas in Summerstrand, Port Elizabeth, apartments sell for R450,000 for one or two bedrooms, and more than R2m for a unit in a front-row block with sea views. As market predictions go, Golding is cautiously optimistic. “A key positive for SA’s housing market is the country’s young population, which ensures a steady increase in potential new homeowners entering the housing market each year. The impact of these firsttime buyers will primarily be felt in the more affordable sectional title market.”
SHOW APARTMENT TO VIEW
EMERALD
the
SPECTACULAR
HYDE PARK
54 6TH ROAD, HYDE PARK, SANDTON, GAUTENG
TRANSFER COSTS INCLUDED!
Exquisite finishes and fully integrated Smeg appliances
Convenient cafe within complex
Professional Concierge service
Fully equipped Technogym workout area
Instant fibre connection
Hot yoga studio & ice recovery bath
6-star green interior rating in the Lifestyle center
Situated minutes from Rosebank, Sandton and Hyde Park Corner
State of the art security
Top education facilities and schools
25m Indoor heated & outdoor pool
Luxury 1, 2 & 3 bed apartments in the heart of Hyde Park. ON SHOW 2-5pm Saturday & Sunday or by appointment!
DEVON ~ 062 236 5180 JORGE ~ 071 986 8248 PROPERTY DEVELOPMENT
FOCUS ON: THE ICONYC, BENONI
ADVERTORIAL
New York state of mind Inspired by the Big Apple, the ICONYC in Benoni offers residents contemporary apartments in an environment that fully captures the senses WORDS AND PHOTOS: SUPPLIED
D
esigned by New York-based interior designer Demetris Charalambous, the ICONYC channels the energy and impeccable standards of Charalambous’ home city. The apartments echo the signature style of New York, with luxurious high ceilings, exposed brick and an open-plan layout. Tranquil tones, mood lighting and elegant silhouettes add to the sophisticated space. Large double-glazed sliding doors and generous balconies offer spectacular views of the 17th and 18th holes of Ebotse Links as well as CR Swart Dam. High-quality finishes such as Caesarstone countertops and fully integrated kitchen appliances are the cherry on top of a sensational offering, and residents can choose between two exclusive collections: Classic or Avant-Garde. When it comes to lifestyle, the ICONYC combines around-theclock convenience with top-notch amenities. The development’s state-ofthe-art fitness centre has 24-hour fingerprint access,
and the concierge and onsite laundromat, too, are available at all hours. At the clubhouse, a swimming pool and outdoor braai facilities create a vibrant space for entertaining and unwinding. Residents get two reserved parking bays per unit – one covered bay in the basement and one outdoor bay – and there is plenty of parking available for visitors. Echoing the enviable alfresco lifestyle offered by Central Park, a green zone that is both invigorating and calming, the ICONYC’s designer gardens make for a unique living experience. The landscaped grounds comprise walking trails, Zen gardens, children’s play areas and an outdoor running track. A multipurpose court caters for basketball, netball, mini football and tennis, and there’s an outdoor beach volleyball court too. A greenhouse, where green-thumbed residents will be able to grow their own organic produce, is another thoughtful touch. All this is held within the super-safe confines of the development. The
ICONYC was built with the best security measures in mind. These include an impenetrable concrete boundary wall reinforced with electric fencing, one main entry and exit point, and a guardhouse equipped with the latest technology such as biometric guest access and fingerprint recognition for residents. Twenty-four hour offsite monitoring ensures maximum security. Designed to energise in the morning and offer sanctuary in the evening, the ICONYC presents a unique investment opportunity close to OR Tambo International Airport and the East Rand’s business nodes. The development will be released in three phases – the first at the end of 2019, the second in mid-2020 and the final phase in mid2021. Apartment prices start from R1.35m.
GET IN TOUCH THE ICONYC Tel: 084 901 5555 E-mail: info@theiconyc.co.za theiconyc.co.za
IMMACULATE SHOW HOUSE TO VIEW
38 MORSIM ROAD, HYDE PARK, SANDTON, GAUTENG
TRANSFER COSTS INCLUDED!
Luxury duplex homes
Morso fireplace
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State of the art security
Boomed off area
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Oggie flooring
Close to major shopping centres and
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retail stores
food outlets in and around the area
ON SHOW 2-5pm
Sunday or by appointment!
DEVON ~ 062 236 5180 JORGE
~ 071 986 8248
38 Morsim Road, Hyde Park, Sandton PROPERTY DEVELOPMENT
WATER FALL
Take in the City at Ellipse...
Visit our Furnished Show Apartment: Mall of Africa, Town Square, Entrance 26, Parkade G
Sales: Email: Web:
0861 882 882 sales@ellipsewaterfall.co.za www.ellipsewaterfall.co.za
HOMEFRONT
Evergreen Val de Vie in the Winelands near Paarl
HOT TOPIC
Home, sweet home It’s not often that one offering ticks all the boxes for several groups of users, but multigenerational estates seem to be doing just that WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
Sitari Country Estate in Somerset West will soon launch Evergreen Sitari
“Affordability is key, especially in the retirement market” Werner Scheffer, project liaison manager, Multi Spectrum Properties
M
ultigenerational living is an established and growing trend in SA. Whether it’s for community, security or economic reasons, more and more secure lifestyle estates are embracing young, old and everyone in between. Why multigenerational? It’s not easy to please different generations with a single product, yet this sort of estate development is clearly doing something right. The appeal is in full title homes and sectional title apartments at a variety of price points, catering for the needs of single owners, families, downscaling couples and early retirees. Pam Golding Property Group CEO Andrew Golding says the fact that estates are including a wider range of accommodation – sectional title and retirement villages – suggests that demand is across the board, not only from the high-end buyer. As congestion increases and security remains a priority, estate living becomes more popular. Similarly, as estates become more sustainable in terms of maintenance and operational aspects, their appeal to a broader buyer type grows. Citing Lightstone Property estimates that there are just more than 450,000 properties located within about 8,600 estates across SA, Golding says 80.9% of those are freehold. An estimated 214 retirement developments are located in lifestyle estates. “While total estate sales have slowed in recent years, in line with an overall slowdown in the national housing market, estates have retained market share. They account for about 14.5% of total market sales,
with buyers generally being prepared to pay a premium to enjoy the lifestyle.”
SECURE A successful example of multigenerational living can be found at Clara Anna Fontein, a secure lifestyle estate in Durbanville. Freestanding plot-and-plan options at The Village include single and double-storey homes starting at R3.95m. A drawcard for families is the school Reddam House Durbanville on the property, whereas retirementfocused Oasis Life Clara Anna Fontein is currently under construction – three furnished showhouses opened in November. These homes start from R2.35m and include access to an exclusive Oasis Life clubhouse and to the larger estate’s lifestyle centre facilities. “Ranging from large family homes, smaller lock-up-and-go homes and the retirement estate, the ultimate multigenerational lifestyle is definitely found here,” says Rabie Property Group director John Chapman. “Children can cycle or walk to school without leaving the estate, or grandparents can take a stroll across to collect their grandchildren.” Also located in Cape Town’s Northern Suburbs, Buh-Rein is a popular estate that doubles as a suburb, with easy access to major highways. It embraces the multigenerational trend by offering a secure environment close to schools, shopping, recreation and hospitals. Buh-Rein’s appeal lies in good-value sectional title apartments, townhouses and freestanding homes. Sterling Grove townhouses
HOMEFRONT “Children can cycle or walk to school without leaving the estate, or grandparents can take a stroll across to collect their grandchildren” John Chapman, director, Rabie Property Group
Buh-Rein by Multi Spectrum Properties in Cape Town's Northern Suburbs
The clubhouse at Burgundy Estate Oasis Life in Durbanville
start from R1.819m, and Blue Lily Lane apartments from R1.159m. Its latest addition is BuhRein Retirement Village. After record sales of R177m achieved for the sold-out Phase 1, Phase 2 has just launched. Apartments start from R1,159,900. “Affordability is key, especially in the retirement market. The number of units assist in keeping monthly levies as low as possible,” says Multi Spectrum Properties (MSP) project liaison manager Werner Scheffer. “When looking at the retirement space, the price points, monthly levies and what the village offers in medical care and additional amenities are vital. These three topics set Buh-Rein Retirement Village apart.”
JUST LAUNCHED
Steyn City in Midrand
Clara Anna Fontein in Durbanville
Nearby Burgundy Estate, where attractive multigenerational amenities include three schools, convenience shopping and a mashie golf course, also just launched an Oasis Life retirement component. The new Oasis Life Burgundy Estate offers cottages and low-rise apartments for retirees only, situated within a secure perimeter and a gate that is manned 24/7. “With the central location and the benefit of an established multigenerational estate,
we’re able to offer senior residents great value,” says Rabie Property Group director Miguel Rodrigues. Apartments on the life rights model are priced from R995,000. Good security is key to the appeal of any estate targeting South Africans. In Port Elizabeth, Westbrook MD Clifford Oosthuizen says a full title home just cannot compete with a multigenerational estate offering. “Westbrook offers a safe environment together with lifestyle living not often found in Port Elizabeth.” Oosthuizen says this development’s location is as close as you’ll get to the “old PE” many residents are familiar with. Equally important is lifestyle. In general, the larger the estate, the more amenities available to residents. Here they range from sporting facilities, communal pools and parks to a Curro school and shopping. A larger estate also makes it possible for various generations to mingle without being in one another’s pockets, Oosthuizen says. Westbrook will ultimately have nine residential villages, of which the first, The Ridge, was completed in June.
INVESTMENT What makes a multigenerational estate
a solid investment for a Johannesburg resident in the vicinity of Fourways and Lanseria? It caters for all life stages and provides every conceivable amenity, says Steyn City sales manager Lambert Bezuidenhout. “The ‘new north’ is attracting a growing number of residents and businesses. We predict it will one day be the future CBD of Johannesburg, Midrand and Pretoria, particularly given the planned upgrades to Lanseria Airport and the Gautrain station earmarked for Fourways,” he says. In Steyn City, 65 on Park offers the convenience of a lock-up-and-go lifestyle in 60 beautifully appointed cluster homes priced from R4.8m. These properties are situated on a terraced site in Park Ridge village, with three bedrooms and a double garage each. “We have more than 100 reasons why potential investors would want to make Steyn City their home,” adds Bezuidenhout. “They include the NicklausDesign championship golf course and a deluxe clubhouse; an equestrian centre; an indoor aquatic centre with a 25m heated pool; 45km of promenade for running, walking or cycling; and outdoor gyms, resort pools, a skate park, a dino park and children’s play nodes, along with 800ha to explore in a secure environment.” Homeowner access to extensive luxury estate facilities is a prime driver of Val de Vie Estate’s appeal too. This soughtafter multigenerational Winelands estate recently launched Phase 2 of the Pearl Valley Hotel by Mantis (an additional 40 rooms to complement the 40 already built). In this sectional title development, buyers get 30 days’ usage, 30 days’ golf membership, a good return on rental pool income and reduced rates over 30 days, which can be swapped out with St Francis Links Hotel and Simbithi Hotel. Priced from R2.2m each, the stylish 70m2 units include kitchenettes. “This fills a gap below our sectional title apartment living for swallows or people who come to the Cape Winelands for fewer than three months,” says group marketing director Ryk
HOMEFRONT LIFE RIGHTS V FULL OR SECTIONAL TITLE On the one hand, retirees can buy a sectional title or freehold property in a retirement village. On the other, the life rights model. What are the pros and cons? “Life rights mean a person buys the right to occupy a property for the rest of their life,” says Evergreen’s Arthur Case. “Typically, this is done via a once-off payment, with the original capital returning to the estate of the life rights holder when they pass away. The person has the security of guaranteed lifetime occupation of a property.” Case believes more should be done to highlight investment strategies around retiring. Decumulation is when a person starts drawing retirement income from their portfolio. A key concern is whether enough will be saved.
Groot Parys Lifestyle Estate outside Paarl
Neethling. “We have sold 75% so far.”
RETIRE IN STYLE Evergreen Val de Vie and Evergreen Sitari, which is currently under construction in Somerset West, both offer multigenerational living within existing residential estates. Although clustered, these retirement units are not far from estate homes occupied by families. As Neethling points out, the Val de Vie Evergreen life rights model is ideal if you are in the fortunate position of seeking a “luxurious worry-free retirement”.
“South African purchasers are generally scaling down in terms of house size but scaling up in terms of lifestyle – access to technology, resort-style facilities, security and care when needed to avoid the need to relocate later in life,” says Evergreen Retirement Holdings brand marketing director Arthur Case. Evergreen Lake Michelle differs from other multigenerational models in this portfolio– its retirement units are built among the family homes, offering truly integrated living. All Evergreen developments use the life
rights purchase model. The company plans to bring this concept to KwaZuluNatal too, with construction starting in 2020.
SPOILT Ultimately buyers are spoilt for choice with a range of price points and home configurations, whether they buy into a multigenerational estate or a lifestyle apartment or home aimed at retirees only. They might escape north of White River to invest in Nooitgedacht Manor, near the Kruger National Park. Devmark’s five phases of development here will
eventually offer retirees freehold homes, apartments and a sub-acute hospital. Retirees could also settle for Groot Parys Lifestyle Estate on a working farm outside Paarl, where twoto four-bedroom freehold homes cater for over-50s keen on country living and access to prime golfing at nearby Boschenmeer. Equally promising is its investment potential. “This is a freehold property. All the profit gained in years to come accrues to the owner,” says Groot Parys realtor Reon van der Merwe. “Prices are already up by 10% within the first year.”
“South African purchasers are generally scaling down in terms of house size but scaling up in terms of lifestyle” Arthur Case, brand marketing director, Evergreen Retirement Holdings
Nooitgedacht Manor near White River
Some life rights packages offer flexible pricing models to accommodate decumulation. “The standard strategy would be to pay the purchase price for the unit that is aligned to the market value. However, if this is unaffordable, the developer can reduce the purchase price and is then compensated by reducing the capital paid back at the end, so the person’s estate might only get back 60% to 80% of the original capital,” says Case. This option can be a boost for retirees concerned about the possibility of entering a decumulation life stage. “The Evergreen life rights model offers tremendous flexibility, with options including flexible purchase pricing and access to emergency capital during the life rights tenure,” Case explains. Werner Scheffer of MSP backs a free-market retirement investing perspective, saying that if a 50-or-older buyer can afford it, sectional title is a better long-term investment strategy. Buh-Rein Retirement Village is sold as sectional title, meaning the property transfers to the name of the buyer and can be sold or bequeathed to an estate. “It offers exceptional growth potential as an investment. We have seen numerous younger buyers purchasing these apartments as a buy-tolet investment now, while already securing a place where they can stay when they reach retirement age,” says Scheffer. His views are echoed by Reon van der Merwe of Groot Parys. “Freehold and sectional title offer capital growth. Life rights is not ownership but merely a rental for life,” he says. “There is no comparison.”
HOMEFRONT
Amazon Go opened its 12th US store in May at Brookfield Place, New York City
RETAIL
Building blocks To survive and ensure sustainability in a changing retail sector, mall owners and tenants should tune into modern shopper aspirations WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED AND SHUTTERSTOCK
T
he future of retail is not one-size-fitsall. That message was emphasised by speakers at the 2019 South African Council of Shopping Centres (SACSC) Congress in Cape Town. Navigating a chameleon retail sector and being in touch with the younger, ever-changing consumer responsible for its transformation will make the difference between retail success and suicide. The key messages were:
1. BEHAVIOURAL INTELLIGENCE South African company Fatti uses Wi-Fi to record, monitor and produce results from behavioural insights and real-time shopper intelligence at a range of local shopping malls. CEO Adrian Maguire says the local market is challenging and changing. In the relationship of dependency that exists between landlord, tenant and customer, the common denominator is
aggregated data. According to Fatti, retail-smart malls use it to make informed choices that better serve customers and improve the user experience. The challenge lies in making sure that aggregated data provides the right information, says Maquire. No two malls have the same customer behaviour. Both landlord and tenant need to evaluate the customer behavioural journey in the mall by asking: Did I get the right type of customer to that hosted event? Did the event influence them to shop more? Aggregated data reflects how turnover and customer entrance profiling on a weekday differs from that on a Saturday. Understanding this as a landlord or a tenant means engaging a solo shopper on a weekday with strategic advertising to convert their behaviour to maximise spend when they return with family for a leisure visit on a Saturday.
Such data has practical applications for improving cleaning staff services or parking facilities. The fact that one floor operates differently to another and that specific tenants operate differently to others also has implications for trading hours. Tenants using this information to extend their hours can make a phenomenal difference to their bottom line. The silver thread running through all this is datadriven decisions. “Landlords, tenants and marketing departments keep saying the retail market is tough, but many are still making the same decisions and not changing how they do things to meet an evolving consumer,” says Maguire.
2. CUSTOMER-CENTRIC Embracing digital transformation means a retailer meeting its customers where they are, with what they want. Customers expect to interact across all channels on their
terms. McorpCX president Michael Hinshaw says businesses should look at decisions through their customers’ eyes, yet 11% of business calls are made without customer input. Retail research shows: 91% of clients are more likely to buy if a retailer recognises them. 79% believe a retailer should show they understand them. 70% say understanding their needs drives loyalty. 80% are likely to purchase if they’re offered personalised experiences.
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3. INTEGRATED SHOPPING For consumers, the physical store remains an important element of researching and buying. But more and more of them prefer to research online before visiting a store for the final purchase. Digital is now an avenue for growth: stores don’t need to make the sale but rather deliver an experience that supports the brand.
Retail futurist Doug Stephens says the concept of what a store is and how consumers shop there as well as its revenue model have to be reinvented. This applies across the board from online outlets to bricksand-mortar stores. Stephens says to make their offering stand out, malls should invest as follows: Create stories, don’t sell a product. The experience should be less about commerce and more about a community that reflects their values. Personalise. Rather than focus on mass production, retail and manufacturing should embrace the age of me, as typified by Nike’s hyper-personalisation that allows buyers to design their own shoes. At the brand’s flagship store in New York City, customers can scan barcodes on shoes with their phones to find out what’s available in their size and preferred colour. Surprise. Great brands engineer great surprises.
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HOMEFRONT “Landlords, tenants and marketing departments keep saying the retail market is tough, but many are still making the same decisions and not changing how they do things to meet an evolving consumer” Adrian Maguire, CEO, Fatti
Experiences should be unusual. Selfridges London built a skateboard bowl in store, for example. Repeatability. It has to be possible to execute these experiences time and again.
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Retail futurist Doug Stephens
Lara Marrero of the design firm Gensler
In SA, e-commerce volumes increased by 15% in 2018. Online retailers such as Amazon are interested in the local market: the appeal lies in the population’s average age of 27 and its high cellphone ownership, which drives 80% of online sales. Digital marketing has become expensive as it competes for attention. Physical stores won’t disappear (online retailers Amazon and Alibaba are both investing in physical stores), but their purpose will evolve as they become media channels.
4. SHOPPER ENGAGEMENT
Nike’s flagship store in New York City takes a personalised approach to the shopping experience
Louis Vuitton is considered one of leaders in innovative retail strategy
John Ryan, stores editor of Retail Week, a UK-based magazine, website and data service covering the retail industry, says engagement is about putting the expected into an unexpected retail context. “Louis Vuitton are probably the leaders of doing retail in an alternative way,” he says. “At its New York pop-up store, everything was painted bright green in July, from the exterior brick walls to a mailbox and a bicycle leaning outside.” A bookstore may be an established commodity but Duoyun Books in Shanghai Tower offers 60,000 books in 2,229m2 of space over 52 floors. You can create new from old if you do it differently, says Ryan. Referring to the modern trend of supermarkets transforming into upmarket food halls using technology, Ryan says this business has evolved over almost 60 years to become slicker, faster and easier. The principle has been “get in, get it and get out”. But modern shoppers want a reason to spend their money. Technology has brought us staff-free stores. Wheelys launched a staff-free convenience prototype in Shanghai, where doors open via a smartphone app, and tech startup BingoBox partnered with the French supermarket group Auchan to follow suit.
In January 2018, Amazon Go opened its first cashless convenience store in Seattle where customers scan their Amazon smartphone app to purchase items. The 12th US Amazon Go opened this May in New York City, giving shoppers an additional cash option, with employees performing store checkouts on mobile devices.
5. PERSONAL EXPERIENCE Lara Marrero is principal and strategy director at Gensler, the design firm responsible for the interiors of premier retail addresses including six international Starbucks Reserve Roastery stores as well as the Adidas New York City concept store and Saks Fifth Avenue’s flagship store. She says navigating and activation are crucial: We’re moving into the age of belonging: consumers want to be part of something bigger. Connection and bringing people together in shared spaces matter. Remember that consumers are people. Their best experience of any situation becomes a benchmark for the next one. They express on Instagram or Facebook how they feel about retail. They don’t even need words; emojis can do the trick. Modern independence is a phone — our window to everything we do.
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In retail this means singleuse spaces are obsolete, says Marrero. Modern consumers do different things simultaneously, checking e-mail or ordering food online while working. And make sure you’re creating areas where people can get together and chat – a consumer’s in-between time is not wasted time. Technology matters, but not in the way you might think. It is applied in service to the customer journey, to help people in sales spaces to connect better with their customers. This is the best path to customer conversion. Marrero concludes that retail today is about work style meets lifestyle and toggling between the two. Urban environments need to be designed to support how people act. “It is no longer, ‘If you build it, they will come’,” she says. “Now it is, ‘If you constantly create ways of keeping interest, they will come’.”
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Stands from R 1, 4 million. TRANSFER READY Following the success of Phase 1, Zululami Luxury Coastal Estate has officially unlocked Phase 2. Varying from 880m2 to 2100m2, Phase 2 reveals the most premium sea-facing stands within the entire estate. These spacious, luxury residential stands rival any seaside lifestyle along KwaZulu-Natal’s North Coast.
L A N D F R O M R 1, 4 M I L L I O N
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RAINMAKER 11|19
UNRIVALLED COASTAL FAMILY LIVING
HOMEFRONT PROPERTY NEWS
Local Reits among most empowered companies
F Trade boost for Joburg luxury market
T
he luxury homes market in Johannesburg has taken off over the past three months as high-end buyers from other African countries as well as China, India and Russia have been active in the sector. Rory O’Hagan, CEO of the Luxury Portfolio division at Chas Everitt International, attributes some of the residential market movement to the implications of the African Continental Free Trade Area Agreement (AfCFTA) becoming apparent to local and foreign investors.
“Most of these buyers are looking beyond the state of the economy and moving fast to secure a residential base in Johannesburg,” he says. “The city is recognised internationally as the most industrialised and financially sophisticated in Africa and is best placed for access to opportunities.” O’Hagan says Chas Everitt’s Sandton and Hyde Park sales team in particular has noticed a turnaround in luxury home sales. “In the past three months we have been selling luxury apartments and houses worth more than R100m every month in the northern
heritage suburbs. That’s quite a contrast to the first half of this year, when the market was oversupplied and sales were really sluggish.” Demand is shifting from traditional sources of foreign buyers from the UK and EU to those from countries with betterperforming economies. “High-end buyers and corporations line up to buy luxury apartments in Sandton and surrounding areas such as Melrose, Rosebank and Hyde Park to give themselves or top executives a base of operations for future business in Africa,” he says.
First Menlyn Maine residents move in
T
he first owners of Menlyn Maine’s luxury apartments take transfer and move in at the end of this month as Phase 1 of Trilogy Collection will be completed at this R1.15bn Menlyn residential development, Tshwane Municipality’s first mixed-use precinct. Developed by Catchu Trading with GLH Architects and architect Henk Boogertman, the first phase comprises
374 apartments. The development features a 4,000m 2 park with designer sculptures, viewing decks, walking trails and private rooftop swimming pool, as well as a concierge reception, dedicated cycling lanes and lock-up facilities for bikes. Phase 2 will offer an additional 157 apartments to be completed in early 2021. “Apartment prices have risen by as much as 20% since the launch in 2016,
underlining the demand for a live-work-play lifestyle in this urban setting,” says Pam Golding Properties Pretoria regional executive Retha Schutte. Trilogy Collection has been attracting a mix of local and international investors. A few apartments in the second phase are still available, with prices ranging from R1.6m for a studio, R2.2m for a onebedroom and R4.8m for a two-bedroom apartment.
ive South African real estate investment trusts (Reits) were included among The Top Empowerment Companies of 2019 in Intellidex’s annual The Empowerment Report, which ranks all JSE-listed companies by their black economic empowerment scores. They are Arrowhead Properties, Redefine Properties, Growthpoint Properties, Equites
practice aligned with the Property Sector Charter. “Having five Reits among the most empowered companies from across all sectors of the South African economy proves that the Reit sector is playing an important role in economic transformation,” he says. SA Reit Association members are all publicly listed Reits and the sector has market capitalisation of more than R300bn.
Property Fund and Rebosis Property Fund. According to the report scorecards, Arrowhead achieved 80.27% (total BEE score 68.23), Redefine 78.52% (91.87), Growthpoint 78.26% (91.26), Equites 70.98% (83.05) and Rebosis 57.08% (66.78). SA Reit Association chairman Estienne de Klerk says the sector has achieved an impressive track record for driving best
Affordable housing an investment growth area
I
f you’re a residential developer or investor, opportunities lie in local affordable housing. Recent property data from Lightstone Property shows that Riverside View in Fourways, Johannesburg, is the suburb with the highest volume of first-time buyers in Gauteng. The Riverside View Housing and Development Programme was launched in 2016, offering opportunities to enter the property market. SA’s transactional activity has slowed down across major provinces this year. Transfer activity picked up
across the country in Q2 and Q3, with the exception of the Western Cape. “Although the property market has been weighed down by economic pressure, we are encouraged by good growth in the affordable market segment. It continues to empower South Africans starting their journey on the property ownership ladder with wealthbuilding opportunities,” says Lightstone Property analytics director PaulRoux de Kock. Pam Golding Property Group CEO Andrew
Golding says there has been a general buyer shift from freehold to sectional title purchases in national sales, with freehold properties accounting for 65.7% in 2018. This trend excludes affordable housing, which is typically freehold. According to the data, nearly 80% of all properties sold during the past 12 months until September were priced below R1.5m. At the other end of the scale, the most expensive Gauteng suburb for Q1 to Q3 is still Sandton, specifically the exclusive streets of Sandhurst.
Top Gauteng suburbs – average value R9.3m
R9m
R8.8m
R7.9m
Sandhurst, Sandton
Westcliff, Johannesburg
Blair Atholl, City of Tshwane
Kyalami Heights, Midrand
R6.7m
R6.4m Inanda, Sandton
Atholl, Sandton
Top Gauteng streets – average value R30.3m
R26.9m
R24.2m
Stewart Place, Sandhurst
Killarney Road, Sandhurst
Coronation Road, Sandhurst
R23.5m
R22.3m
R22.3m
Trafalgar Place, Sandhurst
Saxon Road, Sandhurst
Northumberland Avenue, Dunkeld West
FRIDAY