HOMEFRONT
n each unit linked to the state-of-the-art frail care centre*
ure conservancy ding a coffee shop, swimming pool and recreation hall
la vie nouvelle Retirement and Wellness Estate Broadacres
ritious meals
13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 29 JUNE 2018 WWW.BUSINESSLIVE.CO.ZA
MUST READ
n March 2018.
our beautiful show homes, please call Louise 082 854 0127, 3 6816 or Guy French 082 552 3956 for an appointment. Having fun with smart Cape plates PAGE 2
Bond approvals boost first buys PAGE 10
How to invest in The Big Apple PAGE 12
Safety at home Sapoa conference: land expropriation PAGE 13
Buyers and investors demand security for properties from urban mixed-use apartments to security estate homes — and developers are responding
PAGE 6
HOMEFRONT LIFESTYLE
Cape flair New Upper Bloem restaurant in Green Point celebrates Cape Town with vibrant décor, clever plates and a dash of fun WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
The food Three chilled dishes are my favourites. Caramelised onions and pickled aubergine taste of coriander seeds and sweet vinegar, usual flavourings of curried pickled fish, but this witty modification is vegetarian. A creamy smoky snoek pâté dish has fishy chunks, under apple purée. The surprise: teriyaki glaze sweetness, creating a fruit chutney sensation when all scooped together in samosa pastry or crisped kale. Bringing it home: subtle cured fish slices on a puffed sago chip, topped with crème fraiche, raisin purée and delicate pickled radish. Dinner at the new Upper Bloem restaurant is carefully planned: there are three separate waves, each bringing three dishes for sharing. It is smart, creative food that grabs your attention visually and viscerally. Comfortably elegant. A small wine list. No tablecloths. Diners taking
in the activity of an open kitchen. Unfussy service. A casual space is necessary in Green Point’s Somerset Road, the restaurant’s location near Cape Town Stadium, alongside ice cream shops and cafes. British chef Henry Vigar of Sea Point’s La Mouette restaurant is Capetonian chef Andre Hill’s kitchen mentor and backer at Upper Bloem. “I never thought about one day being a chef,” says Hill. “I hated it at first. But after six months I really fell in love with it.”
CHILDHOOD HOME Hill has worked in various hotel and restaurant kitchens. The restaurant’s menu is cheffy interpretations of recipes and memories from his life in Upper Bloem Street in the Bo Kaap, Hill’s first childhood home. His grandmother’s house was opposite. “For me now, it’s really exciting,” says Hill. “It’s almost about coming
home. It’s cooking stuff you grew up with and being proud of that.” “Although I’m from Bo Kaap, I’m not Cape Malay or Muslim,” says Hill. “The mussel dish is about my uncle, a snoek fisherman. I spent quite a lot of time on his boat on the West Coast.” Its savoury, smoky broth is comforting. A beef short rib dish is inspired by Hill’s dad, a retired butcher. As a foreigner, Vigar has added ingredient input of his own – dried Cape sour figs deliver tanginess in a clever potato dish. The delicious, unusual lamb neck biryani is layered in flavour and unexpected textural crunch; its vibrant spice mixes show more of Vigar’s English curry leanings than Hill’s Cape Malay spice subtleness. Ironically, as a child Hill hated biryani. “An important part of the restaurant is that it is authentic to the experience — so roti or biryani officially
“I like to feel comfortable regardless of how fancy the food is, so it was absolutely intentional to bring in an informal feel” Liam Mooney, Liam Mooney Studio
HOMEFRONT may not be the way it is made elsewhere, but it is authentic to our experience of it. Even different people in Cape Town have different ways of making a biryani,” says Hill. “It’s easy for me to do a French restaurant,” says Vigar of the cultural collaboration with his former La Mouette sous chef. “But we wanted to do something Capetonian. Take pride in South African
ingredients, served in a different way. For instance, that salty-sour taste of sour figs in a curry sauce, in the way you’d use tamarind in Asian cooking.”
CREATIVITY Hill runs this show, but also welcomes their collective creativity. “Henry didn’t grow up with these things, so he can look at it with a blank slate.” Lunchtime dining
consists of fewer courses in the same set menu format. Ingredients change now and then. A dessert board of five miniature delights offers a dash of fantasy and sweet treats, sporting berry lollipops to a chocolate bar in vivid Technicolor. From a team serious about its craft, Upper Bloem restaurant is a reminder that smarter dining should also be fun. upperbloemrestaurant.co.za
Liam Mooney on the interior I am an industrial designer by qualification but I only do interiors. I started off with my own
furniture range, but morphed into an interior designer. I’m originally from a farm outside Nelspruit and I’ve lived in Cape Town for 17 years.
I’ve designed a fair number of restaurants.
I enjoy commercial spaces because you’re working with business people, so I find the decisions are easier to make because it’s about suiting the brand. Residential spaces often involve emotional decisions.
I worked on Mari and Henry Vigar’s other restaurant La Mouette. The concept for Upper Bloem restaurant was Cape Malay and Bo Kaap flavours in a fine dining atmosphere. The service is not fussy; it’s very warm. I also like to feel comfortable regardless of how fancy the food is, so it was absolutely intentional to bring in an informal feel. And you have to think about the Bo Kaap. There is nothing formal about it.
PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130
A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand
It is extremely narrow as a restaurant. That meant the furniture plan had to be poked and prodded to make sure there was enough walking space for staff and clients. So the tables opposite the kitchen don’t have any chairs and we played with the idea of a banquette for that space. The restaurant design is bold; it’s no shrinking violet. We played around with design icons of Cape Town. The wall of tiling is an exploded Victorian tiling layout — meaning we quadrupled the size of the patterns — you’ll see that pattern on the old Kimberley Hotel’s walls or inside mom and pop cafes.
We used bright colours because it wouldn’t be the Bo Kaap otherwise. There are mustard chairs with baby blue velvet. The banquette is in a burnt orange. But I didn’t want to overwhelm people so the restaurant is painted in a bluey-grey to create calmness. liammooney.co.za
PUBLICATION ADVERTISING SALES
Managing Editor/Copy Editor: Michael van Olst Production: Joanne le Roux
Michèle Jones Susan Erwee
michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info
084 246 8105 083 556 9848
La Vie Nouvelle... CELEBRATE YOUR RETIREMENT IN STYLE
The jewel in the Calgro M3 Developments crown, retirement lifestyle village La Vie Nouvelle is truly a celebration of a life well lived. Offering everything you need to enjoy your retirement in style, this beautifully-designed village is centrally located in the Broadacres area within easy reach of the Sandton and Fourways hubs.
Close to all amenities, including shopping centres, gyms, sports clubs and hospitals, La Vie Nouvelle offers best-in-class facilities, including a safe and secure environment, with monitored access and full-time guarding.
Other benefits include: • A medical alert system in each unit linked to the state-of-the-art frail care centre* • Various medical facilities • Natural wetland and nature conservancy • Recreation facilities, including a coffee shop, swimming pool and recreation hall • Hair salon • Kitchen serving light, nutritious meals
la vie nouvelle Retirement and Wellness Estate Broadacres
*Under construction with anticipated completion in March 2018.
To view one of our beautiful show homes, please call Louise 082 854 0127, Lydia 082 413 6816 or Guy French 082 552 3956 for an appointment.
HOMEFRONT SECURITY
Safety at home Buyers and investors demand security for properties from urban mixed-use apartments to security estate homes — and developers are responding WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED
S
ecurity is a leading — if not the leading — concern for property buyers in SA regardless of whether the target is millennials or executive foreign nationals. Lifestyle developments also bill themselves as security estates to highlight that residents are safe inside their walls and can walk the grounds at night without concern. Apartment blocks often offer a greater perceived sense of safety. Some body corporates now install CCTV and hi-tech security systems that prevent Airbnb occupants from gaining entry to the complex until the body corporate has at least been made aware of them, says Andrew Schaefer, MD of national property management company Trafalgar. RE/MAX Cape Town City Bowl sales associate David Spence says the use of smartphones to control home security is becoming more popular. “Smartphones can remotely control locks, switches and appliances, activate alarms and even view a home through security cameras from anywhere in the world.”
low to high price ranges,” says Kyle Ebben, branch manager for Pam Golding Properties in Fourways and Dainfern. “The difference is that buyers in the higher price ranges can afford to live in a highly secure environment such as a gated estate.” Ebben says gated estates use armed guards, patrol vehicles and camera systems. Expatriate investors demand high levels of safety, he says. Their employers will often send experts to investigate a property before an offer is made.
PRIORITY Paarl luxury lifestyle estate Val de Vie places a high priority on security, despite its idyllic location. “When Val de Vie Estate was first developed in 2006-07 people laughed at the idea of a security estate in the Cape Winelands but CEO Martin Venter anticipated that crime would unfortunately eventually affect the area,” says group marketing director Ryk Neethling. “Today it is the number one reason why people purchase a property on the estate and it is our biggest
COMMAND CENTRE The Houghton in Johannesburg has a 24-hour on-site command centre always manned by three trained security officers. Operations and training director Frank Nel says their duties include the monitoring of more than 300 cameras. An additional 14 officers monitor the development on separate day and night shifts. “The Houghton is linked to an armed reaction team, which regularly liaises with our security service provider,” says Nel. Residents pay a monthly fee for this protection. A security app, which monitors access to and from the estate, was introduced last year. Whether a home is a new build or a repurchase, security is one of the first features prospective buyers ask about. “Security is important to buyers from
The Houghton, Johannesburg
Dainfern Square luxury apartments, Johannesburg
HOMEFRONT
Sitari Country Estate, Somerset West focus and monthly expense. We have won international awards for being the safest estate in Africa and we take it seriously — but very importantly, without making it feel like a prison.” Val de Vie features include an outsourced security company that patrols the development; multiple armed teams patrolling outside the estate, which also perform stress tests and gather intelligence; a security subcommittee of consultants and residents; a strong partnership with other local security organisations and the SAPS; and a commitment to using the best technology.
UP TO DATE
Val de Vie, Paarl
Mixed-use precincts such as Melrose Arch in Johannesburg are prioritising up-to-date systems for residents. Licence plate recognition, analytical video software, smart panels, control rooms and 24-hour call centres for security, medical assistance and other emergencies are becoming
“Security is important to all types of buyers, from low to high price ranges” Kyle Ebben, Pam Golding Properties
the norm. This is in addition to teams on the ground monitoring the comings and goings in the area. “I think safety and security is the most fundamentally important feature of these kinds of developments,” says Amdec Property Development MD Nicholas Stopforth, a former resident of Melrose Arch. “When I first moved to Johannesburg, I lived outside Melrose Arch and travelled to work every day. I never really felt safe. I later bought an apartment and moved into the precinct. All those concerns were 100% allayed when I lived within the development.” Peet Strauss, sales manager of the Melrose
Arch branch of Pam Golding Properties, also lives in and owns a number of investment properties in the precinct. He says many people are investing in the area, including young renters and international businesspeople. “The biggest attraction is security — you even feel safe if you don’t lock the front door. You can also walk to wherever you want to in an enclosed and secure environment.”
HIGH END High-end security features will be incorporated into the Amdec Group’s newest projects: the soon-to-be-built Harbour Arch in Cape Town and One on Whiteley — now under development within the Melrose Arch precinct. Sitari Country Estate in Somerset West combines premium security with up-to-date technology to deliver a leading offering. Access to the lifestyle estate is primarily through the main gatehouse, which accommodates the security control room. Both the main and secondary gatehouses will have biometric readers, number plate recognition and 24-hour manned access control. Other security features include fences with heatsensitive triggers and cameras with thermal technology for night vision.
DEMAND
One on Whiteley, Melrose Arch, Johannesburg
Buyers from other African countries are seeking highsecurity properties. Pam Golding Properties says the price range most in demand is from about R800,000 to
about R5m. Some inquiries and transactions reach R10m and above. Sound long-term investment is an important factor, as well as convenience and location. New, secure luxury residential developments and gated lifestyle estates in Johannesburg areas such as Dainfern Estate in Fourways and nearby Blair Atholl fit this bill. With a natural urban migration to the west of Johannesburg increasingly evident, Blair Atholl Golf & Equestrian Estate has appeal for affluent home buyers seeking secure, elite estate living. The last tranche of 80 vacant residential stands were released in April. Illovo, Inanda and Kelvin are suburbs in convenient proximity to Sandton CBD and business hub, OR Tambo International Airport and Tshwane. In Fourways, soon-tobe launched development Dainfern Square Luxury Apartments should have high appeal for local buyers as well as from the rest of the continent. “It is close to major transport points and next door to Dainfern Square shopping centre. There is an array of amenities in the vicinity,” says Ebben. Priced from R1.75m to R3.85m, the two-bedroom apartments are ideal for investment, permanent residence or partial use when in SA. Other buyers, particularly those from Zimbabwe, look to buy coastal holiday and retirement homes in KwaZulu-Natal, with its year-round temperate climate, or lock-up-andgo homes in areas where their children attend private schools or university, such as Grahamstown in the Eastern Cape. New developments such as Signature Sibaya on the North Coast have piqued the interest of buyers from Nigeria.
COASTAL BASE “Most are interested in secure estates near the coast,” says Carol Reynolds, Pam Golding Properties area principal for Durban Coastal. “They travel in Africa and want a base here in KwaZulu-Natal — a holiday home to double as a base for business meetings. They look at the upper end of the market and security is paramount.” Whether buyers are from within or outside the country, security remains a leading concern in SA. Developers are responding to this with more advanced and comprehensive security solutions to deliver on the promise of keeping residents safe.
HOMEFRONT PROPERTY TREND
Younger buyers score as bond approvals rise Banks are issuing more and higher-value bonds for first-time buyers. These are some popular suburbs investors are targeting in major metros WORDS: MIRIAM MANNAK :: PHOTOS: SUPPLIED
Gauteng suburbs with the highest number of first-time buyers
Riverside View
Weltevreden Park
Lonehill
Paulshof
Bryanston
The Orchards
Equestria
Moreleta Park
Die Hoewes
Sunnyside
800 700 600 500 400 300 200 100 0 Protea Glen
above 80% for the previous four months — which is the highest sustained rate since the 2008-09 recession.” Not coincidentally, average first-time buyers’ purchase prices have risen from Q1 2017 to Q2 2018 by 3.5% to R907,693. “There is confidence in the market that property prices will grow more over time as the economy moves into a stronger growth period, buoyed by improved political and economic sentiment,” says bond originator Ooba CEO Rhys Dyer. Recent Lightstone data showed the top 10 most popular suburbs for first-time buyers in four major metros: Cape Town, Johannesburg, Tshwane and eThekwini. In terms of market entrants, Gauteng ranks number one. Research by Lightstone shows that SA’s smallest
Number of first-time buyers
W
ith rising prices and economic challenges taking effect, first-time buyers are having to work harder to find value. As do investors buying to rent properties for profit. The good news is that more home loans are being approved and at greater values. “Banks are competing for new home loan business at the moment, and prudent home buyers are benefiting as a result,” says Rudi Botha, CEO of bond originator BetterBond. The average first-time buyer bond size has increased by 8.26% in 12 months. The overall approved average bond size in SA was also 6.05% higher in April than a year ago. Home loan approval rates are also increasing, according to Botha. “In May our approval rate was
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City of Johannesburg
City of Tshwane
Source: Lightstone Property
province accounted for 41,209 first-time residential transactions in 2017. The bulk (23,112) was issued to buyers aged 26-35. The Western Cape is second on the list with 22,945 transactions, the bulk of buyers (11,208) also in this age group. KwaZuluNatal had 11,699 first-time transactions last year, of which 26- to 35-year-olds accounted for 5,759.
Johannesburg
Two-bedroom apartment in Morningside, Durban, marketed by Pam Golding Properties
Lightstone singles out Protea Glen as a firm favourite among first-time buyers. Besides its many primary and high schools and shops, the suburb has a clinic, with a hospital under construction. “Protea Glen has great infrastructure providing good and affordable public transport,” says Seeff Properties Protea Glen agent Khosi Sibiya. He says a two-bedroom apartment sells for about R290,000. “A two-bedroom townhouse ranges from R380,000 to R420,000. Three-bedroom units are priced from R450,000 to R480,000.” Weltevreden Park is
another popular suburb among Johannesburg’s younger first-timers. “About 40% of recent buyers fall in the 18-35 age group. Weltevreden Park offers incredible value for money and an excellent mix of properties, including smaller freehold homes and sectional title apartments and townhouses that are great choices for first-time buyers,” says Chas Everitt International Property Group CEO Berry Everitt. Prices in Weltevreden Park range between R500,000 and R600,000 for a two-bedroom apartment to R750,000 and R1m for a simplex garden unit, says residential sales director for Seeff Randburg Eloisé de Stefanis. “With transfer duty payable up to R900,000, Weltevreden Park offers a good opportunity for first-time homeowners.”
Tshwane Situated near the R50bn Rosslyn Hub development, The Orchards is Tshwane’s top suburb among young market entrants. “More than half of recent
buyers fall in the 18-35 age group. The suburb has its own shopping centre for everyday convenience, but is also close to the Wonderpark Mall, which has 180 stores and restaurants, a movie complex, a gym and an outdoor play park,” says RealNet Holdings MD Gerhard Kotzé. “The average price of sectional title homes here is R455,000, but bachelor and one-bedroom flats start at less than R300,000. Twobedroom townhouses are also popular at prices from R550,000.” Next on the list are Equestria and Moreleta Park, which encompass parks, greenbelts, an informal golf course as well as good access to schools and a hospital. “Entry prices are from R600,000 in both suburbs for one-bedroom apartments in secure complexes. Freestanding homes range from R1.7m to R3m,” says Retha Schutte, Petoria regional executive at Pam Golding Properties. “There are a few new developments in these suburbs including Meadow
HOMEFRONT Cape Town It is unsurprising that Parklands ranks high with Cape Town first-time buyers. Paolo Girardi of Pam Golding Properties Parklands says the suburb is becoming increasingly popular due to its affordability and excellent location. “It is among the fastestgrowing residential areas in Cape Town and is near the new Table Bay Mall, beaches and excellent schools. It is also well placed on the MyCiti bus route for a convenient commute to the city centre, the N1, and up the West Coast,” he says. “Parklands offers a range of architectural styles. Prices start from R1.2m for a two-bedroom home to R2.85m for a five-bedroom house. In Parklands North prices go up to R4.8m.” Besides freestanding homes, Parklands offers plenty of affordable apartment options, says Fran Barlow of Greeff Christie’s International Real Estate Western Seaboard.
Moreleta Park, Tshwane, marketed by Pam Golding Properties
Cape Town suburbs with the highest number of first-time buyers 700
Number offirst-time buyers
“You can buy a new, modern two-bedroom apartment directly from the developer from about R879,000. A development on the market is Glen View, which comprises 38 sectional title threebedroom units. They go for R1.699m.” Burgundy Estate makes the list, too. “This secure estate is perfectly positioned between Cape Town and Durbanville Hills,” say Keegen Bain, Pam Golding Properties agent for Plattekloof. “The estate boasts communal facilities, a shopping centre anchored by Checkers, three restaurants, walking and jogging trails, cycle tracks, a nine-hole mashie golf course, a pond for canoeing and a clubhouse with tennis courts. Prices range from R900,000 for a one-bedroom apartment to R3m for fourbedroom apartments.” Buh-Rein near Kraaifontein has firsttime buyer demand. Karla Coetzee, Seeff manager for Brackenfell, Kraaifontein and Kuils River, says the
Ridge, Meadow Heights and Moreleta Village.”
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Pelican Park Parklands Khayelitsha Helderveld Greenville Buh-Rein Tableview Watergate Garden City Estate Estate
Source: Lightstone Property
area is popular due to the family-friendly atmosphere. “Brackenfell flats range from R750,000, with townhouses going from R1.5m,” she says. Kraaifontein’s up-andcoming destination is Viking Village, near the Cape Gate Mall, Mediclinic Cape Gate and Durbanville. “It is also close to where Curro University
will soon be built,” says C4 property group sales agent Jessica Kolver.
KwaZulu-Natal Amanzimtoti is renowned among first-time buyers in Ethekwini Metro for its beaches, greenbelts and recreational facilities such as Hutchinson Park complex and the Amanzimtoti
Country Club. “Amanzimtoti is close enough to Durban CBD but has everything one would want without having to travel into the city,” says Seeff agent Lawrence McGregor. “It has everything at your fingertips, with the Gallaria and Arbour malls, Netcare Kingsway Hospital, many nursery, primary
Viking Village, Cape Town
Amanzimtoti
Morningside
Musgrave
Montclair
Durban Central
Escombe
Margate
Ambleton
Greytown
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Number of first-time buyers
KwaZulu-Natal suburbs with the highest number of first-time buyers
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Ethekwini
Source: Lightstone Property
Burgundy Wynberg Estate
Ray Nkonyeni
The Msunduzi
Umvoti
“Banks are competing for new home loan business at the moment, and prudent home buyers are benefiting as a result” Rudi Botha, CEO, BetterBond
and high schools, and stunning beaches.” Average two-bedroom beachfront apartments in Amanzimtoti go for R750,000 and threebedroom homes are priced between R1m and R3m. Says McGregor: “It has several new developments on offer, including a retirement hotel in Athlone Park.” Durban’s Morningside is Ethekwini’s third-most popular suburb, where prices for two-bedroom apartments are between R1m and R2.3m. Threebedroom homes with a garden go for R2.3m. The main drawcards are the area’s proximity to the CBD and beaches. “Residents are spoilt for choice with schools, hospitals, shopping centres and the trendy Florida Road featuring many new shops,” says Pam Golding Properties Durban principal Michelle Burger. “A mixed-use development selling off-plan in Florida Road named 2Six2 is also exciting for the area.” Prospective first-time buyers are settling for more affordable areas to find value for money and returns on investment. In the past three years, more than 38,000 BetterBond first-time buyers made purchases topping R30bn, with a total value of bonds granted at more than R26bn — 22% of the value of all its bonds granted during this period. Nationally, BetterBond represents 25% of residential bonds registered in the Deeds Office, so their statistics are a reliable indicator of the residential property market. “Most of these buyers paid a large cash deposit, which had taken them about three years to save,” says Botha. “This is remarkable given the difficult economic climate of the past few years and shows how important home ownership still is to many young South Africans.”
HOMEFRONT INTERNATIONAL
New heart of New York South Africans invest in property in the US for capital gain and to hedge against the rand — and some of the most exciting opportunities are in New York City WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED AND SHUTTERSTOCK
V
ision has underpinned the most imaginative concepts, across a range of genres, not the least of which is 15 Hudson Yards on the west side of Manhattan. This new city within a city incorporates the biggest private real estate development in US history. Located on the site of an old railway yard, 15 Hudson Yards is the brainchild of chairman and founder of Related Companies Stephen Ross. What makes it more than another mixeduse development? Just about everything. The megaproject is expected to attract 125,000 people a day for work or play if they’re not living there by the time it is complete in 2025. It will include about 1.7-million square metres of commercial and residential space, more than 100 stores, restaurants,
“People like to invest in New York City because it has been able to withstand so many economic bubbles” Keren Ringler, property specialist, CORE
about 4,000 residences, The Shed (a new centre for artistic invention), 14 acres of public open space, a 750-seat public school and an Equinoxbranded luxury hotel with more than 200 rooms.
LANDMARK Then there’s Vessel, envisioned by Thomas Heatherwick and Heatherwick Studio, as a new landmark for the city. Influenced by Indian stepwells, it is designed to be climbed and explored via 154 interconnecting flights of stairs rising above the public gardens. South African real estate investors keen on getting their feet through these prestigious doors can do so through boutique real
estate agents Dogon Group Properties and CORE, a New York-based South African-owned company. Dogon Group Properties CEO Denise Dogon says that for those looking to diversify their portfolio and hedge against the volatility of the rand, investing in New York is an attractive
prospect. “South Africans can purchase property in America as one does not have to be a US citizen to own property there,” she says. “However, without knowledge and the right advice, buying in the US can be daunting”.
Entry-level apartments at 15 Hudson Yards are already sold. Remaining inventory ranges from two-bed apartments for $3.89m (about R53.26m) to penthouses starting at $12.8m (about R175.26m). In addition to magnificent views of the Hudson River and New York City skyline, the apartments boast oak flooring and cabinetry, and marble
HOMEFRONT
5 THINGS YOU NEED TO KNOW ABOUT US INVESTMENT
Vessel, envisioned by Thomas Heatherwick and Heatherwick Studio as a new landmark for the city countertops in the kitchen. Amenities include a fitness centre, swimming pool, dining suite, children’s centre and beauty bar. “People like to invest in New York City because it has been able to withstand so many economic bubbles,” says South African-born Keren Ringler, a New York City property specialist with CORE. “Despite the recession of 2008, the value of property has increased
over time. That year the average condominium sold for $1.8m. In 2017 the selling price was $3.2m. The rental market has increased accordingly.”
ART DECO The financial district has experienced a similar metamorphosis to Hudson Yards. One Wall Street is part of it, where acclaimed developer Harry Macklowe has reimagined
the 1931 skyscraper built by Ralph Walker into an Art Deco beauty. “The Wall Street district had to be redone after 9/11 and Hurricane Sandy. It was a no man’s land. “It is now so beautifully restored and modernised, but still full of character, with phenomenal hotels and luxury stores such as Louis Vuitton and Chanel,” says Dogon. “It is not like the Wall
Street we used to know as a purely business destination — a stop on a guided tour so you could see the New York Stock Exchange building.” The Wall Street district upswing is comparable to what happened in the Tribeca district. It is no longer a single occupancy rental location. Young couples and families are moving back now that schools are being established in the neighbourhood.
1 Green card Does real estate property investment help you with becoming a US citizen? “No,” says CORE real estate broker Keren Ringler. “It’s not as easy as it looks … unless you buy into an investment property as an EB-5 investor, and you have a registered business with an income that allows you to qualify for the EB-5 visa.” Nigel Barnes, managing partner at leading citizenship planning firm Henley & Partners, explains that each EB-5 investor must create 10 direct or indirect permanent jobs for US workers in order to obtain a green card. “Investments in ‘targeted employment areas’ (rural or geographical areas that have unemployment at a rate of at least 150% the national average) qualify with a minimum of $500,000.” 2 Deposit Once an offer to purchase has been
accepted and the contract is signed, a deposit of 10%-25% of the purchase price will be required. CORE will connect clients with legal and tax experts to assist with the process.
3 Typical closing costs An all-cash transaction will accrue closing costs of 2.5%-3%. If a mortgage is required the costs will be 5%-6%. 4 Average rental A $900,000 studio apartment of about 50m2-60m2 in a high-quality building could attract a gross monthly rental of $3,500 to $4,000. 5 Tax clearance The current annual foreign investment allowance for South Africans, with tax clearance, is R10m a person a year. The annual discretionary allowance is capped at R1m a person a year.
TOPICAL
Land debate Speakers at the recent SA Property Owners’ Association (Sapoa) conference in Durban weigh in on SA’s proposed land expropriation Former Constitutional Court judge Zak Yacoob:
• The government should
lay out a real plan for land reform and realistic property ownership goals in concrete terms. It should be clear about the sort of land transfers it wants from whom and to whom, how it will be funded and over what period.
• If the government had said in 1994 that each year it would achieve just 4% of its land reconstruction goals, the process would have been about 88% complete by now.
• When we were creating the Constitution, we supposed a move away from the old system where people were supposed to have been paid market value
for property that was expropriated, to just and equitable compensation, as determined by the court and taking various factors into account.
Democratic Alliance leader Mmusi Maimane:
• I know, for most of
the property industry, the debate around expropriation without compensation is the biggest issue facing the sector. Property isn’t just an aspirational issue, it’s an economic issue.
• The Constitution makes
sufficient provision for acquiring land for redistribution. We now need a government willing to test these provisions. But what we can’t do is threaten the rights of those who own property, both currently and in the
future. Dispossession was a cornerstone of the apartheid plan to subjugate the majority of our people.
•
But equally important,
property rights are the very foundation of our economy and enjoy protection in our Constitution for that reason. Without securing these rights we will lose whatever slim competitive edge we might still enjoy as an investment destination. We could not pick a worse way to shoot our economy in the foot. It is poor, black South Africans desperate for work who will feel it the worst.
• If we want to empower
poor South Africans we must extend property ownership to as many people as we can and then
protect their rights to own this property through our Constitution. Title deed to a piece of land, no matter where and no matter how small, can be the key to financial independence. I believe that it should be market-led. It’s not up to politicians to determine that value always. Sometimes there may need to be legal intervention.
Deputy minister of public works Jeremy Cronin:
• The policy and pace of land reform has been pathetic. As the ANC we should own up to that. Specifically on budget allocation, land reform has to be about
all departments. We have separate ministerial departments going off in different directions, which is no good.
• I can understand the
concerns of investors. The communication coming out remains confused: it’s important that we communicate clearly about what our intentions are with regard to land reform. I don’t think the government always gets that right.
• The EFF wants
expropriation without compensation because their proposal is to nationalise all land. That is absolutely not the ANC’s position. What
the land expropriation issue is saying: wake up. There is huge public pressure and we need to deal with it effectively and responsibly.
• Land reform requires
financial, infrastructural and institutional support. And a clear legislative indication of who should be the major beneficiaries.
• We need both a market-
led and government-led approach to the issue. Just leaving it to market forces will not get us there. In my view the bill of rights and especially the property clause (in the Constitution) are not obstacles to effective land reform — agrarian and urban.
HOMEFRONT PROPERTY NEWS
Johannesburg building costs climb
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ohannesburg is set to top African construction cost inflation in 2018, rising by 6% to an average of $1,079/m2. Research from professional services firm Turner & Townsend shows that global construction costs are forecast to rise by 4.3% in 2018 compared to 4.1% last year. In other African cities
included in the survey, construction costs are forecast at $857/m2 in Dar es Salaam, Tanzania (up 5%) and $724/m2 in Nairobi, Kenya (up 3%). Construction costs in Kigali, Rwanda are predicted to be the highest surveyed in Africa at $1,082/m2, increasing by 2% in 2018.
New York City remains the most expensive location in which to build globally, with the average cost of construction in the city climbing 3.5% to $3,900/m2 in 2018. The top five include San Francisco ($3,737/m2), Hong Kong ($3,704/m2), Zurich ($3,652/m2) and London ($3,618/m2).
Sandton’s hybrid hotel
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lexible accommodation options, streamlined business facilities and entertainment under one roof is pitched at modern, budgetaware business travellers, say the developers of the recently opened R500m hybrid hotel The Capital on the Park in Sandton. The Capital Hotels and Apartments development in Katherine Street has more than 300 rooms, a conference facility and an in-house fitness pod with specialised gym classes. The blend of residential apartments, hotel suites
Retirement estate option on R7m Amanzimtoti site
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KwaZulu-Natal residential site with comprehensive plans drawn up for a 60-suite retirement estate is on the market for R7m. The 4,100m2 Amanzimtoti site with river and sea views is marketed by Seeff Properties. “This plan may be made available to serious potential buyers,” says Seeff Amanzimtoti sales agent Gavin Parkins. He says the
site next to the Amanzimtoti Golf Course in Athlone Park is well positioned for a retirement development close to core amenities such as beaches, the golf course, hospital and other medical facilities and retail areas. The suites proposed for The Executive Retirement Hotel are each about 58m², with a large bedroom, walkin dressing room and en suite bathroom. They
include a large open-plan living room and dining room plus a covered balcony or patio. The units are designed for one or two people. Planned amenities include a restaurant, lounge, library, laundry, gym and doctor’s room/nurses’ station. The grounds feature a landscaped garden with seating and a braai area, swimming pool and twolane rooftop bowling green.
Green development accord
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he Royal Institution of Chartered Surveyors (RICS) has signed an agreement with the Green Building Council SA to promote sustainable development in Africa. At the recent RICS summit Africa 2018 in Sandton, RICS President John Hughes said Africa is a continent of
huge opportunities, boosted by its young population and immense natural resources. However, rapid urbanisation and climate change are big challenges. “Collaboration is key as we partner with organisations in Africa to contribute to the development of the built environment sector
and to smarter cities and sustainability,” he said. RICS SA country manager TC Chetty says green building and sustainability is an essential part of the built environment sector globally. “Both RICS and the GBCSA are important players in this space, so working together makes sense.”
and penthouses will accommodate a range of business needs, from those in town overnight to those seconded to the city on fixedterm longer contracts. The hotel is within reach of the Sandton Gautrain station and other business hubs. “Its business resort format responds directly to the needs and expectations of today’s modern business travellers,” says The Capital Hotels and Apartments MD Marc Wachsberger. “Guests have told us they don’t want or need turn-downs and too many toiletries — but
they do want free, alwayson-everywhere high-speed internet access. They don’t want to pay for essentials like parking and laundry, and that corporates are keeping a tight watch on budgets.” The hotel launched with the sale of investment apartments in 2015, all of which were sold within weeks. Some owners elected to let their properties back to The Capital Hotels and Apartments to be included in its hotel inventory. Others moved into the units in March, opting for apartment living with hotel services.
WHEN DOING BUSINESS “DOES NOT FEEL RIGHT”
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n day-to-day operations, most businesses interact directly and indirectly with clients and service providers. Many of the transactions that take place during this interaction are legitimate transactions, whereas some of these transactions might raise a few questions as to the validity of the source of the money, or even just that the transaction does not make business sense. When the business becomes aware of suspicious or unusual activities or transactions, these activities or transactions must be reported to the Financial Intelligence Centre (FIC). The Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (FIC Act) is a pivotal component of the regulatory architecture to protect the integrity of the South African financial system and support the criminal justice system. The FIC Act compels all businesses to report transactions and activities to the FIC that they deem suspicious or unusual. All businesses also includes accountable (e.g. banks, casinos, estate agents, financial services providers among others) and reporting institutions (e.g. motor vehicle dealers and Kruger rand dealers) which are listed as Schedule 1 and 3 in the FIC Act respectively. Suspicious and unusual transaction or activity reports (STRs) contain valuable information and form the basis for much of the analysis and dissemination of information undertaken by the FIC.
The information obtained from the reports submitted allow the FIC to get a “bigger picture” of the flow of money seeing how the money moves from one place to another, or even to see how different accountable or reporting institutions were used as vehicles for laundering money. The FIC Act requires that a STR be submitted when anyone who is involved in a business directly or indirectly (i.e. employed by, owns or manages the business) encounters a transaction or activity that “does not feel right”. STRs must be submitted within 15 days of forming a suspicion concerning a transaction or activity. A report does not prevent you from continuing with the transaction and you may continue to transact. The STR you submit is simply to alert the FIC that you suspect a client may be abusing your entity for purposes of money laundering. The information extracted from STRs assists in the development of financial intelligence reports which are valuable to law enforcement, investigative and prosecutorial authorities in crime detection, investigation and prosecution. All that is required to submit a STR to the FIC, is to register on the organisation’s website on www.fic.gov.za. Please note that registration is a once-off process and no institution can submit any report to the FIC without first registering.
For more information on registering your business with the FIC, contact 012 - 641 6000 or visit www.fic.gov.za