06 Jul 2009
Development opportunities in Pretoria at cut-rate prices abound for those wanting to join the residential accommodation supply chain created by the 2010 FIFA World Cup.
This is according to Dries Dreyer, principal of Realty 1 International Property Group Akasia, who says the global recession has chipped away at local property prices to the point where developers are now spoiled for choice. If chosen correctly, he believes the right property will ensure good short-, medium- and long-term returns - the latter referring to capital growth.
The short-term returns he anticipates could come into effect even before the World Cup as demand for residential rental accommodation swells. "The market, which is now offering properties at 'Red Hanger Sale' prices, is going to start turning. We're heading into a strong rental growth phase and informed buyers will capitalise on this. By purchasing now, people can pay prices below market value for a three-fold value deal that offers them a sustained return and ultimately a good selling price in the long term."
Among the price-reduced properties, he says, are a number of vacant stands in and around Pretoria North and Akasia. These offer good proximity to the relative CBDs and business centres, as well as schools, bus routes and public swimming pools and parks. Some have rezoning and building plans approved for residential and mixed-use development. Others can be utilised for churches, schools or social housing, an initiative that he says will ensure the support of the municipality.
Dreyer is particularly enthusiastic about the development potential in Pretoria North's CBD, where he says there is vacant land with "unbelievable development potential". Plans have been drawn for an upmarket multi-storey, mixed-use development on this particular property that will ultimately comprise offices, shops and flats, he says, adding that there is a "serious need for this type of development in the area".
Dreyer says his developer/investor stock portfolio, which ranges in price from R2.2m all the way up to R9.5m, also includes plots, farms as well as a well-known guest house and a luxury spa.
"Pretoria North is widely regarded as a zone of choice, which is why developers with a long-term view should consider it when deciding on their next project. All indications are that the market is going to start to regain its lost momentum in the first quarter of 2010 so the time is ripe to buy at the lowest possible cost per square metre while focusing on high future yields," says Dreyer.
For more information contact Dries Dreyer on 082 332 9386.
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