There is a great demand for new cluster developments with cash ready buyers willing to pay R4.7 million and upwards for a modern home in a secure development.
An artist's impression of a home in the modern development Salida del sol in Morningside, with prices between R3.9 and R4.7 million sold out off-plan.
This is according to Seeff Sandton/Midrand Projects Director, Glen Fisher, who says the demand is driven by buyers wanting to get closer to the Sandton CBD and settle in upmarket suburbs. Currently, he says, the demand far outweighs the supply.
Recently eight executive clusters in the modern development Salida del sol in Morningside, priced between R3.9 and R4.7 million, sold out off-plan. Half of the sales were in cash and made to foreign buyers. Foreign buyers include buyers from Gabon, DRC and Mozambique. Fisher says some had to relocate to South Africa for work while others have investments in the greater Sandton area and a former minister from Libreville, Gabon secured a unit to retire to in comfort and style.
He says that selling all units off-plan is a first in Morningside. “The growth and shift of Johannesburg’s commercial and financial power-base to the Sandton CBD has significantly benefited the residential market within the greater Sandton area." There is a demand for well priced sectional title and clusters, but Fisher says few developments can compete with the well priced and sought-after Salida del sol.
Each unit has its own rim-flow pool, a sun deck that extends from the living areas and three water features. A study room, pyjama lounge, home cinema and a sauna are all optional extras.
Fisher adds that local buyers who were lucky enough to secure a unit in the development all obtained building package home loans from the local banks. “Most bonds were granted at a rate of prime minus, as the banks found good value in the clusters and low risk in the buyers applying for finance”.
The clusters located in the private estate are all complemented by top class finishes of which many are imported and energy conservation measures have also been put into place. Fisher says each cluster in Salida del sol has been designed to comply with all new energy regulations and will conserve energy wherever possible without compromising comfort and free-living. "Undoubtedly this also fuelled the demand for a unit”.
The duplex cluster units have between three to five bedrooms and range in size from 355 square metres to 408 square metres under roof. Each unit has its own rim-flow pool, a sun deck that extends from the living areas and three water features. A study room, pyjama lounge, home cinema and a sauna are all optional extras. The interior designers have created three different interior styles to select from, varying from classic and contemporary to modern.
Fisher says despite the development being sold out, Seeff Sandton continues to receive inquiries from buyers wanting to secure such a unit. “This has opened the door for the developers Metrosphere Investment Properties, 3 Point Architects and Seeff Sandton/Midrand Projects to secure more development for more complexes in this style." He says it is important to note that clusters in developments like these aren’t selling at bargain prices, but in line with what buyers are prepared to pay.
Construction of Salida del sol is underway and is said to be ready for occupation in March 2014.