A new generation of buyers leaning towards an urban lifestyle is snapping up property in locations such as the iconic Melrose Arch in Johannesburg.
View of Melrose Arch in Johannesburg with area in the foreground showing construction under way.
This mixed-used development and vibrant growth node offers a convenient live, work and play lifestyle. It also provides a sense of community amid attractive surrounds with attention to open green spaces.
Peet Strauss, Pam Golding Properties (PGP) Melrose Arch manager says this location typifies the lifestyle sought after by many buyers or varying age groups.
Most notably are DINKS buyers (dual income no kids) to singles with busy careers wanting a convenient location and healthy lifestyle, and even the older generation is eyeing Melrose Arch.
“Local buyers who travel frequently and are scaling down from large properties to still spacious, lock-up-and-go apartments, commuters from out of town working in Johannesburg and international buyers love this place.”
Some investors are purchasing now with a view to moving in later and others continue to buy as the rental income market has performed well over the past five years, he says.
Strauss says with worsening traffic congestion, rising fuel costs and the costs of upgrading transport systems, more of this kind of mixed-use development will appear over time.
“Demand for property in such areas will remain high and these will come at a premium.
“Melrose Arch is on the main Gautrain bus route, to the Rosebank Gautrain station every 15 minutes.”
According to PGP, in the Western Cape region, prime examples of the growth of the new urban lifestyle has been the redevelopment of Cape Town’s central city with former under-utilised or vacant commercial buildings converted to residential units.
These include properties such as Mandela Rhodes Place, Cartwright’s Corner and Mutual Heights.
Cape Town's pedestrianised central city area in St Georges Mall, which includes Mandela Rhodes Place.
Formerly commercially dominant areas such as Claremont incorporating Cavendish Square shopping centre have been converted into mixed-use areas where residents can either walk or commute to work on public transport.
Scott Irving, sectional title area specialist for PGP, describes Mandela Rhodes Place as an upmarket premium apartment complex centrally located with easy access to destinations such as The Winelands.
He says the complex was developed at the height of the property boom in 2005/2006. Properties are now selling for between R18 500 and R24 500 per square metre.
“Where properties have sold for less than originally paid for, it has been dependant on the individual seller’s need to sell due to financial reasons,” says Irving.
In Green Point, the area around the new Cape Town Stadium has benefited through the beautification of the environment by means of landscaping, improved road and transport infrastructure and the exceptional new Green Point Urban Park.
PGP reports that this has also led to the upgrading of the retail sector, giving positive exposure and focus for the area, with residential property prices well sustained and even improved despite the economic slowdown.
Prices up to R15 million are being achieved on the Mouille Point Beach Road.
Other mixed-use successful developments include The Quadrant in Wilderness Road, Claremont and Montclare apartments.
The success of these mixed-use developments lies in the creation of trendy and aesthetically pleasing environments with security, a connected yet exclusive residential section with restricted access, ample parking for residential, retail node and well designed modern apartments, explains PGP.
Rental apartments in these two areas are between R8 500 to R10 000 per month. At the new 15 on Orange near Kloof Street, a penthouse rental of R28 000 per month was recently achieved.
Elwyn Schenk, PGP area principal in Umhlanga and Umdloti says the property market is more buoyant than in the past few years. Apartment buyers are mainly owner-occupiers and a good number of investors in the expectation of good rental income given the shortage of rental properties.
“Gateway Newtown is the bustling mixed-use area with new hotels, restaurants and shops coming on stream in response to the increasing number of residents,” says Schenk.
View of Gateway shopping centre in Umhlanga.
A starter home in this location is priced from around R900 000 for a two bedroom apartment. At 12 on Palm Boulevard overlooking the fountains at Gateway, two bedroom apartments are selling for R2.5 million.
In Somerset Park, free standing homes and gated units in gated estates are priced from around R1.3 million for a two bedroom property.
He says the proximity of Umhlanga Village, where apartments are priced from R1.5 million to R20 million and houses up to R40 million and La Lucia less than five kilometres from Gateway, means these areas have benefited from the rapid growth of the Umhlanga Ridge commercial node and the Gateway precinct.
The migration of corporate, banks and professionals from the city centre to Gateway and Umhlanga Ridge areas has resulted in a strong demand for residential properties. International hotel groups, renowned for selecting high growth potential areas for new development, have opened four new hotels in the Gateway area, with one currently under construction in Gateway itself, he says.
With no traffic congestion in Gateway, one can walk or cycle to work in the commercial nodes at hand or in nearby Umhlanga Ridge or La Lucia Ridge office estates. There is also the novel ideal of strolling in a virtually crime-free piazza while deciding which of dozens of restaurants or pubs to visit, he adds. – Denise Mhlanga
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