There are a number of reasons why property investors are looking for opportunities to buy within the South African property market, mainly due to renewed confidence based on the positive change in South Africa’s political landscape, which is paving the way for an upswing in the local property market. This is according to Chris Renecle, MD of Renprop.
Renecle also points out that many investors are looking to conclude their offers to purchase on their investment properties before 1 April 2018 in order to qualify for the lower 14% VAT before the increase, where applicable.
“Economists are predicting a better year for property this year, with an uptick in demand. Renprop’s January sales for new development units are reflecting this, with better than expected sales based on previous years,” says Renecle. “Both the rental and sales markets specific to sectional title properties have shown consistent strong demand during the November 2017 - January 2018 period, and this buoyancy in key suburbs throughout northern Johannesburg, along with other economic factors that influence the property market, gives an optimistic outlook for property investors.”
Investors are looking for properties close to business hubs and major road networks that offer value for money. Renecle points to a number of developments that meet these criteria:
Douglasgate in Douglasdale, which offers the best priced sectional title units in the area, has a number of special deals available leading up to the completion of the final phase in April this year. The last 60 units in this development, which has been designed for modern living with low-maintenance features and open plan living, offer buyers a choice of one-bedroom units priced from R799 000 and two-bedroom units from R999 000.
All units have either a balcony or small garden as well as covered and open parking bays. Provision has also been made for visitors parking. Communal facilities at Douglasgate include a swimming pool, clubhouse and tennis court, which are already built and in operation.
The Hub on Bryanston Drive also offers buyers sound property investments, with a limited number of residential and commercial units available. The residential development has been designed with upmarket finishes, with communal facilities that include a swimming pool and clubhouse. The apartment buildings will also have basement parking and storage facilities for residents as well as a concierge and conference facilities.
Russel Peach, Renprop Residential Projects Sales Manager, says that these apartments have been snapped up, with 80% of the development already sold out. In light of this demand, Renprop will be launching a second residential apartment development within The Hub precinct in April this year called The Edge, which will offer a selection of one and two-bedroom apartments as well as penthouses.
In Paulshof, The Quails apartment development is ideally suited to executives working in the Rivonia/Sandton area as well as investors who want to capitalise on the strong rental demand that is prevalent in the area. Buyers have the option of various configurations with prices starting at R950 000. Renecle notes that there is not much property in the area available for redevelopment, a factor that will fuel ongoing demand, and capital growth prospects, for residential property in Paulshof.
The Atrium offers investors well-positioned apartments close to Sandton, within walking distance to shops, gyms and the Gautrain bus route. The third and final phase of this development, which consists of just 48 apartments, is now underway with expected completion scheduled for August this year. “Designed in a modern, contemporary style, and planned with young professionals in mind, the selection of one- and two-bedroom apartments measure between 40m2 and 90m2 and are competitively priced from R1,065million,” says Peach.
Renecle points out that The Atrium is well positioned for investors to take advantage of the rapid development in the general Rivonia precinct which has fuelled demand for residential property in the area.
Renprop also has a number of units to be sold that already have tenants in place within its Douglasgate, The Hub, Cottonwoods and The Atrium developments. “This means a guaranteed six-month lease in place for the new owner,” says Renecle.
“Residential property purchases are an ideal investment option, especially now that we are at the bottom of the cycle and can look forward to what is predicted to be the best potential for property value growth South Africa has experienced in recent times,” he says. “Sectional title developments in or close to key business nodes such as these mentioned above will generally always have the highest rental demand and capital appreciation potential, making the most sense as an investment,” Renecle concludes.
Issued by Renprop