- South Africa’s property market should benefit from renewed interest in the wake of a market-friendly election result.
- Cape Town’s upmarket areas have been hit by price deflation, making it a good time to invest in luxury apartments.
- Johannesburg and Cape Town both offer developments in vibrant urban centres that will appeal to the millennial market.
With the election out of the way, the South African property market should benefit from renewed interest on the part of investors, who will be encouraged by the market-friendly outcome.
While the uncertainty that has plagued the economy for so long is not likely to disappear overnight, there is cause for optimism. As Andrew Golding, chief executive of the Pam Golding Property group, told businesstech.co.za: “While It is anticipated that, in the wake of the favourable election outcome, the residential property market will rebound, in reality, any significant recovery is only likely to materialise in the later stages of the year after the seasonally quiet winter months.”
With that in mind, we’ve highlighted some of the investment opportunities in South Africa’s biggest cities.
The best investments Johannesburg
Movers and shakers looking to invest in Johannesburg’s burgeoning property market are spoilt for choice when it comes to new developments. Whether you’re hoping to attract interest from families or young professionals, the City of Gold has an array of investment opportunities in quiet neighbourhoods and bustling urban centres alike.
We’ve pinpointed three developments, all of them situated in suburbs with high investment potential.
Mixed-use development: Illovo Central
- Completion date: January 2020.
- Size: from 23sqm.
- Price: from R940 000 to R10 million.
- Apartments: lock up and go; excellent finishes; underground parking, storerooms available; standby power and back-up water supply; high-speed fibre internet; pet friendly; superior security.
- Amenities: rooftop pool and bar area, gym, boardrooms, spa.
- Neighbourhood: centrally located between Melrose Arch, Sandton CBD and Rosebank CBD; tree-lined avenues; close to good schools, shops and places of worship.
Luxury development: Park Central
- Size: from studio apartment to penthouse, size and price differs depending on which direction they face and whether they have a balcony or not.
- Price: from R2 million for studio apartment, up to R19.6 million for some units with balconies and views overlooking the park.
- Apartments: luxury fittings include air conditioning and integrated Smeg appliances; high-end finishes plus the option of finishes for penthouse apartments.
- Amenities: 24-hour state-of-the-art security, basement parking, Wi-Fi, gym, storage units, a rooftop terrace swimming pool and clubhouse with a 360-degree view of the city.
- Neighbourhood: the new tallest building in Rosebank, close to major roads and highways and a number of amenities; easy access to the park.
Sectional title: Infinité
- Size: from 44sqm.
- Price: from R1.1 million for one-bedroom, one-bathroom apartment to R4.9 million for a three-bedroom, three-bathroom penthouse.
- Apartments: lock-up-and-go benefits, 24-hour security, Bosch fridge, freezer, gas hob, electric oven, convection hood, dishwasher, washing machine and quality finishes as well as Hansgrohe fittings.
- Amenities: three basement levels of parking bays for residents and visitors, swimming pool, clubhouse, gym, lobby with concierge and two meeting rooms.
- Neighbourhood: situated in Bedfordview, with easy access to the M1, N12, R24 and N3; good schools, restaurants, sports facilities and hospitals on hand; close to OR Tambo International Airport and the business hub in Sandton.
The best investments in Cape Town
It’s no secret that Cape Town’s property market is rich with potential; and the recent deflation in property prices makes it a buyer’s market.
If you’re looking to tap into the millennial market, micro-apartments are proving to be a popular trend. According to Byron Kruger, sales agent for Dogon Group properties, “Millennials are prepared to sacrifice space and purchase smaller meterage units if the location is right.” This has led to modern developments that cater to the young professional lifestyle, by incorporating facilities such as gyms and coffee shops.
Now would also be a good time to look at luxury apartments, with a view to renting them out to visitors (upmarket areas of Cape Town have been hardest hit by price deflation).
We’ve picked out three new developments in the Mother City.
Micro-living: 1 on Albert
- Completion date: December 2020.
- Size: from 21sqm studios to 70sqm two-bedroom units.
- Price: From R985 200 to R2.6 million.
- Apartments: designed by award winning Louis Karol Architects, and leading hotel room designer Grant Gillis; equipped with top-end furnishings, fridge, convection microwave oven, 2 plate gas hob, 4G Smart TV, bed base with slide-out drawers for added storage, all cabinetry including built-in desk, SMEG kettle and toaster, uncapped fibre.
- Amenities: communal recreational spaces, shops, a food court, laundromat, heated swimming pool.
- Neighbourhood: Situated in Woodstock, one kilometre from the Cape Town City Centre, with the MyCiti bus route right on its doorstep, and various educational institutions (UCT, CPUT, SAE and Red & Yellow) a short commute away.
Scenic solitude: Sacha on Chapman’s Peak
- Size: From 80sqm to 451sqm.
- Price: From R3.6 million for a one-bedroom unit, to R21.5 million for a three-bedroom unit.
- Apartments: all bedrooms include en-suite bathrooms; apartments are equipped with fibre, DSTV, and temperature control systems; at least one parking bay is included.
- Amenities: shared pool and deck, shared rooftop terrace with viewing area, braai facilities, al fresco dining and shaded lounge area; concierge desk, bicycle store, outdoor shower, garden store.
- Neighbourhood: Situated at the start of Chapman’s Peak Drive, near Hout Bay, with views over the forests, mountains and coastline. A short walk from the beach, coffee shops and restaurants, gym, hiking trails, and a MyCiti Bus stop.
Luxury living: Bantry Hills
- Size: From 54sqm to 258sqm.
- Price: From 3.7 million for a one-bedroom apartment, to 40.5 million for a three-bedroom penthouse with a large balcony/terrace.
- Apartments: each of the luxury units is uniquely designed, and equipped with quality finishes, air conditioning and digital broadband facilities; each unit comes with one parking bay per bedroom.
- Amenities: High-level security, in-house concierge, lobby and business centre, family pool, children’s play area, spa and gym, indoor heated pool, yoga garden.
- Neighbourhood: Situated in Sea Point, on the Atlantic coastline; a short distance from Clifton Beach and Camps Bay Beach on one side, and the V&A Waterfront on the other. Restaurants, cafes and good schools all in close proximity.
The first step to property investment: Knowing what you can afford
If you’re interested in buying into one of these developments, bear in mind that ooba home loans, South Africa’s largest home loan comparison service, offers a range of tools that can make the home-buying process a lot easier. Start with their home loan calculators, then use the ooba Bond Indicator, a free, online prequalification tool, to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.