Estate Living Magazine #liveyourbestlife - Issue 46 December 2019 | Page 13

P R O P E R T Y
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For developers, the massive ongoing migration into Johannesburg
means a lot of pressure on infrastructure and not necessarily
enormous buying power, adds Peet Strauss, Pam Golding
Properties’ Johannesburg Development Manager. ‘The people
who are moving from rural cities into Johannesburg are not buying
R20 million apartments in Sandton. Affordable housing is currently
the main pressure point,’ he adds.
Private residential estates will also grow and develop, says Jonathan
Kohler, owner of Landsowne Property Group. ‘When compared to
other cities in Africa, I feel Johannesburg is leaps and bounds ahead
in terms of property and infrastructure development. Estates such
as Steyn City and Waterfall continue to be good investments, as an
increasing number of people will opt for the security these estates
offer.’
He adds that previously coveted areas such as Morningside are
losing market share. ‘Demand for Morningside used to be through
the roof, but we now see that the R6 million to R9 million market in
that area is dying, as buyers increasingly turn to private estates.’
I N V E S T M E N T
safety. What’s more, the infrastructure and policies don’t promote
liveable and walkable cities,’ he says.
There are, however, numerous opportunities in Johannesburg,
according to Kohler. Modderfontein, Fourways, Rosebank and
Steyn City are all promising areas that are likely to attract investment
in the years to come. This development is partly as a result of the
development of the Gautrain with 19 new Gautrain stations being
built. Kohler admits that more needs to be done to boost the city’s
public transport.
Johannesburg property is also very affordable compared to other
prospective megacities in the world and Africa, according to
Strauss. ‘There are many opportunities to create wealth through
property, but currently there is not enough buying power to create
this wealth. This will only happen when the city sees much-needed
economic growth.
‘There are a lot of good noises around South Africa and
Johannesburg, and the outlook is positive, but we need economic
growth,’ he emphasises.
While the rise of these communities offers open spaces and a crime-
free environment, the unintended consequence of secured estates
is that they hinder spatial and social integration, says Dr Musakwa.
The new law requiring developers to build a certain amount of low-
cost housing within every upmarket project, although positive, will
do very little to mitigate this challenge.
Johannesburg is therefore on the back foot compared to other
cities such as Vienna, Hamburg or Dallas. ‘Johannesburg is not a
free city because one is not free to walk in public without thinking of
P R
Natalia Rosa
Steyn City