TRENDING
Furnished flats in demand by
high-end investors
P
re-furnished apartments in high-end developments across the country are on the radar of local and international investors .
Leading South African property developer , the Amdec Group , has found that residential properties within their major developments ‒ Melrose Arch in Johannesburg , The Yacht Club and the new Harbour Arch in Cape Town ‒ are in great demand by buyers who plan to rent out their units , holding onto ownership as a long-term investment .
“ The majority of purchasers within this type of development are investors who are buying to let ,” says Tersia Taljaard , sales consultant for the Amdec Group .
“ Some investors have bought as many as 10 apartments in a single development , and buyers even form consortiums to buy together .
“ There are also those clients who prefer the ‘ buy to live ’ option . They are typically scaling down from larger properties , or purchasing a second property for use on regular business trips ,” she says .
Over and above the investment , however , these buyers are also looking for a “ hassle-free ” experience post sale .
One on Whiteley , the Amdec Group ’ s latest residential complex within the company ’ s award-winning Melrose Arch development , is seeing increased interest from buyers seeking fully furnished flats that are ready to rent out .
“ Melrose Arch ’ s rental market mainly caters for corporates and professionals , which means that the apartments need to be furnished ,” explains Taljaard .
“ Most of our investors prefer to have us arrange the furnishing based on a pre-agreed budget , and they often want us to find tenants for them too .
“ Furnishing a new apartment is not an easy task and many of our buyers don ’ t have the time to do this , or they ’ re foreign investors who aren ’ t based in South Africa .
“ Our investors also see better yields when renting an apartment furnished , so for a small capital outlay at the outset , the returns are definitely worth it ,” she says .
According to developments manager of Pam Golding Properties , Peet Strauss demand for furnished apartments is currently higher than that for unfurnished living .
“ Our furnished rental market is particularly great for overseas guests who arrive with just a suitcase . They can move in and start working the next day . They don ’ t even have to set up
wi-fi ‒ they just punch in a code and off you go . It ’ s literally as easy as that ,” says Strauss who lives , works , and owns investment properties in the mixed-use development .
“ More and more overseas companies are moving into Melrose Arch . People come from Europe or America and they absolutely love it because of the high-street feel ,” Strauss says . “ Many international business people rent here when they are in Johannesburg .”
Chris Weylandt , Founder of Weylandts Spaces , says that the trend of fully-furnished apartments has been significant .
“ We do a lot of bespoke interior design that expresses the unique personalities of clients , and we are seeing an increasing number of clients who are also investors who need to have their apartments furnished , often from the other side of the country or the world . That ’ s where Weylandts Spaces offers a valuable and sought-after service ,” Weylandt explains .
“ Locally , there is considerable demand for upmarket , fivestar interior design in new developments . We ’ ve also noticed that opportunities are opening up within the international market . Weylandts Spaces has worked on developments in France , Germany and in West Africa . In Europe , the so-called ‘ poshtel ’ ‒ upmarket youth hostels or affordable hotels ‒ is also gaining popularity . With up to 300 rooms in a single development , these projects are highly lucrative , especially when you consider our ability to manufacture locally and offer favourable exchange rates .”
Is investing in quality furnishings , and the handling thereof , therefore a wise investment ? Taljaard says it is , particularly considering the time saved .
“ We have parents in Johannesburg need a furnished flat for their children at The Yacht Club in Cape Town , while they ’ re studying at UCT . It is very convenient , and a great relief , to know that everything will be done without them having to be there .
“ With the increasingly fast pace of life , and so much to do on any given day , it makes it so much easier when a company handles the furniture aspect on the investor ’ s behalf . Or if someone is buying to live in the apartment , they ’ re typically reducing the furniture they ’ ve accumulated over the years . They ’ re simplifying their lives , so they don ’ t want to concern themselves with every detail of the décor . They just want things sorted quickly ,” she concludes .
16 AUGUST / SEPTEMBER 2018 SA Real Estate Investor Magazine