Real Estate Investor Magazine South Africa February 2014 | Page 32

AREA ALERT BY GINA MEINTJIES Sandton, Gauteng’s Crown Jewel This is where the opportunities are T here is no doubt that Sandton is a safe bet and the sectional title buy-to-let market is about to explode, says Seeff’s managing director for the greater Sandton area, Charles Vining. New commercial development will see thousands of employees relocated to offices in the Sandton CBD and all this development will inevitably fuel a massive demand for residency. In just over 20 years, Sandton has become the centre of wealth and power; the continent’s most significant business and financial district. The skyline is now dotted with opulent skyscrapers and office towers and it is home to the most luxurious shopping mall on the continent. While modern apartment complexes with luxurious penthouses and cluster developments have appeared, Vining says that there is still a significant shortage of residential property, especially for affordable sectional title rental accommodation and demand is likely to escalate further. Development continues unabated with corporate head quarters, office and retail developments to the tune of billions being constructed around the Sandton CBD. The area is a hive of construction activity with cranes dominating the skyline and 30 February 2014 SA Real Estate Investor workmen in construction-issue overalls pounding the pavements alongside businessmen and women. Pet roc hem ica l g ia nt, Sa sol , pla ns to consolidate its Gauteng head off ices that currently span a number of buildings across Rosebank, Randburg and Bryanston into one impressive 10-storey office building with a floor space of around 67 000m 2 . Said to be ready for occupation in the second half of 2016, the complex will house 3 000-4 000 employees. This influx of employees will naturally result in greater demand for residential accommodation in an area that is already experiencing stock shortages, says Vining. “Already, we are seeing ever-increasing traffic volumes due to recently completed mega-offices in Sandton and in Rosebank and this has spurred the demand for accommodation closer to the CBD area,” Vining says. Demand, especially for unfurnished sectional title rentals, is escalating and it seldom takes longer than two weeks to find suitable tenants for a well-priced unit. “That being said, we often receive calls from corporate relocation agencies requesting high SUBSCRIBE end furnished properties (especially clusters and houses in estates) and find we have some, but nowhere near enough properties to show them,” he says. W hile renta l y ields countr y w ide have remained relatively flat, Sandton rentals have increased year-on-year at between 7-10%, says Vining. There is a shortage of not only affordable rental property stock, but also of middle to upper end rental homes, he adds. Demand far outstrips supply across the board when it comes to the price range. Unfurnished apartments with two and more bedrooms are particularly sought after, as are townhouses and cluster homes with gardens. Secure parking and units with garages are also of paramount importance to tenants. As a general guideline, t wo and three bedroomed units with garages are the most feasible option for potential investors as these are sought-after by young professionals and families, he advises. Any unfurnished two and three bedroomed units with rental rates ranging between R6 000 and R12 000 is ‘hot’ property and are snapped up quite quickly by tenants. www.reimag.co.za