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
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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.
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