Real Estate Investor Magazine South Africa June 2015 | Page 31

NEALE PETERSEN’S

MASTER MENTORING

PROGRAMME

thing”, BBC.com, 21 April 2015): “The international
trend is towards smaller residential units in downtown
areas, because location has become paramount.”
“Even couples with kids are giving up the larger
homes in the suburbs and opting instead for smallscale urban living that brings them closer to amenities,
as well as their place of work,” he confirms.
An interesting new development in the Cape
Town CBD is that previously large units (there are
a number still in the CBD of well over 100m2) are
now being bought and redeveloped into smaller units.
To accommodate this demand, Russell believes the
CBD will now once again see conversions of old and
underutilised office blocks to residential. However,
with at least one year to 18 months minimum required
to bring units to the market, those coming on board in
future are unlikely to be sold for under R20 000/m2.
Russell adds that, “The rate per m2 may well start
to climb towards R35 000/m2 in order to reconfigure
existing office space into residential.”
“The average size of the unit will be between 4050m,” he says.
“You may still be able to buy for R1 million, but you
will need to understand that the size of what you will
be buying will be closer to 32m2,” Kane concludes.

RESOURCES
Cape Town Central City Improvement District (CCID),
State of the Central City Report
www.reimag.co.za

YOUR
EXCLUSIVE
ACCESS TO
MENTORSHIP!
“Formal education
will make you a living;
self-education will make
you a fortune”

Jim Rohn
For more info contact 0861 ACT NOW!
www.nealepetersen.com
JUNE 2015 SA Real Estate Investor

29