Real Estate Investor Magazine South Africa November 2018 | Page 46

COMMERCIAL ZONES
‘New North’
delivers opportunity for investors
BY CHARMAINE MURRAY
W
ith commercial, residential and mixed-use proper-
ty in demand with unprecedented investment and
development underway, the broader Fourways area
continues to create value and deliver opportunity for investors
across sectors as it offers a fresh alternative to Gauteng’s older,
more crowded nodes. 
  According to Dirk Prinsloo, director at property research
company Urban Studies, the Fourways node is experiencing
strong development growth dominated by the extension of
Fourways Mall to the status of a super-regional mall, which, along
with other developments in the area will see it become one of the
most dominant retail markets in South Africa. 
“The 178,000m2 Fourways Mall (the largest in Sub- Saharan
Africa) will act as a catalyst for additional urban growth,”
Prinsloo explains. “This is further underpinned by infrastructure
development linked to road access and public transport, with
much infrastructure development being funded by investors such
as Accelerate Property Fund and Steyn City Properties.”
“Once completed, Fourways Mall will be the ultimate
shoppertainment family destination, with several exciting venues
already opened as construction on the broader centre approaches
completion,” says Andrew Costa, COO of Accelerate Property
Fund. 
Despite a broadly slow residential property market, Property24
research shows that Fourways house prices continue to increase
after a slight dip in 2016 and 2017, with the average sale price
being R2.255m, and the average apartment selling for R1.5m.
The area is significantly more popular among home owners aged
36 to 49 with more than 46% of recent buyers in this age bracket,
with only 4.1% of buyers in the area being older than 65. 
Sandra McKenzie, Adrienne Hersch Properties’ Olivedale
Branch Head, reinforces that the area is quickly becoming an
entertainment, retail, commercial and residential hub that rivals
the likes of Sandton, Rosebank and Menlyn. 
“Demand remains robust in the area, despite a constrained
economic climate, and we anticipate property prices to climb
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NOVEMBER/DECEMBER 2018 SA Real Estate Investor Magazine
slowly as demand from buyers and investors continues to rise
against the backdrop of substantial development and investment
in the area,” she says. 
“The extended Fourways Mall will act as a catalyst for office
development too,” Prinsloo explains. “This will include the
redevelopment of office blocks older than 25 years, and we expect
the Fourways office node to double in size over the next five to
ten years.”
Tony Koupis, Fourways Mall’s developer comments, “Fourways
Mall is in the fortunate position that most of its market is made
up of young families, usually with two income earners, often in
their mid-30s to early 40s, with young children and most likely
staff as well. This is probably the best position that a developer can
be in – it gives us a growing market, where most households earn
more than R50,000 per month.
Steyn City is key among the new developments underway,
with its offerings of apartments, clusters or freehold homes
located in beautifully landscaped, secure parklands offering all
homeowners a massive garden to explore.
“Steyn City is strategically placed between the key areas
of Pretoria and Johannesburg, and is no longer positioned on
the urban edge, offering easy access to the N14 via Centurion
to Pretoria, and the R511 directly to the Sandton and Joburg
CBDs,” says Giuseppe Plumari, CEO of Steyn City Properties. 
The anticipated expansion of Lanseria Airport, which aims to
double its passenger numbers to four million in the next six years
is likely to add impetus to the area’s popularity among businesses
whose executives will seek the convenience and easy accessibility
of this privately owned airport. While it only services flights to
domestic destinations at present, growth plans include routes to
destinations within SADC and further afield in sub-Saharan
Africa, with talks already underway with Namibian, Mauritian
and Botswanan airlines. 
SOURCE Accelerate Property Fund, Steyn City, Urban Studies