includes various demographics, including the empty nesters: parents whose kids have moved out and, as such, are downsizing their properties and opting for the lock-up-’ n-go lifestyle that an apartment offers. This is the generation that supported the previously held belief that“ size matters” when choosing a property to buy, but find it hard to motivate why this is so when having to manage a two-acre( or more) home and all of the associated responsibility that holds.
Another large section of the buyer market is parents buying property for their children who are relocating to Cape Town or moving out of home to study.
Time. com previously reported that“ 17 % of the parents of millennial children( defined as between the ages of 18-35) expect to help their children buy a home within the next five years. That’ s an increase of over 30 % compared to five years ago, when 13 % of parents expected to provide home-buying assistance.” This may seem a burden for these parents, but should perhaps not be seen as such, and rather viewed as a great investment opportunity.
“ Parents that can see property investment as a solid opportunity to create future wealth for their children, will understand the true benefit that it can offer. Not only can it provide their children with security and shelter( a short-term or immediate need), but it can also become a valuable asset in the future( long-term need). Many parents are looking to invest in property for their children who may be at university or college, or even put property into a fund when their kids are at a young age with their futures in mind,” says Lior van Embden, Sales and Marketing Manager for urban property developers, Blok, which has launched nine urban apartment developments in Cape Town.
This is one of the reasons for the rapid rise of the urban property developer. Just one look over the landscape of Cape Town’ s Atlantic Seaboard and the number of building sites denoted by high-reaching cranes, will show how prolific urban property development is. When you consider that most, if not all of these sites are urban apartments, the demand is apparent.
The benefits for people looking to invest and move into this way of living include:
• Security: the more people in close proximity to your home, the more‘ eyes on the street’ and less risk of someone taking advantage, as the risk of them being seen is too high. Not to mention that most of these urban developments have concierge or security personnel working there.
• Convenience: close proximity to work, schools, shops and restaurants means less travel time needed, and less money spent on travel.
• Social: it is hard not to get closer to one’ s neighbours when sharing a building. This encourages a closer community and all the benefits that brings; socialisation, security and convenience.
• Financial: considering the level of demand for urban property, it is likely that the value of a wellbuilt and well positioned urban home will increase significantly.
• Environmental: with more people moving into the city and closer to work, the decrease in singledriver cars and related emissions is dramatic. Not only is the rush-hour commute improved but, many people choose to forego driving completely and either walk or make use of public transport in their daily travels. Opting for alternative methods of transport also has an impact on well-being. A study by the University of East Anglia in the UK has revealed that commuters feel happier when traveling by public transportation, compared to driving. Plus, people find train or bus journeys more relaxing and have more chance to prepare for the day ahead, catch up with emails, take phone calls, or socialise with friends. The study also found that people who walked or cycled to work were more content than those who drove, which is in line with research linking exercise with improvements in mood.
Jacques van Embden, MD of Blok, says,“ Our philosophy is that the neighbourhood is an extension of your home and we incorporate the concept of connected urban communities into all that we do. This includes the implementation of urban interventions such as the creation of green spaces for all to enjoy, and highlighting the people who are at the heart of the neighbourhoods in which Blok develops- from the barista at the corner coffee shop to the doctor down the road – in the communications curated for each development.”
If the statistic is correct that, by the year 2030, around three quarters of the world’ s population will live in cities( see‘ Living in the Endless City ‒ The Urban Age Project by the London School of Economics and Deutche Bank’ s Alfred Herrhausen Society), the demand for urban property is only going to increase, making the investment value even more apparent.
RESOURCES
Blok
www. reimag. co. za APRIL 2017 SA Real Estate Investor 27