Real Estate Investor Magazine South Africa Real Estate Investor Magazine - June 2017 | Page 19

Sites and properties that can be enhanced in respect of
the bulk they provide offer the best returns. The mixture
of allowable uses in areas like the Voortrekker Road
Corridor is the best way to capture the essence of inner
city regeneration,” says Labuschagne.
He adds: “Changing the residential property dynamics
for the better invites opportunity for business to serve the
communities living there at a higher level. Multiple use
areas thus allow for precincts to develop and stimulate
further socio-economic growth and development.”
THE CASE FOR
INVESTMENTS IN BELVILLE
Belville’s flat market should be of interest to the
speculative investor because of the UDZ tax incentive -
20% in the first year - which makes a compelling
argument to invest in the area.
Some of the biggest motives for investing in the region
are as follows:
• According to Transport for Cape Town (TCT), Belville
is home to Cape Town’s second CBD, and the station
precinct is the second busiest in the city.
• Due to an undervalued market, Belville has a lower
entry level for investors than Cape Town’s CBD.
• The Greater Tygerberg Partnership (GTP) is
implementing plans for the regeneration and
improvement of the region, to develop a safer and
more integrated community.
There is a strong retail, commercial and residential
developer investment case for the precinct.
• As part of the TOD strategy for Belville, the City plans
to extend the MyCiTi trunk route between Westlake and
Belville.
• GTP’s inputs, plans and initiatives for Bellville will
increase rentals and property values quite remarkably
over time.
• A growth in commuter numbers should motivate private
developers and local businesses to invest in the new
developments around public transport facilities to
harness commuters’ buying power.
A large influx of investors into the Voortrekker
Corridor have begun to unlock land value off the back of
rental demand, says Labuschagne, which, according to
him, makes the Voortrekker Road Corridor an attractive
investment opportunity.
Labuschagne does, however, caution that above
average growth rates in property prices within the
corridor have started to threaten sustainable regeneration.
“It has become more important than ever to make well-
judged acquisitions and optimise use. Overpaying for
development sites can jeopardise required returns and
price rental outside the established demand range,” he
emphasises.
www.reimag.co.za
LABUSCHAGNE’S INVESTMENT
INSIGHTS INTO THE CORRIDOR
• Property configurations that are still popular in
the area are one and two bedroom units, with
one bedroom loft apartments becoming ever
more popular.
• An emphasis on quality and well thought
through design is a growing requirement for
success.
• Property yields vary between 13% and 20%
in this market. While this is very good,
Labuschagne forsees that this will decline over
the medium term.
A growing requirement for realising broad socio-
economic advances in the corridor is increased dialogue
between developers and council, maintains Labuschagne.
“It is critical that ways and means are found to speed
up the regulatory and municipal procedures governing
the fundamental development and improvement of the
corridor. This will benefit both the demand and supply
side of the property market,” he emphasis.
“Spatial and income
inequality continues to
define the city landscape,
with poor communities
suffering from inadequate
service delivery in
comparison to their more
affluent counterparts.”
Herman Mashaba
Over to the City of Johannesburg
Councillor Herman Mashaba, the Executive Mayor
of the City of Johannesburg (CoJ), is a man with a
plan ‒ the Integrated Development Plan (IDP), to
be exact. According to Mashaba, The City’s five-year
development framework intends to address the current
social and economic challenges the City now faces
due to the previous administration’s “gross neglect”
of CoJ’s economic growth and development. It also
aims to redress the inequalities in spatial planning
that still exist in Johannesburg due to the apartheid
era’s prescriptive and repressive land use regulations.
The challenges listed in the Johannesburg IDP, as
identified by relevant stakeholders, forums and the
Mayoral Committee, include:
JUNE 2017 SA Real Estate Investor
17