First published on www.businesstech.co.za
A number of modern office blocks, hotels and mixed use spaces continue to be developed across the Sandton centre, and infrastructure upgrades are ongoing.
Dr Andrew Golding, chief executive of the Pam Golding Properties group, said that the development of the Sandton city centre, and the fact that ‘Africa’s Wall Street’ remains the place in the country to do business, have assisted to provide strong support to the local economy, as well as the residential property market in the area.
An estimated 10,000 businesses and head offices are to be found in the centre and it is home to the busiest Gautrain station, property expert Andrew Golding noted.
“The impressive Discovery and Old Mutual buildings are under construction, while the commissioning of the 11 storey, R2 billion Sasol headquarters building, with its 5 Star Green Star rating, commenced recently.
“The R1.3 billion Kgoro Gateway Development, consisting of six buildings with commercial, retail and residential components, was mooted during the middle of last year. The area is seeing a great deal of development of such mixed-use precincts, Central Square near the corner of West and Rivonia streets being a further example. These initiatives speak to the considerable confidence that investors of various kinds have in the area,” said Dr Golding.
He pointed out that while there was an easing in the local Sandton residential property market in 2015, particularly at the higher end of the market, residential property within the Sandton city centre itself, as well as surrounding suburbs such as Morningside and Sandhurst, remains at a premium.
Pam Golding Properties regional head of Gauteng Rupert Finnemore said that some owners of luxury apartments and penthouses, valued at R10 million or more, are adopting a more considered approach to the market, but there remains a strong demand for well placed homes offering good value between R1.7 million and R3 million.
“In addition to being the centre of business on the sub-continent, Sandton offers a range of property options and an incomparable Manhattan-style café street lifestyle. A studio apartment in Morningside can be purchased for around R1.2 million, while a top end luxury penthouse offering every modern convenience may fetch R25 million or more.
Finnemore says that a brand new executive studio apartment can be secured at a development such as The Capital on The Park from just R1.899 million.
Within the Sandton city centre itself, the continued demand for accommodation has created a situation where densification is becoming increasingly evident, said Finnemore.
This has resulted in the development of large high-rise executive apartment blocks such as Michelangelo and Sandhurst towers. In some instances, more wealthy individuals own family properties in upmarket Gauteng suburbs or on the Atlantic Seaboard and own a second home within the Sandton city centre, which they use during the week.
“We are seeing a growing demand for apartment properties enabling a highly convenient ‘live, work and play’ lifestyle. Residents want to be able to live free of concerns, and while easily taking advantage of the café street lifestyle and commercial opportunities offered within the greater Sandton area.
“Luxury serviced apartments, offering a wealth of amenities including concierge services, air-conditioning, outstanding security, high quality fittings, fitted kitchens, basement parking, meeting rooms, high speed internet, health spas and gyms, are currently proving particularly popular,” Finnemore said.
The rental market in the Sandton/Morningside area is also buoyant. This is also largely based on the demand to live in close proximity to the Sandton city centre.
“Rentals are not only popular with local executive commuters who chose to live outside of Johannesburg and work here during the week, but also with overseas business people who work in the area and appreciate its centrality. Multinational corporates seeking accommodation for their executives also provide added support to the rental market in Sandton.
“A number of investors purchase apartments to let within the area and achieve solid returns. Levies are generally reasonable, which further adds to their appeal,” said Finnemore.