project will cost R33.5m, or R7 444 per square metre.
This idea sounds good, but will there be sufficient demand for properties of this nature considering the current strain on the residential property market?
Property specialists RE/MAX recently released an interesting report stating that property investors in the retail space should stop focusing on Generation X (31-45-year-olds) and start looking at ways to tap into Generation Y, which are those presently aged between 16 and 30. Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while Generation X buyers account for approximately 18.74m of local consumers, Generation Y account for a much larger demographic of the population, making up around 28.4m people.
According to the First National Bank Property Barometer, first-time buyers were around 23% of the total buying activity in both 2011 and 2012. This has increased from 15% in 2008 and the trend is expected to continue as the economic recovery translates into more jobs.
If you’re an investor who enjoys the property sector, it makes sense to get your head around this concept of repurposing and to start exploring the entrylevel property opportunities aimed at Gen Y.