Cen­tury City prop­er­ties show­ing strong cap­i­tal growth amid de­mand

Weekend Argus (Saturday Edition) - - PROPERTY -

PROP­ER­TIES bought off-plan in new res­i­den­tial de­vel­op­ments in Cen­tury City in re­cent years have shown cap­i­tal ap­pre­ci­a­tion of be­tween 20 and 35 per­cent by the time buy­ers have taken trans­fer 18 months later.

Brian Usher, sales direc­tor of Prop­erty World, the on­site agency for Ra­bie’s res­i­den­tial de­vel­op­ments, says in re­cent years this level of cap­i­tal ap­pre­ci­a­tion has been seen al­most across the board, par­tic­u­larly for those de­vel­op­ments which sold out within days or weeks of be­ing launched.

He says the cap­i­tal ap­pre­ci­a­tion en­joyed by Cen­tury City prop­er­ties is due to de­mand con­tin­u­ing to out­strip sup­ply.

“The de­mand in turn is driven by the high qual­ity of the de­vel­op­ments and the Cen­tury City en­vi­ron­ment of­fer­ing an en­vi­able qual­ity of life with a range of ameni­ties within easy walk­ing dis­tance.”

Usher says that in the Ma­trix, one of Ra­bie’s most re­cent res­i­den­tial de­vel­op­ments where own­ers re­cently took trans­fer, a one-bed­room apart­ment was resold for R2.68 mil­lion, re­flect­ing a cap­i­tal ap­pre­ci­a­tion of 36 per­cent over 16 months. This equated to a sales price of R47 000/m², a record for the Cen­tury City precinct.

Also re­cently com­pleted is May­fair where the first few re­sales have taken place at prices on av­er­age more than 35 per­cent higher than they were orig­i­nally bought for off­plan in 2014. At Ra­bie’s Quay­side devel­op­ment where own­ers took trans­fer in 2014, re­sale prices were re­flect­ing an av­er­age cap­i­tal ap­pre­ci­a­tion of 47 per­cent for one- bed­room units and 36 per­cent and 28 per­cent re­spec­tively for two- and three-bed­room apart­ments.

Sim­i­lar ap­pre­ci­a­tion has been seen at the neigh­bour­ing Quaynorth devel­op­ment, which also came on stream in 2014, with apart­ments achiev- ing around 37 per­cent more than the ini­tial sell­ing prices.

The first res­i­den­tial project un­der­taken by Ra­bie at Cen­tury City was the Is­land Club which came on stream in 2005/ 2006. The av­er­age pur­chase price of a one-bed­room unit then was R546 086 with re­sales now fetch­ing an av­er­age price of R1.550m – a cap­i­tal ap­pre­ci­a­tion of over 180 per­cent over 10 years. Two- and three-bed­room apart­ments in the same devel­op­ment ex­pe­ri­enced sim­i­lar cap­i­tal ap­pre­ci­a­tion, with prices for units in the first phase in­creas­ing the most.

Usher says a new devel­op­ment is on the draw­ing board in the Bridge­ways precinct which is also home to the R1 bil­lion Cen­tury City Square devel­op­ment which con­sists of of­fices, apart­ments, restau­rants, a ho­tel and a 1 200-seat con­fer­ence cen­tre set around a pub­lic square and sit­u­ated over a su­per base­ment park­ing garage.

The re­cently com­pleted Ma­trix mixed-use devel­op­ment at Cen­tury City where an apart­ment has just been resold for R47 000/m².

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