Mixed-use: hottest all-round winner

Safety, convenience is attracting investors

MIXED-USE developments are undoubtedly the hottest property in South Africa at the moment and are believed to be the “way of the future”.

This is not only according to the developers building them, but is also evident from how quickly mixed-use properties are snapped up by investors looking for good returns, even in the economic downturn.

In Cape Town, the property market is a lot stronger than in other parts of the country, so there are many investors and end-user occupiers looking for mixed-use developments.

In the past year, the residential component of The Yacht Club, in the Roggebaai Canal precinct, was launched.

Nicholas Stopforth, head of development at Amdec Property, which developed it, says the apartments were sold in only eight months, indicating the demand for residential properties in mixed-use developments and the returns they offer.

“The prices started at R48 000/m , and are now valued at R75 000/m . Early investors are already making substantial returns.”

The Amdec group’s next big development is the 5.8ha Harbour Arch which was launched to investors earlier this year.

Building is expected to commence in the first quarter of next year.

In addition to commercial space, it will have 434 residences in the first phase.

A total of 150 apartments have already been launched to investors, and the rest will be launched to the public next month, Stopforth says.

The costs per square metre start at R48 000 upwards, and if previous examples of investor returns are anything to go by, “then the early investors can expect good returns”.

“It is hard to estimate, but the past can be a good indicator of the future. We expect there to be a similar performance to that of The Yacht Club, which has now seen growth to R75 000/m .

“The V&A in Cape Town is another example where property prices are soaring, despite the downturn.”

Stopforth says most invest- ors so far are locals from Cape Town, with some also from other parts of South Africa and overseas.

“The attractive aspect of mixed- use developments is that they are created environments where people feel safe and secure, just like in Melrose Arch in Johannesburg. Here, although, it is open to the public, there are limited access points, CCTV cameras, and on-street security.

“Women are even happy to go out for dinner and walk in

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