Weekend Argus (Saturday Edition)
Increasing demand for live-work-play developments
DEVELOPERS and investors looking to launch residential properties in Cape Town this year should carefully evaluate their target areas to ensure they meet demand.
Rabie Property Group’s John Chapman says some of the older, well-located areas are ready for “brownfield” redevelopment opportunities, and there appears to be insufficient student accommodation near colleges.
For developments on the cards for 2019, he predicts there will be a big focus on IT infrastructure, and a move towards smart metering as the cost of utilities increases above inflation rates.
Security embracing new technology is also essential. He foresees new apartments built in good areas this year to become smaller to reduce the capital costs.
Other than going green, Bill Rawson of Rawson Developers says not much has changed in the property development offering so far this year, but he believes the high cost of electricity and water will result in bids to reduce these by installing solar heating and water-recycling devices.
Property developments likely to see good returns currently and in future are those close to work opportunities as they will reduce the cost of transport.
“Those that offer fibre-optic connectivity and a laundry, swimming pool and gym are also popular. The more amenities featured, the higher the demand.”
The demand for mixed-use developments is higher than ever, says Nicholas Stopforth, managing director of Amdec Property Developments.
“We are attracting young professionals into mixed-use precincts who understand the livework-play features. And we have investors who are scaling down and looking for a safe and secure precinct.”
Stopforth says the rising demand for mixeduse developments in new urban precincts can be attributed to various factors:
A solution to high-density living in the city centre.
Safety and security.
The ability to live, work and play in the same precinct.
Sustainable development and the inclusion of water-efficient technologies.
FWJK’s Dave Williams-Jones says features such as on-site creches, gyms, work spaces, storage and pool/entertainment areas are attractive. Areas in Cape Town that have gaps for further residential development include the Atlantic seaboard and locations near the inner-city.
He says: “FWJK likes developing in hot sectors, like the city centre of Cape Town and decentralised areas such as Woodstock, Sandton and Rosebank in Joburg, and Umhlanga in Durban.”
He believes developers need to be working in the affordable housing market this year to assist with the provision of housing “where demand remains the highest of all the housing sectors” in the country.