Rare Springs property under the hammer
WH Properties applies its formula of science and passion to its business, say identical twin brothers Daniel and Joshua Pelkowitz, executives.
They love property, to the extent that they have studied for BSc’s in property science at Wits University. Now they study property market trends, looking for the next “wave”, whatever presents good opportunities from both a seller’s and buyer’s perspective.
And so, when a special piece of property appears, it is “very exciting”, says Daniel.
“In recent times, the Johannesburg and Pretoria CBDs have seen rapid urban regeneration with many listed property funds and private investors getting involved and renovating old buildings to provide trendy apartmentstyle living for locals.
“South Africa has a significant housing shortage and it was only a matter of time until the listed property sector realised this problem and attempted to try and address some of the challenges by providing some relatively affordable accommodation within close proximity to transport nodes and places of work.”
As part of their studies at the time, Daniel, with Joshua and colleague Smiso Ngcobo, undertook a specific “Investigation into Residential Property Investment on the JSE” for their honours discourse. This study, which took place in 2011, investigated whether negative perceptions existed among property funds listed on the JSE towards investment in residential property in South Africa.
Furthermore, the study sought to determine whether increased investment by listed property funds in residential property could help in alleviating the housing crisis in South Africa.
“At the time of the investigation, most listed property funds were averse to residential investment due to the high management intensity associated with running largescale residential buildings and developments,” says Joshua.
However, more recently there has been a move to begin investing in high density residential properties. A case in point, and supporting this was the listing of Indluplace Properties on the JSE in 2015, the first solely focused Residential Real Estate Investment Trust (REIT).
Daniel continues: “We believe this trend of rejuvenating apartment blocks is sustainable. There would be a knock-on effect from the CBD which will spread into neighbouring towns. The current tough economic conditions strengthen the rental market as affordability of home loans reduces. Of course, the betterquality buildings offer greater viability in terms of maintenance costs and allow landlords to maintain affordable rentals.”
Which leads them to the exciting new opportunity. One of the largest and last remaining unrenovated blocks of flats in the Springs CBD will be going under the hammer in the next two weeks.
Greystone Mansions in 1st Avenue, Springs, was built in 1946 and remains a longstanding and sought-after source of accommodation.
Consisting of 50 flats the building is a throwback to the days when properties were built to last.
“With the advent of urban decay having hit many of South Africa’s original CBDs including Springs, it really is a breath of fresh air to find a building such as Greystone Mansions which has not only stood the test of time, but has been immaculately maintained over the years,” says Daniel.
The Springs CBD has yet to see the mass investment into high-density residential property as in Johannesburg and Pretoria and this is where the WH Property team believes is the opportunity.
“This is the chance to invest at the perfect time, ahead of what could be the next residential investment rush,” says Daniel.
Greystone Mansions is 95% occupied and consists of 10 bachelor units, 28 one-bedroom units and 12 two-bedroom units, making this a wonderful investment opportunity. The opportunity to acquire this rare gem comes on June13 2017.
For further information on this property and our other auctions, visit www.whauctions.com or call Daniel on 072 360 7510