‘Maboneng is Joburg’s new investment gem’
Chic neighbourhood comes with stylish city tax breaks
● Over the past decade, an area once rife with crime and urban decay has been transformed into an up-and-coming chic suburb. Not since the gold rush of 1886 has Johannesburg offered such investment potential.
Jaco du Toit of Park Village Auctions says now is the time for property investors to add Maboneng, “central Johannesburg’s the new investment gem”, to their portfolios.
“The symbiotic relationship between local government and investors in the Maboneng area started in 2003 when the City of Johannesburg introduced the Urban Development Zone tax incentive to eligible investors. The incentives reportedly reduce taxability by 20% depreciation of inner city property development costs annually for five years, well above a typical depreciation of 5%,” said Du Toit.
“Investors wanting rapid growth of their portfolios are coming in on the ground floor and buying up property in this area at a rapid rate. With over R2bn being funnelled into the Maboneng precinct by investors ranging from property investment companies to financial institutions, this is an area to watch closely over the coming years.”
Du Toit says that Park Village Auctions [PVA] “will be adding our name to companies involved in the renewal of Maboneng with the multiple properties to auction in April”.
“The precinct draws the inner-city public as well as the chic, art-going crowd of the city’s suburbs. PVA’s auction portfolio will allow potential investors to get a foot in the door of this new property hot spot and allow them to benefit in the huge growth potential offered by Maboneng.”
PVA will bring a long list of mixed-use properties to market on Monday April 15 from 12pm.
The auction will take place at The Venue, 17 High Street, Melrose Arch, Johannesburg. Viewing ahead of the sale is by appointment only, which can be arranged by calling Du Toit on 082-798-9476.