Sunday Times

‘Maboneng is Joburg’s new investment gem’

Chic neighbourh­ood comes with stylish city tax breaks

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● 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.

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