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HOMEFRONTBDlive.co.za | @BDliveSABusin ess Day FRIDAY, OCTOBER 23 2015

FROM BACKPACKERS TO POSHTEL

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ARE HOLIDAY HOMES A GOOD INVESTMENT?

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PROPERTY INVESTMENT IN ICELAND

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DURBAN’S FILM CITY GETS GREEN LIGHT

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CONTINUED ON PAGE 6

Why mixed-use developments have it all The live, work, play concept truly comes alive in mixed-use property developments when they are underpinned by solid investment value WORDS: DAVID A STEYNBERG :: PHOTOS: SUPPLIED

LIFESTYLE Friday October 9 2015

Once in Cape Town in numbers

50 — number of en-suite rooms

34 — private double/twin en-suite rooms

25m2 — size of

private/dorm rooms, including bathrooms

R180 to R250 — per person rate for a dorm bed, including breakfast

R750 to R980 — per double or twin private room rate, including breakfast

140 — occupied beds at full capacity

23% — profit margin end July 2014 to end July 2015

“A flashpacker averages six pairs of shoes, including heels. They’re carrying multiple devices and a good camera. Their first question is: what are the Wi-Fi codes?”

Property shift: backpacker to poshtelKim Whitaker recently won the 2015 Emerging Entrepreneur of the Year category in the Sanlam/Business Partners Entrepreneur of the Year Competition, for transforming the Cape Town accommodation she helped establish. She shares some business secrets

LIFESTYLE

only four. They have custom-made, full-sized extra-length bunk beds. A compartment above each bed contains a reading lamp and storage/charging/lock-up space for all your devices – every plug has a European adaptor.

The City of Cape Town has a minimum space regulation of 4m2 per person; ours is 6m2. The standard international ratio of staff to guests in a hostel is one to eight. Our ration is one to five, because we value the human interaction.

THE BEST PART OF WINNING THE SANLAM/BUSINESS PARTNERS AWARD? The money! I won the 2015 Emerging Entrepreneur

of the Year category and received R50,000.

We’re using that money to upgrade our bathrooms, which is an ongoing project. It’s a new business but an old building, so it requires a lot of capital investment.

The competition is in its 27th year, and the idea is to recognise and uplift South African entrepreneurs.

HOW DID YOUR BUSINESS IMPROVE? We renovated in eight weeks, and managed to increase annual occupancy rates from 32% to 80% in the space of 12 months (between January and December 2014). Our prices change like an airline — according to

WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

YOU ARE THE CO-FOUNDER OF ONCE IN CAPE TOWN. WHAT IS THAT? If I tell the average person what I do, they think of a mom-and-pop operation that turns spare bedrooms into a backpacker. Our concept was to take an existing 50-roomed hotel/lodge in the centre of Cape Town and to turn it into a poshtel. A poshtel is a backpackers’ lodge combined with a posh hotel — or a posh hostel.

HOW DID YOU MODIFY YOUR KLOOF STREET PROPERTY? In 2013 we bought this old lodge and renovated it. We basically gutted it and started again. The structure of the building was phenomenal, but it was hidden behind a 70s facade with a low ceiling and bulkheads everywhere. We worked

with Tsai Design Studio: the brief was to turn it into a youth hub, open the space and improve the flow. We focused on a human-centric design.

In the old lodge, the reception desk was hidden around the corner and the receptionist was seated below counter level. In our new entrance, you look someone in the eye as you enter the poshtel, which is central to a great hospitality experience.

Another thing we did was take up the parking lot and make an urban firepit.

WHAT CHANGES WERE INTRODUCED? The first thing we did was to add power plugs everywhere. Wherever you sit in the poshtel you will have a plug within arm’s reach. Our dorm rooms are all en suite and sleep

DESIGN

Busin ess DayA PUBLICATIONPUBLISHED BY THE CREATIVE GROUP IN ASSOCIATION WITH TMG Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925021 447 7130

EDITORIAL TEAMEditor: Catherine DavisCreative Director: Mark Peddle

ADVERTISING SALESMichèle Jones michele.jones@thecreativegroup.info 084 246 8105Susan Erwee susan.erwee@thecreativegroup.info 083 556 9848Yvonne Botha yvonne.botha@thecreativegroup.info 082 563 6685

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LIFESTYLE Friday October 9 2015

“This doesn’t mean that wall-to-wall carpeting is the answer, but that natural (and sometimes old-school) materials are back”

“A flashpacker averages six pairs of shoes, including heels. They’re carrying multiple devices and a good camera. Their first question is: what are the Wi-Fi codes?”

of the Year category and received R50,000.

We’re using that money to upgrade our bathrooms, which is an ongoing project. It’s a new business but an old building, so it requires a lot of capital investment.

The competition is in its 27th year, and the idea is to recognise and uplift South African entrepreneurs.

HOW DID YOUR BUSINESS IMPROVE? We renovated in eight weeks, and managed to increase annual occupancy rates from 32% to 80% in the space of 12 months (between January and December 2014). Our prices change like an airline — according to

The minimalist, industrial look in flooring is being softened with more traditional materials that are in turn given a modern, technical treatment

S urfaces such as concrete screed have been the flooring of choice for

some years now. While there’s no denying their practicality and minimalistic appeal, a trend has emerged in interiors to eschew the industrial and focus on soft floor treatments instead.

This doesn’t mean that wall-to-wall carpeting is the answer, but that natural (and sometimes old-school) materials are back.

The swing back to natural, softer flooring ties in with broader social trends towards people wanting to create living spaces that feel more grounded and connected. The sentiment is that the leaning towards minimal spaces has left us with homes that are often aesthetically appealing but alienating and cold.

SOFT UNDER FOOT

WORDS: CHRIS REID :: PHOTOS: AMORIM CORK SOUTH AFRICA AND KASTHALL

availability. It’s called yield management.

When people walk into Once in Cape Town, there is an energy that is tangible. We outsource the bar and food to Daniel Holland of Yourstruly, so that we can focus on the beds and accommodation. But when you walk through the entrance of Yourstruly deli cafe in Kloof Street, you’re walking through the entrance of Once in Cape Town.

In November 2014, we developed a terrace deck one floor up, overlooking Lion’s Head. This is a shared public terrace bar called Upyours for sunset cocktails and a chilled vibe.

We want to open elsewhere in Cape Town and in Joburg, as well as in other African cities.

WHO IS YOUR TYPICAL TRAVELLER? Our number one guest nationality is South African. After that, German, Brit and American.

The average flashpacker is between 18 and 35. Most of ours are 23 years plus. They’re in SA after visiting Australia and perhaps Thailand. Now they feel brave enough to visit South

Africa — safety is still a major concern.

A flashpacker averages six pairs of shoes, including heels. They’re carrying multiple devices and a good camera. Their first question is: what are the Wi-Fi codes?

We also have the young at heart — those who have just retired, typically from the UK or the Netherlands. They rock up with a super-adventurous itinerary. It is quiet in the rooms but the lobby is buzzing love it. www.onceincapetown.co.za

As a response, we’ve seen designers increasingly using materials such as wood, cork and leather in product design for a few seasons.

Now, however, this is going beyond individual decor pieces to become part of the space itself, bringing a new element of tactility into homes. Importantly for designers, these materials offer functional benefits such as sound insulation and warmth as well, making the spaces both appealing and liveable.

The biggest obstacle

designers have to overcome with these flooring choices is their association with retro interiors. So, at construction stage, we’re seeing a more technical, experimental take on old-school options, particularly cork and carpeting, with 3D texturing adding depth and graphic appeal to surfaces. This updated view on the materials gives them a contemporary twist and broadens their appeal for a new generation of homeowners.www.amorimcork.co.za; www.kasthall.com

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as corporate head offices. “Parts of Johannesburg are regenerating into mixed use, although the offices, shops and apartments are in close proximity rather than in one development,” says Vining, pointing to Rosebank and the Maboneng precinct as examples.

Moving south, Amdec Property Development’s newly launched The Yacht Club in Cape Town is another high-rise, apartment-style, mixed-use development that will build on the incredible success of the existing V&A Waterfront. As a standard, the V&A development has no comparison – Ian Slot, Seeff Atlantic Seaboard and City Bowl MD, ranks it the most successful mixed-use development in the country. It inspired a second prime waterfront development, The Yacht Club, in the foreshore area. Says Slot, “This 515-residential-unit development alone has yielded almost R2,25bn in real estate sales in just more than five years (since 2009), with about 194 properties trading hands at an average rate of approximately R11,5m per unit.”

Demand is a funny thing. It can be caused by hype by those in the industry, but at an R11,5m per unit average, the class of buyer able to afford this life is not easily swayed by hype. Investment value is key, and says Slot, the V&A is on par with and sometimes exceeds apartment values in Clifton.

“Along with Clifton, the V&A Marina — specifically the apartments on the front yacht basin (FYB) — now command the highest rates per square metre in the country: R102,169/m2 on average, compared with Clifton’s R114,621/m2,” says Slot, noting that Melrose Arch is likely to follow suit, as is The Yacht Club on the Foreshore.

The mixed-use concept has been around for the greater part of a decade

in South Africa. The aim is to incorporate business, retail and residential opportunities into a single, stand-alone development.

Some, admittedly, have worked better than others — Amdec Group’s Melrose Arch in Illovo has done an exceptional job in the Highveld region: the development offers 200,000m2 of mixed-use space. And another 160,000m2 of their planned 360,000m2 footprint is coming on stream soon.

Melrose Arch is serviced by the Gautrain bus, accessible to OR Tambo International and Lanseria airports, and close to the M1 arterial, which feeds directly into Sandton or the

Joburg CBD. As a further catalyst to its development, it is surrounded by the affluent northern suburbs of Rosebank, Houghton and Illovo, which supply a cosmopolitan mix of high-end consumers.

Mixed-use developments that boast apartment-style and freestanding living widen the net for those who prefer either of these options: Steyn City Parkland Residence in Fourways has proved the popularity of this kind of investment.

But what exactly drives the demand of high-rise living in the mixed-use concept?

Charles Vining, Seeff MD for Sandton, believes mixed-use developments work well in a desirable location at the upper end of the market, where there is high demand for residential, retail and office space.

“There must be a business centre very near to the development to be successful, or the demand will decrease significantly,” he says. “The apartments should be luxurious and offer concierge services, and the shops and offices should attract affluent clientele. Security should be carefully balanced with convenience.”

UPPER END DEMANDMelrose Arch successfully achieved this: square metre costs average at about R40,000; the apartments are all luxurious and the development is home to a host of boutique and high-end fashion outlets, as well

“Parts of Johannesburg are regenerating into mixed use, although the offices, shops and apartments are in close proximity, rather than in one development”Charles Vining, Seeff MD for Sandton

Mixed use is no mixed bag

WORDS: DAVID A STEYNBERG :: PHOTOS: SUPPLIED

CONTINUED FROM PAGE 1

“The live, work and play concept is unfolding at a rapid rate in Umhlanga,” says Carol Reynolds, Pam Golding Properties’ area principal for Durban Coastal. “We recently sold the Beacon Rock development in the village, which comprises a retail component on the ground floor, offices on the first floor and residential apartments above the commercial section.

The development has been well received because of its access to restaurants and offices. And in this particular case, its proximity to the beach and Umhlanga village.

“In the Gateway node, we sold out at The Zen — another mixed-use development with retail and offices on the

ground floor and residential apartments above. The residential units sold out first and the commercial and retail units followed suit.

“The burgeoning Gateway area is a prime example of mixed use, and it has been well received by a new era of buyers looking for convenience and an urban lifestyle.

The new Sibaya node will also have a mixed-use development plan.

The more traditional buyers, seeking quieter areas, do not subscribe to this concept, and there has been some resistance to the accelerated urbanisation of the Umhlanga precinct. Mostly though, the sentiment is very positive.”

KZN mixed-use trends

Search over 362 property developments across South Africa.

A home for everyonewww.privateproperty.co.za

NOTRANSFER

DUTY

Along with Clifton, the V&A Marina – specifically the apartments on the front yacht basin – now command the highest rates per square metre in the country: R102,169/m2 on average, compared with Clifton’s R114,621/m2 average”Jan Slot, Seeff Atlantic Seaboard and City Bowl MD

Mixed-use figures at the top end

R40,000 — estimated average cost per m2 at Melrose Arch

R102,169 — average cost per m2 for V&A Waterfront Marina front yacht basin apartment

R114,621 — average cost per m2 for Clifton apartment

R11,5m — estimated average sale per unit at The Yacht Club

V&A RETURNS OR CLIFTON?“Based on this year’s sales, return-on-investment for Clifton is now sitting at around R114,621/m2. Yet the FYB is selling for R102,169/m2 on average, 56% up on last year’s rate, more than double that of 2012 and 644% up since 2000.” Slot says when comparing the return on investment between the two areas, the Waterfront

reflects a better investment if using 2000 as the baseline.

“For example, if you had bought a seaside apartment in Clifton in 2000, you would have paid around R20,010/m2 on average. If you sold it in 2010 for R65,732/m2, you would have achieved a nominal return on investment of 228% for the 10-year holding period. If, on the other hand you had invested in a unit on the FYB, you would have paid R13,724/m2 in 2000 and sold it in 2010 for R66,816 at a nominal return on investment of 387% over the same period. Based on a 300m2 example, this would mean realising a profit of just more than R15m.”

Those with the equity in place have been quick to jump on opportunities as they came to market. Basil Moraitis, Pam Golding Properties City Bowl and Atlantic Seaboard area manager, says the demand for apartments in The Yacht Club has been overwhelming. “We anticipated a period of about three months for the sell-out of phase one. However the units were snapped up in a matter of days, necessitating the fast-track release of phase two,” he says, noting that it was launched to the Johannesburg market on 6 October and more than

60% sold on the night. “The demand is driven by the lack of stock in the market and the value proposition of this

development when compared with pricing of units elsewhere in the Waterfront area.”

AMDEC ADVERTORIAL October 23 2015

The social and financial benefits of new urbanism

WORDS AND IMAGES: SUPPLIED

With only 189 residential units at Melrose Arch today, residential apartments are limited, and rental demand is high

“Towns and cities were created to ease the exchange

of information, friendship, material goods, culture and knowledge, or, put simply, to meet human needs,” says Guy Gordon, Amdec Group Joint MD.

Amdec Group is recognised as one of SA’s leading developer of new urban lifestyles. With 26 years of experience in the property industry, Amdec is behind visionary projects such as the Melrose Arch mixed-use precinct in Johannesburg, the newly-launched The Yacht Club development on Cape Town’s waterfront and Evergreen Lifestyle retirement villages.

Gordon explains that with the advent of cheap fossil fuel, instead of bringing people together, our more modern suburbs weren’t built around an accessible core of shops, services and public space. This has resulted in urban sprawl, which pushes out the urban edge and often leaves decaying central business districts in their wake.

Modern suburban living breaks down communication. Life is dissonant with the demands of work and home life, and the frustrations that long commutes cause.

MELROSE ARCHAll this is changing with a worldwide move towards a new urbanism; SA’s quintessential new urban city is the pristine Melrose Arch.

“All your needs are within walking distance on streets designed to put pedestrians first,” says Gordon. This is one of the factors driving demand for residential property at Melrose Arch.

“Synonymous with safety and security, amenity and convenience, Melrose Arch is an immaculate city with unlimited choice for your everyday needs, supported by beautiful green spaces.”

Melrose Arch is privately owned, maintained and operated, with its own infrastructure, including fibre optic technology and alternative energy. It connects easily with its surrounds, with excellent public and private transport links.

This makes an apartment at Melrose Arch a very attractive investment proposition, whether buying to live in or to let.

Owning an apartment at Melrose Arch is a sure growth story. Buyers who purchased apartments in Melrose Arch’s first residential schemes in 2005-06, paid between R16,000 and R19,000/m2.

Today, residential space at Melrose Arch commands between R45,000 and R55,000/m2. Owners have almost tripled their asset value in less than 10 years, and Gordon believes that values are likely to double again within the next five to eight years.

With only 189 residential units at Melrose Arch today, residential apartments are limited, and rental demand is high.

A furnished two-bedroom apartment at Melrose Arch achieves rentals from R35,000 and R45,000 per month, depending on size; a one-bedroom between R25,000 and R30,000, attracting quality tenants.

“Many Melrose Arch residents are international executives, and companies want their senior representatives comfortably housed in top quality, secure accommodation.”

Gordon adds that levies at Melrose Arch are relatively cheaper, thanks to its excellent economies of scale and wide pool of users, while the high standards maintained underpin and protect the value and life span of its properties.

“This kind of capital growth, and the levels and growth of apartment rentals, are unlikely to be found in any suburban residential estate,” he says.

“The social and financial success of new urbanism has been proved, not only in SA at Melrose Arch, but globally too.”

Urban spaces that mix and integrate urban living are based on centuries-old community designs

JB’s corner, High Street, Melrose Arch

One on Whiteley, interior living space

AMDEC ADVERTORIAL October 23 2015

Amdec is behind visionary projects such as the Melrose Arch mixed-use precinct in Johannesburg, the newly-launched The Yacht Club development at Cape Town’s waterfront and the Evergreen Lifestyle retirement villages

GET IN TOUCHMelrose Arch, One on Whiteley and The Yacht Club are marketed through Pam Golding Properties. Contact Guy Gordon on 011 684 0000 or guyg@amdec.co.za, and Nicholas Stopforth on 021 702 3200/2 or nicholass@amdec.co.za

ONE ON WHITELEYThe good news is that more people will now be able to participate in the benefits of owning an apartment asset at Melrose Arch. A rare release of more luxury residential accommodation is coming to market with Melrose Arch’s latest phase, One on Whiteley, which begins construction this month.

The recently announced Johannesburg Marriott Hotel Melrose Arch and Marriott Executive Apartments Johannesburg Melrose Arch form part of One on Whiteley, a 45,000m2 mixed-use development that will also include a health club and luxury motor retail.

One on Whiteley will add 234 exclusive apartments, priced from R2,059m for a one-bedroom home of 43m2 to R6,048m for a two-bedroom executive flat of 136m2. The homes will be ready for occupation by July 2017.

Amdec is introducing the success of its exceptional new urban developments to other strategic points across SA.

THE YACHT CLUBWhen the first phase of 60 residential apartments at The Yacht Club development sold out only days after it was launched last month, Amdec responded to the demand and launched the second phase of The Yacht Club.

The Yacht Club is a unique R1,2bn mixed-use landmark at the magnificent gateway to Cape Town’s waterfront. This prestigious development will comprise residential, hotel and office space, making it an ideal mixed-use facility.

Nicholas Stopforth, Amdec Property Development joint MD, comments: “We are delighted with the market’s overwhelmingly positive response to The Yacht Club. We knew we had a great product that would be extremely popular, but the tremendous response it has received is even better than we originally anticipated. In fact, due to high demand, Phase 3 of the Yacht Club will be launched next month.”

Set for completion by mid-2017, The Yacht Club’s nautically inspired design will reflect the heritage of its unique setting. It is strategically positioned adjacent to the V&A Waterfront, a stone’s throw from the Cape Town International Convention Centre (CTICC) and on the doorstep of the city’s historic Foreshore.

The Yacht Club comprises two towers of urban hotel and apartment living, set on a podium of modern, flexible office space. It also benefits from being located in a secure, vibrant and connected precinct.

The second phase of The Yacht Club includes a range of 50 beautiful apartments, with

one-bedroom, two-bedroom and luxury corner apartments that will take full advantage of the building’s spectacular views. Apartments will range from 54m2 to 99m2, and offer exclusive urban apartment living.

The Yacht Club is within the Roggebaai Canal Tourism Precinct and links it to an outstanding variety of world-class tourist, business, retail and recreation facilities. The R180m Cape Town cruise-liner terminal is approved directly north of The Yacht Club, to be completed in 2017.

Says Stopforth: “The Yacht Club will offer investors a secure, quality lifestyle in an energised precinct on a working harbour, with all the buzz of city living in a location steeped in history.”

The Yacht Club extends Amdec’s growing legacy of developing quality mixed-use new urban experiences, which benefit all participants socially and financially.

Gordon and Stopforth say: “At Amdec we believe there is a better way of living, working, relaxing and interacting. Our buildings and public places foster enjoyment, connectivity and a sense of well-being, and offer energy efficiency, sustainability and convenience.”

One on Whiteley, on the corner of Whiteley and Atholl

Oaklands roads

The Yacht Club aerial view The Yacht Club at night

The Yacht Club, interior living space

FOCUS ON SITARI COUNTRY ESTATE October 23 2015

Discover the Cape’s best-kept secretImagine living in an estate that seamlessly combines the lifestyle of yesteryear with the luxurious conveniences of modern-day livingWORDS AND IMAGES: SUPPLIED

R795,000) and turn-key village homes (from R2,395,000).

Most recently, Little Blossom, with 55 apartments, sold out in 14 days, and the 92 freestanding country plots that were released in phase one sold out within nine months. Sitari has now reached a confirmed sales status of 95 of the 140 plots in phase two — almost 75% — sold. This is truly impressive and bears testament to the lifestyle, convenience and high level of security Sitari offers potential buyers.

There are many reasons why buying at Sitari Country Estate makes sense, including its perfect location. Somerset West forms part of the Cape Winelands and residents can enjoy Sundays on nearby wine farms, as well as visit local markets and events happening in and around Somerset West. Stellenbosch, with all the historic town has to offer, is only 20km away.

With so much on offer in Sitari Country Estate and Somerset West, potential buyers are in for a truly encompassing lifestyle in the Cape.

FOCUS ON SITARI COUNTRY ESTATE October 23 2015

JOIN US ON EXPOPretoria, Woodlands Boulevard Mall November 3-9

Johannesburg, Sandton City Mall November 10-16

Sitari Country Estate, situated in Somerset West in the Western

Cape, offers olive groves, orchards, water features and landscaped gardens that are subtly intertwined with an unparalleled security system, a sophisticated clubhouse and local amenities that are second to none.

Sitari’s security system features a main gatehouse complex at the entrance to the estate that is 1,849m² in extent. It houses the security control room, as well as sales, letting and homeowner management offices and office space, which will also be available for purchase.

On-site security will be manned predominantly through the main gatehouse, as all visitors will be required to enter through either the main or secondary gatehouse, both of which will have biometric readers, number plate recognition and 24/7 staffed access control.

Boundary walls on the outside of the estate will feature underdig protection, serrated strips, anti-cutting and anti-climbing, with electrics on top as well as Future Fibre Technology with

heat-sensitive triggers. These, when triggered, will activate cameras and this will link back to the main control room. Security roaming vehicles will then be dispatched to the place of disturbance for inspection and action, where necessary. Each junction inside the estate will also have four-way cameras for the control room to be able to always keep an eye on the inside of the estate.

Sitari’s clubhouse is also an impressive feature, as it will truly be a place for residents to relax and enjoy life. The Country Clubhouse will feature a café and deli offering lovely food and drinks, breakaway meeting rooms for residents opting to work from home, a delightful children’s play area, a 23.5m resort-like pool for adults, along with a splash pool for children and a function area for any occasion.

The Country Clubhouse will sit on a central formal “park spine”, which will extend all the way from the R102 and will feature smaller park areas, orchards, seasonal vegetable gardens, herb gardens, pergolas and a windmill.

All of these will culminate in the natural lifestyle of

indulging in everyday delights while enjoying Mother Nature’s beauty.

A FIRST-RATE EDUCATION An important consideration for any potential resident is that of their children’s education, whether primary or high school. One of SA’s premium schools, Curro School, will be situated within Sitari Estate and is set to open its doors to its first intake of pupils in January 2016. Curro Castle, for ages three months to five years, and Curro School, for primary and high school, will both be accessible for parents to provide a first-rate education for their children. The close proximity and high level of education makes sending your child to Curro Sitari an easy choice.

The Curro Group has built a range of branches and strives to create the sustainability needed to ensure an ongoing level of excellent education for the children of SA.

PROPERTY OPTIONSSitari Country Estate offers buyers three types of property options: country plots (from R740,000), luxury apartments (from

GET IN TOUCHFor information on Sitari Property Sales contact Martin van Rooyen on 083 452 6909 and visit www.sitari.co.za

The Sitari Country Estate main gatehouse

The showhouse and garden

The Estate pool with relaxation pods

INVESTIGATION Friday October 23 2015

“As is the trend inland, security complexes and estates are the most popular property types as they afford the owner the peace of mind that comes with a lock-up-and-go lifestyle”Ling Dobson, area principal for Pam Golding Properties, Knysna and Plettenberg Bay

When is a holiday home a good investment?There are mixed opinions on the viability of investing in the local holiday home market, but finding the right homes in the right areas can secure a solid nest egg for retirement

Why would anyone restrict themselves to the same

holiday destination every year when the world is open for exploration? More importantly, why have the stress of looking after a second property?

Ling Dobson, area principal for Pam Golding Properties in Knysna and Plettenberg Bay, believes that second-home owners are not merely planning a lifetime of holidays, but making smart investments. “Holiday homes in secure estates offer an asset yield over the years while the property is used for holidays, and often the holiday house becomes the owner’s future retirement destination,” she says. “Holiday towns ‘grow’ and accommodation becomes a premium – so it also becomes a rental opportunity.”

Richard Arderne, area principal for Pam Golding

Properties in St Francis Bay, is of the opinion that status and convenience are some of the top reasons affluent individuals enter the holiday home market. At the same time, though, property in the right area has the potential to earn significant rentals over peak seasons, with some monthly rentals exceeding R250,000 for the period that includes Christmas and New Year’s celebrations.

WHERE TO BUYLew Geffen, chairman of Lew Geffen Sotheby’s International Realty, reiterates the investment potential of a holiday home, stating that if the right location is chosen, the property could prove a wonderful nest egg for retirement. According to Geffen, popular locations are the North Coast of KwaZulu-Natal and the coastal and Winelands

WORDS: DAVID A STEYNBERG :: PHOTOS: SUPPLIED

INVESTIGATION Friday October 23 2015

Last month news broke of what is certainly the ugliest corporate

scandal of the year. Vehicle manufacturer Volkswagen admitted that it had been cheating on US emissions tests for its diesel vehicles for more than six years.

The fallout was as swift as it was brutal. Volkswagen’s share price dropped nearly 30% in a week, the CEO resigned, angry customers and investors began filing dozens of lawsuits against the company, and authorities announced investigations all over the world.

Volkswagen says it will recall and refit up to 11-million cars affected by the emissions-test scandal.

Given the huge number of vehicles involved, Volkswagen faces a potential fine of $18bn (about R250bn) from the US Environmental Protection Agency alone. Bloomberg estimates that the total cost of settling class action lawsuits and paying other fines around the world could take the company’s total liability to more than $20bn. That is double its total net profit for 2014.

Given the potential scale of the impact, one can’t help asking what Volkswagen gained from doing something so unethical and potentially criminal. This is particularly vexing, because it isn’t even the first car manufacturer to be caught out. A number of other companies, including General Motors, Ford, Caterpillar and Volvo Trucks, have all been found guilty of cheating in their emissions tests, although on a much smaller scale.

It is a rather depressing list of corporates that believed that whatever short-term profit benefit they were getting was worth the long-term risk to their credibility. They also showed that they were prepared to disregard the needs of their customers to serve their own interests.

It may be asking too much, but the enormity of what Volkswagen faces will hopefully lead to some introspection in the boardrooms of other industries around the globe. The world is changing, and businesses can no longer ask to be judged only on how much money they are able to make.

New technologies and services that put the customer first and ensure sustainability are changing the way in which business is done, so companies that sacrifice the environment and their own customers’ wellbeing for the sake of profit are going to be pushed aside. Analysts are already talking about the likelihood of Volkswagen’s blunder speeding up the take-up of electric vehicles from competitors such as Tesla Motors.

If that happens, it is market share that Volkswagen will never regain. And there is a lesson in that not only for Volkswagen, but for many other businesses too.

Analyse it

A $20bn lesson

WORDS: PATRICK CAIRNS

“The world is changing, and businesses can no longer ask to be judged only on how much money they are able to make”

Seeff Properties chairperson Samuel Seeff on factors to consider before entering the holiday home market:■ Do your homework — buy well within your means and spread your assets. For example, do not tie up all your assets in property — if you need to sell quickly, during an economic downturn, there might not be demand.■ Budget carefully, know the costs involved and do not bet on holiday rentals. Tourism is susceptible to economic volatility — domestic and international. When the global economic crisis hit, UK and northern European tourist numbers dropped drastically and holiday houses were standing empty for about two years.■ Understand that bricks and mortar is an asset that requires hands-on management or the services of a credible estate agent, and security.■ While property is an investment, it is not delivering stellar returns right now. Values have increased but holiday areas are especially susceptible to economic volatility. When the 2007-08 economic crisis hit, many holiday and second-home owners desperately tried to offload their properties and soon the market was flooded. Combined with almost no demand, this led to a tough downturn for the property market. Most areas have still not recovered to pre-2007-08 sales levels.

Holiday home 101

regions of the Western Cape, with smaller coastal towns such as Plettenberg Bay and Wilderness also faring well. However, if buying a second property purely for investment returns, Geffen is of the opinion that smaller coastal towns closer to Cape Town would be a better bet.

Samuel Seeff, chairman of Seeff Properties, disagrees, stating that holiday homes are almost never a good investment. “As a secondary market, holiday areas always tend to be hardest hit, especially the more outlying areas,” he says. “So a top-end leisure sector such as the Atlantic Seaboard would be less affected than, for example, the West Coast areas such as Langebaan, or the Eastern Cape holiday areas such as Jeffreys Bay.”

If buying purely for investment purposes, Seeff recommends saving for a property in an area that will always be in high demand, such as Clifton on the Atlantic Seaboard. But he does admit that there is potential and possibilities for those wanting to enjoy the investment in their favourite South African spot, while earning returns on an investment that is generally less volatile than the stock market.

HOLIDAY HOME SPECSWhen buying a holiday home there are many things to look out for.

Geffen says the property will not start paying for itself for a number of years, especially if it is located in the so-called high-end luxury regions. Affordability should be the prime consideration before entering the market. Closely related to the ability of the buyer to cover the payments associated with owning a second home are costs such as maintenance, rates and taxes, and levies if applicable — all considerations that Seeff says are neglected, more often than not.

The owner would most likely have to appoint a managing agent, says Dobson, pointing out that this leaves the owner free to enjoy a relaxing, maintenance-free holiday. As is the trend inland, security complexes and estates are the most popular property types as they afford the owner the peace of mind that comes with a lock-up-and-go lifestyle.

Geffen says location remains the most important factor to consider before deciding on a specific region. He says factors outside of the owner’s control, such as service delivery that is lacking,

could drastically influence the attractiveness of an area and thus the return on investment of properties located within that area. “One region that has taken a knock is the Eastern Cape, largely because infrastructure maintenance is so poor,” says Geffen.

Another often-overlooked consideration is the costs involved in earning rental from the holiday property. Experts agree that it would be wisest to list the property with a reputable rental agent to manage short-term rentals on behalf of the owner. Furthermore, even if the property is in a holiday area and is sought-after by international tourists, certain amenities will be required, or the property could be overlooked and a neighbouring home chosen.

Geffen says in addition to the bond repayments, the owner would have to fund requirements that include uncluttered, modern décor, uncapped Wi-Fi, satellite television and cleaning services. All factors that will drive up the costs of running a holiday home and increase the length of time before a return is realised, regardless of the beauty of the location.

FOCUS ON ZENDAI October 23 2015

Johannesburg’s hidden gem

The Centenary, Zendai Development SA’s flagship

residential development in Modderfontein New City, lends itself to the exclusive life of attainable opulence in every possible way. It is time to uncover this hidden gem and explore the elements that create the ultimate lifestyle.

Inspired by the very nature it is nestled within, The Centenary is your opportunity to live in one of the country’s acclaimed historic neighbourhoods surrounded by iconic landmarks and heritage buildings.

A luxury residential development of character and contemporary apartments, The Centenary is designed to exacting standards; no detail has been overlooked in ensuring it reflects your lifestyle. Classic finishes and modern fittings create a living environment that offers the perfect balance of space and privacy. Apartment features include imported Miele gas oven, hob and extractor, luxury sanitary ware, energy efficient down lighters and heat-pump geysers, a selection of designer kitchens

to choose from, acoustic windows (to block noise), high-speed fibre optic and Wi-Fi points, basement parking, and back-up generators. On site you will find a clubhouse, pool, kids’ play parks and an outdoor gym.

Since launching last month, the development has received an overwhelming public response, with 50% of the units already sold.

Johannesburg’s new enviable address is an invitation to secure a superior lifestyle and enjoy the benefits of an investment complete with all the extras. The sophisticated apartments speak volumes of the stylish, contemporary lifestyle it seeks to provide.

An oasis in the heart of the bustling metro, the prime positioning of The Centenary brings you the best of both worlds. The planned Modderfontein Gautrain Station and OR Tambo International Airport are only minutes away, for convenient and efficient day-to-day travel.

You can also take a break away from the city life and return home to tranquil environs that lie

WORDS AND IMAGES: SUPPLIED

Invest in a life of opulence with The Centenary luxury residence

FOCUS ON ZENDAI

Johannesburg’s hidden gem

The Centenary is designed to exacting standards; no detail has been overlooked in ensuring it reflects your lifestyle

GET IN TOUCHFor more information, call 061 408 3298, email info@thecentenary.joburg, or visitwww.thecentenary.joburg

just beyond your doorstep — Modderfontein Reserve, complete with wildlife, walking and cycling trails, fishing dams, lush flora as well as the Val Bonne Country Estate.

Investments need protection so it is only natural for The Centenary to boast a range of optimum security features. The state-of-the-art, six-layered security system includes 24/7 biometric access control, CCTV and basement parking with elevator access to each floor, offering complete peace of mind.

The Centenary and surrounds offers a myriad diverse recreation for all. Only a short distance away, an abundance of fine culinary restaurants and outdoor activities are easily accessible, these include a golf course and sports complex with facilities for soccer, tennis, squash and bowls.

The Centenary’s location

will appeal to people looking for cosmopolitan living that is close to a range of schools. Current developments in the area include the expansion of existing schools, construction of a private hospital as well as additional access roads and infrastructure. Future development plans incorporate the expansion of the education precinct which will accommodate all levels of schooling (from pre-primary to tertiary).

Luxury one-bedroom apartments sell from R1.25m, two-bedroom apartments sell from R2.1m and three-bedroom apartments from R2.7m (prices include VAT).

listing the status of various Johannesburg suburbs.

Says Iovino: “Residents’ associations are in a race to get as many people in their suburb to show support for the project, to make it financially viable for us. We try to rally about 30% of the community and get them to commit to fibre optic on a nonbinding basis. When we reach that critical number we start rolling it out.”

Their fastest roll-out was 10 to 12 weeks in Greenside.

Parkhurst (Vumatel’s first ‘fibrehood’, installed in February 2015), Parktown North and Greenside (completed in July 2015) are already connected. Saxonwold, Parkwood, Riviera and Killarney FTTH network installations will be complete by early next month. FTTH in Victory Park, Linden, Bryanston South and Blairgowrie, Hurlingham and Emmerentia is under construction. The residents’

associations of Glenadrienne, Hyde Park, Northcliff, Sharonlea and Olivedale have signed up for roll-out in 2016.

According to Akamai’s quarterly State of the Internet report measuring global connectivity and trends, in Q1 2015 SA recorded an average broadband speed of 3.4Mbps – the only country in the Europe, Middle East and Africa (EMEA) region that failed to meet the broadband threshold of 4Mbps. In SA the average peak connection speed was measured at 16.8Mbps – the worst in the EMEA region.

Says Iovino: “We are completely changing that by boosting every home we roll out to 1Gbps, which is 250 times faster than SA’s average broadband speed. We’re providing fibre connectivity at ADSL prices so it’s not unaffordable, and our system is open access so you can use your existing internet service provider.”

TECHNOLOGY/LIFESTYLE Friday October 23 2015

“We try to rally about 30% of the community and get them to commit to fibre optic on a nonbinding basis. When we reach that critical number we start rolling it out”Giorgio Iovino, Vumatel sales and marketing director

WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED

Ask any agent showing properties to students, young professionals or

families with school children — homes offering high-speed internet connectivity are a significantly easier sell.

Good news for Gauteng residents: a new company called Vumatel has targeted Joburg’s residential suburbs and is bringing fibre optic infrastructure to homes, one neighbourhood at a time.

Once Fibre to the Home (FTTH) installation costs are covered, fibre optic delivers practically unlimited speed, capacity and quality in broadband connectivity, at a similar cost to slower competitor services such as ADSL.

Fibre partnering in Joburg neighbourhood

Says Giorgio Iovino, Vumatel sales and marketing director: “It’s becoming more and more of a trend now. In Absa’s homeowners report released in early August we saw that the whole green initiative and moving into a home with good connectivity is starting to become an important pre-buying factor.”

Charles Vining, Seeff Sandton managing director, says FTTH for an entire suburb enables viewing of movies, TV series and online gaming, aside from speedy internet access. “Homes can have their sound, electric or heating systems and security systems functioning via mobile device apps. Security cameras in some streets in Parkhurst allow for live streaming to the homeowners, which is a remarkable added level of security.”

Vumatel’s fibre optic roll-out started in Parkhurst in July 2014, after the community collectively requested proposals for high-speed internet for their homes.

Vumatel targets residents’ associations to mobilise support. Once they have community buy-in, it typically takes three months for fibre optic installation in a suburb. Vumatel’s website has a portal-type system

As a residential property owner or landlord, unlimited Wi-Fi is a must, so Vumatel’s fibre optic roll-out is good news

Most popular devices for browsing property

49% desktop

40% mobile

11% tablet

Most popular mobile devices

16% iPhone

12% iPad 18% Samsung devices

Source: www.privateproperty.co.za

More and more people are going online as their first port of call for property browsing. Here’s a look at how property sites have evolved SIMON BRAY, CEO,

PRIVATE PROPERTY

“Change will continue. The nature of websites is that they have to constantly evolve as technology does”

As recently as a few years ago, property portals were

online listing sites that supplemented print property listings and provided extra information that couldn’t fit

into the printed ad. But while they still fulfil this service, there have been a number of rapid changes that have seen portals such as Private Property evolve into more than just a listings site.

online — and a dramatic shift to mobile, with 50% of users now accessing property sites through their mobile phones or tablets.

The portal has evolved to meet these needs and also to offer more information about buying, selling and renting property and home ownership in general. This has been taken a step further on Private Property with the introduction of its neighbourhoods pages, which offer in-depth lifestyle and property information about areas across SA.

NECESSARY CHANGESA vital part of catering to this demand is the integration of a responsive website that seamlessly adjusts the site to show the best possible version for that device — mobile or not — to cater for mobile users.

Features unique to mobile devices, such as touchscreen and swiping functionalities, are built in. Information-rich features such as geolocation search (which enables a user to press one button on their browser and find properties in the vicinity) are inherent. An app supplements the website by allowing house hunters to search via text, suburb or location-based navigation options.

BENEFITS FOR AGENTS AND CONSUMERSThese changes don’t only benefit those who use the

property portals to search, but also the estate agents who list on them.

The sites have the technology to show off their property listings in the best possible way, and the website traffic to put that listing in front of a large audience, generating leads for the agent. Agents can then use their knowledge and expertise to help the client buy, sell or rent their property. The number of people searching for property online and via mobile devices has increased dramatically in the last two to three years, but will it plateau?

Not in the opinion of Simon Bray, CEO of Private Property. Says Bray: “Change will continue. The nature of websites is that they have to constantly evolve as technology does.”

The changing face of property portals

WORDS: BRIDGET MCNULTY :: PHOTOS: ISTOCK, SUPPLIED

This is partly because of the significant increase in potential buyers using the internet to browse for property — a recent study showed that more than 80% of property searches start

HOMEFRONT

associations of Glenadrienne, Hyde Park, Northcliff, Sharonlea and Olivedale have signed up for roll-out in 2016.

According to Akamai’s quarterly State of the Internet report measuring global connectivity and trends, in Q1 2015 SA recorded an average broadband speed of 3.4Mbps – the only country in the Europe, Middle East and Africa (EMEA) region that failed to meet the broadband threshold of 4Mbps. In SA the average peak connection speed was measured at 16.8Mbps – the worst in the EMEA region.

Says Iovino: “We are completely changing that by boosting every home we roll out to 1Gbps, which is 250 times faster than SA’s average broadband speed. We’re providing fibre connectivity at ADSL prices so it’s not unaffordable, and our system is open access so you can use your existing internet service provider.”

Most popular devices for browsing property

49% desktop

40% mobile

11% tablet

Most popular mobile devices

16% iPhone

12% iPad 18% Samsung devices

Source: www.privateproperty.co.za

Coastal PropertyHOMEFRONT

Looking for the perfect property? Whether you’re relocating to the coast and buying a new house, or after a lock-up-and-go holiday home, find your ideal investment opportunity here

Hermanus Properties

Tel 028 313 0914 ○ 153 Main Road, Hermanus 7200 ○ www.hpsrealty.co.za

The most beautiful secure rural setting with real country sized plots just a short distance to the village and seafront. Lovely walks along a pretty river, picturesque commonage areas, amazing bird life and fauna, equestrian facilities and the most verdant setting created by hundreds of mature trees make for a superb sylvan setting. Enjoy the magic of open thatch.

2 Magnificently appointed lounges, gourmet farmhouse kitchen, 3 en-suite bedrooms plus 2 en-suite bedroom cottage. 6 garages, magical garden plus water features. Unrivalled country lifestyle.

EXCLUSIVE AGENTSContact John Leppan, 082 801 5252, web ref GF-06

GLENFRUIN MEADOWS ○ EXCLUSIVE PRIVATE ESTATE R7,6 MILLION

Generous family home situated on double plot. Large open plan living with fire place and dining area leading to a big entertainer’s verandah with built in braai on sea side. Sun splashed study with cosy leisure corner leading to treed back garden with a cute garden cottage. Functional kitchen in imbuia hardwood exuding warmth. Easy care garden allows for plenty of time to enjoy the nearby beaches. Truly a prize property.

4 Bedrooms / 4 Bathrooms / 3 Reception Areas /2 Garages with direct access

SOLE AGENTContact Corne Lotter, 082 781 1989, web ref VK-184

VOELKLIP ○ ELEVATED SEAVIEW POSITION NEAR BEACHES R5,25 MILLION

A short stroll to village shops, cliff paths, marine pool and restaurants. This charming home offers 4 large double bedrooms (all en-suite), a fifth bedroom which could serve as a kid’s bunkroom, study or staff room. A culinary inspired kitchen and hip and trendy interiors throughout complete the picture. This home is set in a magnificently lush tranquil garden with calming water features and a swimming pool located right next to the conversation corner and braai area. Special attention to details has been given to create an environment both sophisticated and entertainment friendly with all the essential mod cons.

SOLE AGENTContact Kate Woodhatch, 082 440 0104, Web Ref EC-83

EASTCLIFF ○ HEART OF THE VILLAGE ○ MASTERPIECE HOMESTEAD R7,5 MILLION

3 21½

R 1 569 900TOWNHOUSES FROM

High quality features in the Kitchen includes:

Other:

• Soft close cupboards• Granite countertops throughout• Modern contemporary styled kitchen design

• Mirrored sliding door built-in-cupboards in bedrooms • Pet friendly • Guest bathroom on ground floor

These 65 double story townhouses offer exceptional value and all homes come standard with high quality finishes and a fully covered patio with built-in braai, and double garage.

BORTOLI VILLAS OFFERS YOU THE LUXURY LIFESTYLE WITH HIGH QUALITY FEATURES

Own the home Live the dream| Another development proudly by

0 2 1 8 0 1 5 4 0 0 0 8 2 5 1 1 1 1 1 5

SOUTH AFRICAN PLANNING INSTITUTION

sales@mspd.co.za

3 21½

R 1 569 900TOWNHOUSES FROM

High quality features in the Kitchen includes:

Other:

• Soft close cupboards• Granite countertops throughout• Modern contemporary styled kitchen design

• Mirrored sliding door built-in-cupboards in bedrooms • Pet friendly • Guest bathroom on ground floor

These 65 double story townhouses offer exceptional value and all homes come standard with high quality finishes and a fully covered patio with built-in braai, and double garage.

BORTOLI VILLAS OFFERS YOU THE LUXURY LIFESTYLE WITH HIGH QUALITY FEATURES

Own the home Live the dream| Another development proudly by

0 2 1 8 0 1 5 4 0 0 0 8 2 5 1 1 1 1 1 5

SOUTH AFRICAN PLANNING INSTITUTION

sales@mspd.co.za

shaunkramerprop

watch us on

ProPerties for sale, rent and Holiday Homes for you along tHe atlantic seaboard, caPe town. we act as buyers and sellers agents to ensure your transactions run smootHly witH no surPrises or Hidden costs.

Contact us now! contact@lolakramer.com

or visit our offices

Lola Kramer Shaun Kramer

ATLANTIC SEABOARD | LLANDUDNO | HOUT BAY

[LOVE WHERE YOU LIVE]

WWW.LOLAKRAMER.COM

SALES | RENTALS | VILLAS

RARE CAPE TOWN GEM SITUATED IN PRISTINE SECURITY ESTATE!WEB: 3561546 Bedrooms 6.5 Bathrooms 3 Garages

One of a kind property safely located in Welgedacht top security estate, nestled between prestigious Durbanvillewinelands and the Tygerberg nature reserve. Beautiful fixtures and stunning views!

Megan Schultz 072 181 1627 megan.schultz@seeff.com / Fanie Marais 079 149 9065 fanie.marais@seeff.com

WELGEDACHT R10 995 000

FABULOUS ESTATE LIVING!WEB: 3648984 Bedrooms 4.5 Bathrooms 4 Garages

This family home offers 4 spacious en suite bedrooms, 5 luxurious open-plan living areas, 4 convenient direct accessgarages, fireplaces and a jacuzzi and loads more.

Fanie Marais 079 149 9065 fanie.marais@seeff.com

WELGEDACHT R6 500 000

ELEGANT ESTATE LIVING!WEB: 3650015 Bedrooms 4 Bathrooms 2 Garages

This elegant, spacious home with travetine floors and plush carpets, 2 living areas with fireplaces (downstairs andupstairs). Open plan dining room, kitchen and scullery. Flatlet + S/Q. Plenty more.

Tandice Gorton 083 459 1231 tandice.gorton@seeff.com

KANONBERG R6 500 000

STUNNING 2 BED APARTMENT WITH VIEWS!WEB: 3645952 Bedrooms 2 Bathrooms 1 Parking

2 Bedroom 2 Bathroom apartment in the upmarket Tyger Waterfront. 24 Hour security. Lake Views. Walkingdistance to Tyger Valley and Virgin Active.

Jacques du Preez 082 940 0559

TYGER WATERFRONT R1 450 000

RARE CAPE TOWN GEM SITUATED IN PRISTINE SECURITY ESTATE!WEB: 3561546 Bedrooms 6.5 Bathrooms 3 Garages

One of a kind property safely located in Welgedacht top security estate, nestled between prestigious Durbanvillewinelands and the Tygerberg nature reserve. Beautiful fixtures and stunning views!

Megan Schultz 072 181 1627 megan.schultz@seeff.com / Fanie Marais 079 149 9065 fanie.marais@seeff.com

WELGEDACHT R10 995 000

FABULOUS ESTATE LIVING!WEB: 3648984 Bedrooms 4.5 Bathrooms 4 Garages

This family home offers 4 spacious en suite bedrooms, 5 luxurious open-plan living areas, 4 convenient direct accessgarages, fireplaces and a jacuzzi and loads more.

Fanie Marais 079 149 9065 fanie.marais@seeff.com

WELGEDACHT R6 500 000

ELEGANT ESTATE LIVING!WEB: 3650015 Bedrooms 4 Bathrooms 2 Garages

This elegant, spacious home with travetine floors and plush carpets, 2 living areas with fireplaces (downstairs andupstairs). Open plan dining room, kitchen and scullery. Flatlet + S/Q. Plenty more.

Tandice Gorton 083 459 1231 tandice.gorton@seeff.com

KANONBERG R6 500 000

STUNNING 2 BED APARTMENT WITH VIEWS!WEB: 3645952 Bedrooms 2 Bathrooms 1 Parking

2 Bedroom 2 Bathroom apartment in the upmarket Tyger Waterfront. 24 Hour security. Lake Views. Walkingdistance to Tyger Valley and Virgin Active.

Jacques du Preez 082 940 0559

TYGER WATERFRONT R1 450 000

smart move www.seeff.com

smart move | Buy. Sell. Let. | Close on 200 offices in and around Southern Africaincluding Botswana, Namibia, Swaziland, Zambia, Zimbabwe and Mauritius.

www.seeff.com is South Africa’s preferred home for more than 30 000 properties for sale and to let.08610 SEEFF(73333)

A RARE OPPORTUNITY TO PURCHASE AND DEVELOP THE LAST REMAINING VACANT PIECE OF LAND IN RONDEBOSCH

Over 15 000 m2 of land with breathtaking views of the mountain, ideally suited for a large gated security complex. Purchase the whole site or portion thereof approx 4855 m2. Zoning SR1

CLOSING DATE FOR SEALED TENDERS: No later than noon on Monday 21st January 2016 where they will be opened immediately at the offices of STBB in Claremont

ACCEPTANCE BY THE SELLER: No later than noon on 15 February 2016

For further enquiries or an appointment to view the site please contact [O] 021 683 0731 CHARMAINE SCOTT-WILSON 082 377 4567 or email charmaines@seeff.com

PRIME RONDEBOSCH

LANDMARK

CAPE TOWN

FOR SALE BY TENDER

BANTRY BAY R14 500 000

R6 500 000V&A WATERFRONT

[O] 021 425 5970 KIM BAILEY 083 448 2632FINELLA BOTES 082 600 9530

This stunning open plan and spacious apartment is situatedon the ground floor. Both the living area and bedroom flow

out to a large covered patio which enjoys a garden likesetting that adds to its privacy.

WEB 366010

Bedroom 1 Bathroom 1 Parking 2

LOCK UP & TRAVEL HOME!

PERCHED ON THE ROCKS

[O] 021 434 9175 ADRIAN 082 826 6454 CECILY 072 968 3280

A rare opportunity to own this 178m² apartment in sought-after Bantry Point. With large patios, this direct North-facing

beauty is the pinnacle of luxury. Includes covered parking bayin 24hr security complex, with generator.

WEB 366145

Bedrooms 2 Bathrooms 2 Parking 1

CAMPS BAY R6 750 000

R3 100 000VREDEHOEK

[O] 021 423 9146 BRYAN 083 984 2680BERNICE 083 444 3434

Due North facing, spacious apartment with large picture-sized windows. On a clear day, one can see sea and city

scapes. Beautiful parquet flooring and chandeliers installed in the dining room lounge and bedrooms.

WEB 362798

Bedrooms 3 Bathrooms 2.5 Garage 1

MODERN, CLASSIC & TIMELESS

UNBEATABLE VIEWS!

[O] 021 438 1055 ROCHELLE 072 239 4449 LYN 082 575 1999

Enjoy relaxed living from this immaculateduplex apartment. Ready to move in!

WEB 352589

Bedrooms 3 Bathrooms 2 Garage 1

www.pamgolding.co.za

GRAND STYLE WITH 180° SEA VIEWSThis magnificent palatial home is one-of-a-kind. From the entrance with sweeping double staircase, luxurious open plan living areas onto large decked entertainment areas & infinity pool. Movie room, bar, gourmet kitchen, staff accommodation and a second pool, plus more. WEB REF: 1UG1213099

Ellmarie Spencer 083 256 4381

INSTANTLY APPEALING HOME IN PRIVATE SETTINGThis elegant and well-proportioned home is designed to impress. The gracious reception rooms and high ceilings add light to the desirability of this classic family home. Set in a landscaped garden with privacy, in and around the pool for the ultimate entertaining experience. WEB REF: 1ND1233394

Ellmarie Spencer 083 256 4381, Henriette Holtzhausen 083 777 3354

A CONNOISSEURS CHOICEElegance and gracious living with 2 sumptuous lounges flowing to undercover patio, pool and tennis court. Features include fitted study, central courtyard with water feature, granny flat sea views. Prime address. WEB REF: 1DB1221384

Stella Simes 084 556 5842, Bryan Tuck 083 252 3536

THE ULTIMATE IN STYLISH LIVINGThis ultra chic, fully renovated designer apartment affords the discerning buyer the ultimate in luxury living. State-of-the-art fixtures and fittings. This apartment is situated within a gated estate on the sought-after residential side of Umdloti. Perfectly positioned with spectacular ocean views plus an easy walk to the beach and all amenities make this and ideal location. Sold fully furnished. Live the Umdloti dream. WEB REF: 1ND1238495Mandy Radmore 073 587 3815

IN A CLASS OF ITS OWN!Unrivalled 360degree views from this immaculate and beautifully presented penthouse with good flows. Fully fitted kitchen with state of the art appliances. Large entertainment area suitable for intimate parties with swimming pool. Only Qualified Buyers To Call. WEB REF: 1DB1157342

Shelley Halgreen 082 828 4077

SUPERB SECURITY ESTATE RESIDENCEA magnificent 677sqm home with baronial sized entrance hall, dual sweeping staircase, 4 lavish bedrooms, all en-suite with luxurious finishes. Comfortable reception rooms with fitted bar and stunning Caesar stone open plan kitchen flow to an expansive patio, pool plus level garden. The triple garages have direct access. WEB REF: 1ND123036

Stella Simes 084 556 5842, Bryan Tuck 083 252 3536

UMDLOTI

Durban North / UmhlangaOffice 031 573 6000 / 031 561 5300durbannorth@pamgolding.co.za

UMHLANGA

DURBAN NORTH

UMDLOTI

SOUTH BEACH

DURBAN NORTH

R18 950 000

R9 980 000

R11 900 000

R4 250 000

R7 000 000

R13 450 000

PROPERTY NEWS Friday October 23 2015

Mall of Africa nearing completion

The R3,5bn Mall of Africa in Midrand is on track for completion at

the end of April 2016.Estimated to be the size of

65 rugby fields, it will be the largest retail development to be constructed in a single phase in Africa.

The mall is also the catalyst for the construction of the new Waterfall City CBD, the business heart of the Waterfall Estate in which it is located.

Nedbank Corporate Property Finance is financing the mall development.

Tia Kanakakis, an architect at MDS Architecture, the company responsible for the

Durban’s Film City: it’s a go

mall design, says some of the initial 12 cranes at the development have started to come down in recent months, evidence that the structural components, the roof and facade are well advanced.

“Although there’s still scaffolding visible from the exterior, the interior of the mall is also progressing well, with various finishes and landlord tenant installations being completed.

The leasable area will be 131,000m², with 261 tenants setting up shop in this new luxury development.

Design started in 2012 and the inspiration for the mall

It has been 10 long years while Anant Singh’s Videovision Entertainment

subsidiary, Rinaldo Investments, has been fighting the good fight — and it has won.

Durban’s Film City will soon colour the landscape. And contrary to its “film studio” tag, it is more about city and citizens than studio.

This R7bn-plus project of international calibre promises to be a broader, more interactive community-centric development, the must-see, must-do of Durban.

The government has given the South African film industry “strategic industry” status, so its role in the country’s economy is

significant. Movie maker and shaker Singh is a Durbanite who believes in the city’s potential: “We’ve been behind in getting any meaningful slice of the R10bn-a-year movie pie — barely 3%, if we’re lucky. With these world-class studios and services, given what we have in Durban, I believe we’ll shift some of that pie here.”

The architect’s drawings reveal a vast multipurpose theme park not unlike Hollywood’s Universal Studios CityWalk, but with a strong local community interface. The Natal Command building is classified as a heritage building and so it will remain, but now it will house contemporary lifestyle coffee shops and the like. Flanking it

will be a luxury hotel — a Taj Group hotel is one contender — and serviced apartments. Behind these will be a series of interleading precincts with specific functions: retail, commercial, public spaces and the studios themselves.

There will even be a Walk of Fame, a street where visiting stars and celebrities will be commemorated with a star on the pavement and encouraged to leave behind their footprints and handprints as a tourist attraction. Here South African stars will be celebrated alongside international celebrities. And at the heart of the development, the massive film studios.

and courts was drawn from the natural and geological beauty of the African continent,” says Kanakakis.

Major tenants include retailers Edgars, Woolworths, Truworths, Checkers and Game, and Ster-Kinekor.

Kanakakis says the mall will have high shopfronts, wide passages and an abundance of natural light. Some of the unique elements include parts of the mall opening up to the outdoors. This includes the north piazza of the mall tying into the commercial zone of the Waterfall CBD, and the south side of the mall opening up

A good time for suburban homeowners to subdivide

If you own a large property in a desirable older suburb, now would be a

good time to subdivide and sell part of it, says Richard Gray, CEO of Harcourts Real Estate.

Factors in favour of such sales, he notes, are the renewed popularity of established suburbs that offer a wide range of amenities in close proximity to one’s home, especially among millennial buyers in their late 20s or early 30s.

“These buyers tend to prefer modern homes, but they are increasingly moving away from gated estates and security complexes on the margins of cities and looking for smaller stands in older, more central

“Subdivision can bring the sellers the additional advantages of increased security, lower maintenance costs and relief from rising property taxes”Richard Gray, CEO of Harcourts Real Estate

GREEN POINT RESIDENTIAL BOOST FROM CHELSEA ON MAIN

Phase two of a R450m luxury apartment development overlooking Green Point’s main road was recently launched. Chelsea on Main is a joint venture between John Rabie’s Signatura private label property brand and Global Asset and Investment Network (GAIN) property developers.

With panoramic north-facing views, the apartment block features 31 units. They each have a private terrace, pergolas and shutters, secure underground parking and direct lift access. Three penthouse suites on the seventh floor have exterior “fins” to diffuse light and provide eco-friendly temperature control. Adding further investment value, an independent five-star Mantis Group hotel called The One on Main is planned alongside the Chelsea development.

Priced from R2,45m, Chelsea on Main offers a combination of one-, two- and three-bedroomed units. Scheduled for occupation in July 2017 on the site of the former “white house”, residents can access Green Point’s cosmopolitan buzz from private apartments fitted with double-glazed windows. A mixed-use retail lifestyle space is planned for the ground floor.

Green Point Main Road was acknowledged as one of the five top residential streets in the world in the Knight Frank Wealth Report 2015. Anton McElhone, sales director of Signatura, says Green Point’s village culture and convenient location adds to the appeal. “There is the national anchor in the V&A Waterfront. And it is literally within walking distance of Cape Town’s CBD, Sea Point’s promenade and Green Point Urban Park. If you were to invest in Green Point property as an asset class, your rental yield is strong and growth is guaranteed.”

Says Signatura’s founder John Rabie: “When phase one was launched in November 2013, more than 90% of the apartments sold in the first week. We are confident of another good take-up as this is a stylish, energy-efficient building with the very best of Cape Town on its doorstep.”

to southern Town Square, a restaurant node with magnificent views.

Gerhard Saayman is an engineer at Aurecon, which is providing design and construction supervision teams for the project. He says the sheer size of the mall, with its building area of 485,000m² makes it a rewarding project to work on.

Saayman says that the mall will house four courts depicting different climate zones on the continent. These include the Oleum court, depicting oil-rich West Africa, the Great Lakes court, depicting East Africa,

AREAS CURRENTLY FAVOURED BY MILLENNIAL BUYERS

Douglasdale, in Johannesburg— stands of between 400m2 and 500m2 are available for between R450,000 and R650,000

The Northcliff area in Johannesburg— R600,000 for 450m2

Muizenberg in Cape Town — R300,000 for 300m2

The Bluff in Durban— from R700,000 for 700m2

suburbs where they can build their own smaller, more energy-efficient homes in manageable gardens, avoid long commutes and enjoy having a variety of shops, good schools and recreation facilities on their doorstep.

“In fact, we would say that the owners of empty or subdivisible stands in the most sought-after areas are in the pound seats right now, as land prices in these areas are already well ahead of where they were five or 10 years ago, demand is high and most local authorities are keen on the densification of older suburbs.

“Of course subdivision can bring the sellers the additional advantages of increased security, lower

the Crystal court, depicting the mineral wealth in SA, and the Sand court, depicting the deserts of North Africa.

“The construction period for this massive development is only 32 months, presenting a challenge for the main contractor, who requires a large amount of design and construction documentation to be produced in a short period of time by design consultants. A unified team with a deep understanding of timelines and construction sequences of retail developments has been needed to fast-track the construction of such a large project,” says Saayman.

maintenance costs and relief from rising property taxes,” he says, “but they do need to think about who will be paying the costs of subdivision and the installation of services on the new stand before they go this route.

“The seller has to go through the process himself, carry these costs upfront and then sell the subdivision at a ‘build-ready’ price. Otherwise, the sale is likely to be made conditional on the buyer obtaining the right to subdivide, and possibly rezone, the property which means it will probably take a long time to complete and could fall through altogether.”

INTERNATIONAL Friday October 23 2015

“Building contractors don’t have the incentive to begin new construction, so there is this lack of supply that has put pressure on property prices”Ásdís Kristjánsdóttir, economics department chairperson of SA-Business Iceland

Icelandic appealIceland’s appeal as a tourist destination — the Northern Lights, hot springs and buzzy Reykjavík — is putting upward pressure on property prices. It is good for investors WORDS: DAVID A STEYNBERG :: PHOTO: ISTOCK

House prices across Europe are on an upward trend, with

the continent boasting three of the five countries with the strongest residential markets in the recent Global Property Guide. According to the publication, out of 101 countries surveyed during the second quarter of 2015, Ireland (+10.81%), Estonia (+8.99%) and Iceland (+6.19%) were pipped only by Asian countries Hong Kong (+16.43%) in first place, and the Philippines (+6.61%) in fourth.

The report says Iceland’s house prices increased by 6.19% year on year in Q2 2015, after annual increases of 6.09% during the same period last year. House prices were almost unchanged in Q2 2015 from the previous quarter.

The country, which is a member of the European Union, buckled under the weight of the 2008 global credit crunch when inflation topped out at 20% a year. Tourism, and its associated employment creation, has

helped the country reel in its double-digit inflation to a more manageable 5% or 6%. As a result, the economy has been on the mend since 2011, when it posted growth, followed by 3.5% growth in 2013. Iceland’s Landsbankinn bank has forecasted that residential prices should increase in the region of 24% over the next three years.

YOUTHFUL, GROWING POPULATIONThe country’s capital, Reykjavík, is seeing a property spurt in the form of Skuggi 3, an apartment development on a prime waterfront site. Prices range from $305,000 for a two-bedroom apartment to $2,9m for a penthouse. The city’s population is growing at about 20% a year. This is according to Ásgeir Jónsson, an associate professor in economics at the University of Iceland, who expects city centre property prices to increase by a similar margin. He notes that the capital is more popular with younger buyers, with 50% of

residents younger than 34 years old.

This is good news for investors. Thanks to EU membership, buying property is straightforward, but rentals and sales are collected in the local currency: the króna sits at about ISK130 to $1. Investors pay 0.8% of the property’s value in buying taxes, but enjoy zero capital gains tax if selling after two years of ownership. A property sold within two years of purchase where the money is not reinvested in Iceland carries a 20% capital gains tax.

INSUFFICIENT STOCKThe tourism market has been both a blessing and a curse for local Icelanders, with service organisation SA-Business Iceland estimating that 4,000 apartments are rented out to tourists. The popularity of websites such as Airbnb, which focus on short-term rentals, have been instrumental in that development. It has placed pressure on the rental market, coupled

The cost of Iceland living

Reykjavík city centre $2,900 price per square metre for apartments

$1,100 one-bedroom apartment rental

$1,600 three-bedroom apartment rental

Outside the CBD $2,100 price per square metre for apartments

$900 one-bedroom apartment rental

$1,300 three-bedroom apartment rental

Source: Numbeo

with a supply shortage.“After the [2008] crash,

we’re in a situation where building costs are higher than property prices,” says Ásdís Kristjánsdóttir, economics department chairperson of SA-Business Iceland. “Building contractors don’t have the incentive to begin new construction, so there is this lack of supply and that has put pressure on property prices.”

In Reykjavík the price per square metre has increased by more than 30% in five years: prices for multi-family homes in the older parts of the city have increased by $785m2; in the city centre property has jumped to more than $950m2 for multi-family homes.

“When comparing figures from 2010 and this year, we see the centrally located neighbourhoods with the largest increase,” says Jón Þór Finnson, an engineer at the National Registry. Property prices within a 2km radius of Lækjartorg in Reykjavík’s centre increased in 2015 by more than 55%.

INTERNATIONAL Friday October 23 2015

London’s dirty property money?Money laundering could be driving London’s high-end property price push

The property cost of corruption £3bn Value of 700 uninhabited London “ghost” mansions owned by foreign investors

£3,908,009 Average price for a Belgravia property in Westminster precinct

29% Average price increase in Westminster since 2012

W hile most South Africans balk at the idea of paying

more than R100 for a cup of coffee in the UK thanks to the poor exchange rate, criminals from around the globe are purportedly laundering billions of pounds via London’s property market.

A March 2015 report released by Transparency International, entitled Corruption on Your Doorstep, notes that more than “£180m worth of property has been brought under criminal investigation as the suspected

proceeds of corruption” since 2004. Tellingly, this is thought to represent only a small proportion of the total proceeds of corruption invested in UK property. United Nations estimates indicate that typical detection rates by law enforcement are only 1% of total money laundering flows.

On the face of things it is fairly easy to use ill-gotten gains to invest in property in the UK. Those who want to hide their identities set up an offshore front company and use it to purchase a property. Offshore corporate secrecy makes it extremely difficult for authorities to investigate money laundering activities. Transparency International says the trend is for foreign companies and trusts that hold titles for UK property that are currently under criminal investigation for grand corruption to be registered in offshore secrecy jurisdictions rather than in major economies. Recent Land Registry data showed that foreign companies own about 40,725 London homes. Of these, companies incorporated

“Although the percentage of properties being purchased via illicit money is tiny in comparison to the legitimate trade, the values are huge”Jon Benton, director of operations, Metropolitan Police’s Proceeds of Corruption Unit

“Prices are being artificially driven up by overseas criminals who want to sequester their assets here in the UK”Donald Toon, director of economic crime at the National Crime Agency

in secrecy jurisdictions own 89%. Transparency International’s report showed that 9.3% of properties in the City of Westminster, 7.3% of properties in Kensington and Chelsea, and 4.5% of property in the City of London borough are owned by companies that are registered in an offshore secrecy jurisdiction.

HIGH-END CRIMINALSOf course not everyone who operates an offshore company does so with the objective of laundering money. It has been estimated that 37% of London residents are foreigners and this segment of the population traditionally invests in mainstream homes, representing a very low risk of money laundering. By all accounts, this is not where

WORDS: LEA JACOBS :: PHOTO: ISTOCK

the authorities are looking for illicitly gained funds.

On the other hand, high-end properties in exclusive neighbourhoods make London the ideal place to invest if you have a couple of hundred million pounds to hide. The property market is stable and, more importantly, incredibly expensive, a plus if you have money to launder via property. “Although the percentage of properties being purchased via illicit money is tiny in comparison to the legitimate trade, the values are huge,” said Jon Benton, director of operations, Metropolitan Police’s Proceeds of Corruption Unit.

One would think that local estate agents would report the fact that some unknown face behind a secret offshore

company is offering to invest millions of pounds in cash for a property. However, estate agents have to conduct money laundering checks only on sellers, while the buyer’s financial ability, regardless of the sum on the table, rarely raises eyebrows.

CLUES TO CORRUPTIONSome transactions don’t seem to make financial sense at all. An article in The Evening Standard last year noted that 700 ‘ghost’ mansions with an estimated value of £3bn were uninhabited. This includes 15 homes with a total value of £350m, located in The Bishops Avenue, which is north London’s “Billionaires Row”. According to the report, some of these homes have been left to rot for decades and are in such a state of disrepair that wildlife experts claim they are an important natural habitat for rare bats and owls and should not be demolished.

Donald Toon, director of economic crime at the National Crime Agency, believes the London property market has been skewed by laundered money. He told The Times: “Prices are being artificially driven up by overseas criminals who want to sequester their assets here in the UK.”

He raises a very good point. Rightmove statistics record that most property sales in Westminster last year involved flats selling for an average of £1,273,993. Terraced home sales averaged £3,127,018 and semi-detached home sales averaged £4,554,953. Belgravia in the Westminster precinct was the most expensive area, where the average property price was £3,908,009.

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WESTERN CAPESOUGHT AFTER AVENUE POSITION IN FRESNAYE

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