Areas and Places News

Luxury residential living on the rise in Johannesburg

Rosebank’s R100 million executive apartment hotel ‘The Capital on Bath’ by the Capital Hotel Group, in which Nedbank is involved, will add 52 apartments and 100 hotel rooms to the area

With demand for luxury residential apartments in Johannesburg’s upmarket suburbs of Sandton, Rosebank and Hyde Park on a steady rise alongside new developments and upgrades to existing business and retail properties, the coming months are set to be a busy period for developers, according to Ken Reynolds, Gauteng Regional Executive of Nedbank Property Finance.

In Sandton, where the Office Vacancy Survey Report Q4: 2014 reports that almost half of office development in South Africa is now taking place, new and existing businesses are displaying a long-term commitment to the node. By illustration, both Discovery and Sasol are developing their head offices in Sandton Central, which will add in excess of 150 000 m² of office space to the node.

After a turbulent 2013, the prime office market is starting to turn the corner. Sandton’s retail property sector is showing signs of picking up, with R450 million spent on Sandton City’s new Diamond Walk alone.

“These continuing developments are giving rise to higher demand for high-rise executive living in the vicinity, as employees and executives display an ever-increasing preference to live close to where they work and play,” says Reynolds.

Five years ago, the going rate for upmarket sectional title units in Sandton averaged R25 000/m² to R35 000/m². Now, off-plan sales of luxury apartments regularly fetch rates exceeding R40 000/m² and are moving up fast.

The most exciting of these new residential projects is the R2 billion Leonardo luxury apartments being developed in Sandton. The Legacy Hotels & Resorts Group development, with Nedbank Property Finance also as chief financer, will create a 150m high-rise boasting luxury apartments, penthouse suites and select office space.

“While sufficient transport infrastructure in Sandton to accommodate these property developments begs attention, advancements in public transport such as the Gautrain service and the Rea Vaya bus service, continue to ease the negative impact. Additional living space in the vicinity will, in fact, alleviate traffic as fewer commuters need to use the congested feed-in routes,” says Reynolds.

A similar trend is emerging in Rosebank, which houses the third-largest high-rise business centre after Sandton Central and the inner city. Over the past three years alone, close to R7-billion has been spent on developing new offices and refurbishing legacy commercial buildings in the area.

Notably, Rosebank’s R100 million executive apartment hotel ‘The Capital on Bath’ by the Capital Hotel Group, in which Nedbank is involved, will add 52 apartments and 100 hotel rooms to the area.

Neighbouring suburb, Dunkeld, is seeing similar development, with the ‘One Hyde Park’ in which Nedbank partially funded a R63.2 million apartment complex with Smith & Seeger Investments and Hadar Goren, offering an additional 48 residential sectional title units to be developed over the next 24 months.

“While Cape Town has long held acclaim as the luxurious residential property mecca of South Africa, exciting developments around Johannesburg’s newer upmarket business and residential areas suggest that the city – as the prime GDP generator in the country and on the continent – is adapting with agility to the requisite demand for high-end residential property,” concludes Reynolds.