There was a time when investors had interest in buying property in the inner city of Johannesburg.
Tenants turned buyers are aged between 25 and 35 years and mostly work in the financial sector, entering a new chapter of their lives and loving the new city vibe.
Since early 2000, the Johannesburg CBD has undergone major changes through various regeneration projects to revamp its face.
These projects have either been completed or are underway in the CBD, Braamfontein, Newtown and Empire Road area in Parktown.
JHI Properties leasing and sales broker Sipho Shabangu says the regeneration projects in the CBD have increased investor appetite in the inner city.
“Investor confidence levels have gone up with both young and old investors buying in the inner city,” says Shabangu.
Shabangu explains that within Johannesburg’s inner city, the mixed-use Braamfontein district has shown a huge demand for both office and residential accommodation.
People are feeling much safer to live and work in the area. Key contributors to this being the CCTV cameras which have been installed, coupled with visible policing to help combat crime, he says.
The residential property market in the inner city is reported to be buoyant with an influx of tenants becoming buyers thanks to its reasonable prices.
Richard Rubin, chief executive officer of Aengus Property Holdings known for developing up-market student accommodation in Braamfontein and the inner city says loft-style apartments provide the right mix of sophistication and affordability for first time buyers.
“It is no longer investors buying in these areas, tenants are now becoming owners,” says Rubin.
He says the entry level price for these properties is between the late R200 000s to R300 000 in the CBD and Braamfontein’s fashion district.
“The area is experiencing a new buzz with restaurants, art galleries and shops attracting young and trendy people.”
He says the apartments are created in the same vein as the popular New York style loft apartments. These range from old fire stations to sad looking office blocks boasting shiny wooden floors and modern kitchens which are increasingly becoming sought-after by younger professionals.
Tenants turned buyers are aged between 25 and 35 years and mostly work in the financial sector, entering a new chapter of their lives and loving the new city vibe.
“We are seeing an exciting surge in interest in inner city residential units. Many of them are current tenants looking to buy their first homes.”
Those in commercial property also report a renewed interest in the inner city office buildings and new developments coming up.
A new mixed-use development, Stimela Square situated at the corner of Sauer and Hall Streets is set to get investors fighting for this piece of gold in the inner city.
This project creates a city in one block comprising offices, retails and a hotel consolidated development, says Shabangu.
Offices in this development are expected to be priced at R120 rental per square metre, he says.
“Police visibility and continued city regeneration projects drive property buying and investments in the inner city,” says Shabangu.
Ndibu Motaung, a researcher at Jones Lang LaSalle South Africa says a development of this nature will boost business and attracts investors as it is located in a commercially active area where the likes of Johannesburg Stock Exchange listed companies such as Standard Bank and BHP Billiton do business from.
She says the improved transport nodes will further attract investors and its mixed-use element offers a work, play and live concept which is currently lacking in the inner city.
“Many developments in the inner city lack sufficient parking and we hope this one will cater for such features which bode well for commercial property business,” says Motaung
She adds that while the proposed rental per square may be steep when compared to other premium grade office rentals in outer parts of the inner city, its mixed-use element will be the draw card. - Denise Mhlanga
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