There are currently three residential developments in the Randburg/Ferndale area, all of which are sectional title units. "Randburg has always been one of the best investment areas in South Africa. This can be attributed to the properties getting a good rental return, whereas at the coast, properties experience more of a capital appreciation and less rental return," says Linda Erasmus, CEO of Fine & Country South Africa.
Erasmus says Randburg is centrally positioned and accessible to major routes such as Jan Smuts Avenue, Hendrik Verwoerd, Republic Avenue and Bond Avenue. Jan Smuts is the longest of the mentioned routes connecting Randburg to the Johannesburg CBD.
"In January last year the Oak Ridge development consisting of 108 units was launched and sold out shortly after," says Sean Magee, director of James Laing Real Estate, who is heading up all the developments in Gauteng for Fine & Country.
The Oak Ridge units range in price from R580k to R800k. Many of the units that are on the market have tenants in them, who are signed on for 12 months and are paying high rentals. "Rentals are set to escalate by approximately 10% per annum."
One of the latest residential developments in the area, named Forest Place, consists of four phases, ranging from bachelor flats to two-bedroom and one-bathroom units. The two bedroom units are 78sq m and range in price between R849k and R899k.
The bachelor flats are set among communal gardens with pathways and water features between the buildings, adding a relaxed atmosphere to the surroundings. Moving up along the different phases of the development, some of the units have gardens, while others boast views over treetops.
Kent Close is a development with 42 units consisting of two bedrooms and one bathroom, which range in price from R720k to R850k. Some of the units have gardens while others are middle-floor and loft units.
The year-on-year appreciation anticipated for the area is between 18% and 28% and residential rentals produce yields ranging from 6% to 8% per annum.
"There are still development opportunities in Johannesburg. However, developers need to be choosy about the type of development they bring to the markets," says Erasmus.
Randburg is advancing quickly. In addition to the immense residential developments taking place, the council identified six projects for the revitalisation of Randburg as a whole. These include upgrading the physical infrastructure of the area's CBD, economic development and empowerment, social development, environmental interventions, urban management and marketing.
These significant factors are continuously adding to the value and growth of the area.
"With so many residents, investors, and businesses showing their loyalty to the area, a dynamic period lies ahead for Randburg," concludes Magee.
Image: The Oak Ridge development in Randburg, which was completed in May this year, is made up of one-bedroom, two-bedroom and studio units.
For more information contact 011 462 8959 or send an email.
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