Luxury Sandton apartment living
Category Property News
One of Africa’s main business hubs, Johannesburg’s suburb of Sandton, is home to an ever-increasing number of international corporate tenants and affluent local buyers, driving demand for exclusive luxury apartments.
Development slowed after the 2010 Soccer World Cup building frenzy, but since 2012, there has been a spike in the number of commercial property developments following an increased demand for centrally-located office space in Sandton, creating an opportunity for developers.
This is according to Clifford Kupritz, Director of Construct Capital, property development and financial managers of the Epic Luxury Apartments in Atholl. Recent reports from within the property industry have shown a significant increase in blue chip companies basing themselves in Sandton due to its close proximity to the Gautrain station, making commuting easier and more cost-effective. “New corporate spaces drive a secondary demand for residential accommodation and rentals, and our clients have taken this opportunity to bring to market residential units ideal for primary home users, as well great investment stock,” he says.
The increase in commercial development in the area is bringing many more corporate users into the area who require accommodation within quick walking or travelling distance to work. “This is the market that we are capitalising on,” says Kupritz. He says this demand will most likely be further exacerbated in the future by the increasing travelling times into the node, which will persuade residents who would otherwise stay outside the Sandton CBD and commute into the suburb daily, to choose to stay within it.
The first two phases of Epic Luxury Apartments sold quickly, with only two unsold units left in phase three. Phase one was completed and occupied on 1 August 2014. Phase two and three are scheduled for completion in December. Development of the next project adjacent to the Epic has just begun, with completion scheduled for July 2015. The development will consist of 48, two bedroom apartments which will not be sold, but rather held for luxury corporate rentals, says Jarod Kolman of Limestone Property, the project’s developer.
“We began the development after identifying a node where higher density would be supported by council. We started buying a number of properties on Patricia Road, and when surrounding properties came onto the market we consistently bought these for re-development and expansion of the project,” says Kolman.
Designed by Messaris Wapenaar Partnership architects, Kolman believes Epic’s 102m² two bedroom apartments, which are selling for R2.35 million inclusive of VAT, offer excellent value for money. He says that friends or business colleagues who share an apartment no longer need to feel like one person has the main bedroom, as each two bedroom, two bathroom unit has a unique layout with both bedrooms being the same size, with full en suite bathrooms. This design is also ideal for corporate tenants, as sharing the apartment for cost cutting reasons is now feasible, he says.
Due to demand, Epic Luxury Apartments, situated at 128 Patrica Road, consisting of 20 of the 2 bedroom units catering to corporate clients, opened on 1 October. The units are serviced daily and are fully equipped with DSTV and 50 GB Wi-Fi. These apartments can be booked from stays as short as two weeks, from R1 150 per night.
Once completed, Epic Luxury Apartments will have a total of 92 units, including four penthouses.
With the continuous development of the Sandton CBD and the new headquarters of some of South Africa’s best known companies, such as Discovery and Edward Nathan Sonnenburg, the demand for quality affordable stock at realistic prices within close proximity of the CBD is growing. There will be approximately 30 000 new commuters over and above the existing 100 000 into Sandton City daily, which will increase the strain on the current infrastructure and further exacerbate the loathsome travel times, and drive demand for residential stock within the node, says Kolman.
“With only about 500 units currently under construction at the moment, there certainly is an undersupply.” Kolman says there will be many new projects launched over the next few months at various price points, and they will continue to bring new developments to the market at affordable prices where the rental yields are still at acceptable levels.
Limestone’s next project in Morningside on Rivonia Road will be launched in October of this year.
Author: Property 24