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High-rise living

High-rises are common features etching the skylines of South Africa’s CBDs, yet they are less common as residential abodes and somewhat more rare in primarily residential areas. 

But a renaissance in urban development, expanding urban zones, and shifting lifestyle requirements in addition to the shrinking availability of land in the country’s hot spots, is currently driving high-rise living, even outside of central business districts (CBDs). 

Aside from the affordability that sectional title apartments generally offer over their freehold counterparts, the popularity of apartment living is also grounded in security offerings and sound resale value. 

Whether high-rise or low-rise, the trend in apartment living is on the rise, evidenced by Absa data showing that of all residential development funded by the bank in the past three years, 63% has been sectional title. 

Umhlanga, KwaZulu-Natal

Once it was the site of a grand old lady, the Umhlanga Rocks Hotel. Now it is home to The Pearls of Umhlanga, a luxury residential and retail development on Umhlanga’s prestigious Lagoon Drive on the KwaZulu-Natal north coast. 

Rising into the sky mere metres from the Indian Ocean, the development’s three towers pierce the skyline on the exclusive strip. 

For developers hoping to capitalise on the strip’s beach location, the lack of available land posed a problem. But in 2004, after having acquired both The Umhlanga Rocks Hotel and neighbour Umhlanga Mews, all-South African developers The Pearls Development (Pty) Ltd set about building The Pearls on the 5ha site, a five-phase lavish residential resort that would take 12 years to complete. 

The R3bn development has been a successful one, the first four phases (Pearl Reef, Pearl Tides, Pearl Breeze and Pearl Dawn) sold out. 

Pearl Sky, the final phase which is still under construction, is already 91% snapped up. In April 2015, hundreds of people camped out overnight at the ICC in Durban to be first in line to secure their spot in the Sky, the first day of launch bagging the developers an astounding R1.2bn worth of sales. 

Ranging in price from R2.16m for a studio apartment to an estimated R54m for the single penthouse still on offer, the 32-storey Pearl Sky tower is due to be completed in December 2017, with keys to the final penthouse to be handed over in March 2018, says director of The Pearls Development (Pty) Ltd, Nico van Rooyen. 

The three towers comprise a total of 686 residential units, Pearl Sky boasting the bulk with 421, only 37 of these still up for grabs. Much of this increased unit component had to do with demand for more studio apartments – a key aspect of the 15 April launch success – and the building was reconfigured to cater for this, Van Rooyen tells finweek.  

The residential skyscraper also features a shopping centre component, Food Lovers Market an anchor tenant. 

According to the developers, the entire mixed-use development employed some 16?000 workers, with 650 local workers currently constructing the third and final tower, Pearl Sky.  

Unsurprisingly, given its popular and exclusive location, 60% of The Pearls’ buyers are out-of-towners from Gauteng, 35% KZN locals, and international buyers making up the balance of 5%. 

Buyers have benefitted from significant capital appreciation, the precinct having escalated in value by some 100% since The Pearls’ launch in 2004.  

Today Pearl Sky is fetching R60 000/m2, up 50% from its R40 000/m2 ticket price at launch 16 months ago, and a rise of around 160% on the 2007 rate of R23 000/m2.

Bedfordview, Gauteng

At 10 storeys, it cannot be termed a skyscraper, but Infinité Bedfordview is the first high-rise development of its kind in Bedfordview.  

The area, famed for its large sprawling freehold homes, doesn’t have many sectional title apartment buildings to speak of. But increasing demand for apartment living is changing that in what many consider to be the premier area in Johannesburg’s east. 

Located across the road from Eastgate shopping centre, the 200-unit contemporary Infinité apartment building will feature 40m2 studio units priced from R890 000 to 144m2 three-bedroom, three-bathroom R4.49m loft penthouses.  

All 100 units released in the first phase in addition to 30 in the second phase have been sold, triggering the 120 unit sale requirement for development that will now commence in February 2017, Dave Coutinho, development manager of the special projects division of Pam Golding Properties Johannesburg East, tells finweek.

The key to the strong uptake, aside from location, is that the pricing is right, says Dr Andrew Golding, CEO of the Pam Golding Property Group. 

Coutinho adds: “Notably, with potential monthly rentals from R7 500 up to R13?000 and even R36?000, we are seeing some investment buyers acquiring four units at a time.” Cash-funded Infinité will be developed by Fatasy Property (developer of the Adriana in Sandton) with a two-year anticipated construction timeline.

This article originally appeared in the 8 September edition of finweek. Buy and download the magazine here. 

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