Demand for precinct and lifestyle living sees an increase in new property developments
Economy / 21 November 2019, 9:30pm / Dhivana Rajgopaul
DURBAN - Demand for precinct and lifestyle living is seeing an increase in the number of new commercial and residential property developments in select areas in Tshwane in Gauteng.
"The way people live, work and play has changed – more people are moving into secure spaces for lifestyle purposes, and developers are capitalising on this need for convenience and security," said Ilma Brink, Pam Golding Properties Pretoria regional development sales and commercial property manager.
Property developers remain optimistic about the city’s prospects and continue to identify opportunities for developments, especially in Pretoria East. Brink said that the trend towards “precinct development” has seen five commercial and residential developments come onto the market in Pretoria since 2016.
Within the region, Pretoria East which is conveniently located close to highways and major roads, accounts for the bulk of developments currently underway, or in the planning stages.
Growth in lifestyle apartment living
Brink explains that large residential stands measuring between 1000m2 to 2000m2 in size are being bought up in areas such as Waterkloof, Menlo Park and Menlyn and rezoned for lifestyle apartments of between 10 to 35 units. In the outer areas of Pretoria East, large pockets of land are now being converted into lifestyle estates. In addition, developers are snapping up available land in Irene due to its convenient location next to the R21, and proximity to both the Pretoria CBD and the OR Tambo International Airport. Developments in
"We are seeing a new trend in buying these apartments as secondary residences, and in our experience, successful developments offer a mix of studio, one bedroom, two bedroom units, and especially three bedroom units," said Brink.
Property prices charged
Prices of these lifestyles apartments start from just over R1 million for studio units and up to R20 million for exclusive penthouse apartments at Trilogy Collection, with approximately 6 percent on investment returns.
Properties close to main access routes in areas such as Menlyn, Brooklyn and Waterkloof are perceived to be trendy, and will command high prices. "Demand for residential apartments in more “suburban areas” is lower than in core areas that offer convenience, hence this impacts on the rates charged per square metre," said Brink.
In Menlyn Maine, square metre rates because the developer has provided a range of value-adds. The precinct is not only green but offers amenities including a 4 000m2 park with designer sculptures, water features and recreational facilities, a private rooftop swimming pool and a garden terrace complete with a sunset bar.
Commercial precincts developments
According to Raoul de Villiers, Atterbury development manager, precinct development is currently a preference for buyers and users of space, and developments such as Castle Gate will meet this growing demand for a convenient lifestyle. De Villiers points out that very few precincts are being developed hence they are in demand.
Companies are also changing the way they work, and to meet business objectives, some consolidate their various offices and move to one central location. While some businesses expand and require new bigger office spaces, others are moving into a smaller and more efficient spaces to cut down on costs, according to De Villiers.
Although there are some spec developments in Menlyn Maine, Atterbury’s developments are tenant-driven and built to meet tenants’ needs. He points out in these new developments, tenants are demanding green features, which from an investment perspective makes sense for a building to have a green star rating.
Brink explains that Pam Golding Properties embraces the precinct and mixed-use developments such as Menlyn Maine - the first mixed-use precinct in Pretoria, and Africa’s first green city in the making. There is a residential, retail and office component within this precinct.
New offices located within lifestyle and precinct developments offer the right address for medium to large businesses looking for convenience.
The Trilogy Collection is a R1.15 billion residential development located in Menlyn Maine, Tshwane Municipality’s first mixed-use precinct, and Africa’s first green city in the making.
With a total of 531 apartments when completed, Phase 1, a total of 374 units will transfer to the new owners in November and occupation is expected on 1 December 2019. Phase 2 is scheduled for completion in early 2021 and will comprise of 157 apartments.
There are only a few spacious studio, one bedrooms and two bedroom apartments remaining in Phase 2 with prices ranging from R1.6 million for studio apartments, R2.2 million for one bedroom units and R4.8 million for two bedroom units. There is also the option to combine studio units with two bedroom units if they are looking to purchase three bedroom units off plan as the three bedroom apartments are sold out.
Retha Schutte, Pam Golding Properties, Pretoria regional executive said that Trilogy Collection continues to attract a mix of local and international purchasers and investors, including buyers from other parts of the African continent, young professionals, captains of industry and those who seek a base in Pretoria wanting to be part of this experience.