Upturn in demand for residential property developments
An artist’s impression of Amalfi, Cape Town
As South Africa’s economy continues on its path to recovery, the residential developments market is experiencing increasing interest and activity - with developers and investors re-emerging, reports Pam Golding Properties.
Comments Dr Andrew Golding, CE of the Pam Golding Property group: “With general market sentiment reflecting increased confidence, consumer appetite for residential property developments is on a positive upward trend, particularly in regard to projects in prime locations and which show tangible proof of the viability of the development.
“The ongoing desirability and popularity of residential property developments even through the recessionary period - whether these are lifestyle estates in idyllic or exotic settings or cosmopolitan residential developments offering the appeal of convenient lock-up-and-go living - underlines the sound investment potential of such properties,” says Dr Golding.
Dr Golding says investors today are astute as well as discerning, and thoroughly research the market before making a purchase decision, a factor particularly applicable to homes in residential developments. “Their decision not only takes into account the prime location and lifestyle benefits of the development, but also the credentials and reputation of the developer and their vision in creating a quality, finished product. As a result investment ‘value’ plays an important role in buyers’ purchase decisions as they seek a quality home that will be on a par with or even exceed normal market growth.”
He says where buyers are looking to purchase a property within a residential development as a primary residence these generally tend to be located mainly in or close to larger metropolitan areas. These include secure and modern apartment buildings with quality finishes and the latest hi-tech connectivity and security features, and situated in prime residential areas or in vibrant growth nodes. Alternatively, they may be located in secure, lifestyle or golf estates on the periphery or within approximately an hour’s drive from metropolitan areas – often selected by those desiring a complete lifestyle change. Others seek a weekend getaway or leisure property as a second home, or even for future retirement, and these may be located in a countrified environment or a sought after holiday destination.
Adds Dr Golding: “In the residential developments market we’ve seen a wide variety of lifestyle estates become available to buyers. While golf estates remain popular among both golfers and non-golfers, purchasers can also choose from polo or equestrian estates, olive or wine estates, wildlife or eco-estates. These offer a host of leisure activities including golf, angling, equestrian, water and other sports, hiking and nature trails, wildlife viewing, or even the opportunity to have your own wine bottled for you from the estate.”
He says with many investors wishing to diversify their investment portfolios, residential developments abroad have high appeal, such as those in the Indian Ocean Islands of Eden Island in Seychelles and various developments in Mauritius, which offer an exceptional, tropical paradise location and lifestyle. “Despite the global downturn, Eden Island sales have remained steady and recently the demand for larger villas has increased appreciably. The fact that this development is already well established undoubtedly impacts favourably on purchase decisions. And in UK’s prime central London market, perennially popular among investors around the globe, South Africans are purchasing apartments at Baltimore Wharf, situated in the trendy Docklands precinct, where units are selling from £245 000,” adds Dr Golding.
Given the growing interest in residential developments, Pam Golding Properties (PGP) are showcasing a selection of projects hand-picked for their prime location, high standard of quality and potential for sound return on investment. On view at the PGP group’s Property Exhibition from 9am till 6pm daily from 8-11 June (2011) at Sandton City, these properties offer purchasers a broad range of homes to suit all requirements, whether for primary residence, leisure use, pure investment, or with a view to future retirement in idyllic surrounds.
These include: Eden Island in Seychelles; Element Bay Resort in Mauritius; Amalfi in Mouille Point and Wexford Place in Vredehoek – both in Cape Town; Protea Hotel Franschhoek and Harbour Road, Kleinmond – both in the Western Cape’s Boland region; and Kings Row in Dunkeld West and Ten on Grosvenor in Bryanston – both in Gauteng.
