DURBAN's beachfront and esplanade are among areas set for a revival, reflecting a national trend to convert ageing buildings into plush apartments.

Neville Schaefer, CEO of Trafalgar, says that Durban's beachfront and inner city properties have potential for enhancement, but it will require a mindset change among most landlords in the area.

"Many landlords are happy to sit on their properties, collecting average rentals without improving or realising their asset's potential," says Schaefer.

"These landlords need to following the example of their Cape Town and Johannesburg counterparts, who are rejuvenating older buildings and turning them into up-market apartments.

"Loft and similar-type apartments in Cape Town are all presold and we understand that Johannesburg is seeing similar demand as investors snap up buildings in the city."

Durban has the added advantage of sea views from high-rise buildings that can be restored with a bit of imagination and adequate spend, Schaefer says.

He says waterfront developments in Durban will have a dramatic effect on property values. Developers have tendered for all available sites at the Point.

"The decreasing vacancy trends in Johannesburg and Cape Town have not manifested themselves in Durban. There are zero vacancies and a huge shortage of flats in the beachfront and inner-city areas, largely because there has been no significant development for years and demand for accommodation is strong."

While there has been a strong move to the north of Durban, Schaefer foresees interest in the beachfront as "the yuppie, lesssuburban market is attracted by the appeal of the waterfront".

Meanwhile, another Cape Town high-rise office block is set for conversion into apartments.

Following the sell-out of apartments in the former Old Mutual head office in Darling Street, Old Mutual Properties is planning to add nearby Cartwright's Corner, at the junction with Adderley Street, to the inner-city residential market, in a R120m project.

Rowland Chute, director of Old Mutual Properties, says the plan is for Cartwright's Corner to have 108 one and two-bedroom apartments some with studies and eight penthouses spread over its 18 floors of office space.

He says there is big interest in well-priced, inner city apartments with access to parking.

The apartments will be priced from R320000 to R1250000, says Philip Howes, design manager of Old Mutual Properties.

He says Cartwright's Corner will be an "intelligent" building with its own internet backbone.

Nov 12 2003 07:38:46:000AM  Business Day 1st Edition