SA'S inner city rejuvenation gains momemtum

Posted On Thursday, 06 May 2004 02:00 Published by eProp Commercial Property News
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Some of South Africa's major cities are undergoing a quiet revolution as the trend towards inner city rejuvenation begins to gather pace - facilitating a surge of growth and increased confidence and investment.

Andrew GoldingDr Andrew Golding, CE of the Pam Golding Property group, says this is a global trend that is taking place and a natural progression as cities undergo cycles of decline and growth - with varying degrees of success. South Africa's Mother City of Cape Town is already enjoying considerable success, and attracting significant investment from local, national and international investors.

Says Dr Golding: "Organisations such as the Cape Town Partnership, Tourism bodies and the International Marketing Council have built an excellent infrastructure and platform for the city, further building on its many natural attractions such as Table Mountain, its proximity to the sea, historic buildings, vibrant street culture and world renowned wine estates."

Over the past 14 months, and in Cape Town's central city, Pam Golding Properties have sold R225 million in new residential developments or redevelopments resulting from the conversion of former office buildings into quality residential apartments. These include Mutual Heights in Darling Street, Cartwrights Corner and The Adderley Hotel Suites in Adderley Street, and Perspectives in Roeland Street. It excludes any re-sales in the central city or City Bowl areas. Over the next three months, further exciting new developments in the central city are due for exclusive release through PGP.

Laurie Wener, PGP's area manager, comments: "Now inner city living is being perceived as stylish and fashionable, providing instant access to the wide variety of lifestyle attractions available such as award-winning restaurants, clubs, coffee bars, gyms, cultural and historic attractions and even being able to walk to work. We have already been involved in a number of projects in Cape Town which have seen the rejuvenation of former office buildings into luxury apartment complexes, and which are attracting huge interest not only locally but internationally. These developments are aimed at regenerating the city centre and recreating Manhattan or London style living in the central business district, a concept which has caught on rapidly, with luxury apartments being snapped up by eager investors - both for their own private use and for capital return. Many of these conversions include convenient on site facilities such as shops, restaurants, and gyms, among others."

As numerous historical landmarks are being redeveloped into chic and trendy hotels and apartments, the city of Cape Town has undoubtedly entered a new era of cosmopolitan living incorporating both work and play, with a vibrant

24 hour live/work environment starting to take effect. Adds Wener: "With amazing views of mountain and sea, and proximity not only to the workplace but also instant access to a trendy and multi-cultural urban mecca, the city is fast becoming the place to live in Cape Town."

Pam Golding Properties has already sold out all 170 units at the Art Deco classic, former office building, Mutual Heights, where the exceptional marble finishes and visionary development plans saw the entire complex sold out within a few weeks of the launch. Prices of the sophisticated apartments ranged from R350 000 to R6.4 million penthouses.

Similarly at The Adderley, a series of three historical buildings being revamped as a luxury boutique hotel/apartment complex, all 28 units sold rapidly, with fully-furnished units priced from R510 000 to just over R1 million. At Cartwright's Corner, another development which is seeing historical façade preserved while the interiors are modernised to the very highest standards, 90 percent of the total of 160 units are sold. A limited number of investment opportunities remain priced from around R600 000 to

R1.9 million. At Namaqua House, an historic CBD building on well-known Greenmarket Square - famous for its craftwork, art, curios, buskers, restaurants and coffee bars - PGP report swift sales from a range of buyers who have reserved half of the 14 residential units which are to be constructed on the building's fourth to seventh floors. This Art Deco classic, built in 1911, is undergoing and internal transformation while retaining its beautiful façade and historic character. The luxury apartments are priced from R850 000 to R1.6 million.

Durban's beachfront and Esplanade are also among areas set for a revival, reflecting the national trend to convert ageing buildings into plush apartments. The city's beachfront and inner city properties have tremendous potential for enhancement, with the added advantage of sea views from high rise buildings, a fast developing, vibrant Point Waterfront area and other successful established projects such as Wilson's Wharf. Waterfront developments in Durban are already starting to have a positive effect on property values in the Esplanade, beachfront and nearby areas.

In Johannesburg the revitalisation of the inner city is also gaining momentum, with virtually half the homes in the residential component of upmarket Melrose Arch sold even prior to its official launch, and with local and overseas buyers investing about R60 million in 20 of the 46 homes in the first phase of the development, reports exclusive marketers, Pam Golding Properties. Four of the homes sold in the development, which ranges upwards from one bedroom apartments at R2 million, were bought for R5 million apiece.

It's interesting to note that more than 80 percent of the buyers to date are those who plan to live there permanently - a clear signal of the appeal of the cosmopolitan and trendy European-type high street living that Melrose Arch has brought to the market. Other buyers include multinational corporates, who plan to accommodate visiting executives and consultants there, and UK-based regular holiday visitors to South Africa. This extraordinary demand also reflects the continued underlying steadiness and strength of the residential property market. The rejuvenation of the city centre is already boosting the values of residential properties all around its fringes, and further stimulating demand for homes in those areas.

To be listed on the PGP database for pre-launch notification by email or SMS, send your contact details to This email address is being protected from spambots. You need JavaScript enabled to view it. or call Stacey on 021 4232150.

Last modified on Thursday, 22 May 2014 15:12

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