03 May 2006

As predicted, Century City is making its positive influence felt on the surrounding Milnerton and Montague Gardens, and formerly undeveloped areas are now prime investments that are growing scarcer, says Jonty de la Porte, head of property brokers DLP.

De la Porte has specialised in the Milnerton area for more than eight years, making early forecasts of the boom that would be created by the development of Century City. 'Early buyers are enjoying phenomenal capital growth, and the increasing investment in the area is entrenching it as a prime development node,' says De La Porte.

The tendency for prestige commercial developments to improve their surroundings has been observed in several areas which include Tygervalley, where there has been continued upgrading of the residential, commercial and natural environment. Elsewhere in the country, notably round Sandton City in Gauteng, and the Gateway and Umhlanga Ridge in KZN the same has occurred.

De la Porte says that investment opportunities still remain in the area, although they are becoming scarcer. 'A very different picture from the one we started with. Whereas some saw their earlier investment as a pioneering move, now it's a case of investing before it's too late.'

According to him, opportunities now lay in periphery investment to accommodate the service industry or B-grade office space users not served by the A-grade developments within Century City, where it is estimated there will be an office bulk around 175 000m2 in 18 months, and 7 000 residents by mid-2007.

De la Porte said it was a good idea to buy now, as there was virtually no land left for new developments. This would lead to demand outstripping supply and an increase in value and rentals which are already rising.

'As transport becomes more problematic, people increasingly look for work opportunities closer to their homes, and with the growing residential population at Century City, there will be individuals looking for working accommodation nearby or business opportunities to serve this community. So, with younger and more economically active people in the area, the chance for restaurants and other entertainment is better.