Rich now buying flats for domestic employees

Posted On Monday, 05 June 2006 02:00 Published by
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JOHANNESBURG's rich - never a group to inconvenience themselves - are starting to buy flats for their domestic workers so that they can live close to work, writes Nick Wilson.

Nick Wilson
 
JOHANNESBURG's rich - never a group to inconvenience themselves - are starting to buy flats for their domestic workers so that they can live close to work, writes Nick Wilson.

This new trend is taking off, and is particularly evident along Louis Botha Avenue, says property economist Francois Viruly.

Under apartheid the houses of most wealthy whites included domestic quarters, but with the new trend of people downsizing, their homes and new developments such as sectional title schemes often do not make provision for such quarters. So domestic workers who still live far from work have been pushed out of the suburbs, and have to spend several hours travelling to work in the morning.

Viruly says SA is increasingly starting to see the "densification" of its cities. "Increasingly, even at the top end of the market, people are willing to move into smaller units in order to get a better balance of the concept of home, work and play.

"The result of this is many of the new developments on the market don't offer accommodation for domestic employees, with the result that this group is being pushed out of the suburbs."

He says a trend is developing along Louis Botha Avenue, Hillbrow and areas on the fringe of the inner city where high net worth individuals are acquiring flats to accommodate domestic employees .

"It also works as an investment for the owner because of the potential for capital growth."

Viruly believes developers will start supplying that component of the market in years to come, providing buyers with the opportunity to buy a cheap unit in the same complex or nearby.

Government's proposal for 20% of new residential developments to be set aside for low-cost housing could make economic sense for investors who can help provide for their workers.

"It may well make economic sense for investors to buy into developments where there is a possibility to acquire affordable units," he says.

Viruly says one of the major benefits of the Gautrain project could be the real-estate opportunities that arise. "I hope town-planning policies will allow us to reap significant benefits. There is enormous opportunity to build high-rise low- to middle-income accommodation in proximity to the Gautrain."


Neville Schaefer, chairman of residential property managers Trafalgar, says the group has had numerous clients wanting to purchase flats for their domestic staff in Johannesburg.

"They are looking at affordable areas such as the fringes of the inner city.
The objective is affordable. It is becoming widespread," says Schaefer.


He says the popular areas are Parktown, the fringes of Hillbrow and Louis Botha Avenue.

"Those are the areas that are still affordable and within commuting distance of places of employment."

Schaefer says this appears to be a Johannesburg trend. "We don't notice that trend at all in Cape Town or Durban."


Publisher: Business Day
Source: Business Day

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