Long term growth an executive hub predicted for Rosebank
There are small pockets of sound residential property investment opportunities available in key Johannesburg areas that are being underpinned by the development of commercial nodes. This is according to Chris Renecle, MD of Renprop, who says that Bryanston and Rosebank fall into these categories.
In fact, Renecle predicts a continued strong demand for residential apartments in the Rosebank precinct for the next five years, despite the depressed economy. He bases his view on the commercial development recently undertaken and currently taking place in the greater Rosebank area.
He says that Rosebank’s commercial zone has expanded by 173 167m2, of which 56 505m2 was completed in the past 12 months and 116 662m2 is currently still under construction. This excludes the Standard Bank building which measures around 67 500m2 and further phases of Galleria which are planned, which would add at least another 40 000m2 to the precinct’s commercial space.
Renecle says this level of commercial development means a continued influx of executives into the area for work in the foreseeable future. Renecle pegs this at around 11 500 more people working in the Rosebank precinct by the end of 2019. “This will continue to spur the demand for upmarket executive accommodation as more and more people rely on public transport such as the Gautrain and therefore want to live closer to their place of work for time saving, economic and environmental reasons,” he says.
In anticipation for the long-term continued demand for executive apartments in Rosebank, Renprop has launched three apartment blocks in the area over the past four years, which will bring over 500 residential units to market by 2018. The first, The Vantage which was undertaken in partnership with Grapnel Property Group, gave investors more than 20% appreciation on average in just over a year which gave a strong indication of the level of pent-up demand that existed in the area as no new residential developments had taken place in the Rosebank CBD area for 50 years prior to its launch.
On the back of the success of The Vantage, and based on the high level of demand for sectional title executive apartments in the area, Renprop launched The Tyrwhitt in 2015, also in partnership with Grapnel Property Group. Construction has commenced on the 12-storey building that has a limited number of one- and two-bedroom units still available for investment. “In fact,” says Renecle, “The Tyrwhitt currently offers the best apartment price per square metre currently in Rosebank, with apartments priced at around R35 000/square metre.”
Renprop launched its third development in Rosebank, The Median, earlier this year. Situated opposite The Zone @ Rosebank, this development offers one-, two- and three-bedroom apartments as well as a selection of penthouses spread over 14 floors.
Apartments at these developments range in size from 48m2 to 280m2.
Speaking about the rental demand in the area, Renecle notes that the demand for both short and long stay leases as well as furnished and unfurnished apartments is currently outstripping supply. “Rosebank residential accommodation offers less expensive rental options than Sandton without comprising on quality,” he says.
Renecle notes that to date, around 95% of Renprop’s apartment sales in Rosebank have been to investors who are looking to capitalise on the promising growth potential and rental returns that Rosebank has to offer. “The fact that the area offers a village-like appeal with tree-lined, pedestrian-friendly streets, roaming 24-hour security and a host of amenities adds to its appeal.”
All three of the Renprop developments are within a couple of hundred metres of the Gautrain station and the Rosebank CBD, while the Sandton CBD is within easy reach via the Gautrain and Johannesburg’s major road networks are also easily accessible.