In recent years the demand for sectional title apartments – both for rent and to purchase – in Rivonia, which is considered to be one of the most affluent residential and suburbs in Johannesburg, has been incredibly strong. This is according to Chris Renecle, MD of Renprop, which has successfully developed a number of sectional title complexes in the precinct over the past couple of years.
Rental demand for residential sectional title property in Rivonia among executives in particular has remained exceptionally strong. Added to this, there is an increased need among corporates in the northern suburbs of Johannesburg, particularly close to Sandton, for rental only apartments that can be let out on corporate lease for their international and travelling executives. This is one of the main reasons why Renprop, in conjunction with ProBuild and Fortress Income Fund, developed a four-storey, 250 room hotel called Amber Elite in the Rivonia precinct.
Well located close to the Sandton CBD and a range of amenities, Amber Elite has been designed for contemporary living with open-plan spaces and a modern look and feel. The hotel is managed by the Corporate Apartment Group, a hotel management company that specialises in providing serviced hotel rooms and apartments for both business and leisure travellers.
The suites at Amber Elite are currently fully occupied through a corporate lease with Huawei, whose travelling executives are making use of the suites on a short-term basis.
Renecle points out that the cost of individual rental apartments in the Rivonia precinct tends to range between R7 600 and R10 500 per month, with tenants mostly made up of young executives, candidate attorneys, training accountants and the like aged between 25- 35 years old.
Renecle believes the rapid development in the general Rivonia region in recent years is one of the main factors fuelling the demand for residential property aside from its prime location close to the Sandton CBD and a wide range of amenities including major road networks and public transport infrastructure such as the Gautrain, as well as shopping centres, medical facilities and schools. There have also been a number of upgrades to facilities and infrastructure in the area.
“Majority of the new development of residential accommodation in the area has taken place on the western side of Rivonia Road, which seems to be a lot more popular due to its positioning within the inner circle of the N1 Western Bypass,” says Renecle. “This section of the Rivonia precinct has also been earmarked for high density development and is set to become northern Johannesburg’s new high density node, according to the area’s Regional Spatial Development Framework.