When it comes to new residential apartment developments Rosebank matches – if not betters – Sandton in terms of pricing, growth potential as well as ambience. This is according to Chris Renecle, MD of Renprop, who has compared Sandton’s most recent developments with its equivalents in Rosebank, and believes that Rosebank has a lot more to offer prospective buyers.
Renecle also points out that Rosebank’s commercial office market has been buoyant over the last eight months or so, and that the vacancies left by the Sasol exit have been taken up quickly.
“The cleanup and upgrade of the Rosebank precinct and its facilities is what has led to the subsequent upsurge in redevelopment projects of commercial buildings. This has driven demand for upmarket residential property in Rosebank and led to sound rental returns and capital growth prospects for the new apartment developments recently launched in the area. The continued buoyancy of the office space market bodes well for the residential sector and is a good indicator that rental returns and growth prospects will remain strong.”
Renecle outlines the top three benefits of purchasing an apartment in Rosebank:
1. Selling price
The average selling price for a new sectional title apartment in Sandton currently sits at around R44 000/square metre[i]. The average selling price in Rosebank offers much more value for money at around R38 000/square metre[ii]. Finishes and features in these apartments are all upmarket and of equal standard.
Renecle points out that the best apartment price per square metre currently in Rosebank is on offer at The Tyrwhitt, where apartments are priced at around
R35 000/square metre.
2. Growth potential
Rosebank offers its buyers a stronger capital growth prospect for a number of reasons. The first is because there is a limit on the available land on which residential developments can take place considering that Rosebank is located in a built up area. As demand for residential accommodation in Rosebank increases and available land decreases, prices will go up. That means that buyers who get in early will benefit from exceptionally strong returns.
“The Vantage is a prime example,” says Renecle. “Around 15% or 20 units have been resold at approximately R38 000/m2 since it was completed and transferred to owners. Those who have sold realised capital growth of around 30% from the launch in 2014 when they paid in the region of R29 000/m2, which is exceptionally good value growth for the current market.”
Renecle says that going forward he expects there be a continued strong demand for executive apartments – both for investment and to rent – in the Rosebank hub as many shopping centres and commercial buildings in the area have, are in the process of, or are planning upgrades and there is additional commercial space in the pipeline. “All of this makes it an attractive live, work, play destination that will remain in high demand.”
3. Amenities and ambiance
It must be said that Rosebank also has comparable amenities to Sandton. It has a Gautrain station, a range of shops, restaurants, schools and medical facilities. A number of the top private schools in Gauteng are in neighbouring suburbs or a short commute away.
Renecle believes that one of the major differences is that Rosebank’s residents needn’t spend hours in traffic gridlock as just about everything a person could need is within walking distance along beautiful tree-lined avenues.
There can be no doubt that Rosebank is an attractive and lucrative investment option for those looking to add to their property portfolio.