Point development revives property market
Property Group, Tyson, said the Point waterfront development could boost the eThekwini rates base by R200 million annually, while the initiative would contribute R700 million to South Africa's gross domestic product.
ANNOUNCEMENTS that long-awaited developments in the Point Waterfront area would be gaining traction in the near future has boosted property sales in the precinct and is having a positive spin-off on Durban's market generally.
Tyson Properties CEO Chris Tyson said in the past 18 months, the group's sales in the Point area had risen 200 per cent with the broader development leading to regeneration of a district that had been too long neglected. According to Tyson, the new developments are estimated to boost the eThekwini rates base by R200 million annually, while the initiative would contribute R700 million to South Africa's gross domestic product.
“It has been a catalyst for rejuvenating both the area directly and adjacent regions. News that (Malaysian group) UEM Sunrise was looking to start developments has generated improved sales and an upbeat mood – rental demand has picked up and there is also renewed commercial interest,” said Tyson.
He said while the Point had always represented prime location, it had been in dire need of attention. The investment meant the Point precinct was poised to become an integral part of Durban's tourism offering with planned residential apartments bordering the canal and the sea.
In recent years nine mixed-use buildings have been constructed in the precinct while new office developments for Lion Match and Ithala were now nearing completion. Bond Square, another mixed-use development, was underway on the corner of Albert Terrace and Browns Road and would include retail and office components as well as nine loft apartments overlooking the harbour.
Cecily Deetlifs, principal of Tyson Properties Ushaka, confirmed that Tyson Properties has the sole mandate on this residential element.
“Experience reflects a mixed bag of buyers to the precinct from investors looking to purchase properties to upcountry residents seeking out holiday homes and local Durban residents keen to move into the area,” said Deetlifs.
Earlier this year the Durban Point Development Company (DPDC) announced it was working to revitalise development in the area that had stagnated over recent years. The company is a joint venture between the eThekwini Municipality through the Durban Infrastructure Development Trust and ROC Point, an entity owned 80,4 per cent by Malaysian development company UEM Sunrise and 19,6 per cent by empowerment company Vulindlela Holdings.
DPDC announced in a press release the promenade would be extended to the harbour mouth and along the entrance channel to encourage public access and a vibrant public environment. It would fully accommodate the existing water sports clubs, seine netters and public beach parking, while not affecting Vetch's Pier.
The road network would be converted into a loop system with the main access being via Mahatma Gandhi Road and Shepstone Road.
On the cards was raising the maximum building height along the promenade to facilitate an improved cityscape with the land use proposed as a mix of residential, office, hotels, retail and entertainment facilities. The total maximum floor area of the development is proposed to be increased from 575000m2 to 750000m2to facilitate a vibrant mixed-use environment.
According to the property company, the socio-economic assessment estimated 11 000 construction jobs would be created and another 6 750 permanent positions generated once the developments were completed. Existing property prices in the Point precinct would rise 10 per cent, while properties in the Durban central business district would increase by five per cent.
