New residential development blooms as world spotlight falls on the City of Gold
Johannesburg’s G20 spotlight is fuelling demand for new high-end developments, with buyers and investors snapping up prime apartments across key suburbs.
The new development tap has been turned back on in Johannesburg, and buyers and investors are snapping up apartments, townhouses and cluster homes worth billions of rands in the city’s most desirable suburbs.
That’s the word from Rory O’Hagan, principal of the Chas Everitt International operations covering Sandton, Waterfall and Bedfordview, who says that developers are responding to the demand for new high-end homes close to business hubs such as Sandton, Rosebank, Melrose and Bryanston, which has been rising since the start of the year.
“Johannesburg has really been in the international spotlight this year in the run-up to the G20 Summit, and we have seen an influx of returning expats and foreign investors choosing to base themselves here as they increasingly realise the huge business opportunities the city offers as the epicentre of SA’s economy, and also as a great gateway to other promising markets in Africa.
“This has encouraged new development and, according to the latest available figures from StatsSA, resulted in around 2900 new apartments and townhouses being completed between January and August this year, and in plans being passed for a further 2300 that are expected to be finished in the next year to 18 months.
“However, the pace of new development in Johannesburg is still a very long way behind that in Cape Town, and frankly is unlikely to put any downward pressure on prices for the foreseeable future. This why astute buyers and investors are not sitting on the sidelines now but responding quickly and positively to the launch of new projects.”
O’Hagan says that in addition to Johannesburg’s new-found recognition on the global stage, demand is being driven locally by the steady reversal of the swing towards suburban and even rural living that followed Covid, now that most of the large companies, banks and institutions based in Johannesburg require both employees and executives to work in the office at least a few days a week.
“They can no longer work completely remotely, and many are once again finding it much more convenient and efficient to live in urban nodes close to their offices and businesses, and within easy reach of shops, top schools, entertainment venues and medical facilities. And when they can buy into quality new developments offering state-of-the-art security, spacious modern floorplans and superior finishes, that becomes an even more attractive prospect.
“Meanwhile, we are also seeing an increasing preference among affluent “empty nesters” to move from large family homes to luxury apartments that relieve them of many operational, maintenance and security concerns and costs, while offering them the freedom to ‘lock up and go’ whenever they wish – and access to a range of on-site amenities when they’re at home.”
Issued by Chas Everitt International
