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High-rise luxury catches on in Jo’burg
Category Property News
Luxury apartment living has really caught on now in Johannesburg, where more than 2500 upmarket units in 22 of the city’s most sought-after suburbs have been sold in the past year.
So says Lew Geffen, chairman of Sotheby’s International Realty in SA, who notes: “Our research shows that some 367 sectional title apartments were sold in Bryanston, for example, where there has been a considerable amount of new apartment development in recent times to meet the rapidly rising demand.
“The Deeds Office records reveal that the average price of these apartments was R1,3m, while the average price of the 360 apartments sold in Morningside, closer to the Sandton business and financial hub, was R1,9m. (See table below)”
Meanwhile in Sandown, which has gained renown in recent years for its multimillion-rand Manhattan-style apartments and penthouses, more than 169 apartments were sold in the 12 months to end-February at an average price of R3,4m, he says.
“And in neighbouring Sandhurst, which is famous for its ‘trophy’ mansions and exclusive estates, there were 34 apartment sales at an average price of R2,9m.”
Other areas that notched up really large numbers of high-end apartment sales in the past year include Lonehill and Sunninghill, while Dunkeld achieved the highest average price for sectional title homes of R4,4m.
Security concerns and changing lifestyles are clearly factors in the rising demand for upmarket apartments says Geffen, with many wealthy buyers finding it more cost effective to live in a luxury high-rise or gated complex than to maintain and secure a large suburban home – especially if they are frequent travellers.
“But there are also two other elements in play here, the first being the motivation to avoid the increasing traffic congestion in and around Johannesburg by acquiring a centrally-located home that enables easy access to work and all other amenities combined with top-notch security.
“And finally, many younger professionals and executives are realising that buying an apartment enables them to gain entry to the city’s top areas and enjoy the benefits of living there much sooner than if they opt for freehold ownership.”
Author: Sotheby's International Realty