The roll-out of office space and refurbishments to existing properties in Rosebank is having a positive spin-off for the area’s residential property market.
Renprop, in partnership with Grapnel Property Group, is launching its second luxury apartment development in Rosebank in March called The Tyrwhitt.
About 200 units are selling from R1.9 million for a one-bedroom unit to R17 million for a four-bedroom penthouse. Units are priced from R32 000 per square metre and construction for the 14-storey development will be completed in 2017.
Renprop launched The Tyrwhitt due to the success of its first residential development The Vantage at the corner of Bath and Tyrwhitt Avenue. This project is also being jointly developed with Grapnel Property Group and it sold out after the launch over a year ago.
Units at The Vantage were sold for R30 000 per square metre and now The Vantage units introduced to the market are selling for R35 000 per square metre.
Redefine Properties (Redefine) has recently launched 445 luxury apartments to the tune of R1 billion called Park Central on the corner of Baker Street and Keyes Avenue in Rosebank.
Apartments are selling off plan for up to R45 000 per square metre and buyers are expected to fork out R1.75 million for a basic unit and up to R16 million for a penthouse. This makes Park Central the most expensive apartment development on a square metre rate basis in Rosebank, according to Redefine’s executive director of development Mike Ruttell. The development is set for completion in 2017.
While Sandton is seeing an office development boom, with local and international corporates preferring the area as a business address, Rosebank is also piquing the interest of developers.
Executive chairman of Redefine Marc Wainer said office developments in Rosebank would spur the demand for lock-up and go residential units.
According to Renprop’s estimates, close to R7 billion has been spent on the development of new and older office buildings and the refurbishment of The Mall of Rosebank. Another 100 000 square metres of office space is expected to come online in the next five years.
Barrow Properties is just one company breaking ground with a 21 000 square metre office development on the corner of Glenhove Drive and Oxford Road, which is due for completion in 2017.
Corporates like Standard Bank, Fluxmans Attorneys, Sasol (expected to vacate Rosebank for Sandton in 2016) and Business Systems Group already call the suburb home.
Rosebank’s high density, facilities such as the Mall of Rosebank and the Gautrain, make the suburb suitable for apartment building, said Renprop’s managing director Chris Renecle. “Rosebank is more residential in nature and appeals to people who commute. Grapnel and ourselves saw an opportunity in Rosebank to develop apartment units,” Renecle said.
The suburb also has strong elements of work and play – the biggest draw card for a new breed of professionals and investors.
At the height of the 2007/8 global financial crisis developers were on the fence about undertaking developments. “Since 2009 there has been little residential development. Demand has been there for a while, but supply has been little especially in Rosebank,” said Renecle.
Pam Golding Property Group chief executive Dr Andrew Golding, who is responsible for marketing Park Central, agrees with Renecle: “Developers did not bring anything for five years. Buyers were competing with each other. There were thousands of buyers and few sellers. Developers are now taking an optimistic view.”
Despite signs of improving trading conditions, developers are still strict in their investment criteria. Redefine is looking to sell all Park Central units upon completion and is emphatic that luxury apartment is its focus.
“We would do another development if we find a site [for development] that is unique. If Park Central is successful we would find old buildings we already own to build more apartments,” said Wainer.
He said the development will target up to 60% of investors who will purchase units for rental.