Summer 2016 Newsletter
Category Newsletters
In my Spring 2015 Newsletter I referred to the very little to no rain that South Africa was experiencing. The sun baked down on the entire country over the summer holidays and we frequently saw new record high temperatures. I ponder on the effect of this massive drought on the South African property industry and economy! We hear of Senekal and Aliwal North being without water…. what will happen if Jo’burg or Pretoria should be without any water for an extended period of time?
As we slowly move into a New Year I believe we all wonder how the world economy, our own economy, the threats of food shortages and China’s collapse are going to affect us. From reading financial papers, listening to the news, and looking at social media it appears that we are set for a torrid 2016!
In the property market we have already started to see the slowdown in credit extension with many buyers (especially those in the lower income segment of the population) being unable to buy due to banks either setting the affordability benchmark too high or due to consumers already being way over extended. However, for the cash flush investor or developer, opportunities will be there to pick and choose from in months coming.
THE RESIDENTIAL PERSPECTIVE
During the fourth quarter of 2015 we saw a good demand for our property from investors moving from the equity market into the property market. We have now had various approaches from individuals, funds, and several REITs (Real Estate Investment Trusts) to buy large parcels of rental stock. During November we concluded 4 sales agreements with private investors who bought complexes that we were anticipating would go to the open market as individual units.
Single buyer sales were concluded on our 13 unit Kensington site, 10 unit Millhill site, 46 unit Villa Massimo, and 48 unit Krimanshof developments sites. We hope to conclude in excess of 800 units of rental stock sales during the first half of 2016!
Our Ponders End site in Helderkruin is well advanced, and sales are now reaching the 85% mark.
On 1 February 2016 we will also be commencing with the construction of our Park Royal complex in Wilgeheuwel on the site adjoining that for the new CURRO School.
We also have a couple of smaller complexes and cluster units coming onto the market. At our Oakleigh development in Noordheuwel we had already erected roofs before builders shut down in December, and this seven unit site is 50% sold out, with a high demand from the more mature buyers.
The marketing of the Brandi Ann cluster development, situated on Peter Road, Ruimsig and consisting of 13 units, will commence in February, and the 10 unit development at Hadley Wood in Fairland will be launched mid February!
The showhouse on the Parys Golf and Country Estate was completed in late 2015, and the showhouse on the Riverspray Lifestyle Estate in Vanderbijlpark will be completed by the end of January 2016. We have agents on duty at both these sites, and we anticipate demand for properties on both these estates will be high since we have seen a much better demand for homes within secured Estates, coupled with accelerated growth in the property values.
Affordable Housing
In the affordable housing market we are working in several areas, with these sites in various phases of development. The first completed homes within the Chelsea complex in Dawnpark were transferred to their new owners during December while the marketing team remained on site to sell the last remaining units. We will commence with the construction of houses in the Chessington complex, also in Dawnpark, on 13 January 2016.
Our Protea Glen Manor development in Protea Glen is well advanced with the complex 70% complete. While there has been a strong demand in sales in this complex, a higher interest has been seen for rental units. In this area particularly, the inability of possible buyers to qualify for bonds is most prominent.
THE COMMERCIAL AND INDUSTRIAL PERSPECTIVE
Cosmo City
The tar on the parking lot of our Cosmo City Shopping Centre development was laid in late December and all our national tenants (including Pick n Pay, Capitec Bank, PEP and various others) have now taken beneficial occupation of their space. The centre is set to open its doors for trading on 25 March 2016.
The construction of the new premises for TAGSA on Erf 642 Lanseria Corporate Estate is now complete and good progress is being made on the new warehouse / factory being built on Erf 641 for Hitech Industrial.
We will be commencing with the development of the new six units that will make up the Aero Park complex within Lanseria Corporate Estate on 11 January 2016. Each unit will offer 1500m² of warehouse space and will be available for rental on completion. Contact Etienne at our offices with any enquiries in this regard.
Weltervreden Park
We are also well advanced with the small Kroton Office Park development in Weltevreden Park that has been bought by an individual investor. This building, with three separate office suites, will be available to let from 1 February 2016. Another “show boat” building designed by KFPA Architects, it is situated on a very visible corner along the busy Hendrik Potgieter Street in Weltevreden Park. For lease enquiries do call Etienne at our offices.
STAY IN TOUCH!
Our mailing list has now exceeded 15000 active subscribers! All receive our quarterly newsletters and the pre-launch notifications of our new developments, the latter affording them the opportunity of investing in the cream of the units in any development before we launch them to the general public!
Since we update the property sections on our website on a continual basis you will not waste time enquiring about property already rented or sold and the progress photos on each of our developments enables you to watch your selected property move rapidly towards completion.
You can also follow us on Twitter or Facebook where we continue to serve the property market.
You may also find it of interest to visit our Renico Plant Hire Website. On that you will get an idea of the vast range of plant and equipment we have that enables us to work constructively and rapidly on all our developments – and gives you a good overall picture of the plant and services we can offer you should you have a need for them!
Author: Renico Construction
