More residential property developments expected in 2019

According to Richard Gray, Harcourts Africa Chief Executive Officer, developments performed well in the property market in 2019, across all the major metros, and we can expect the trend to continue in 2019.

Gray said the huge investment injections into city living was very exciting and a necessity. “We’ve seen how incredible the major commercial and residential property developments in places like the inner city of Cape Town and Johannesburg are transforming the CBDs. There is a real effort to make properties available, and an effort to revitalise certain areas, as well as boost already booming regions.”

Gray said reports showed that property developers’ goals were to meet the need for housing in locations like Sandton and neighbouring areas. Most of these properties attract first-time buyers, business executives located in the greater Sandton area, including investors in search of an asset that will indicate positive appreciation and rental returns.

“We expect the push to develop certain areas to continue. Especially due to the appeal of these properties. Many people view them as safer because of stringent security strategies. Also, there is often a community aspect to lifestyle estates and developments – children playing in the park and getting to know your neighbours. We’ve seen how the inclusion of a management body and property guidelines assist properties to have a long-term investment life,” says Gray.

He said “the often overlooked aspect that certain developments bring to a community is the increased economic activity. In areas like Somerset West in Cape Town, there are developments almost the size of suburbs. This attracts commercial interest to the region, increasing employment and business growth opportunities and ensuring the local economy has a chance to grow”.