Investing in Sandton’s growth

Following the publication of the Office Vacancy Survey Report Q4 of 2014, it has been identified that half of the office developments in South Africa are now taking place with new and existing businesses displaying a long-term commitment to the node of Sandton.

After a turbulent 2013, the prime office market is starting to turn the corner. Sandton’s retail property sector is showing signs of picking up, with R450 million spent on Sandton City’s new Diamond Walk alone.

“These continuing developments are giving rise to a higher demand for high-rise executive living in the vicinity, as employees and executives display an ever-increasing preference to live close to where they work and play,” said Ken Reynolds, Gauteng Regional Executive of Nedbank Property Finance.

One of the new residential projects is the R2 billion Leonardo luxury apartments being developed in Sandton. The Legacy Hotels & Resorts Group development, with Nedbank Property Finance also as chief financer, will create a 150m high-rise boasting luxury apartments, penthouse suites and select office space.

Reynolds added, “While sufficient transport infrastructure in Sandton accommodating these property developments begs attention, advancements in public transport such as the Gautrain service and the Rea Vaya bus service, continue to ease the negative impact. Additional living space in the vicinity will, in fact, alleviate traffic as fewer commuters need to use the congested feed-in routes.”

“While Cape Town has long held acclaim as the luxurious residential property mecca of South Africa, exciting developments around Johannesburg’s newer upmarket business and residential areas suggest that the City – as the prime GDP generator in the country and on the continent – is adapting with agility to the requisite demand for high-end residential property,” concluded Reynolds.

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