Don’t just rent out the apartment … sell the lifestyle

Don’t just rent out the apartment … sell the lifestyle

Kerry Dimmer

Extolling the virtues of apartment living is easy: lower prices, location flexibility, smaller spaces, community, less maintenance, no gardening, near transport routes … this list is lengthy. There are, however, a number of reasons why three particular areas—Atlantic Seaboard in Cape Town, Durban in KZN, and Sandton and its surrounds in Johannesburg—are rather special.

Atlantic Seaboard

Dr Andries Vermaak, director, principal, and co-owner of 2nd Storey Property Management, Gauteng, speaks of the phenomenal growth of apartment development in the Atlantic Seaboard area, which he says has grown by 17% over the past year. “This is a market size of some R8.5 Billion, with an average revenue per available room of R1910.

“This is not really surprising because the area is an absolute gem, blending stunning beaches with vibrant city life. Each suburb has its character, from the trendy cafes of Camps Bay to the family-friendly vibe of Hout Bay. The proximity to top schools and outdoor activities makes it appealing to many.”

Vermaak highlights particularly Cape Town’s focus on integrated transport as a game-changer. “This multi-modal approach really enhances accessibility and convenience for residents and visitors alike. Options like the MyCiTi bus service connecting various neighbourhoods make exploring the city much easier. Plus, the ability to hike, cruise, or paddle around adds an exciting layer to getting around while keeping carbon footprints low. It’s a great way to enjoy the area’s natural beauty.”

Those that are enjoying it in the Western Cape are diverse.  “The 2022 Census shows that 42% of the people of the Western Cape were Coloured, while 39% were Black African, 16% White, and 1% Indian or Asian,” says Vermaak.

“Cape Town’s V&A Waterfront and surrounding areas are prime real estate,” he says, “especially given the stunning views and lifestyle options. The value for money is striking compared to global cities like San Francisco or Monte Carlo. The blend of luxury living with access to world-class amenities and the natural beauty of the ocean and mountains makes it a unique investment opportunity.”

Vermaak’s guidance to market Atlantic Seaboard properties:

  • Selling in a slower market can be challenging, but with the right strategies, sellers can still find the right buyer through the most suitable agent.
  • The agent needs to be active on social media; sharing images of the apartments online can attract more interest. Word of mouth still holds significant power!
  • Tech-driven agents who use the right platforms can streamline the process and broaden their reach. A dual focus is required, namely, on buyers who want to be residents and on buyers who are investors.
  • Agents must sincerely assist sellers in setting competitive pricing based on market data since this is key to attracting buyers who will follow through.
  • Successful agents will be those who assist with the presentation of the properties, first impressions matter! A clean, tidy apartment with front appeal will help potential buyers envision themselves living there or easily finding suitable tenants for their new investment.

Durban

Zwelethu Swazi Maziya, sales trainer at Tyson Properties Durban/Morningside, confirms that there is always a wide selection of rental apartments in his area of operation. “New developments haven’t really made a significant difference in this area, though, and that may be because there is already a wide range of apartments at varying rental prices on offer. Currently, we have some 390 apartments for rent, for example.”

And these are attractive to a very wide and mixed demographic, from young professionals to families, says Maziya. “The reason is easy to see. Morningside, for example, is central and convenient yet still has the essence of a suburban environment.

“It has easy access to all main arterial routes, there are a good number of shopping centres nearby, a great number of public and private schools, and excellent medical centres and hospitals. And let’s not forget that residents are just five minutes from the beach and the popular bustling Florida Road teeming with restaurants and coffee cafes.”

Levies and rentals are reasonable because there is little demand for high-end rentals in the area. Maziya gives us a rough idea of monthly rental fees: high end—R35 000; mid-range—R13 000; and low end—R7000.

Maziya’s guidance to market Morningside properties:

  • Understand the product and its appeal.
  • The specs and price inform and define the potential buyer market.
  • Market specifically to your target market.
  • Don’t restrict yourself to marketing in one price range.

Sandton, Rosebank and surrounds

Frikkie van Eeden, broker-owner of RE/MAX Advantage and broker-owner Ivan Jansen of RE/MAX One highlight some impressive figures in their areas of operation.

Jansen says Sandton has a new wealth of apartment developments, with numerous new projects targeting young professionals and families. “Here, we have 91 developments being marketed, and this is driving supply up. There are, currently, three times more apartment rentals available than free-standing homes to rent.  

“The market includes a significant variety of rental options, with over 3,000 apartments currently available in Sandton alone. It offers many furnished apartments, ideal for business travellers and short-term stays. No doubt, therefore, that the apartment rental market is flourishing in Sandton.”

Another aspect worth mentioning is the conversion from office to residential real estate, a shift that is largely driven by the high vacancy rates in commercial real estate. “This has risen due to businesses downsizing or moving to remote work models​,” says Jansen. “For instance, companies like Growthpoint are actively engaging in such conversions. Overall, while the trend is gaining traction as a solution to both office vacancy and housing shortages, it varies significantly by location and specific property characteristics​.”

Jansen’s guidance to market Sandton properties:

  • Agents need to be where their prospective clients are, which is in the digital space.
  • Old marketing methods such as door knocking/flyers will not be effective in Sandton.
  • A serious property practitioner will need to make being effective on social media a priority. We have agents who service Sandton who have thousands of followers on their social media and get thousands of views on their content and positive interactions that convert to closed transactions.
  • It is critical that agents have the skillset to build a strong organic following and presence as well as be proficient at targeted paid ads.

From van Eden comes confirmation that his branch currently has 5772 apartments for sale in greater Sandton. “If you take into account that the average amount of sales annually sits around 5000, it becomes clear that we currently have an oversupply in the sectional title space. However, it’s a tough time to sell given the absence of investment buyers. As we go into a cycle of interest rate deductions, there is hope that the higher yields on investment apartments will bring with it significant demand.”

There are so, so many reasons that Sandton, Rosebank and its surrounds are popular. “These are economic hubs and big business will always stimulate demand in this sector as single professionals entering the workspace look to move closer to their place of work, which is still the number one priority,” says van Eden.

“This is also why developers are going all out to attract young professionals by offering high-end amenities such as a gym, workspaces and indoor pools. Alongside is the Gautrain linking Rosebank and Sandton, which has been a game-changer in attracting residents to Rosebank given they can reach Sandton in a matter of minutes.”

Executive suites and penthouses are always popular in the area. Van Eden says that a building like Da Vinci goes for between R180-R240 000 per month for a 4-bed rental. “For the rest of us ‘mere mortals’, an entry level studio goes for around R6250, excluding extras, at the Bolton in Rosebank. Mid-range rental prices are around R20 000 monthly.

Van Eden’s guidance to market Sandton/Rosebank properties:

  • Thoroughly research and understand the target market.
  • Young professionals are at the core for sectional titles in the area.
  • Sell the cosmopolitan lifestyle.
  • Consider target market priorities such as status and the high life.

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