Furnished apartments in high-end developments across the country are on the radar for local and international property investors.
Tersia Taljaard, sales consultant for the Amdec Group, says the majority of purchasers within this type of development are investors who are buying to let.
”Some investors have bought as many as ten apartments in a single development, and buyers even form consortiums to buy together,” she says. “There are also those clients who prefer the ‘buy-to-live’ option. They are typically scaling down from larger properties, or purchasing a second property for use on regular business trips.”
Over and above the investment, however, Taljaard says these buyers are also looking for a ‘hassle-free’ experience post sale.
She says One on Whiteley, the Amdec Group’s latest residential complex within the company’s award-winning Melrose Arch development, is seeing increased interest from buyers seeking fully-furnished flats that are ready to rent out.
Arch’s rental market mainly caters for corporates and professionals, which means that the apartments need to be furnished, explains Taljaard.
This one bedroom, one bathroom apartment in One on Whiteley, Melrose Arch, offers access to a complex pool. It is selling for R3 million – click here to view.
“Most of our investors prefer to have us arrange the furnishing based on a pre-agreed budget, and they often want us to find tenants for them too. Furnishing a new apartment is not an easy task, and many of our buyers don’t have the time to do this, or they are foreign investors who are not based in South Africa.
“Investors also see better yields when renting an apartment furnished, so for a small capital outlay at the outset, the returns are definitely worth it,” says Taljaard.
According to Peet Strauss, developments manager of Pam Golding Properties, the demand for furnished apartments is currently higher than that for unfurnished living.
This apartment in Melrose Arch offers two bedrooms, two bathrooms and a balcony. it is on the market for R4.5 million – click here to view.
“Our furnished rental market is particularly great for overseas guests who arrive with just a suitcase. They can move in and start working the next day. They don’t even have to set up Wi-Fi – they just punch in a code and off you go. It’s literally as easy as that,” says Strauss who lives, works and owns investment properties in the mixed-use development.
He says more and more overseas companies are moving into Melrose Arch. “People come from Europe or America and they absolutely love it because of the high street feel.”
“Many international business people rent here when they are in Johannesburg.”
Perhaps the biggest attraction, according to Strauss, is the security in that “you would even feel safe if you didn’t lock the front door” and you can “walk wherever you want to go”, with shops, restaurants, bars and more in an enclosed and secure environment.
Chris Weylandt, Founder of Weylandts says the trend in fully furnished apartments has been significant.
This two bedroom, two bathroom apartment in Melrose Arch has a large entertainment patio with built-in gas braai and a study area in the lounge. it is on the market for R6 million – click here to view.
“We do a lot of bespoke interior design that expresses the unique personalities of clients, and we are seeing an increasing number of clients who are also investors who need to have their apartments furnished, often from the other side of the country or the world,” Weylandt explains. “Locally, there is considerable demand for upmarket, five-star interior design in new developments. We have also noticed that opportunities are opening up within the international market. Weylandts has worked on developments in France, Germany and in West Africa. In Europe, the so-called ‘poshtel’ – upmarket youth hostels or affordable hotels – is also gaining popularity.”
Weylandts says with up to 300 rooms in a single development, these projects are highly lucrative, “especially when you consider our ability to manufacture locally and offer favourable exchange rates”.
This two bedroom, two bathroom apartment offers a lovely patio, complex pool and landscaped garden. it is selling for R4.2 million – click here to view.
Is investing in quality furnishings and the handling thereof, therefore a wise investment? Taljaard says it is, particularly considering the time saved.
“We have parents in Johannesburg who need a furnished flat for their children at The Yacht Club in Cape Town while they are studying at UCT. It is very convenient, and a great relief, to know that everything will be done without them having to be there,” says Taljaard.
“With the increasingly fast pace of life, and so much to do on any given day, it makes it so much easier when a company handles the furniture aspect on the investor’s behalf. Or if someone is buying to live in the apartment, they are typically reducing the furniture they have accumulated over the years. They are simplifying their lives, so they don’t want to concern themselves with every detail of the décor. They just want things sorted quickly.”
This article was first published by Property24 on 7 August 2018.