New developments by the Amdec Group are seeing a boom in demand from early property investors who are buying into two major new developments in Cape Town – The Yacht Club, and Harbour Arch – and One On Whiteley in Joburg.
According to the group, the Yatch Club in particular has enjoyed a significant return on investment in its first year, and exceptional capital growth in its two-year construction period.
The 170 apartment development spanning 30,000m2 launched at R48,000/sqm in September 2015, with the last units selling for R75,000/sqm just over one year later – a positive indicator that mixed-use developments in the CBD are in demand, the group said.
The development cost of The Yatch Club has been pegged at R1.2 billion.
Amdec’s other Cape Town development, Harbour Arch, has achieved over R1.2 billion in sales, with 80% of its 432 units sold within five months of launching.
It will be the first and largest mixed-use development of its kind in Cape Town’s CBD – with six individual towers over 5.8 hectares, Amdec said. The development includes two Marriott hotels, with construction due to commence before the end of the year.
Only 56 of 432 units at Harbour Arch remain unsold – priced between R2.1 million and R7.5million, it said.
The Harbour Arch precinct carries a development cost of R8 billion.
Like Harbour Arch and Melrose Arch in Johannesburg, The Yacht Club will feature the same state-of-the-art security, including access control, limited elevator access, license plate recognition software, and video cameras.
An additional perk is that residents can choose to link with the V&A Waterfront, CBD, and CTICC using the water taxi or pedestrian walkway.
Amdec is also significantly expanding Melrose Arch in Johannesburg, adding 241 residential units to the precinct via its One on Whiteley development.
“Given that Johannesburg’s property prices are generally lower – and rental returns higher – than the Western Cape, investors have been quick to snap up units within this prestigious development, which is already 80% sold out. Only 37 units remain, priced from R2.1 million,” the group said.
One On Whiteley carries a reported development cost of over R2 billion, and expected to be fully completed by June 2019.
n total, Amdec has sold in excess of R2.4 billion worth of property in the last two years – R1.2 billion at Harbour Arch, R600 million at the Yacht Club and R600 million at One on Whiteley.
“It is clear that our new urban developments don’t only offer an excellent opportunity for investors, but they have a hugely positive impact on the economy too, driving job creation in the construction, hospitality, and retail sectors.”
This article was first published by BusinessTech on 17 April 2018