New development poised to capitalise on market upswing

New development poised to capitalise on market upswing

Artist’s impression of The Marine, a new apartment block to be built on Beach Road, Strand, designed by Pure Object Architects and developed by Visual International Holdings.

It’s been many years since Beach Road in Strand experienced significant residential construction, with the last development in the area signed off over a decade ago.

Since then – the beginning of what would prove to be a massive worldwide recession – a lot has changed in this seaside neighbourhood.

“If we look back to 2008, which is when the last real development was taking place on Beach Road in Strand, South Africa was sitting in a very weak economic position and interest rates were 15.5%,” says Wouter Joubert, co franchisee at Rawson Properties Strand. “It was no real surprise that there were only 36 property transactions on the whole of Beach Road. The highest price was a modest R5.481 million and the total spend across all purchases came in at just under R62.5m.”

By contrast, Joubert says the Beach Road property market has performed remarkably well over the last five years, despite the economic and political pressures that have been at play over this time.

“By 2014, the Beach Road market had improved to such an extent that it racked up 171 sales that year, doubled the highest price achieved in 2008, and the total spend on properties in the area was almost five times that of 2008,” he says. “These figures were just as buoyant in 2017 and 2018, and early 2019 shows positive signs as well, with strong and ongoing demand for these oceanfront properties.”

Joubert says one of the biggest forces behind the recovery of Beach Road as a seaside property destination was the R180m refurbishment of the sea wall and extensive Strand Pavilion and Central Precinct upgrade project.

“Strand was always a very popular beach holiday destination, but took a bit of a knock when the Pavilion and beachfront areas became rundown,” he says. “Thankfully, the City of Cape Town realised the seriousness of the problem and actioned a massive refurbishment programme to restore the area to its former glory. Since then, we’ve seen a dramatic uptick in tourism once again, driving a very strong holiday property and short-term letting market.”

Another R103m investment was recently made in upgrading Broadway Boulevard to make Strand more accessible and minimising local traffic issues. However, excellent infrastructure is hardly the only force behind Beach Road’s popularity with investors.

“Property prices are a huge motivating factor for investing in Beach Road,” says Joubert. “The value for money is exceptional – particularly in relation to comparable Cape Town neighbourhoods like Sea Point, Green Point and Bloubergstrand.”

This unusual combination of value for money, growing popularity and minimal new stock has left Beach Road ripe for new development, Joubert says.

“We’ve had a lot of enquiries about future developments in the Beach Road area now that the elections are over and the economy and property market appear to be on the road to recovery,” he says. “As a result, we’re very pleased to be able to announce the upcoming launch of The Marine – a brand new luxury development offering investors the chance to tap into the potential of the area.”

The Marine, designed by Pure Object Architects and developed by Visual International Holdings, will have 38 two-bedroom apartments and four three-bedroom penthouses. All units will have sea-facing balconies and two parking bays, and the complex will have 24-hour security and access control.

Unit prices range from R1.299m to R2.999m, including VAT and no transfer duty-is payable.