Developing the Sandton of the North
The multi-million-rand upgrade to Fourways Mall anchors economic development in the northern suburbs and will contribute to escalating property prices as demand for housing in the area increases, Tyson Property Gauteng manager Jonathan Davies says.
“As the dust settles, Fourways will take on its own persona as a northern Sandton. The addition of commercial and residential property will create another central node and cater for those living and working close by,” he says.
Accelerate Property Fund and its development partner Fourways Precinct aim to upgrade the Fourways Mall into a super-regional centre covering 175000m2 with the addition of 90000m2 to the facility. The investment will make the shopping centre South Africa’s second largest mall and the largest in Gauteng, surpassing the 120000m2 recently-opened Mall of Africa.
The project, which invests R30 million on refurbishing the existing mall and another R270 million on the adjacent road infrastructure, joins other centres in the area to cover 175000m2 under a single roof. The expansion is expected to be completed by mid-2018.
Davies says from the sleepy out-of-town suburb 30 years ago, Fourways has consistently grown. The Fourways Mall had set the ball in motion and was followed by Monte Casino, Cedar Square and new developments further north and Fourways now forms a central hub for residential and commercial interests.
“Historically, there is always concern around large developments, but they prove time and time again to be beneficial by creating jobs and attracting new interest. After the redevelopment, property values will rise as increasingly people move to the northern parts of Johannesburg,” he says.
Looking to the broader Gauteng market, Davies says even through in recessionary times there are cranes on the horizon as the province continues growing. Given the dominance of head offices in Gauteng and its position as South Africa’s central economic stronghold, the demand for residential housing was expected.
The Johannesburg inner city was currently experiencing a revitalisation with older buildings being renovated into modern apartments and sold either to people working near the central business district or investors wanting buy-to-let opportunities.
However, Davies believes residential estates will remain popular and this has given rise to larger pieces of land being sub-divided and resold as cluster developments. Bryanston was a sound example where older homes have been redeveloped and densification occurred.
“Certain suburbs appeal to different lifestyles with the areas further north generally being transient ones attracting new home owners starting out their property ownership cycle. More mature suburbs like Houghton, Westcliff, Saxonwold and Bryanston are destination suburbs acquired by mature families seeking roots,” Davies says.
He believes Gauteng has a sound mix of new developments coming to the market – from start-up sectional title homes to popular cluster homes. One area of shortage was retirement properties where demand continues outstripping supply.
Author: Tyson Properties