Thursday, 28 October 2021

Randburg's Rejuvenation

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Randburg's Rejuvenation

Randburg’s revival gaining momentum

Randburg, established more than 60 years ago, is experiencing a long overdue revival after years in the doldrums. Top Johannesburg developer Renprop, which has built several popular residential projects in the area in recent years, says the node’s affordability, access to good transport networks, and attractive shopping is helping fuel demand for residential property there.

The group, which sells and holds units as rental stock, expects this trend to continue, especially as neighbouring suburbs such as Bryanston become increasingly expensive.

Considered a premier business and residential node when it was formed in 1959,  Randburg fell out of favour as Rosebank and Sandton became increasingly popular, particularly over the past two decades. However, in the past few years Randburg’s fortunes have improved, with a rise in office to residential conversions, particularly in the Ferndale area.

Reinforcing these improvements, has been the rejuvenation of Randburg’s Ferndale On Republic, formerly the Randburg Waterfront, which is now a more modern, attractive retail and  entertainment destination, teeming with restaurants and sidewalk cafés.

Renprop’s MD, Chris Renecle says, “Randburg has a lot of potential, not only because it is a newer city suburb compared to others in Johannesburg.” He adds that apart from its affordability, it is centrally located and close to Sandton and Rosebank. Randburg also enjoys good transport links thanks to the Gautrain and Metro buses that service the area as well as a bustling taxi rank for commuters. It is also well located to highway access.

Renecle says the area is also expected to receive a boost from eventual plans to extend the Gautrain. Although the timing of this is unknown, once built it will run in a ring formation from The Mint (in Centurion) through Sunninghill to Fourways, and out west (including Soweto) and then circling back into Randburg.

Renecle adds, “Ferndale, in particular, is enjoying a rejuvenation. It caters to the demand for lower property prices, compared to surrounding suburbs of Bryanston.”

Fern Valley, which is a new Renprop development in the suburb, is currently under construction. “It offers affordable two-bedroom, one-bathroom apartments priced from R884,000 on the border of Bryanston. We are experiencing strong demand and the apartment are being sold off plan with all costs, including transfer duties, included. We have experienced steady sales with 60% of the sixty-six units already sold. We anticipate a handover of the units in the third quarter of 2022. The market demand confirms they are an exceptional investment product,” says Renecle.

Renprop’s unique rental guarantee “ensures investors will see an “8.5% return or more per annum,” he adds, making this a particularly attractive buy. The rental guarantee is made possible when the developer guarantees a rental income for the investor buying the property. This is typically set between 6 – 12 months depending on the value of the property, and it takes the risk away from the investor to rent out the property.

Renprop also helps investors in the development find tenants. Renprop also has plans for further development opportunities in the Ferndale area, with Renecle saying the group is “currently looking at another property in Ferndale, closer to Ferndale on Republic.”