Central Jo’burg residential block reported sold out in three days
DEMAND for residential units in Johannesburg’s inner city continues to be strong.

Aengus Lifestyle Properties, a joint venture between listed property company ApexHi and Aengus Property Holdings, says there was a massive response to its recent offer to sell units in its Lofts@66 residential development on the corner of Smal and Pritchard streets. The units were sold out in three days.

Aengus Property Holdings MD Richard Rubin says Aengus Lifestyle Properties made a decision initially to keep all its residential developments as rental stock. But in February, after receiving requests from the group’s tenants and investors, it decided to make up to 700 apartments across its range of developments in Johannesburg and Durban available for purchase.

Rubin says investors approached them because they found other inner-city property investments expensive. “They also would be taking a development risk if they bought off plan in a new development. There was also no guarantee those units in new developments would be tenanted.”

Because of this, investors were keen to acquire existing units.

“Our units are 100% let and our tenants are income-earners earning between R9000 and R12000 a month.”

Rubin says all 150 units in Lofts@66 were put up for sale, with sales of R46m-R48m being achieved. On average, the units sold for R320000. “The way we came to our costing was, we asked how much are we actually achieving for rentals?”

Article by: Nick Wilson - www.businessday.co.za