US property trends on show in SA
It’s tempting to think that because our local economy is under pressure, our property market is losing touch with what’s happening globally, but this is certainly not the case.
The United States, in particular, offer plenty of parallels with local property trends, pointing to the longevity and global reach of the local market, even though the current economic climate poses significant challenges.
In both the US and South Africa, property developers increasingly have to satisfy the demands of younger generations who are committed to steering clear of a daily commute, whose workspaces are shared and anything but stationery, and who prefer to have everything either on their doorstep, or available on the go.
The mixed-use property model accommodates all of this, and does so consistently and sustainably. It’s walkable and convenient, there are various work spaces to choose from, it includes sought-after leisure and lifestyle options and there is plenty of opportunity for social engagement, contributing to that sense of connectedness and community that we all crave. It puts a healthy, balanced and socially engaged lifestyle within reach of everyone who lives, works or spends time there.
The Amdec Group’s Harbour Arch precinct in Cape Town will be a local showcase of this formula that has gained such widespread traction in the US, for example in big new developments like Chicago’s River District (pictured above). Like the Amdec Group, property developers and city planners in the States are having to come up with innovative solutions to the population pressure on cities as urbanisation accelerates. It stands to reason that making more efficient use of space by way of bringing together multiple types of property within a centralised, well-located development, creates the space and sense of place that will draw people in, and deliver the high quality of life that they desire.
Of course, none of this is possible without close attention being paid to the bottom line, and here too the mixed-use model has proven exceptionally robust. Along with its sister development, Melrose Arch in Johannesburg, this R15 billion injection into the local economy will go a long way towards bolstering their local economies. Not only does mixed-use property offer developers and tenants financial viability over time, but it also represents what has been called the “stronger-together, recession-resistant formula”. This also applies to investors because not only can they diversify their portfolios by buying property here, but they are also protecting themselves against drops in the market.
In a mixed-use setup, the different types of property benefit from the presence of the others in close proximity, for example health clubs, restaurants, bars and clothing or grocery stores co-exist successfully because they draw in people at varying times, so that more time is cumulatively being spent there.
Residents of residential developments within a precinct like Harbour Arch or Melrose Arch, are in the pound seats to get the best that this lifestyle has to offer and to keep doing so over time.
For more information, or to register your interest in living or investing at Harbour Arch, please call 021 702 3200 or visit www.harbourarch.co.za.