SA to Renovate Rail Network

Property Development Rejuvenation

A news article published on the Property Magazine website draws attention to South Africa’s planned rail network rejuvenation. With predictions of an increase in rail usage in South Africa, fuelled by recent petrol price hikes and the ever-present congestion on major roads, properties that are located within good proximity of the rail network are set to become more popular.

Cape Town in particular is set to follow international trends in cities like London, where properties that are situated close to rail stations command premium rentals and prices. The recently launched Salt River Junction, which is due for completion near the end of 2009 is in close proximity to Salt River station. This is poised to take advantage of the massive Cape Town development strategy initiative that is currently being facilitated in the area.

According to property developer, Edward Black of Urbode, the Salt River development was created with a complimentary vision in line with the trend towards increased infrastructural developments in Cape Town, especially the Department of Transport’s recent announcement that substantial investment would be poured into the recapitalisation of South Africa’s rail network. The local Metrorail carriages will be replaced ahead of the upcoming Soccer World Cup in 2010 and improved security and ticketing systems will be implemented.

The Salt River and Woodstock suburbs are undergoing massive regeneration with the emergence of various high value developments, including the Black River office park, the Lion Match Factory and the Old Biscuit Mill. Also taking place is the restoration of a number of old Victorian buildings and the rehabilitation of the local park, which is transforming the suburb into an urban conservation area.

According to Louise Maranz of Vered Estates, “In keeping within the realm of these fast growing trends in the area, the Salt River Junction development will form a valuable investment for buyers with an anticipated return of 8%. With the unit prices being 20-30% less than other developments, recently sold out in the area, our competitive pricing strategy positions Salt River Junction perfectly in making the units affordable for first time buyers who now cannot afford to purchase property in the City Centre, whilst still desiring a central location. The redevelopment initiatives are ultimately extending the inner city environment to other peripheral areas of Cape Town, making it exceptionally attractive and viable to this market”.

Salt River Junction is situated on the border of Salt River and Observatory, almost equidistant from the City Centre, Claremont and Century City, with ideal infrastructure and access to all main roads and public transport nodes. Maranz says that the spatial design, alongside other elements of the development, will be ergonomically engineered so as to be energy efficient, heating the surrounding interior space and providing natural light in common areas. The instant hot water heaters installed have proven to be 15-30% more efficient than geysers.

The development provides breathtaking views of Devil’s Peak, Tygerberg Hills and part of Table Bay, with two entertainment decks located on the 3rd floor perfectly positioned to take advantage of these incredible views. Always of paramount importance is security and Salt River Junction will include a sophisticated biometric access control system and 24-hour guards, as well as secure basement parking.

With such exciting property development taking place throughout South Africa ahead of the 2010 World Cup, it certainly makes sense to invest wisely and ultimately reap the rewards.

The information in this article is courtesy of The Property Magazine (“Property development gearing up for SA rail network rejuvenation”, July 2008).

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