Mixed-use developments, which typically blend residential, commercial and retail components, are nothing new. But pandemic-related changes in how people live, work and relax have propelled mixed-use hubs to the forefront of the sustainable development movement.
The concept has evolved into what many now refer to as the “20-minute neighbourhood” or “smart city”. These are basically easily accessible, safe and attractive precincts where people can meet most of their everyday needs within a 20-minute walk, cycle or public transport trip.
The upshot is more cohesive and inclusive communities — and convenience, as residents save time and money by cutting their commute, and ultimately save the planet by reducing traffic congestion and carbon emissions.
Globally, cities such as Melbourne (Australia), Paris (France), Barcelona (Spain) and Portland (US) are leading the way in these new-generation urban planning models.
SA is also seeing the rise of the 20-minute neighbourhood. In fact, mixed-use precincts are becoming increasingly relevant in the local context, given deteriorating and unreliable municipal service delivery.
The upkeep of road and building infrastructure, landscaping, cleaning and security in large, mixed-use developments is mostly privately funded by the developers, property owners and tenants.
Waterfall City, adjacent to the N1 highway in Gauteng, is arguably the largest mixed-use node in SA. It spans 2,200ha and offers the full spectrum of work, live, learn, shop, play and stay amenities.
Apart from the 130,000m2 Mall of Africa, which anchors Waterfall City, the precinct is home to three smaller convenience retail centres; multiple logistics, industrial and corporate head offices; a Netcare hospital; four hotels; three private school brands — Reddam House, Montessori and Curro; and 10 residential developments.
Developer Attacq is now completing the third high-rise apartment tower in its Ellipse residential development, opposite the Mall of Africa. A fourth and final phase will be launched later this month, bringing a further 145 apartments to the Waterfall City market. That will take the total number of sectional title units on offer at Ellipse to just over 600.
Despite the pandemic temporarily stalling construction, more than 400 apartments worth R1bn have been sold since Ellipse was launched at the end of 2018.
Prices start at about R2m, while penthouses go for upwards of R20m. A three-floor unit compromising five en suite bedrooms and luxury add-ons, such as walk-in dressing rooms, a spa and a cinema, recently sold for R50m.
A stone’s throw away, on the eastern side of the N1, sales are equally brisk at Munyaka, Balwin Properties’ third Waterfall City housing complex.
The sprawling project, which is nearing completion, comprises 5,500 apartments, making it Africa’s largest sectional title development. Prices start at just over R1m. A penthouse with expansive views across Joburg’s skyline recently sold for R30m.
A fresh wave of sales has also been concluded at super-wealthy Waterfall Equestrian Estate, on the precinct’s southern boundary. Here, Joburg’s well-heeled are forking out anything between R25m and R150m for large, stand-alone homesteads flanked by expansive greenbelts, paddocks and cycling and walking trails.
Willie Vos, CEO of Waterfall Management Company, the precinct’s property, asset and operational manager, tells the FM prices at Waterfall Equestrian Estate have increased more than sixfold since the development was launched in 2009.
He ascribes the precinct’s rise as a prime real estate investment destination to its world‐class offering of lifestyle amenities in a “smart, safe, connected and attractive environment”.
Importantly, maintenance, cleaning, landscaping, security, waste collection and fibreoptic and wireless communication network installation — services often provided by local municipalities — are privately controlled within Waterfall City.
Water and electricity backup systems are also being introduced, meaning infrastructure is “future-proofed”. This, says Vos, provides comfort to investors, as property values can be better protected over the longer term.
He believes Waterfall City’s offer of multigenerational living is another key attraction. The 10 residential developments, including two retirement villages, are available at varying price points and cater to a mix of buyers at different life stages.
At Melrose Arch, just off Corlett Drive in Joburg’s northern suburbs, apartment prices are also testing new highs. Pam Golding Properties recently sold a two-bedroom unit for R9m.
Rates per square metre at Melrose Arch have reached R45,000-plus, with a number of larger units on the market at price tags of R10m-R17m.
Grahame Diedericks, principal for Lew Geffen Sotheby’s International Realty in Midrand, says “liveability” — easy access to all the work, live and play amenities one needs on a day-to-day basis — is the new watchword in post-Covid residential buying trends.
Increasingly, people don’t want to forfeit the sense of community and convenience of knowing their local doctor, dentist and hairdresser when they up- or downgrade, he says. So there’s a trend towards staying in one neighbourhood, from buying the first home right up to retirement.
Diedericks believes that’s why 20-minute neighbourhoods such as Waterfall City and Melrose Arch tick all the boxes on residential buyers’ checklists these days.
People don’t want to forfeit the sense of community and convenience of knowing their local doctor, dentist and hairdresser
Cape Town’s V&A Waterfront, widely regarded as SA’s most-visited mixed-use destination, is experiencing a buoyant post-Covid residential rebound.
The precinct, which still holds the record for the most expensive apartment ever sold in SA — a penthouse at the One&Only Cape Town hotel that fetched a staggering R110m in 2009 — is home to just over 600 residential units, according to property data firm Lightstone.
Seeff Atlantic seaboard licensee Ross Levin says his company has seen a surge in demand for V&A apartments over the past 12 months. He believes this has been driven by the precinct’s prime waterfront location along with the plethora of shops, restaurants, coffee shops, bars and other leisure amenities within walking distance.
A multiyear high of R55m was achieved earlier this year at the V&A for an apartment at the Pinmore building, in a joint sale by Seeff to an Austrian buyer.
Five years ago, buyers could still enter the V&A for about R5m. Now, says Levin, prices start at about R8m, with rand rates per square metre varying between R50,000 and R122,000.
Basil Moraitis, regional manager for Pam Golding Properties in the Western Cape, says the V&A has already clocked up more residential sales in the year to date than during the whole of 2021 — and that’s despite the September to December summer period traditionally being the most active.
Last year, 30 apartments were sold at the V&A at a median price of R10m, compared with 32 sales at a median selling price of R11.6m from January to September this year. That’s more than double the 15 apartments that changed hands at the V&A in 2019.
Moraitis says there’s no doubt that property buyers are increasingly attracted to mixed-use precincts such as the V&A, where shared amenities are collectively managed and maintained, and offer a buffer against failing municipal service delivery.
At Century City, near Milnerton in Cape Town’s northern suburbs, developer Rabie Property Group is seeing an equally bullish uptake of its various residential offerings. The precinct has 21 residential developments comprising 4,000 front doors (excluding hotels). Prices range from R1.175m-R16.5m.
Rabie director Mariska Auret says of the 132 apartments that were launched off-plan in May at Nine Palms — Century City’s latest residential development — only six are still available. Prices for studio, one- and two-bedroom apartments range from R1.2m-R4.55m.
“The studios were in such high demand that there is a waiting list,” she says.
Rabie is planning to launch another sectional title residential block next to Nine Palms early in 2023, as well as a retirement development.
Auret ascribes the better-than-expected sales to Century City’s appeal as a smart city that offers the ultimate in urban living. She says the development offers full backup power and fibre to each apartment, which means no-one has to contend with load-shedding.
In addition, Nine Palms is located within the Bridgeways precinct, which has easy access to 13 restaurants, five hotels, three gyms and the Canal Walk shopping centre, which has an additional 60 eateries.
“The walkability of Century City is a huge plus, combined with a host of cutting-edge technologies,” she says. “Everything’s on your doorstep.’’
Prospective homeowners are increasingly looking for the smart, safe, connected and attractive environments mixed-use developments offer
— What it means:
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