A penthouse spanning 900m² has been sold off-plan for R45m in Olympus Sandton, JSE-listed heavyweight Growthpoint Properties’ new high-rise opposite Discovery’s headquarters in Rivonia Road.
Nearly 170 of the 283 apartments (60%) in the first 22-storey tower of the Olympus development have already been sold — before the official launch later this month.
The R1bn joint venture with developer Tricolt, Growthpoint’s first newly built residential project in Gauteng, could boost efforts to reposition central Sandton as a prime work, live and play hub.
The FM believes the last time Sandton commanded more than R40m for a sectional-title home was in 2018 when a 580m² apartment in Africa’s fourth-tallest building, The Leonardo, reportedly fetched R60m.
In recent years, Joburg’s “new north” has pipped Sandton by setting new benchmarks for sectional title prices — in 2023, a 400m² duplex at mixed-use Waterfall City’s Ellipse residential development in Midrand fetched a record R75m.
In the same year, someone paid R33m for an apartment at insurance tycoon Douw Steyn’s lifestyle estate, Steyn City, on the outskirts of Fourways.
Industry players say the resurgence of big-ticket residential investors to Sandton has been bolstered by the return of corporate tenants.
Sandton is the country’s largest business node by far with a total office supply of 1.739-million square metres. That compares with Cape Town city centre’s 1.053-million square metres, the only other commercial district besides downtown Joburg with a tally exceeding 1-million square metres. .
Sandton was especially hard hit by the pandemic-induced exodus of office tenants due to the widespread adoption of work-from-home policies.
Semigration from Joburg to the Cape (both residential and commercial) further stalled Sandton’s office recovery.
Figures from the South African Property Owners Association (Sapoa) show that by mid-2022, 25% of A-grade offices in Sandton were empty, while the vacancy rate in older, B-grade buildings surged to 38.3%.
That cost commercial landlords millions of rand in forgone rental income and valuation writedowns. The good news is that Sandton appears to have finally turned the corner.
Sapoa’s office vacancy survey for the fourth quarter shows the node’s overall vacancy is now down to 17.7% — albeit still ahead of the national average of 13.7% and the Cape Town city centre’s 6.5%.
Growthpoint, the largest property owner in South Africa, with local assets of nearly R80bn, has seen its Sandton office vacancy drop from 29% to 20% in the year to June.
Timothy Irvine, Growthpoint’s head of asset management for offices, expects the pace of recovery to accelerate this year as more corporates embrace “return-to-office” practices.
He says after years of office downsizing, Sandton is now experiencing a “significant” revival in demand. Irvine believes office recovery in the area will be aided by the precinct’s transformation into a mixed-use, walkable neighbourhood.
Growthpoint will soon erect a pedestrian bridge across Sandton Drive to link its Sandton head office, The Place, to Sandton City. Similarly, the Olympus Sandton development will offer direct pedestrian access to the neighbouring LXX Sandhurst shopping centre.
Growthpoint South Africa CEO Estienne de Klerk says talk of Sandton being written off as an office node was premature.
Most office buildings along Rivonia Road are now virtually fully let, including Discovery’s 112,000m² head office, one of the largest office buildings in Africa and co-owned by Growthpoint and Zenprop.
De Klerk says the negative office rental reversions of the past 2-3 years are over. “We should start seeing rental growth again in the next 12 months.”
It’s a sentiment echoed by Cushman & Wakefield/Broll. The property management firm predicts 2025 will be the year that office landlords find themselves back in the pound seats as demand for commercial space rebounds across all major nodes.
Angus Murray, head of tenant representation of Cushman & Wakefield/Broll, says a shift in office supply/demand dynamics is finally emerging after a five-year downcycle.
“At an economic level, South Africa’s improved political stability, suspension of load-shedding, and lower interest rates are providing a supportive environment and the clarity needed for businesses to advance real estate strategies,” he says.
Prices at Olympus Sandton range from R1.49m to R7.2m for studios and one- and two-bedroom apartments, while penthouses sell from R14m-R45m. The development will be home to a Marble restaurant and sky bar as well as the group’s Pantry deli & café concept.
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