Sandton Precinct: the next big thing for Property Investor
The Sandton CBD has been a magnet for property investors ever since it first attracted attention in the late 70s. Back then, it was still largely suburban, featuring large properties and paddocks of horses despite the presence of Sandton City.
Today, the only horses left are the ones that gallop across the polo fields of the Inanda Club, which borders on the Sandton Summit precinct. Recently, the City of Johannesburg invited public comment on the Sandton Summit Precinct Plan 2019. This proposes a mixed-use, pedestrian-friendly neighbourhood with residential developments and community facilities as well as office buildings, and buildings with a higher floor area ratio (FAR).
The Sandton Summit Precinct is located south of Sandton Central. It is bound by Rivonia Road and Katherine Street to the north, Weirda Road and Albertyn Road to the east, Inanda Greens and Impala Road to the south and Protea Road to the west. Most of the land is owned by Growthpoint Properties, and they predictnew investment of more than R20 billion over the next 10 to 15 years.
Sandton is experiencing unprecedented growth and remains a high priority area. It is important as a metropolitan node and CBD in driving structural changes to reduce poverty, inequality and unemployment as well as overcoming spatial inequality and the job-housing mismatch. Sandton and the CBD provide more than 50% of the city’s economic output yet house a far lower proportion of the city’s residents than the other regions combined.
The proposed development plan will create a high-density priority node providing mixed use, offices and residential spaces with cultural land use integrated as a part of its redevelopment and densification program. Sandton plays a significant part in consolidating the public transport backbone of Johannesburg and the development of viable public transport options, pedestrian movement corridors and public spaces within this plan will enhance greater connectivity between Sandton and other key outlying areas.
Development opportunities around existing and future public transport nodes, starting from the Corridors of Freedom linking Soweto to Sandton along Louis Botha Avenue and Empire-Perth, and the Turffontein area. Sandton also forms part of a future ‘aerotropolis corridor’ which will establish a strategic connection between the northern parts of the city (Randburg, Sandton and Alexandra) and the OR Tambo Aerotropolis.
This densification will be achieved through incremental rezoning’s, height restriction amendments and the move from predominant offices to mixed use precincts to create higher density residential, and community facilities such as clinics, and doctors’ rooms, with low-intensity neighbourhood retail centres.
Sandton remains a key area for investors and the proposed amendments will increase foot traffic. Investors however need to be prudent as the development plan will take time to implement. The major areas within the development plan are already secured by the major investors but auxialliary neighbourhoods in the perimeter will also offer investment opportunities as the development plan is put into place.
Overall, the Sandton Summit Precinct Plan 2019 is an indication of the confidence of both government and the private sector in Sandton as a development node. The presence of Discovery, Sasol and Bidvest head offices in the area is testament to its desirability in the longer term.
The most exciting part? You can be part of Sandton Summit right now. Commercial Exchange currently has a ±7346m2property within the Sandton Summit Precinct available for leasing at R150p/m2. For further information please contact Oteng Khupe and Sonia Rudman from Commercial Exchange on 011 476 7870. This is sure to increase in value in the future, and we will be keeping a close eye on the Sandton Summit Precinct for more investment opportunities.