TUHF talks inner cities – developing communities

The property market is currently one of the most exciting sectors of the South African economy. In its current state of flux, there are real prospects to leverage around the accommodation space in inner city Jo’burg. TUHF recently held another of its regular presentations to discuss the trends and opportunities that are available to our clients and other property entrepreneurs, giving real insight into our particular spaces – the inner cities.

Hosted by Paul Jackson, CEO of TUHF Limited, the presentations helped identify some important developments and opportunities available. “We’ve noticed that there is real move towards community-involvement. These residential improvement districts are gaining momentum and help driving progress,” noted Jackson. He also emphasized the move towards smart building such as access to fibre, DSTV, etc.

Gabri Viljoen from KPMG gave more insight into combatting illegal and fraudulent activities. The KMPG ethics line assists as it is a whistle-blowing hotline – a simple, yet highly effective tool designed to enable concerned employees in an organisation, as well as third parties associated with an organisation, to report fraudulent, corrupt and unethical practices in the workplace.

Andrew Schaeffer, CEO of Trafalgar Property Management shared insights regards valuations, vacancy rates and trends around good rental building configurations particularly relating to properties in the Inner City. The bias is currently towards 2 bedroomed units with good security. Tenants also seem to prefer a prepaid utility options and having the building manager resident in the building. One of the other important items highlighted by Schaeffer, was the current pressure on annual rent escalations. He indicated that there is real resistance towards anything more that an 8% annual increase. This is evidence of the tangible financial stress currently being felt by most of the population.

Christian Gable, from the Rebel Research Group shared results of recent research on the Formal Rental Housing Market in Johannesburg Inner City. This indicates that when it comes to the different types of property, nationally there is an increased preference and demand for smaller self-contained units. This offers affordability, security and privacy as opposed to traditional larger spaces shared between more than one household. Inner City living is not only a draw simply because of the transportation costs and times for commuters, but also because of the availability of services and social infrastructure within walking distance. Many suppliers are innovating to address operating costs and tenant management. This is in order to stabilise operating costs and maintain margin, normalise tenant experience, while streamlining delivery.

Captain Zondo from the Braamfontein Police Station spoke briefly regarding safety for property owners and their tenants in the Joburg Inner City. Despite very challenging times, there is a commitment by SAPS to a multi-disciplinary approach to policing the Urban Development Zone of Johannesburg.

“Our clients want to know what’s going on in their sector and their communities. They want to make a positive contribution and drive change. As TUHF, we connect directly with our stakeholders and become a real part of their daily lives,” concluded Jackson.

Download presentations – https://www.tuhf.co.za/tuhf-talk-trends-opportunities-downtown-joburg-property/