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Jonathan Kohler Landsdowne CEO

Rate Cuts to Boost Joburg Property Market

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company says a cut in interest rates would stimulate the residential property market. The group said despite high interest rates, northern Johannesburg suburbs including Bryanston, Sunninghill and Paulshof offer good value for savvy investors.

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“Property prices in Johannesburg are sitting at levels last seen 14 years ago and we believe now is a good time to buy property in the metro. Courageous investors who take a long-term view will be rewarded when the market turns.”

Kohler said one bathroom and one bath apartments in Johannesburg north offer very good value with net rental yields of 10.27%. This is based on a 45m2 apartment priced at about R680 000 and rented out for R7 000 per month.

A two-bedroom, two-bathroom apartment in Johannesburg priced at R1.2 million and rented for R9 750 per month offer net rental yields of 7.36%. Landsdowne is a sales and rental agency with over 40 000 apartments and freestanding clusters under management.

The group is seeing increased demand for properties in the suburbs including Bryanston, Sunninghill and Paulshof.

Centrally located close to the Sandton and Randburg CBDs and other areas with excellent schools, medical facilities, shopping and entertainment facilities, Bryanston remains a sought-after suburb to buy property. It offers entry level apartments to luxury family homes and residences.

Areas of Interest for Property Owners

According to Lightstone data, in 2021, Bryanston emerged as one of the top 10 locations for people owning multi-properties and was one of the top selling suburbs in the country in 2023. Paulshof and Sunninghill are well-located close to amenities and schools and offer buyers a wider range of properties to choose from.

It is possible to find a one-bedroom apartment in Paulshof for R730 000 making it a great buy-to-let investment property. Kohler said higher-for-longer interest rates coupled with high inflation and rising cost of living are putting pressure on affordability to buy or rent property.

The South African Reserve Bank (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase. Market consensus is that the Bank would hold rates steady with the first cut expected in September.

Kohler said last month, the group recorded a decline in deals whether in sales or rentals. There are more people wanting to buy or rent property , but their credit records are tainted. “A rate cut would benefit struggling consumers and stimulate activity in the residential property market,” added Kohler.

Devonbosch

Landsdowne appointed as exclusive managers of upmarket DevonBosch Precinct in the Western Cape

  • Devonbosch is a mixed-use precinct being developed by SquareTurn Developments
    • It will take 10-20 years to complete the development, depending on demand
    • Each precinct will have its own sectional title scheme but forms part of the master homeowner’s association
    • Apartments are priced from R2.495m
    • Future development plans include a hotel, schools, universities and medical facilities
  • The appointment positions Landsdowne as specialists property managers of mixed-use precincts
    • The group already manages other high-end precincts including Steyn City in Gauteng, and Conradie Park and Paardevlei in the Western Cape
    • Unlike managing a normal estate, mixed-use precincts require specialised management skills to balance the interests of the developer and residents
    • Landsdowne will also manage the commercial precinct at Devonbosch, handle tenant billing as well as manage budgets as, and when development phases are rolled out

4 June 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company has been appointed as managing agents of the new luxurious development, Devonbosch in the Western Cape.

Devonbosch, situated near Stellenbosch in the Cape Winelands is a bespoke mixed-use precinct which comprise designer apartments and penthouses, co-working offices, retail and light industrial spaces with proposed future projects including a hotel development, schools, universities and medical facilities.

The precinct is differentiated by its focus on quality of life and integration with the pristine natural surroundings of Stellenbosch.

Jonathan Kohler, founder, and CEO of Landsdowne commented: “This appointment further entrenches Landsdowne as a leading specialist precinct manager, alongside other high-end clients such as Steyn City in Gauteng, Conradie Park, and Paardevlei in the Western Cape.

“Our deep knowledge and expertise in managing mixed-use precincts, as well as our willingness to partner for the long-term, balancing the interests of both the developer and residents is what gave the developer significant comfort.

“Devonbosch is a major project that will only be built out in the next 15 to 20 years, depending on the rate of sales, and being able to balance the evolving interests of all stakeholders is key to its success.”

Reghard Goussard, Executive Director for Sales and Marketing at SquareTurn Developments, the developer of Devonbosch, commented: “Like any successful development company, we are only as good as the company we keep and how well we all respond to the market demands.
“We look forward to a mutually beneficial working relationship with Landsdowne as the development of Devonbosch shapes up.”

The difference between a precinct specialist and other types of managers is their understanding of the intricacies in how the Master Homeowners Association is governed and how the governance of the various body corporates under the Sectional Title Act ties in with the constitution of the Master Homeowners Association.

The main purpose of a Master Homeowners Association is to oversee and manage the affairs of a large community or development, and ensure shared spaces and amenities are well-maintained for the benefit of all members. These include security entry points, lifestyle centres, parks and play areas, pavements and roads.

“More residents will be appointed as Trustees to the various homeowner associations as the developments are built out and Landsdowne has the experience in balancing the interests of the developer and residents,” Kohler explains.

Landsdowne will manage the finances of the Master Homeowner’s Association and all sub-homeowner’s associations as well as body corporates within the Devonbosch precinct. An on-site estate manager has been appointed to ensure the smooth running of operations.

In addition, Landsdowne will manage the commercial precinct, handle tenant billing as well as manage budgets as, and when development phases are rolled out.

“As an asset manager, you need the right skillset to support and enhance the massive investment by the developer and ensure residents live in a well-managed and maintained environment,” added Kohler.

Devonbosch is a mega precinct, measuring 220ha in size, with 20ha of Phase 1 development rights already approved. It will boast more than 600 luxury apartments when completed, with an additional 3 000 homes planned. On completion, the mixed-use precinct will create employment for over 10 000 people.

The phased development will take 10-20 years to complete, depending on demand. The apartments and penthouses with mountain views measuring from 56m2 are priced from R2.495m.

Devonbosch features amenities including modern European designs, state-of-the-art security, rooftop terraces, underground parking, back-up power and park-like green spaces. Each precinct will have its own sectional title scheme but forms part of the Master Homeowner’s Association.

Western Cape Skyline

Semigration into the Western Cape bodes well for the residential property market, says Landsdowne

  • Western Cape is experiencing increased property activity than other provinces
    • Semigration contributes to sales and rental activity
    • Households relocate to the Western Cape as the region is perceived to have better-run municipalities and offer quality lifestyles
    • Buyers are finding good value for money properties
    • High demand for properties in secure estates and gated communities with lifestyle amenities
  • Demand for rental properties 
    • Limited rental stock leads to rental growth in some instances
    • One-bedroom apartments considered good buy-to-let investments
    • Low risk of tenant default  

16 April 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company says semigration to the Western Cape remains strong as people search for ‘quieter’ lifestyles.

The group continues to see increased sales and rentals in the Western Cape compared to other regions as many households in provinces like Gauteng and KwaZulu-Natal sell their properties to move to the Western Cape.

Jonathan Kohler, founder, and CEO of Landsdowne commented: “Semigration remains one of the key drivers in the Western Cape property market. Increasingly, more people, and businesses move to the region as it is perceived to have better run municipalities, have reduced load-shedding stages, and offer unrivalled lifestyles away from the hustle and bustle of Gauteng for example.”

Semigration – the movement of people from one province or city to another has been a trend even before the Covid-19 pandemic in 2020. With flexible working models enabling people to work from anywhere, many people saw this as an opportunity to move to other areas.

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better-governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%. The Western Cape also recorded the highest increase in sales activity in smaller towns compared to Gauteng and KwaZulu-Natal.

Landsdowne is a sales and rental agency with over 35 000 apartments and freestanding clusters under management. As demand for property increases, the group reported successful property sales in areas including Blouberg, Sandown, Parklands, Parkland Norths and Sunningdale.

Kohler said these areas attract buyers and investors due to the lifestyle offering with sandy beaches, spectacular views of Table Mountain, good infrastructure, various amenities including schools, hospitals and medical facilities, entertainment, and shopping centres.

“Buyers are increasingly purchasing properties in secure estates and gated communities offering ‘quieter’ lifestyles to raise their families. We expect this trend to continue into the foreseeable future,” Kohler added.

In these suburbs, the group has sold one-bedroom apartments priced from R795 000 in Cape Town and achieved up to R3.195 million for three-bedroom spacious family homes in Sunningdale. Some of the properties have a cottage or flatlet for additional income.

Kohler said that it’s currently a buyers’ market and savvy purchasers and investors are snapping up properties that are priced in line with market conditions. Though interest rates are still high and keeping many potential buyers out of the market – those buying in the Western Cape are now getting better value for money.

He said the price a seller achieves in Gauteng may not necessarily be enough to buy the same house in the Western Cape. However, when the market improves, the Western Cape will likely recover more quickly than Gauteng.

“Capital appreciation or how much your property will increase in value annually is important when buying property. Apart from location, buyers should seriously consider areas expecting a lot of development in the next few years, as this will drive prices” Kohler advised.

Rentals

Kohler said high interest rates have benefitted the buy-to-let market. Demand for rental properties is high as many people cannot afford to buy property now. In some instances, this has resulted in rental growth, especially in the Western Cape where demand exceeds available supply.

According to the PayProp Rental Index for the fourth quarter of 2023, the Western Cape recorded year-on-year rental growth of 3.9%. Average rentals reached R10 118 – a R382 increase from 2022 – making the Western Cape the most expensive province to rent property.  Tenant risk is also low with more than half of applicants falling within the minimum-risk bracket compared to 37.7% nationally.

Kohler said one-bedroom apartments in Cape Town make for a great investment with net rental yields of about 10.8%. “Generally, these types of properties are great buy-to-let property investments in South Africa as they are affordable and offer good value for money.”

In Sandown for example, we have successfully let one-bedroom apartments priced between R8 200 in established complexes to R11 500 per month for a unit in a new development, he said.

“As the search for better lifestyles continues, we expect the Western Cape will be a beneficiary of semigration – this will help increase sales and rental activities in the region,” added Kohler.Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, says cutting interest rates would help stimulate the residential property market.

The South African Reserve Bank’s (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase.

Commenting on today’s interest rate decision, Jonathan Kohler, founder, and CEO of Landsdowne says: “The property market needs a cut in interest rate to stimulate and increase sale volumes.

“We continue to see increased activity especially in the Western Cape, mainly driven by semigration as many homeowners relocate from Gauteng and KwaZulu-Natal in search of quieter lifestyles.”

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%.
Kohler said buyers are increasingly purchasing properties in secure lifestyle and gated communities. “We are also seeing rising demand for rental properties – and this bodes well for the buy-to-let market.”

Landsdowne, which was recently appointed as asset managers for Orlando Towers Estate, the first sectional title and lifestyle development in Soweto, says many residents at this estate are first-time buyers which speaks to the importance of home ownership even in a difficult market.

“There is huge demand for property especially from first-time buyers – an interest rate cut will see an influx of these and other buyers back into the market.”

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Orlando Towers Estate

Landsdowne Property Group says a cut in interest rates will stimulate the market

  • Landsdowne sees increased buying activity in the Western Cape
    • Semigration continues as homeowners move out of Gauteng and KwaZulu-Natal
    • Buyers seek better managed municipalities and lifestyles
  • Demand for property
    • Buyers increasingly purchasing into secure lifestyle and gated communities
    • Huge appetite from first-time buyers

27 March 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, says cutting interest rates would help stimulate the residential property market.\

The South African Reserve Bank’s (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase.

Commenting on today’s interest rate decision, Jonathan Kohler, founder, and CEO of Landsdowne says: “The property market needs a cut in interest rate to stimulate and increase sale volumes.

“We continue to see increased activity especially in the Western Cape, mainly driven by semigration as many homeowners relocate from Gauteng and KwaZulu-Natal in search of quieter lifestyles.”

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%.
Kohler said buyers are increasingly purchasing properties in secure lifestyle and gated communities. “We are also seeing rising demand for rental properties – and this bodes well for the buy-to-let market.”

Landsdowne, which was recently appointed as asset managers for Orlando Towers Estate, the first sectional title and lifestyle development in Soweto, says many residents at this estate are first-time buyers which speaks to the importance of home ownership even in a difficult market.

“There is huge demand for property especially from first-time buyers – an interest rate cut will see an influx of these and other buyers back into the market.”

Landsdowne-Property-Esate

Landsdowne Property Group eyes international expansion to diversify its business

  • Landsdowne looks to initially enter the Middle East and Dubai real estate markets
    • Strong return on investment
    • Tax incentives
    • Growing economy and population
  • Awarded Best Lettings Agency in Africa as well as Best International Lettings Agency at the International Property Awards for the second consecutive year

25 March 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, is eyeing international expansion opportunities. This follows the company winning prestigious international property awards for the second year running.

Landsdowne was awarded the coveted Best Lettings Agency in Africa as well as Best International Lettings Agency at the prestigious annual International Property Awards, held at the Savoy Hotel in London last month. 

Jonathan Kohler, founder and CEO of Landsdowne commented: “I am so proud of the Landsdowne Property Group team. These awards show our consistency and unwavering commitment to not only being the best in Africa, but the best in the World. 

“It underpins our ambition for international expansion in 2024 and align with our vision to provide the world’s best property services, positively impacting our clients’ lives and optimising their asset values.”

Kohler added that Landsdowne is eyeing expansion opportunities, particularly, Dubai and the Middle East which offer strong return on real estate investments, tax incentives, a growing economy and population. Dubai has a robust tourist economy, and this bodes well for residential rentals.
According to the Deloitte Middle East Real Estate Predictions 2024 report, the Dubai residential market recorded 18% and 26% increases respectively for sales and rentals in 2023. Gross rentals rose from 6.8% in 2022 to 7.2% due to high demand in various areas.

“We see huge opportunity in lending our property management skills and expertise in international markets while continuing to leverage and tap into new markets in South Africa,” Kohler said.

The International Property Awards, now in their 32nd year, honour outstanding projects and professionals across 45 residential and commercial categories worldwide. Awards span Architecture, Development, Interior Design, and Real Estate, covering nine regions including Africa, Asia Pacific, Arabia, Canada, Caribbean, Central & South America, Europe, UK, and the USA. A rigorous judging process involving over 90 independent experts assessed more than 2 000 entries from 126 countries to determine the winners.

Entries underwent meticulous evaluation, considering criteria such as design layout, quality, architecture, services, security, innovation, originality, marketing, and commitment to sustainability.

Landsdowne was recently appointed as Orlando Towers Estate, the first sectional title and lifestyle development in Soweto.

Orlando-Towers

Huge growth potential for sectional title property management in Soweto, says Landsdowne Property Group

  • Orlando Towers Estate is the first sectional title development in Soweto
    • On completion, it will have over 500 one-, two-, and three-bedroom apartments
  • According to Landsdowne, there is massive growth potential for sectional title property management in a township like Soweto
    • The majority of Orlando Towers Estate residents are first-time buyers
    • There is a growing pool of potential buyers and tenants who can afford to buy or rent property in secure lifestyle estates
    • Landsdowne manages about 35 000 sectional title apartments and freestanding clusters countrywide
  • The Group believes constant communication is key in managing sectional title developments
    • Buyers and tenants need to adhere to body corporate rules to ensure the long-term sustainability of the development
    • Sectional title developments that are well-managed and in a good financial position impacts positively on property values

14 February 2024 

Soweto

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers, has been appointed as managers of Orlando Towers Estate, the first sectional title and lifestyle development in Soweto.

The estate, which is being developed in stages, has recently handed over the first phase comprising 136 one-, two-, and three-bedroom apartments to mostly first-time homeowners. On completion, Orlando Towers Estate will have 568 apartments priced from R600 000 to R980 000.

“We see massive growth potential for sectional title management in Soweto, as new models in urban living in traditional townships increase on the back of demand for secure lifestyle environments,” said Jonathan Kohler, Landsdowne Property Group CEO.

“Developments such as Orlando Towers Estate help to improve the area’s appeal, especially to many young people who grew up in freestanding homes and are now transitioning into secure communal living. It also brings more purpose, enabling those who want to leave their maternal homes to still live in the area but in a development of their choice.”

Overseeing a portfolio of more than 35 000 sectional title apartments and freestanding clusters countrywide, Landsdowne is one of South Africa’s largest managing agents. The Group specialises in estate management, property sales, rental and rental management, off-plan sales and marketing, financial services, utility and solar solutions to body corporates as well as insurance solutions for individual homeowners.

Landsdowne has carved a niche for itself through its hands-on management approach to sectional title schemes across the entire spectrum. It has the capacity and experience to manage any development from an affordable sectional title scheme in Soweto with properties priced at below a million rand to sectional title apartments, freestanding homes exceeding R150 million, residential rental as well as commercial properties in multi-billion rand developments such as Steyn City.

Orlando Towers Estate is Landsdowne’s first venture into the township. Kohler said managing a sectional title development requires expertise in property and financial management as well as homeowners’ buy-in when it comes to levy payments to ensure the development’s long-term sustainability.

“When people buy into a sectional title scheme, the first thing they want to know is the financial position of the scheme as this gives them confidence that their investment will grow in value over time. This, in turn, has a direct impact on the price that the seller can negotiate,” he explained.

He remarked that as managing agents, Landsdowne constantly educates residents on sectional title living. This includes factors such as the importance of levies, body corporate rules and policies around pets, acceptable noise levels in the scheme, and which portions of the building are common property.

At Orlando Towers Estate, for example, many residents are first-time homeowners with the balance being buy-to-let investors.

“Orlando Towers Estate is leading the way in driving urban living in traditional townships, and this will unlock a massive new market for potential buyers and tenants who demand a secure lifestyle in the area they grew up in,” concluded Kohler.