The new mixed-used development adjacent to the iconic Loftus Versfeld stadium will have offices, a hotel and various restaurants, and will increased demand for property in the area.
The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
“This part of Tshwane is already highly popular among students but we foresee that the presence of this new centre with restaurants, convenience stores and offices will also make it fashionable among young professionals and entrepreneurs, embassy staff, academics and sports administrators and give rise to a whole new live-work-and-play precinct.
“Consequently, now would be a good time for buy-to-let investors to purchase flats in the area, as well as houses that can be or have been converted to rental accommodation. Indeed, Deeds Office figures show that the local property market is already on the move, with more than 600 apartments in Sunnyside having changed hands in the past year (at an average price of R380 000) and house prices in the suburb having risen from an average of R1,7m last year to R1,9m currently.
In Arcadia, which is where many foreign embassies are located, more than 280 flats have been sold in the past 12 months and the average price has risen from R370 000 to R410 000, while the average house price has more than doubled over the past two years from R2,4m to R5,7m.
The first phase of Loftus Park which recently opened includes 34 000sqm of A-grade office space complemented by an open-air piazza and various restaurants including Casa Bella, Turn & Tender, Salsa, Rocomamas, Vovo Telo and Seattle Coffee Co.
It also has conference facilities, convenience retail and a Virgin Active gym - all just a short distance from the Gautrain station in Hatfield and the Tshwane Rapid Transport (TRT) public bus route, and close to the Pretoria High School for Girls and Pretoria Boys’ High School as well as the University of Pretoria.
According to developers Redefine and Abland, further phases will also include a 152-room Protea Hotel by Marriott and a private hospital for the precinct as well as more office space.
“The development will thus add highly accessible work-play-and-live elements to the local environment,” says Kotzé. “This is bound to create additional housing demand from young professionals and executives who increasingly prefer integrated lifestyle areas where everything they need on a daily basis is within walking distance of home - and there are currently some excellent real estate investment opportunities in the area.”
Prices for studio and one-bedroom flats in Sunnyside start at R200 000, and those for two-bedroom units at around R240 000, while rentals for two-bedroom units start at around R4000 a month. In Arcadia, studio and one-bedroom flats are available at prices from R250 000, while two-bedroom units start from around R350 000, and rentals for two-bedroom units start at around R5000 a month.
Highly sought-after two to four-bedroom townhouses are also available at prices from around R700 000 to R2,1m and can be let for between R7000 and R15 000 a month. RealNet is currently marketing a two-bedroom, two-bathroom townhouse, for example, which is priced at R1,75m and located in a complex across the road from Loftus Park where furnished units rent to corporates for around R12 000 a month.
And with rooms to let also in high demand at rentals from around R2500 a month, properties that can be converted to guest houses, communes and student accommodation are another popular choice for investors in these suburbs. One such property currently for sale offers 11 bedrooms and four bathrooms and is available through RealNet for R1,95m.
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