NEIGHBOURHOOD REPORT: ROSEBANK, JHB
The suburb where you want to work, play and sleep in, Rosebank is becoming one of the most sought after areas in Johannesburg. The area has recently become one of the top business nodes in the country, rivalling Sandton for cranes and new developments, but thankfully not rivalling it for traffic. Young working professionals relocating to Johannesburg really ought to consider the compact and trendy suburb of Rosebank.
The suburb, which is built around the Gautrain station and offers easy access to surrounding suburbs and the city centre, offers plenty of high-end shopping opportunities, and the arts and crafts market is also a perfect place to while away your free time. For fitness fans, there are a number of health clubs, including all of the well-known brands, in the area. After hitting the gym, refuel at one of the many dining options, from fastfood outlets to authentic Mexican meals, fine dining and everything in between.
The Keyes Art Mile (an assemblage of galleries and showrooms) can also be found here. On the first Thursday of each month, the creatively named “First Thursday” event occurs, where the galleries stay open for late night art gazing and socialising.
Painting the suburb by numbers
According to Lightstone Data, 92% of properties sold here are sectional title units. With retail, and commercial space within walking distance from the Gautrain station being at such a premium, developers had no choice but to go up. A number of high volume luxury residential developments have consequently been released over the last two years. The Apex, the Vantage and the Thyrwitt have become the most sought after places for young professionals.
And young professionals certainly seem to make up a large portion of the residential profile. 19% of recent buyers (for the period May to April 2018) are aged between 18-35, and 57% are aged between 36-49.
As a strong and growing rental market in this area for young professionals who want easy access to Rosebank and Sandton, there is a lot of investment purchasing within the 36-49 age range. Families seem to prefer the surrounding suburbs, even though there is no shortage of great schools available in the area: St Johns, King Edward VII and St Stithians are all within a 15min drive.
Investigating the investment value
According to Lightstone data, the median price for a sectional title property in the area is around R1.7 million. A total of around R190 million’s worth of sales were made on these properties in the last year.
Lightstone’s report also states that the median price for a freestanding title is sitting at around R5.4 million. If you can find any freehold property within Rosebank at that price, you should be buying it. Rosebank is certainly one of the fastest growing business nodes in the country and should be showing fantastic growth for investors over the coming years.
With freehold properties making up only 8% of the market in this suburb, you can be guaranteed that these properties will be pounced upon by developers very soon. Excluding the Gautrain development, Rosebank has seen more than R10 billion being injected into its veins recently. So, if you can get your hands on property before developers come knocking on your door, then you could stand to earn a rather high return on your initial investment.
Should I buy here?
Comparing it to popular suburbs in the Southern African region, Rosebank is an ideal area for those who are looking to make an investment purchase. It is equally as appealing for those looking for convenience in terms of travel and lifestyle offerings.
*statistics accurate according to Lightstone data accessed on 7 May 2018.
**advice sourced from Frikkie van Eeden, broker owner of RE/MAX Advantage – a newly opened RE/MAX office operating in the area.