With Accelerate Property Fund owning a large portion of business right land and partnering with the Fourways Precinct, residents can almost be assured that the plans for the improvement and development of the area will increase residential property values exponentially in the coming years.
This is according to Nelio Mendes, marketing manager of property group, SAProperty, who says that the main development programme – which is currently under way – is being driven by the plan to combine Fourways Mall with surrounding malls to create one large retail space.
This “mega-mall” will eventually have 175,000 sqm of retail space under one roof.
“There are plans for the group to achieve a total of around 1,000,000 sqm of rights in the future, positioning Fourways as a new CBD,” said Mendes.
“It is reported that approximately R30 million will be spent on the refurbishment of the existing Fourways Mall, and a further R270 million will be spent on the adjacent road infrastructure around the mall.”
This will certainly affect surrounding property prices, said Mendes, as Fourways is now seen to be the fastest-developing commercial and residential hub in northern Sandton.
Property in Fourways comprises 11.5% in freehold in estates, 6.3% in sectional title schemes in estates, 50.4% in freehold, and 31.7% in sectional title schemes.
The current median prices, according to a recent Lightstone report, are R2.3 million for freehold properties and R1.6 million for sectional title and the average selling prices in the last three months have been R2.5 million in estates, R2.2 million for freehold properties and R1.5 million for sectional title units.
“When comparing median prices for this year with those of five years ago, there has been value growth in the region of 35% for freehold property, whereas in the previous years, value increases were lower year on year,” said Mendes.
“Fourways will become a sought-after area for all types of buyers in the property market, and Lightstone figures show that this is already being seen by age groups 18 to 35 years of age (30% of recent buyers) and 36 to 49 years old (45%) – with the majority of stable owners being in the same age brackets.
“A major investment in the area such as the mega-mall, will serve to boost confidence and demand for homes here“, he said.