World Cup infrastructure boosts rejuvenation of Doornfontein
The infrastructure development and improvements taking place around the Ellis Park stadium sports precinct before the 2010 World Cup are set to become a catalyst for rejuvenation in the adjacent suburb of Doornfontein, says Oscar Mello, leasing, sales and investment broker for Pam Golding Commercial in Gauteng.
"The Ellis Park precinct, incorporating Ellis Park Stadium and Johannesburg Stadium, is undergoing a major facelift and attention is beginning to focus on nearby Doornfontein, a semi-industrial area where vacancies have increased in the past few years due to industrial operations moving to dedicated industrial areas," says Mello.
"Already, the Affordable Housing Company (AFHCO) has moved into the area with a number of acquisitions and conversions of industrial property to residential use. There is a shortage of affordable accommodation in Joburg, so there's demand from tenants for property that has been effectively converted or renovated and, as soon as there's an influx of residents, retail business is drawn to the area.
"As a result of this gradual transition, a number of vacant upper- floor factories or warehouses have become available either to let at rentals of between R15 and R20 a square metre, or to buy at very competitive prices of up to R1 500 a square metre.
"This has created opportunities for perceptive investors, including owner-occupiers, to buy properties such as these before the rest of the market realises the potential."
Mello says of further relevance is that Joe Slovo Drive runs right through Doornfontein, providing easy access in and out of the area via the M1 and M2.
Also, the City of Joburg continues to develop eastwards, joining up with the sporting precinct, which will provide a further positive stimulus for Doornfontein's rejuvenation. He believes Doornfontein will become a mix of industrial and residential space, with limited retail.
Already the area from Ellis Park moving south up to Voorhout Street is completely industrial, neat and well maintained.
In some areas of Doornfontein, manufacturing is still taking place on the ground floors of buildings and the upper floors are vacant. In the main street - Joe Slovo - the ground floor of most properties comprises occupied commercial premises and the upper floors are partially occupied light manufacturing space or offices.
Mello says in New Doornfontein, from Lower Railway Street to Bezuidenhout Street, there are a number of run-down one- and two- storey buildings that should be demolished to make way for new development, whereas others can be refurbished and either retained for use as factories or converted to residential - as AFHCO has done.
Most of the properties between Nugget Street and Joe Slovo Drive could be converted to residential use.
Just west of Doornfontein, in the Plein Street area, he says there is a new trend for major businesses, such as national retail and food brands, to move in, replacing small businesses in a positive move which highlights the potential for sound investment in this area.
"With easy access to all modes of transport and with Bree Street and the Carlton Centre to the south, centrally situated Plein Street is sought after as a location for retail premises, and rentals vary between R100 and R140 a square metre.
Because of the high trade enjoyed by retailers, there are not very many properties available for purchase and where there are, the price is in the region of R2 000 a square metre. The properties in Plein Street tend to be a mix of old office blocks - some of which are used as flats - and proper apartment blocks, all with fully let shops on the ground floor."
Mello says businesses likely to be drawn to the Plein Street area are supermarkets, eateries, liquor stores, clothing and appliance shops, or those providing entertainment.
Weekend Property supplement (Saturday Argus)
Posted at 08:30AM Nov 02, 2009 by Editor in Commercial |