Randburg Rising

Randburg, which lessened some of its charm on the back of Sandton’s popularity over recent years, is now poised for the return of developers and investors.

Consisting of over 32 suburbs, with the majority being upper-income residential suburbs, the area had begun to wane. A JHL leasing consultant explained that there was a migration of industrial and retail investors toward Northern suburbs, such as Cresta and Sandton.

However, with municipal plans to renew and upgrade infrastructure, JHL forecasts Randburg to attract new investors as well as former investors. It is now a designated a priority area and significant commercial point of the City of Johannesburg’s five-year Integrated Development Plan.

Therefore, Randburg as well as other suburbs, will benefit from developments in road infrastructure and public transport of the Rea Vaya Bus Rapid Transit system (BRT) expansion. It is aimed to provide easy access to Johannesburg suburbs via the Rea Vaya BRT system, which the City of Johannesburg are calling the ‘corridors of freedom’.

Today, traffic flow in the area has improved, owing to the Gautrain bus routes adding to Randburg’s appeal.

Private investors are hoping to participate in Randburg’s development wave. It is held to be a mixed-use development space, with the expansion of industrial, retail and residential nodes.

Furthermore, developers are aware of the transport and road infrastructure, as Randburg’s residential sector are experiencing developments of its own.

Seeff Properties Randburg claim the suburb’s property market are experiencing an increase of sectorial titles from R450000 to R750000 – responding to the excessive demand of affordable residential stock.

There is great demand for lower-end properties, with properties over R3million moving slower. The greater Randburg region has a number of well established and stable suburbs, experiencing a stable turnover in stock between R800000 and R1700000 – however, this is a well-levelled market with some pressure for extra stock.

Property buyers in Randburg seek value for money, subsequent of a tough economic period and consumers who are overstretched. It has also become a trend in Randburg for property buyers to seek smaller accommodation.

Movement within the cluster development has been experienced, however on a smaller scale. Developers in suburbs including Linden and Fairland are subdividing stands into smaller units, increase the densification with three or four cluster units - This is increasing the stock levels of the Randburg suburbs.

The regeneration plans of road infrastructure offer an opportunity for the commercial property sector.  Randburg quarters to corporations including First National Bank, Mnet Magic Centre, MultiChoice, Sasol Gas Ltd, government departments, service centres and regional shopping centres.

The location of corporations such as the above within Randburg, in turn makes the demand for affordable accommodation higher, as employees wish to live closer to work. 

Randburg commercial space does offer value for money.  JHL went onto explain Randburg office rentals are competitive, with B-grade buildings typically between R60 and R70 per square metre. This is as C-grade rentals are less than R60 per square metre. The currently popular, Sandton’s B-grade buildings can retail for R80 to R100 per square metre.

C-grade buildings usually have older style finishes, building systems and services. B-grades are older buildings with finishes close to modern standards, subsequent of refurbishments.

In terms of development in the office property market, Randburg recorded 5% of office sector development activity, as revealed by the South African Property Owners Association’s 2014 second quarter office vacancy survey. Johannesburg CBD  and Sandton office developments recorded 11% and 30% respectively.