Latest news with #LewGeffenSotheby'sInternationalRealty
IOL News
12-05-2025
- Business
- IOL News
Exploring the surge of co-living spaces and micro-apartments in South Africa's major cities
During the six months leading up to August 2024, Balwin Properties, an apartment developer, encountered difficult trading conditions within the residential property market as a result of high interest rates. Image: Supplied Is the rapid rise of co-living spaces and micro-apartments in Johannesburg, Cape Town and Durban an innovative urban adaptation, or merely a symptom of the country's broken economy? Yael Geffen, CEO of Lew Geffen Sotheby's International Realty, poses this question. This is as developers are aggressively repurposing underutilised buildings into shared living hubs where tenants trade private space for affordability and community. In Cape Town's Woodstock and Johannesburg's Braamfontein, companies like The Student Hub and CoLiv report waiting lists for their R6 500 to R8 000 per month rooms that include servicing and WiFi. Geffen said this is a necessary market correction right now when consumers are drowning in debt, and the vast majority are battling to keep their heads above water. 'For most young professionals, buying a home is an impossible dream at the moment, with the cost of living remaining so high. They're even being priced out of conventional rentals, but they still need proximity to urban work hubs. Co-living fills that gap intelligently by optimising space and reducing costs through shared amenities,' Geffen said. Siphamandla Mkhwanazi, a senior economist, recently told this publication that a city like Pretoria occupies a unique position within the broader South African property sector. He said it benefits its status as the administrative capital, providing stability and a consistent demand for housing. He added others included a diverse economy, encompassing government, education, and research institutions, relatively more affordable/value for money property options compared to other major cities, attracting a range of buyers and renters and was also seeing a growth in the student rental market, due to the large amount of tertiary education institutions in the city. Lew Geffen Sotheby's International Realty said sub-30m² micro-units, never thought of in South Africa's historically spacious housing market, are now said to be selling out in developments like Cape Town's 1 on Albert in Woodstock and Sandton's The Bryant. Prices start at 20% below standard studios, appealing to singles who prioritise location over square metres. Geffen said the success of micro-apartments proves that in the current economic climate, affordability trumps size for many buyers. 'But developers must innovate-think modular furniture, premium finishes, and tech integration-to avoid these feeling like glorified hotel rooms." She says Cape Town's developments tend to be the most successful in the country at the moment, because the market thrives on scarcity. 'Developers convert heritage buildings into chic spaces, achieving an average of 22% gross margins - nearly double Johannesburg's conversions.' Others are new developments like 1 on Albert, offering semi-furnished micro-apartments starting at 21m² that include 24 hour security & CCTV surveillance, biometric access controls, a heated swimming pool, communal recreation area with braai facilities and super-fast internet connectivity. Prices at this state-of-the-art development that is less than 2km from the CBD begin at below R1 million. Despite the buzz, challenges loom, warned Geffen. These include investor scepticism as banks remain hesitant to finance micro-developments, seeing them as untested. Cultural resistance as many South Africans still view compact living as a downgrade and oversupply risks as Durban's Umhlanga corridor already shows signs of co-living saturation. 'The danger is that we mistake a stopgap solution for a cure. Co-living can't replace the need for broader housing reform, including faster planning approvals and incentives for mid-income developments.' Geffen said industry leaders are split on whether this trend will last. While some predict co-living will grow to 15% of South Africa's urban rental market by 2030, others argue it is merely delaying a reckoning with unaffordability. 'The real test is whether these models can evolve beyond student and young professional niches to serve families and older demographics. That's when we'll know if this is truly transformative or just a Band-Aid,' added Geffen Geffen noted key market questions going forward include whether local government entities will relax density restrictions in a greater number of suburbs to enable more micro developments, whether these developments will be the turning point for inner city decay and whether more relaxed density zoning in wider areas will make it more affordable for buyers to get onto the property ladder. 'South Africa's housing crisis won't be solved by one solution alone. 'This trend isn't a total fix, but for now, co-living and micro-apartments are to some extent rewriting the rules of urban residential design and offering a solution to younger professionals struggling to make ends meet with the immensely high cost of living in the country's stagnant economy,' Geffen said. Today's savvy buyers are said to be embracing starter homes like one or two bedrooms, a single bathroom, and enough room to live well without the stress of major upkeep. According to Jonathan Spencer from these homes typically range from 70m² to 116m², offering the perfect blend of comfort, affordability and personal style potential. 'Starter homes are the ideal launchpad for new homeowners. They tick all the essential boxes without overwhelming you financially. Plus, there's more room in your budget to create a space that really feels like you,' Spencer said. Independent Media Property
Zawya
01-05-2025
- Business
- Zawya
Urban innovation or economic despair? The rise of co-living in South Africa
With interest rates still close to the highest in more than a decade and city-centre rents climbing relentlessly, young South African professionals are being forced to rethink traditional housing. Lew Geffen Sotheby's International Realty chief executive officer Yael Geffen says the rapid rise of co-living spaces and micro-apartments in Johannesburg, Cape Town and Durban has sparked a heated debate: Is this innovative urban adaptation, or merely a symptom of the country's broken economy? The co-living revolution: Affordable or compromised living? Developers are aggressively repurposing underutilised buildings into a shared living hub where tenants trade private space for affordability and community. In Cape Town's Woodstock and Johannesburg's Braamfontein, companies like The Student Hub and CoLiv report waiting lists for their R6,500 to R8,000 per month rooms that include servicing and WiFi. 'This is a necessary market correction right now when consumers are drowning in debt and the vast majority are battling to keep heads above water,' says Geffen. 'For most young professionals buying a home is an impossible dream at the moment with the cost of living remaining so high. In fact, they're even being priced out of conventional rentals, but they still need proximity to urban work hubs. 'Co-living fills that gap intelligently by optimising space and reducing costs through shared amenities.' Micro-apartments: Big demand for tiny spaces Sub-30m² micro-units – once unthinkable in South Africa's historically spacious housing market – are now selling out in developments like Cape Town's 1 on Albert in Woodstock and Sandton's The Bryant. Prices start at 20% below standard studios, appealing to singles who prioritise location over square metres. Geffen notes: 'The success of micro-apartments proves that in the current economic climate affordability trumps size for many buyers. But developers must innovate – think modular furniture, premium finishes, and tech integration – to avoid these feeling like glorified hotel rooms." She says Cape Town's developments tend to be the most successful in the country at the moment, because the market thrives on scarcity. 'Developers convert heritage buildings into chic spaces, achieving an average of 22% gross margins - nearly double Johannesburg's conversions.' Others are new developments like 1 on Albert, offering semi-furnished micro-apartments starting at 21m² that include 24-hour security & CCTV surveillance, biometric access controls, a heated swimming pool, communal recreation area with braai facilities and super-fast internet connectivity. Prices at this state-of-the-art development that is less than 2km from the CBD begin at below R1m. The risks: Will this model last? Despite the buzz challenges loom, warns Geffen. These include: Investor scepticism: Banks remain hesitant to finance micro-developments, seeing them as untested. Cultural resistance: Many South Africans still view compact living as a downgrade. Oversupply risks: Durban's Umhlanga corridor already shows signs of co-living saturation. 'The danger,' warns Geffen, 'is that we mistake a stopgap solution for a cure. Co-living can't replace the need for broader housing reform, including faster planning approvals and incentives for mid-income developments.' Temporary fix or future norm? Geffen says industry leaders are split on whether this trend will last. While some predict co-living will grow to 15% of South Africa's urban rental market by 2030, others argue it's merely delaying a reckoning with unaffordability. 'The real test,' says Geffen, 'is whether these models can evolve beyond student and young professional niches to serve families and older demographics. That's when we'll know if this is truly transformative or just a Band-Aid.' Geffen says key market questions going forward include whether local government entities will relax density restrictions in a greater number of suburbs to enable more micro developments, whether these developments will be the turning point for inner-city decay and whether more relaxed density zoning in wider areas will make it more affordable for buyers to get onto the property ladder. 'South Africa's housing crisis won't be solved by one solution alone. 'This trend isn't a total fix, but for now, co-living and micro-apartments are to some extent rewriting the rules of urban residential design and offering a solution to younger professionals struggling to make ends meet with the immensely high cost of living in the country's stagnant economy.'
25-04-2025
- Business
R45 million dream home hits the market in Cape Town
R45 Million dream home hits the market in Cape Town, here's why everyone wants in. The Mother City's luxury property boom shows no signs of slowing, with Camps Bay leading the charge. Cape Town's Camps Bay continues to dominate headlines in South Africa's property market, and the latest listing proves why. A jaw-dropping family home, boasting architectural brilliance and uninterrupted ocean views, has just hit the market for just under R45 million. According to Pam Golding Properties, the house spans three levels, features five en-suite bedrooms, and embraces seamless indoor-outdoor living, all wrapped in striking contemporary design. Completed in 2022, the home offers a luxury lifestyle few can match. Soaring ceilings, vast open-plan lounges, and floor-to-ceiling glass sliders ensure that every corner makes the most of Camps Bay's iconic views—from the rugged peaks of the Twelve Apostles to the sparkling Atlantic coastline. 'This home is a masterpiece of design,' Pam Golding stated. 'Wall-to-wall glazing offers panoramic views, and every detail speaks to quality and luxury.' With two swimming pools, a curated garden, and an astro turf lawn, the property was clearly built with entertainment in mind. High-end finishes include solar backup power, double glazing, electric blinds, and solid oak flooring. A garage that fits up to five vehicles—and additional covered parking—rounds off this luxury offering. Camps Bay isn't just stunning—it's surging. Luxury property prices have jumped from R13.18 million to over R24.1 million since the start of the decade. Only Clifton and Bishopscourt rank higher in Cape Town's property hierarchy. 'Access to lifestyle amenities—including high-end restaurants, top-tier schools, and blue-flag beaches—drives property values upward,' said Claude McKirby, Co-Principal of Lew Geffen Sotheby's International Realty. Cape Town's Atlantic Seaboard has become a magnet for both South African and international buyers. Seeff Atlantic Seaboard's Ross Levin reported a record-breaking Q1 2025, with over R1.6 billion in high-end sales. R45 million Camps Bay home sold to a South African buyer R21 million purchase by a German investor R33.75 million shares sale to a British buyer Levin explained, 'High-net-worth buyers see Cape Town as a safe and appreciating store of wealth.' International demand continues to soar, especially from cash buyers in the UK and Germany, while a steady stream of semi-urban migrants from Gauteng and KZN are trading big-city chaos for coastal luxury. Why Camps Bay remains the crown jewel Beyond the beaches and the views, Camps Bay offers unmatched lifestyle appeal—vibrant nightlife, luxury spas, fine dining, and proximity to Cape Town's CBD. Its combination of exclusivity and natural beauty keeps demand high and prices climbing. Whether you're buying to live, invest, or simply soak in the sunset, Camps Bay real estate is proving to be one of South Africa's most valuable assets. Stay tuned with The South African as R45 Million dream home hits the market in Cape Town. Let us know by leaving a comment below or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
