The last two years have seen numbers of enthusiastic entrepreneurs moving into Cape property development - sometimes with very unfortunate results.
Discussing this trend recently, Bill Rawson, Director of Rawson Developers and Homebuilders (which has over 2000 residential units to its credit), said,
'There is all the difference in the world between a developer who has learned his business on-site, supervising work, and one who has acquired business knowledge but lacks the essential hands-on site experience'
Contractors and sub-contractors, said Rawson, have to be monitored 'almost hourly' '“ they cannot, he says, be left to their own devices because site staff today are seldom properly trained and unscrupulous workers can skimp on their tasks to save time or money '“ to the long-term detriment of the project.
In the last two or three years, said Rawson, some of his franchises had been embarrassed to find that homes that they have sold for independent developers on completion did not live up to the 'seductive' computer graphics and artwork impressions released at the time of the launch.
'In many cases', he said, 'not only have standards been unacceptable but the handovers of units have also been seriously late, causing distress to the new owners'
These problems, said Rawson, have mainly occurred with developers entering the market for the first time.
'The good news is that it is not usually the tried-and-tested older firms which run into these quality and time problems '“ it is the newcomers to the market, those who lack site experience'
Often, added Rawson, these developers find themselves with cash-flow problems caused by delays. This in turn can lead to desperation, even panic, and further skimping on work to get a quick handover.
'One of the golden rules of good property development,' said Rawson, 'is that one must build up a core of reliable, well-paid subcontractors whom you use repeatedly. This might add slightly to your cost, but it will reduce quality problems down the line'
'The lesson to be learned from the last few years is that buyers and estate agents must check the track records of their developers. They should talk to previous clients. It is, too, worth checking how many units the developers staff are buying '“ it is always a good sign if a companys staff is willing to invest in their own product'
The shortage of zoned land and the very fast escalation in building costs over the last two years, said Rawson, are likely to push up prices of all forthcoming residential development units in the Cape, as well as the prices of existing homes.
'Any residential unit bought now in the lower sector of the market, in my view, is likely to be worth at least 25% more in two years time,' he said.
This, he added, applies particularly to the recently launched 'Rondebosch Oaks' development, 'perhaps the best value in the Cape today'.
