When Paul Henry, MD of Rawson Developers, completed phase one of the companys Rondebosch Oaks project in Rondebosch, Cape Town, he was quoted in a press release as saying that although phase two was now guaranteed of success, 'Our big regret is that we cannot find another equally suitable site for a follow up project'.
That was in early 2009.
Now, Henry has announced his team has found another Rondebosch site and, what is more, it is in an equally good area and will offer even higher rentals. It is currently occupied by six old homes which will be demolished. Like Rondebosch Oaks it also has knockout views of Devils Peak and the Groote Schuur mountain slopes. The development will be known as Rivers Edge.
The 3 206m² site is on the western side of the Liesbeeck River (very close to UCT) and is bounded by Rosslyn and Haldane Roads. Rawson Developers plan to build a seven storey block in which there will be 81 one and two bedroom units varying in size from 47 to 94m². All will have balconies and, as mentioned, these will frequently look onto the mountain.
Prices, says Henry, will range from R765 000 to R1,85 million.
Trevor Weston-Green, Rawson Development Analyst, has done a survey which reveals that new developments in Rondebosch have been rare for some 30 years '“ only four in the last five years. Nevertheless, he said, it is now known that UCT is short of 5 500 bedrooms and that Rondebosch has gained in appeal for both retirees and young professionals and managers, many of whom studied at UCT.
'For several years we have had a classic case of demand exceeding supply and this has pushed up rentals and values. A survey taken in 1999 shows that the average Rondebosch sales price on sectional title units was R240 000. Today it is well over R1 million. A rental agent has shown that 35m² bachelor units are renting at R3 500 to R4 000 while standard two bed units are achieving rents of R6 000 to R10 000'
These figures indicate that any investor buying into this latest Rawson project will be able to achieve a rental return of 7,5% - 2% higher than the average for Cape Town.
Henry has given his assurance that the development will be amongst the most secure in the Western Cape. Its security measures will include electrified boundary walling, CCTV, security guards, a single manned entrance and fingerprint recognition for access to the building itself.
Work is expected to start by August this year and the first handovers will, it is hoped, take place before May 2011.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za.
