Supplied by EastProperties
According to Wikipedia, Biophilic design is a “concept used within the building industry to increase occupant connectivity to the natural environment through the use of direct nature, indirect nature, and space and place conditions. And it’s not every day that South African developers dish up opportunities, like The Fynbos, in locations like Bree Street, Cape Town. Think plant power, renewable energy and sustainability”.
EasyProperties, which facilitates diversified and simple property investment and is a member of the Purple Group, has recently listed the IPO for The Fynbos on its platform.
According to EasyProperties CEO, Rupert Finnemore, the group sees it as the most iconic development in Cape Town, and even for the country as a whole for the near future.
“It’s unique. Apart from all the aspects that go with a biophilic project of this nature, we are particularly excited that The Fynbos appeals to such a broad investment segment. It meets the need for the foreign investor attracted by exchange rates, climate and lifestyle who is looking for a top-end development, but because EasyProperties has negotiated such a good bulk discount, it provides the ordinary investor with a once-in-a-lifetime opportunity too,” says Finnemore. Like most developers, The Fynbos offers a bulk discount for bulk purchasers. There is still however, opportunities for a broad and diverse investor base, as well as a further 3% discount for those who purchase through the EasyProperties platform.
UNUSUAL ART, HIP LIFESTYLE AND TIMELESS DESIGN
“Almost a brand of its own, Bree Street will soon be taken to an even more trendy level, when residents who will enjoy state-of-the-art biometric and CCTV security, will be able to pop out to a ground floor plant-based restaurant or walk to the hippest venues in the city,” says Finnemore.
“It has always been one of the founding principles of EasyProperties to negotiate the same quality deals to our investor community, that are offered to high net worth individuals, family offices and institutions. This inclusionary vision is shared by developers Lurra Capital and the entire Fynbos project team” says Finnemore.
In terms of The Fynbos, EasyProperties has secured an average purchase price of R1 155 314 per unit acquired (including furniture). This represents a material discount of 10% on the asking prices of the units acquired.
“Even though the rental market has experienced a subdued environment due to multiple factors, including the work-from-home phenomenon, since the beginning of 2022, the trend for short-term stays converting to long-stay rentals is on the rise.
“As tourism and travel are expected to continue to pre-covid levels, the completion of The Fynbos during the final quarter of 2024, is expected to be perfectly poised to take advantage of this,” says Finnemore.
POTENTIAL FOR STRONG CAPITAL APPRECIATION
Of course, off-plan developments, where only a deposit is required, usually offer excellent capital growth opportunities, but because we have bought at this deep discount, we anticipate that the two-year construction time will yield exceptional growth,” says Finnemore.
According to the EasyProperties Investment Case report, the property market in the City Centre is making a decent recovery, with prices moving closer to pre-covid figures. The number of property development activities and investors who are scrambling to take up stylish apartments and lofts show that buyers continue to believe in the future of the city.
As one of the fastest growing precincts, both residentially and commercially in Africa, the Annual State of Cape Town Central City report (2020) cited 31 new property developments valued at R5 billion, that have either been completed or are underway. This data, coupled with the fact that The Fynbos will be the most distinctive residential high-rise development in recent Cape Town history is already generating enormous local and international interest.
POWERFUL TAX INCENTIVES
According to Finnemore, investors will have access to powerful tax incentives, including the popular Section 13 of the Income Tax Act No 58 of 1962. This scheme enables any taxpayer who owns five or more new, residential rental units, to claim up to 55% of the purchase price as a tax deduction, deductible over 20 years. This, coupled with the 10% discount off the sales prices exclusive to EasyProperties investors, the Fynbos gives buyers the ultimate Cape Town residential development at a fraction of the usual price.
