The Development Node

Central Developments Property Group recognised the potential in the South of Johannesburg, where electricity supply is still available (non availability of Eskom power is stifling major developing nodes in Gauteng). The diminishing supply will cause prospective home owners more difficulty to obtain property resulting in higher property price increases in the short term.

Our biggest project to date will be located in the Meyersig node, and will comprise a security estate development of approximately 2 000 residential units over the next 5 years starting off in 2009, a shopping centre in 2010 and a private school and crèche in 2011.

The Eye of Africa Golf Estate, another big development in the New South, almost borders the Meyersig Development Node.

Unique advantages of investing in the final phase of the first Estate in the Meyersig Node:

•       Prices pitched for growth:

-       Packages (incl. stand) at lowest bulk rates in Gauteng (under R6000/m²)

-       Now selling at 2007 prices (construction commenced 2007)

•       Scarcity of Full Title developments - opportunities are rare:

-       Although demand is higher than Sectional Title (joint advantages without joint risk) supply is small due to expensive cost of Full Title development.

•       Great value for money product and specification:

-       Recreational park with clubhouse, basketball court, cricket nets, beach volleyball court, pool and kid’s pool, mini soccer field, kid’s playground and 5 separate gazebo braai areas

-       Luxury finishes are standard on all units

•       Higher increase in rental income expected: (See rental dynamics)

-       Market conditions (smaller supply, strong demand and effect of the NCA) results in more tenants unable to buy own property

-       Strong rental demand (strong security, excellent locality, high spec finishes and luxurious recreational park)

•       Unparalleled capital growth:

-       Full Title generates higher capital growth than Sectional Title developments (bigger demand and smaller supply)

-       Steep continuous increase in building cost inflation will cause higher price paid by end users (home buyers)

-       First estate in Meyersig Development Node - longer growth period, next estates (2000 units over 5 years) will cause dramatic price escalation

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