Buy-to-let investors are beginning to take an interest once more in Auckland Park, which is one of Johannesburg's prime spots for student accommodation.
So says Lewis Kennett, sales agent for leading local agency Homenet/ Harcourts Jon Rosenberg, who notes that investor interest has been rekindled by the fact that entry-level bachelor lofts in the area are now being marketed for around R350 000.
Additionally, there is no shortage of rental demand. Set between Wits University and the University of Johannesburg, Auckland Park attracts thousands of students annually, and is also popular with academics, doctors and nurses at the nearby hospitals and media workers at the SABC and Mediapark complexes, who pay an average R3000 monthly rent.
Says Kennett: "Additionally, there is no shortage of takers for rooms at the student houses and communes in Auckland Park which generally go for around R1700pm. However, most owners are opting to hold on to these properties as they can afford to do so."
More upmarket accommodation is also available to students at The Yard, where sectional title units are renting for up to R9000pm and cost over R1m to buy.
As for the ordinary freehold properties in Auckland Park, they are being targeted by black diamonds and increasingly, Indian buyers. Indeed, notes Kennett, the Muslim community has grown to such an extent that a mosque is currently being built in the area.
ISSUED BY HARCOURTS AFRICA