High-end and luxury apartment developer, Signatura has launched The Rose, an offering containing 61 apartments which have been designed to appeal especially to buyers who will rent them out to Airbnb users.
Signatura, which was formed by Rabie group founder John Rabie, acquired a building located at 117 on Strand Street in De Waterkant, Cape Town. The building will include The Rose which is being marketed as a value-driven offering and is well-suited to people who want to be located near the V&A Waterfront, the city, and key suburbs within Cape Town. At an average size of 29 m2, the apartments are relatively small and suit renters who want to live a lock-up-and-go lifestyle.
John Rabie explains that the apartments are well-suited to investors who will rent them out for Airbnb purposes to visiting tourists and foreigners sent to Cape Town to work on projects.
The apartments are priced from R995 000 and come fully furnished with a custom range by Weylandts. Residents of The Rose will have access to varied services and communal facilities. These include a gym, restaurants, shops, and a rooftop pool with stellar views of Cape Town’s mountains. The Airbnb-friendly features will include aircons, work nooks, Wi-Fi provided by Bunny Digital, smartphone-activated access and short-stay rental management, administered by Perch. The building’s design has been enhanced by Fabian Architects. Residents will also have access to varied retail spaces.
Buyers can also benefit from the UDZ and 13sex multi-unit tax schemes. Signatura says that according to conservative projections, buyers should make a 9% return on their investment in the first year of ownership. Considering seasonal occupancy and estimated day rates from April 2024 to March 2025, buyers will receive an average monthly rental income of R23 388 per month, or R280 658 for the year. Given all associated running costs, this equates to a return on investment of 9%. This figure would exclude bond costs and the additional investment benefits of capital appreciation and the UDZ tax incentive.