October 31 2024 17:35
SOUTH AFRICA – WESTERN CAPE
One of SA’s most loved towns, with its picturesque vineyards, world-class university and historical sites, Stellenbosch, is a place where South Africans and tourists desire to be. But rising home prices and scarce accommodation force many young professionals and students to commute daily from afar. The dynamic Newinbosch Neighbourhood Estate is addressing this challenge by offering quality, sustainable living at affordable prices. The Ilex Apartments , which have just been launched, represent the latest offering in this vibrant community.
Construction for The Ilex will begin in 2025, with move-in scheduled for 2026. This timeline presents home-buyers and investors with a unique opportunity to secure a robust investment early in a rapidly growing market.
Why choose The Ilex and Newinbosch?
Newinbosch Neighbourhood Estate which is the most sustainable residential development in Africa, offers affordable, high-quality homes nestled within a secure, close-knit, walkable neighbourhood. The multiple community amenities include a lifestyle centre, restaurant, gym, creche, primary and secondary schools, sports facilities, an amphitheatre for events, among other offerings.
This development is ideal for young professionals and families from diverse backgrounds. The proximity to Stellenbosch University adds value, as the university can accommodate only a third of its 30,000 students in official residences. Thus, The Ilex is a practical option for mature students offering solid investment potential for parents and investors seeking capital growth and strong rental returns.
Louise Varga, area manager at Pam Golding Properties explains that Newinbosch benefits from demand for high quality residential space including student housing.
“Student accommodation is the fastest-growing property sector and strongest-performing investment category globally. Similar trends are evident in South Africa where the supply-demand gap is widening. The World Bank’s International Finance Corporation estimates that the shortage of student beds in SA will reach 780 000 by 2025. This makes an investment in accommodation close to universities and educational institutions a viable choice for investors seeking strong net yields and solid capital growth. Availability of rentals is a huge problem too. We’ve just launched our rental list to our waiting list and properties are being snapped up,” she says.
Both Pam Golding and management group Staylonger are involved in property sales and rental management at Newinbosch.
Affordability Achieved Through Stylish Simplicity and Sustainability
The Ilex will comprise 135 apartments over four storeys in four separate blocks, totalling just under 7000m2 of total floor space. The units, starting from R990 000, will be a mix of studios, and one-, two-, and three-bedroom apartments and penthouses catering to single occupants and families alike. Ground floor units will have private gardens in addition to the lush indigenous communal gardens and recreational spaces.
Named after the ‘ilex mitis’ tree, or African Holly, The Ilex is the second apartment complex to be built at Newinbosch following The Bosk, which launched midway through 2024 and is already sold out. The understated yet stylish white rectilinear buildings of The Ilex are textured with window cut-outs and clipped-on balconies, which add interest while breaking down the uniformity. Inside, earthy tones and textures speak of connection to the soil and rugged mountain backdrop.
Harold Spies, founder and CEO at Similan Properties which is Newinbosch’s developer, wants to attract people who want to live in well-run communities.
“We decided to keep the design simple – like a blank canvas for homeowners and tenants to make their own. Since the apartment complex is part of the greater Newinbosch development, it connects to and benefits from all the wider communal amenities, sustainable features such as energy and water efficiency, and waste management,” he says.
The Ilex, Newinbosch Estate, coming in 2025
Now is the time to buy as the cost of borrowing falls
With the prime lending rate having recently dropped to 11.5%, and further steadying of interest rates forecast into 2025, investors can anticipate a further decrease in the cost of borrowing over time. Homes at Newinbosch are EDGE Advanced (Level 2) certified which not only reduces operating expenses because the buildings are at least 40% more energy-efficient and 20% more water- and material-efficient than conventional buildings, but also qualifies home buyers for a further 0.25% ‘green’ concession on their interest rate with participating banks. It is hopeful that the homes at Newinbosch will receive another 0.25% interest rate reduction thanks to the 6-Star Sustainable Precincts rating from the Green Building Council of SA (GBCSA).
Investing in new developments like The Ilex offers distinct advantages.
“Should you qualify for a 100% loan you only need to pay a R10 000 deposit and settle the balance on transfer. Cash buyers must give guarantees before transfer. Meanwhile, your investment can increase in value throughout construction, enabling substantial profits if you sell before or on transfer. While we cannot guarantee this, we have seen it happen in Phase 1 and we do predict the same for Phase 2. Unit prices increase with every phase, so it really pays to get in right at the start of a development,” says Varga.
At Newinbosch, early-phase buyers have seen significant capital growth, with homes purchased at R2.295m sold for R2.8m in less than a year. The Ilex is likely to follow a similar trajectory. The monthly rental income for a studio apartment at The Ilex is projected to be around R8500.
Additional financial advantages of buying into a new development include:
• Pre-Approved by Major Banks: Easier to get a home loan.
• No Transfer Duty: VAT is usually included in the selling price.
• Covered Transaction Costs: Developers often cover these costs.
• Delayed Bond Repayments: Payments start once construction is complete.
• Energy Efficiency: Compliance with SANS 10400 regulations.
• Modern Amenities: Fibre-ready units and enhanced security features. Specifically for The Ilex at Newinbosch:
• Green Bond Rates: EDGE and Green Star certifications provide up to 0.5% interest rate concession.
• Cash Back: ABSA clients get an additional R55k cash back into their bond.
• Lower Operating Costs: Efficient energy, water, waste management, and building practices reduce living costs.
The Ilex, interior design
An Opportunity Awaits
Investing in The Ilex presents a unique opportunity that combines sustainable living with substantial financial returns. With a blend of affordability, innovative design, and strong community amenities, The Ilex caters to young professionals and families while also providing a practical option for mature students. Act quickly to secure this prime investment opportunity as sales open in the final quarter of 2024.
Newinbosch was awarded a 6-Star Green Star Sustainable Precincts certification from the GBCSA in June 2024, making it the first development in Africa to achieve such a high rating. Newinbosch was awarded a Five Star award at the 2024-2025 International Property Awards in the ‘Best Sustainable Residential Development in South Africa’ and ‘Best New Residential Development 20+ Units in South Africa’ categories. It goes on to compete for best in Africa in those categories in 2025.
alistair@propertyflash.co.za
Partner content for Similan Properties
Similan is a residential property development and project management company dedicated to creating homes for every stage of life. Known for award-winning projects, they focus on sustainable developments for the emerging middle-class market, redefining urban living through innovative design. Similan manages the entire property lifecycle, from land acquisition to development and sales, and collaborates with partners like Staylonger for property sales and rental management.
