Maboneng is Joburg’s new investment gem
An area once rife with crime and urban decay has been transformed into an up and coming chic suburb
Over the last decade, an area once rife with crime and urban decay has been transformed into an up and coming chic suburb. Not since the Gold Rush of 1886 has Johannesburg offered such investment potential.
Announcing a change of venue to a large conveniently situated locality, Jaco du Toit of Park Village Auctions (PVA) says now is the time for property investors to add Maboneng to their portfolios.
The symbiotic relationship between local government and investors in the Maboneng area started in 2003 when the City of Johannesburg introduced the Urban Development Zone tax incentive to eligible investors.
The incentive reportedly reduce taxability by 20% depreciation of inner city property development costs annually for five years, well above a typical depreciation of 5%.
Investors wanting rapid growth of their portfolios are coming in on the ground floor and buying up property in this area at a rapid rate. With more than 2-billion being funnelled into the Maboneng precinct by investors ranging from property investment companies to financial institutions, this is an area to watch closely in the coming years.
Du Toit says PVA will be adding its name to companies involved in the renewal of Maboneng with the multiple properties to auction in April.
“The precinct draws the inner-city public as well as the chic, art-going crowd of the city’s suburbs. PVA’s auction portfolio will allow potential investors to get a foot in the door of this new property hotspot and allow them to benefit in the huge growth potential offered by Maboneng,” Du Toit says.
Park Village Auctions will bring a long list of mixed-use properties to market on Monday April 15 from 12pm.
The auction will take place at The Venue, 17 High Street, Melrose Arch, Johannesburg.