Typical buyers of the micro units at 1 on Albert are aged between 25 and 35
The needs and attitudes of millennials are having a major impact on the property market worldwide.
Their desire for homes that are well located, easy to maintain, and at prices that suit their pockets, has been clearly demonstrated by the uptake of the 1 on Albert micro units in Woodstock, which has served as a great test on millennial needs and desires.
With the “dramatic” price growth of properties in Cape Town, Rob Stefanutto, managing director of Dogon Group Properties, says a lot of millennials want to buy, but are limited by prices.
This was one of the reasons why the company launched the micro unit development late last year.
“We are of the opinion that we have to produce new products and target new markets, and this led us to begin looking at markets like Woodstock and Salt River, which have shown to have growing appeal.
“We recognised the value of the area and the many benefits it offers, including its proximity to the CBD and other areas,” he says.
The typical buyers of the micro units at 1 on Albert are aged between 25 and 35.
They were looking for properties with high specs that allowed them to enter the market but at prices similar to the rents they had been paying.
They are young professionals who have landed their first jobs at big firms in the marketing and art-type sectors.
“They generally rent in areas like the city centre, probably living in Green Point in some of the older blocks there. But they want to live in high-end buildings with all the necessary amenities, like high-speed fibre, and they are willing to take less space to get that.”
Stefanutto says the space in the micro units is well-designed.
“Millennials are not home much anyway. Many of them do not own cars, but they are always out and about.
“This generation is very different from the baby boomers.”
Stefanutto says the development launch of 1 on Albert was so successful that all units in the first phase, which went from R799 000 to R1.1 million, have been sold.
“People are buying these units and paying mortgage repayments that equal what they were paying for rent in their previous homes in other areas.”
He says the more than 80 units sold are predominantly owner-occupied, which in itself reveals the growing trend among young buyers to look for opportunities that meet both their needs for no-fuss living and their desires for first homes that will offer good returns when they are able to move up the property ladder.
In terms of good returns, he predicts that, over the next five years, Woodstock will flourish and the micro units will do “exceptionally well”.
“I believe these two markets are going to see phenomenal growth. We have a lot of different development projects going on all over the city, in different areas and for different consumer types, but this is our most successful.”
Phase two of 1 on Albert will start selling in the next few weeks.