R1 million for a seven square metre micro-apartment
A seven square-metre micro-apartment has been put up for auction in central London for a starting price of £50,000 (R1 million).
The apartment, which was originally purchased for £103,500 (R2.1 million) in May 2017, is expected to be snapped up by investors and produce £9,600 per annum in rentals, said the auctioneers.
The flat consists of a studio room and a separate wet room, with space for a bed, toilet and shower, a sink, a microwave and some storage.
Micro-apartments have grown increasingly popular in major European cities such as London where space is at a premium and property prices are at a record high.
However, they are also growing in popularity in Cape Town and Johannesburg as investment rental properties targeting students and young professionals living and working in the city.
Dr Andrew Golding, chief executive of the Pam Golding Property group, says that micro-units in South Africa have grown in popularity alongside a growing co-living trend, where developments include amenities such as concierge services and gyms.
“Co-working remains popular, as does co-living – in micro-units with shared living spaces which offer community and reduced costs and maintenance.
“The concept has progressed even further with developments like BlackBrick where the monthly rental includes accommodation in BlackBrick developments in both Cape Town CBD and Sandton. These and the Neighbourhood developments focus on the creation of community with the accommodation offering as flexible as possible,” he said.
It is also becoming apparent, particularly given the acceleration in fuel price hikes, that even if people only come to the office occasionally the office needs to be in a prime and accessible location, making location even more important than before, said Golding.
“This implies a focus on central cultural districts in recognition of the fact that people are not there purely for the business but rather acknowledging the fact that in order to collaborate they may need physical connection.”
For many young people, living in the CBD is not only about access to work it is also about the ‘buzz’ factor, he said.
“Given South Africa’s young population, many are likely to prefer life in a city hub to the quiet life in the country.
“Well located apartments in a business hub continue to offer an appealing lifestyle to many young buyers, with the buzz of city living with bars, clubs, coffee shops, restaurants and other entertainment and numerous work opportunities, or at least co-working spaces and proximity for start-ups and SMMEs.”
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