FROM OFFICE BLOCK TO APARTMENT BLOCK

Office blocks, warehouses and factories around the world have long been turned into residential apartments. With so many employees working from home, or even just a hybrid office, space has become wasted since the pandemic.

But the conversion trend is one that Johannesburg property developers are fully embracing now.

Redefine Properties recently announced that it has sold one of its biggest office blocks in Parktown North, Rosebank, for R80 million. Although the property is valued at R91.5 million, the residential conversion was taken into account, resulting in a lower purchasing price.

The plan is to rezone the office block for residential use. 

Most of the office blocks being turned into apartments are in prime locations close to public transport, malls and schools.

Redefine said recent office deals within the Rosebank node were sold at R6,000/m2. With the residential sale concluded, the space will be sold at R8,968/m2. A massive increase in price and income.

In a statement released by Redefine, it said: “The Purchase Consideration is considered to be the fair market value of the property for residential use, as determined by the directors of the company”.

Image credit: Redefine Properties