Rondebosch & Newlands prove to be a popular locations for office space

Rondebosch and its neighbour suburb, Newlands, are two of Cape Town’s most popular residential areas located in the Southern Suburbs. Sandwiched between the M5 highway and Devil's Peak (or the foot of Table Mountain), these two upmarket areas offer buyers a diverse retail, residential and commercial market, as well as easy access to notable amenities like the main campus of the University of Cape Town, the Baxter Theatre and the Newlands Cricket Stadium.Rondebosch, and by extension Newlands, is a 15 minute drive to Cape Town CBD – where the majority of the trip is spent on the N2 highway. 

In the opposite direction, further east, it’s also only a 15 minute drive to the airport.  Taxi minibuses regularly travel through the area, as there tends to be a lot of foot traffic in and around Rondebosch’s retail area, and Newlands is located right next to Claremont, a busy hub of commerce and nightlife.The centre of Rondebosch is its main road, the M4, which runs through areas like Observatory and Woodstock if you head north, and through its partner in crime Newlands if you head south. 

Along the road you’ll find a variety of shops, eclectic pavement restaurants, and retail outlets – such as the popular Riverside mall, which is the go-to centre for the local students who make up a big part of the area’s demographic. 

The latest Lightstone suburb report for Newlands, which covered the period April 2016 to March 2017, recounted a huge amount of repeat sales in developed freehold and sectional scheme properties. The area’s freehold properties saw 80 repeat sales with a total value of R521,243,000 and its sectional scheme properties had 60 repeats sales with a total value of R152,855,000. There is clearly an interest in the existing property in the area, however, the number of new developments remains low. As for Rondebosch, the numbers are far higher. Developed freehold properties, over the same time period, had 152 repeat sales take place, which were valued at R691,766,000, and developed sectional scheme properties saw 216 repeat sales with a total value of R377,361,000. 

Here, too, first time registrations remain low.In terms of local attractions, as mentioned before, Newlands is home to the Newlands Stadium, which is primarily used for rugby and soccer, but also the Newlands Cricket Ground, which is used for… well, cricket. If you head in the opposite direction from there you’ll find Hartleyvale Stadium, in nearby Observatory, where games of hockey and soccer are hosted regularly. It also houses the Newlands Forest, a popular walking and jogging destination. 

As for Rondebosch some of its popular attractions include the Rondebosch Common, a national monument and an important fynbos conservation area; the historic Rondebosch Library; and the Rondebosch Craft Market. When looking at office space, the SAPOA report groups the two suburbs together. Together, according to the report, the suburbs have an average gross rental cost of R168/m2 for grade A offices and R120/m2 for grade B – which is very similar to previously mentioned Claremont. In December 2016 the combined suburbs only accounted for less than 5% of office development activity across the country – and considering the suburbs’ 5% vacancy rate for grade A offices, there is opportunity for growth. Just look at the total rentable area for the suburbs combined and what is actually available.

As of December last year, the rentable area was 99,731m2, but the area available for leasing was only 6,978 m2.A big contributing factor to the suburbs’ popularity as residential areas, is that they are both home to a number of top South African schools, like South African College Schools (SACS) junior and high, Rondebosch Boys’ high and preparatory, and Oakhurst Girls' Primary School. Rawson Commercial has offices countrywide – in fact Rawson Properties’ head office is in Rondebosch – and we will gladly assist you with all your commercial needs. Please contact (021) 658 7100, and we will refer you to your nearest office. 
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