Sandton, South Africa, is transitioning from a bustling business district to a luxury residential space as developers continue to buy the oversupply of office space.
The trend is being driven by a number of factors, including the rise of remote work, the increasing popularity of mixed-use developments, and the growing demand for luxury housing in Sandton.
According to Lightstone, Sandton’s sectional scheme registrations declined from 317 in 2021 to 76 thus far in 2023, while freehold schemes increased from 1,218 to 1,562. This suggests that developers are increasingly focusing on building residential units in Sandton, rather than office space.
There are a number of major residential developments underway in Sandton, including the R3 billion Waterfall City mixed-use development, the R2 billion Sandton Gate development, and the R1 billion The Legacy apartment development.
These developments are offering a variety of luxury apartments, townhouses, and penthouses, which are appealing to a wide range of buyers, including young professionals, families, and retirees.
The transition to residential space is also being driven by the City of Johannesburg’s Spatial Development Framework (SDF), which aims to create a more compact and livable city. The SDF encourages developers to build mixed-use developments in Sandton, which would combine residential, commercial, and retail space.
The transition from office space to housing is having a number of positive benefits for Sandton. It is creating new jobs, boosting the local economy, and making Sandton a more vibrant and desirable place to live.