Justin Thom
Galetti Corporate Real Estate
Director – Advisory
Galetti Corporate Real Estate has concluded a R90 million property transaction in Parktown North, Johannesburg, marking a significant milestone in the city’s evolving real estate sector and signifying renewed investor confidence.
The landmark office block, previously owned by Redefine, will be converted into affordable residential apartments as part of a broader trend gaining momentum across key Johannesburg nodes.
“This landmark asset is set to redefine inner-city living through smart, affordable residential conversions,” says Justin Thom, Director – Advisory for Galetti Corporate Real Estate. “It’s a strong indication of the growing demand for well-located, repurposed urban spaces in Johannesburg.”
Residential Conversions Gaining Ground
Thom notes an uptick in residential conversions, particularly in high-demand nodes like Rosebank, which continue to attract young professionals and investors drawn to the area’s great facilities, lifestyle offering and infrastructure.
“Johannesburg remains South Africa’s economic hub, with robust demand for affordable and middle-income housing,” adds Thom. “Its diverse property landscape and strategic urban nodes continue to present sustainable growth opportunities.”
Rosebank is leading this residential evolution. Already one of Johannesburg’s most vibrant mixed-use precincts, the suburb is experiencing rapid transformation driven by ongoing commercial projects and luxury apartment developments. According to the African Investor, premium apartment prices in Rosebank are now rivalling those in Sandton and Melrose Arch, reaching up to R40,000 per square metre.
Key redevelopments such as the Rosebank Fire Station and large-scale mixed-use sites like Oxford Parks and The Galleria are reshaping the area into a 24-hour urban precinct that supports a live-work-play environment. With proximity to corporate headquarters, the Gautrain, Rosebank Mall, schools, hospitals and major transport arteries, the suburb continues to perform well.
Conversions Driven by Market Fundamentals
Thom points out that conversion activity is being driven by practical market conditions. “At a time when office sector fundamentals were under pressure, particularly in Gauteng with vacancy rates hovering around 14% to 16%, the economics favoured conversion opportunities,” he says. “Investors are recognising the value-arbitrage potential of older office buildings, particularly when transformed into residential or mixed-use developments.”
In Q1 2025 alone, nearly 40% of office property sales in Johannesburg were motivated by conversion potential. The shift is aligning stakeholders around a shared objective: repurposing underutilised assets into high-demand housing while achieving attractive investment returns.
Data from Lightstone shows that 53% of residential property owners in Rosebank have held their properties for less than five years, highlighting the rapid influx of new buyers attracted by the area’s ongoing development and growing appeal. Most of these buyers fall into the 18 to 49 age group, pointing to demand from first-time homeowners and young professionals.
This emerging demand is also fuelling growth in the rental and student accommodation markets. Johannesburg’s conversion-ready office stock presents a strategic opportunity, with a growing tertiary education presence (including institutions like Rosebank College) and South Africa’s student housing gap expected to surpass 780,000 beds by the end of 2025 (according to the World Bank Group’s International Finance Corporation (IFC).
Looking ahead, Thom believes that the success of this transaction reflects a broader shift underway in Johannesburg’s commercial property market, favouring affordability, flexibility and integrated urban living. “As investor focuses on high-potential nodes and re-purposable assets, office-to-residential conversions are becoming a defining feature of Joburg’s real estate landscape.”