The 'Greenwich Village' of downtown Johannesburg

Downtown but different - the new Johannesburg

As a New Yorker, Jason Scarpone has a long-held affinity to the cosmopolitan, hustle and bustle of inner-city life.

So it is perhaps unsurprising that when he was looking to buy a property in Johannesburg he chose to move to the city's downtown. Yet in doing so, he acted in stark contrast to most expatriates and affluent South Africans who typically eschew the city centre for the more tranquil suburbs.

For years, large parts of downtown Johannesburg have been characterised by their reputation for violence, drugs and general criminality. Indeed, during the 1990s there was an exodus of residents and businesses, with many moving to newer, up-and-coming northern suburbs, such as Sandton, the city's flashy financial centre that is all bling and nouveau riche.

But slowly the city's image is evolving as regeneration programmes breathe new life into areas such as Braamfontein and Newtown. In part, the clean-up is due to government programmes, but largely it is being driven by private sector investment. And if there is one area that epitomises the trend it is the Maboneng Precinct where Scarpone paid R3m ($256,000) for a penthouse flat.

He moved into his 285 sq metre home in December, and, aged 47, he describes himself as being "old" amid the youthful, multiracial, arty and entrepreneurial ethos of the area.

"There was a chemistry down here in Maboneng," says Scarpone, who heads an African-focused NGO. "It's edgy. I like that. It's fun to be part of a growing community; being part of something this diverse and slightly unpredictable."

The apartment sits atop three storeys, which includes another apartment, an art studio, an architect's office and an Ethiopian restaurant. Scarpone says it reminds him of a New York loft conversion, with its wooden floors and modern, open-plan design. Huge sliding glass doors, which stretch all the way up the apartment's two floors, separate the living area from the wide, spacious wraparound balcony that provides spectacular city views.

Yet for all the penthouse's attractions, Scarpone has also bought into the wider concept of urban rejuvenation that Maboneng represents.

An old industrial district of Johannesburg, Maboneng borders the Jewel City area and was home to a clutch of shabby multistorey buildings and hulking warehouses. Some are still in use, others lie idle - symbolic of the decline in South Africa's mining sector.

Change began when Jonathan Liebmann, a young South African entrepreneur, identified the area as he sought out old industrial buildings to convert into "new creative spaces". Initially, he developed five warehouses into Arts On Main, a complex of art studios, galleries and restaurants that opened in 2009.

A key challenge was changing the perception of the area as Liebmann looked to lure people to the inner city from their high-walled, security-ringed suburban houses; and while crime in central Johannesburg has broadly been falling for a decade, 2013-14 bucked the trend with a 3 per cent increase in reported crimes on the year before, according to figures from the South African Police Service.

Some of the psychological barriers to entry were gradually worn down as Arts On Main hosted events such as art exhibitions and fashion shows. A popular Sunday market has also helped draw tourists and locals to the area.

"Initially it was very difficult," says Liebmann. "There's been such a long period of suburban living that it's almost entrenched in South African society, but it's changing."

The success of Arts On Main led him into residential space in 2010, as his development company, Propertuity, snapped up other buildings in the area.

With the financial backing of a foreign property investor whom he declines to identify, Liebmann estimates that Propertuity has invested about R500m in the area. It has converted about 20 buildings so far and has another 10 under development.

In total, Propertuity owns about 50 buildings spread across 1.2 sq km, he says, and the precinct boasts an independent cinema, an African design museum, 26 restaurants, galleries, a boutique hotel and numerous bars.

"The ultimate vision is . . . to hit another level of critical mass . . . Last year, started feeling like we'd got over our first threshold in terms of community size," says Liebmann. "But the idea is by 2020 for it to be 20,000 people."

It is a hugely ambitious goal. By his estimate, the Maboneng "community," including residents and workers, numbers about 7,000 people. But there is no doubting the pace with which Propertuity is developing new buildings.

It launched its latest residential project, which is targeting the higher end of the market, last month. Illustrating Maboneng's rising profile, the developer secured the services of David Adjaye, the renowned Ghanaian-British architect, to redesign Hallmark House, a 1970s, 17-storey building that once housed diamond polishers.

"There's an incredible opportunity," says Adjaye. "Many cities around the world have these industrial areas that are rundown and many cities don't know what to do with them."

The architect likens the gentrification of Maboneng to the redevelopment of London's Shoreditch.

A two-bedroom show apartment gives a glimpse of what Hallmark will offer. Minimalist in style, the simple structure has a bare concrete floor and an open-plan kitchen and living room that is subtly furnished. The standout features are its tall windows and the wraparound balcony complemented by a "living garden" - and the city views. These are characteristics of many of Propertuity's residences as the developer focuses on creating a high proportion of outdoor space to indoor space.

Aimed at the mid-range, the show home is expected to sell for about R1.8m. Above it, four yet-to-be completed double-storey, three-bedroom penthouses will go on the market for about R3.6m. Beneath the apartments there will be a 100-room hotel, while crowning the building will be a roof-top cinema, cafe and bar. It is due to open in the middle of next year.

Propertuity does all its own marketing and sales. And so far, it has proved to be good business, says Liebmann.

Since Propertuity launched its first residential building in 2010, the price per sq metre has risen from an average R8,000 to R13,000, he says, with 60 per cent of the buyers being investors.

It is an uplift that greatly outperforms the wider market in Johannesburg, which has been slowly recovering from the 2009 recession, and in the past 18 months to two years has grown only about 3 per cent.

Yet not everyone lauds the developments. Last month, ugly protests erupted when poor residents of a decaying building in a neighbouring district were evicted to make way for another new development. Some protesters blamed "Maboneng", even though Propertuity says it had nothing to do with the development or evictions.

Still, the protests highlighted a typically South African issue - the yawning gap between the haves and have-nots in one of the world's most unequal societies. And Maboneng, an island of chic gentrification with private security guards on virtually every corner, sits alongside some of the city's impoverished ugliness, and is consequently seen by some as a symbol of the disparities.

Still, Liebmann, 32, dismisses any notion of Maboneng being an island, countering that his target is to cater to all - apartment prices range from R400,000 to upwards of R3m.

"There are no gates but [with] areas in the east of the city, where there's been a bit of a boom, and then an area that hasn't had a boom next to it, there's always going to be a difference in your demographic," he says. "What you actually need in any city is a mix. It's just basic economics because people with low incomes get exposed to opportunities with people with high incomes."

Liebmann already lives in the area and is planning to move in to a R1.8m, two-bedroom apartment in Artisan Lofts, another building recently developed by Propertuity. The 172 sq metre flat retains an industrial, almost rustic look, with grey corrugated partitions enclosing the lavatory. Square, chunky sinks are supported by scaffolding-style structures, while metallic cable casings hang from the ceiling and art-deco tiles decorate the bathroom and bar area of the main living space. "We like to keep it very raw," says Liebmann. It is a rawness that could be seen as a metaphor for Maboneng, which is still a project in progress.

However, Scarpone is unambiguous about its appeal, talking up the sense of community and describing it as "very Greenwich Villagey".

"I've just got a hunch, it's changing. It's like any of these communities, the fill-in is everything, what happens between here and there," he says pointing towards Hallmark House, the latest development, several blocks away.

? A tax incentive is offered to investors who build new buildings or refurbish existing ones in the city's urban development zone, which includes Maboneng

? A security company guards Maboneng 24 hours a day. Walking in areas beyond the district at night is inadvisable

? Maboneng Precinct has 26 restaurants, offering everything from Ethiopian tibs and injera dishes to sushi and Mexican, but it lacks supermarkets and pharmacies

? Johannesburg's downtown area is often congested with traffic at rush hour

? Johannesburg is renowned for its temperate climate. Summer days are warm and sunny, with brief, spectacular thunderstorms in the evenings

$75,000 A 70 sq metre loft apartment

$150,00 A 123 sq metre two-bedroom flat

$270,000 A 257 sq metre penthouse with two bedrooms and two bathrooms

Andrew England is the FT's Southern Africa bureau chief

Photographs and slideshow photographs: Marc Shoul

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