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“South African property has always been undervalued, relative to countries such as America, the UK and Australia - especially leisure properties along the coast in cities such as Cape Town and on the Garden Route,” says Jawitz.
Herschel Jawitz, Jawitz Properties’ chief executive, says the key to investing in property is based on taking a long-term view. This means at least five years.
“In the current market, with property prices growing by 6% to 8%, location is the key to a good buying decision,” says Jawitz.
“Equally important is ensuring that you buy within your means so you are not forced to sell quickly should circumstances change - such as interest rates going up more than you anticipated.”
He says buying less in a better position is going to give you a better capital return than buying more in an area where property prices are not growing, or even falling. This has nothing to do with buying in expensive areas, but rather buying in areas that are developing.
So, what appeal does South Africa have to offer foreign buyers on the property front?
From a foreign buying perspective, Jawitz says the major appeal is the current exchange rate and the position of, and type of property you can buy. This is relative to comparable properties in similar locations overseas.
“South African property has always been undervalued, relative to countries such as America, the UK and Australia - especially leisure properties along the coast in cities such as Cape Town and on the Garden Route,” he says.
“This, together with a great climate and season that work opposite to the Northern Hemisphere, make South Africa the perfect destination for foreign leisure buying.”
Jawitz says these factors, however, do not make South African properties immune to foreign buying concern about the politics of the country and issues such as foreign ownership of land.
INSIGHT: 2015 Property Market Performance – SA’s Sale and Rental trends throughout the year
The International Monetary Fund has cautioned that there are ‘7 lean years ahead for South Africa’. This weakened economic outlook will no doubt put downward pressure on the local property market and result in interest rate hikes from around Q1 of next year.
However, the market fallout is expected to be better than post 2008/8, as the mass of distressed property and oversupply of stock that characterized the market of 2007/8 is not as pronounced. And while the market outlook for 2016 remains positive, the “boom” is over for now and it is back to business as usual. Sellers need to remain realistic with their price expectations and Buyers need to ensure they budget carefully and buy within their means.
Market Snapshot
The overall market performance of 2015 was down by approximately 7-10%, but still performed better than the period from 2009-2013. The average national housing price for 2015 was just above 1.026M, while stock levels were low with healthy buyer demand (show house attendance being higher than the 2009-2013 period). Well-priced property has been selling twice as fast the previous period, with the average days spent on the market averaging around 12.3 weeks.
The coastal regions are currently seeing good activity and balance in the market with a number of R20m+ sales while stock shortages are seeing an uptick in development, particularly in Sandton and the Johannesburg inner city. There has been strong demand in the rental market, with top end rental rates reaching highs of around R80k –R100k per month in high end, luxury areas such as the Atlantic Seaboard, Constantia and Sandton. This demand is likely to rise in the middle class areas over the next year given the economic downturn. But on the whole the property sector has remained a stable performer in the current economic climate.
Western Cape
The Western Cape market remained in a balanced state, with a slight drop in the market of around 10%. Stock levels remained tight with very little oversupply and some areas experiencing an undersupply of new housing. The bulk of activity came from the sub-R15M price range in areas such as the Atlantic Seaboard, City Bowl and Southern Suburbs. Although there has been a slowing down in the volumes the outlook for the coming year has remained positive with the markets not expected to bottom out.
Tourism and good governance have been major drivers of growth, with a noticeable increase of buyers from across the globe (including upcountry areas such as a Joburg) relocating to the city centre. The average time on the market is still about 30-80 days, but well-priced property is still selling within a month. The rental market in the Western Cape has remained strong with top end rentals now comfortably ranging to R100 000 and even as high as R120 000/month for a luxury home in a Blue Chip locations such as Clifton, Camps Bay, Bishopscourt, Constantia
Gauteng
Infrastructure development throughout Gauteng, such as the Gautrain and Rapid Bus Transit System, has had a noticeably positive influence on property. Specifically, development in Sandton has seen a significant boost in demand. Johannesburg’s inner city renewal, which includes security upgrades to areas such as Maboneng district, Hillbrow and surrounds, are creating new property hot spots to watch out for in the coming years.
There has been a strong rise in demand for sectional title property, especially around the Sandton CBD and mixed-use developments such as Melrose Arch. The rental market throughout Gauteng has remained strong, with Sandton rates reaching R80 000 to R100 000/month and Pretoria East gated estates in Waterkloof reaching as much as R66 000/month. Middle class areas such as Randburg, Joburg South/East/West, remain very active with the average prices still growing as demand for housing grows. Although a large portion of this market is dependent on mortgage loans, thus being sensitive to economic fluctuation.
KwaZulu Natal
Stock situation varies throughout KwaZulu Natal, but there have been no reports of vast oversupply anywhere, thus creating a market that is still well balanced. The average price for KwaZulu Natal property in 2014 was R1.485M while prices in 2015 averaged at 1.7M. Throughout 2014 the average time spent on the market was 98 days, while 2015 saw an average of 53 days, with a quicker sale time if priced accordingly to the area.
By Drew Hook
Although properties in Gordon’s Bay don’t skimp on beautiful ocean and mountain views or a festive holiday vibe in the least, it is still considered as one of the coastal towns in the Western Cape that offers the best value for money.
This three bedroom, two bathroom house for sale in Gordon’s Bay has distant sea views from top floor, and beautiful mountain views from its balcony. The property includes a single garage, and is selling for R990 000 - click here to view.“Gordon’s Bay is somewhat of a hidden gem, but more inland buyers especially are becoming aware of the value for money that is to be found here,” says Alberts.
“It is no longer only a popular holiday destination, but people are realising that it is actually a viable option for those who want to retire by the sea, enjoy the holiday vibe of the Blue-Flag status Bikini Beach on a semi-permanent or permanent basis, and those who want to relocate to a close-knit community, yet be close enough to all amenities and the city.”
Another major positive is that Gordon’s Bay also offers something in almost every price range, unlike many other upmarket coastal areas.
Alberts says the price of sectional title in Gordon’s Bay has grown from R770 000 in 2015 to R890 000 to date this year, freehold from R1.36 million last year to R1.925 this year, and vacant land from R462 000 last year to R512 000 this year.
This two bedroom, one bathroom flat is situated in the Greenways Golf Estate, which offers a clubhouse and swimming pool. You can walk to the beach through the estate. The flat is on sale for R930 000 - click here to view.“The average house price in Gordon’s Bay range from R1.2 million to R1.4 million, and this price mostly includes three bedrooms, at least one garage and a garden,” she says.
“Properties in this price range, however, are high in demand, and demand outstrips supply, thus making the turnover in sales much faster.
Entry-level prices are targeted on vacant plots from R350 000 and up, and are very popular as more buyers are building due to the shortage of property the market has to offer.
The most expensive properties on the market in Gordon’s Bay are priced up to R20 million.
“There is a major shortage of available rentals in Gordon’s Bay, and we are looking for developers as the area has ample land available for new development,” says Alberts.
“We have sold around 10 vacant plots in the past year, rangin in price from R350 000 to R2 million. There is also undeveloped land available in the area priced upwards of R5 million to as much as R80 million that could be utilised for various purposes.”
Gordon's Bay: Helderberg’s hidden gem
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- Gordon's Bay: Helderberg’s hidden gem
Being the smallest of the three towns in the picturesque Helderberg region, Gordon’s Bay is an idyllic seaside haven complemented by warm waters, white sandy beaches and a quaint harbour, all just 30km from Cape Town.
This three bedroom, three-and-a-half bathroom home in Gordon’s Bay has a large balcony, landscaped garden and patio with built-in braai. It is on the market for R5.95 million – click here to view.Named after the Dutch explorer, Robert Jacob Gordon, Gordon’s Bay has quite an interesting history and dates back to the 1670s, when the Dutch started taking interest in the area, says Schalk van der Merwe, franchisee of the Rawson Property Group’s Helderberg franchises. “For most of us living in the Helderberg region today, Gordon’s Bay is better known as ‘gorgeous bay’ because not only is it a beautiful hidden gem but it also offers extremely good value for money property speaking.”
Van der Merwe says buyers in and around Cape Town have for a long time overlooked Gordon’s Bay, but he believes this is soon going to change. Known for its healthy sense of community, Gordon’s Bay has in fact a cheaper average house price than both its neighbours, Strand and Somerset West. The area also only has 7 000 homes and is therefore able to keep its ‘village feel’, which is bursting with charm.
“The stunning mountainside properties are definitely one of the first things you notice when you drive through Gordon’s Bay, and many automatically believe that these properties are very expensive, but in fact the opposite is actually true,” says Van der Merwe.
This four bedroom, four bathroom home in Gordon’s Bay has an open plan living area with built-in braai and a wrap-around balcony. It is on the market for R2.45 million – click here to view.Selling from between R9 000 to R12 000 per square metre, Van der Merwe says Gordon’s Bay’s mountainside properties are a staggering 300% cheaper than similar homes in Fresnaye and Bantry Bay, which have average selling prices that range from R30 000 to R50 000 per square metre.
“And if Gordon’s Bay’s home prices are not enough of an attraction, the impressive infrastructure upgrades soon to take place in the Helderberg region will certainly grab onlookers’ attention, as these are sure to change the perception of this once predominantly holiday home town,” says Van der Merwe.
He says he foresees young professionals taking notice as these five developments take shape:
1. The Sanctuary, a newly launched mixed-use retail and convenience complex.
2. Paardevlei, which will see 590 residential units and 100 000sqm commercial spaces built.
3. Broadway Boulevard dual carriageway project, which will allow for better access to the N2 and Gordon’s Bay.
4. City of Cape Town’s Strand Pavilion precinct upgrade, which will include a R180 million refurbishment of the Strand sea wall.
5. Gordon’s Bay Village Plaza, a boutique style mall currently under construction.
This six bedroom, four-and-a-half bathroom home in Gordon’s Bay has an undercover patio and entertainment room with built-in bar. It is on the market for R4.2 million – click here to view.“The good news is these developments will only better the very attractive property investment opportunities already available at Gordon’s Bay. Over the past four years, full title sales recorded 8.1% year-on-year growth, with sectional title sales recording 6.2% and rental yields currently sitting just under 9%,” says van der Merwe.
“Since opening our satellite office two years ago, our team has acquired 15% market share in Gordon’s Bay. With great faith in this beautiful area with so much to offer, we see it very soon playing catch-up with the Atlantic Seaboard, as Cape Town’s congestion becomes even more of an issue and Gordon’s Bay’s great value is fully realised,” he adds.
The residential property market in Woodstock remains buoyant, particularly in Woodstock Upper.
Woodstock Upper is popular with young professionals looking to buy a home offering easy access to the N2, MyCiTi bus route and the CBD.According to online sales database Propstats, Woodstock Upper recorded 27 sales in the first nine months of this year, fetching an average price of R2.558 million.
The lowest price achieved was R995 000 and the highest R4.735 million, and on average properties took 25 days to sell.
Why Upper Woodstock?
Laurence van Blerck, an estate agent at Knight Frank Residential South Africa, specialising in the Woodstock and Claremont areas, says Woodstock Upper is popular with young professionals looking to buy a home offering easy access to the N2, MyCiTi bus route and the CBD. He says it is a trendy neighbourhood with an array of entertainment venues, and buyers feel that it offers better value-for-money than the Atlantic Seaboard and inner City Bowl.
Knowing the neighbours
Longstanding residents are sometimes concerned when nearby properties that are put up for sale. Van Blerck says he advises his buyers to get to know their neighbours and become part of the community.
"The security of the area is often a question posed by prospective buyers, especially due to the scarcity of safe off-street parking. Nevertheless, this can be improved by neighbours looking out for each other, and working together for the common good," he says.
Pricing properties appropriately
Van Blerck says it is a seller’s market in Woodstock, but there is a tendency for some renovated properties to come onto the market at inflated prices. However, today’s buyers are well-informed, and once they start comparing properties online, they quickly determine which properties are worthy of a physical inspection while simply ignoring the overpriced ones.
Almost inevitably, he says the overpriced properties have their prices reduced if the owner really wants to sell, otherwise they stay on the market for an unduly long period of time, perhaps achieving a selling price below their true market value.
Propstats reveals that correctly priced homes, especially those with a marketing price of less than R2 million sell quickly. Furthermore, sellers have achieved actual selling prices at an average discount of 4% compared with the marketing prices.
"Sellers are advised to consult an experienced estate agent working in the area, check their professional qualifications and track record of sales before requesting a market assessment of what selling price their property will realistically achieve. Remember that the highest valuation is not necessarily the correct one," says Van Blerck.
This four bedroom, two bathroom home in Welgemoed, Cape Town, has a flatlet with separate entrance, lush green garden and pool. It is on the market for R3.35 million - click here to view.Originally regarded as a predominantly Afrikaans area, its spacious stands, tree-lined streets, panoramic views and excellent dual-medium schools are now highly sought after by a wide variety of both local and international buyers.
“There are a lot of reasons why more and more people are looking to buy property in Welgemoed, but I think the main attraction is always going to be the amazing cost-to-value ratio we have here,” says Ronell Young, the Rawson Property Group’s franchisee for the area.
“You get a lot more for your money than similar suburbs in other parts of Cape Town without sacrificing on lifestyle at all.”
Young says the Welgemoed lifestyle is idyllic, offering plenty of space and tranquillity in a gorgeous, leafy setting, nestled on rolling slopes that offer views all the way to the Hottentots Holland mountain range and Gordon’s Bay.
The neighbouring Tygerberg Nature Reserve provides hiking and birding enthusiasts with a paradise on their doorstep, while young ones have numerous neighbourhood parks in which to safely enjoy the outdoors while their parents take a run around the tree-lined block.
Far more than just a nature retreat, however, Young says Welgemoed also offers all the modern conveniences, including sports and recreation clubs, quality restaurants, a pristine 18-hole golf-course, grocery stores, crèches, primary and senior schools, and easy access to some of Cape Town’s best shopping malls.
There are also CCTV systems and active security patrols in the area for residents’ peace of mind.
“Welgemoed is sometimes compared to suburbs like Constantia because of similar amenities and an ‘outdoorsy’ lifestyle that people enjoy here. We’re also located almost equidistant from Cape Town’s CBD, and have comparably large, family-friendly properties available,” says Young.
Just like the Southern Suburbs, she says Welgemoed also boasts a wide variety of property styles, ranging from modern contemporary, to Tuscan villa and traditional gentleman’s estates. Plot sizes start around 800sqm, and head all the way up to 3000sqm and more.
This three bedroom, two bathroom home in Welgemoed has a covered patio, pool nestled in a manicured private garden and is on the market for R3.65 million - click here to view.“Sectional title properties here range from R550 000 to about R2.1 million, although there aren’t very many sectional title developments on offer. Freehold houses start at about R1.8 million and go up to R11 million and more, but the median valuation remains a remarkably affordable R3.35 million,” says Young.
While this certainly places Welgemoed’s residents on the affluent end of the scale, with average household incomes in the area in excess of R75 000 per month, Young says there are ongoing stock shortages as demand continues to outpace supply.
“We’re definitely seeing buyers who might previously have bought in the Southern Suburbs being put off by high prices or lack of availability, and coming to Welgemoed to find a similar lifestyle at a more feasible entry point,” says Young.
“This includes plenty of English-speaking buyers, as well as a lot of foreign-language speakers - we’ve become quite a cosmopolitan neighbourhood.”
If you’re wondering about investment potential, she says buyers can expect inflation-linked capital appreciation at present, with the likelihood of far better returns when economic conditions improve.
“Welgemoed will always be a sought-after area for upmarket, family lifestyle properties, and as the Northern Suburbs continue to grow, that demand is likely to increase exponentially,” says Young.
Despite a now widely accepted slowdown in sales, the outlook for the residential property market for the second half of 2016 remains stable.
This four bedroom, two bathroom home in Schotschekloof is on the market for R5.5 million - click here to view.“While there is still plenty of activity to keep estate agents and sellers busy, we have seen that much of the energy of the last two to three years has subsided for most of the country,” says Samuel Seeff, chairman of the Seeff property group.
“The exception is the Western Cape, and we are really now looking at somewhat of a ‘tale of two cities’ - the Cape versus the rest of the country.”.
Seeff says the Cape is still benefiting from an influx of demand from other provinces, and excellent business and market confidence is keeping the property sector very active. There is still a significant amount of development underway, and new residential developments are still selling like hotcakes. So too is property - with prices reaching as much as R290 million this year - on the Atlantic Seaboard.
“Although slower across most areas, safe for the Cape, the market remains well balanced. The flat interest rate should encourage many to get into the market while they still can,” says Seeff.
“We have now seen three successive meetings of the Reserve Bank’s Monetary Policy Committee where they have kept the interest rate flat. At a time of weak economic growth and rising living costs, this has brought a much needed breather for home owners and buyers to still benefit from a rate saving a little longer.”
This three bedroom, three bathroom home in Vredehoek is on the market for R9.5 million - click here to view.He says he expects the interest rate to remain flat until next year, and while mortgage originator, ooba, has reported a slowdown in bond applications, the banks are still keen to lend to qualifying buyers.
“That means it is indeed a good time to buy, but buyers need to budget carefully as we are operating under volatile conditions, both economically and politically,” he says.
While FNB recently reported phenomenal price growth of 12.1% for the Cape, Gauteng and KZN just managed 4.1% each, and the Eastern Cape 5.3%. That means the rate of growth outside of the Cape is fairly subdued, further supporting the good buying conditions.
“With that said, we do not foresee anything in the short term that will bring prices down further, thus supporting the good buying conditions,” says Seeff.
The flip side of this, he says, is a caution to sellers not to hold out for higher prices as we are unlikely to return to the positive sellers’ market that prevailed during the 2012 to 2015 period any time soon.
“We have also seen more stock come onto the market, while buyers are now more cautious about paying high prices. That means if you are serious about selling, you would now need to be more conservative with your price expectations if you hope to conclude a successful sale,” says Seeff.
This year has highlighted the importance of good governance, economic and political stability. Despite the recently reported slight improvement in economic growth and more stable inflation, Seeff says the outlook for the economy remains weak. There is also still the significant risk of a credit downgrade in December.
“The property market is directly influenced by the economy. We therefore do not foresee any fireworks for the rest of the year. Nonetheless, we are looking to see the year out with still fairly good trading,” says Seeff.
“Remember, there is always a degree of activity in the market, regardless of the economy. There are always people who need to buy or sell for whatever reason, and it remains very much business as usual for the time being.”
Situated in Kenilworth Upper, this apartment offers one bedroom, one bathroom, an open-plan kitchen, entertainment balcony and secure parking for one vehicle. It is on the market for R1.65 million – click here to view.This is according to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, who says the reality is that surging property values spurred by the growing demand from upcountry semigrants has not only driven up prices but also precipitated a severe shortage of affordable entry-level homes, especially in sought-after areas like the Southern Suburbs.
Rondebosch and Claremont
He says steep price increases during the past five years have significantly raised the entry-level point in this popular suburban area, with entry-level prices in suburbs like Rondebosch and Claremont now on a par with mid-level price bands in many comparative neighbourhoods in other metros.
Geffen says houses in the R1.5 million to R2.5 million bracket and apartments for less than R1.5 million have become rare commodities, and when they do come onto the market they are often snapped up within hours.
Geffen says, according to Lightsone data, the Southern Suburbs have experienced steady year-on-year growth from 2010. He says in Rondebosch, for example, at the end of 2010, the average house price was R2.6 million, but after a solid 9% nominal growth per annum over two years, the price jumped to R3.3 million by the end of 2013. A nominal year-on-year increase of 17% saw 2015 end on an average sale price of R4.5 million, he says.
This Wynberg apartment has three bedrooms, two bathrooms, an open-plan kitchen with granite tops, covered balcony, manned security and a garage. It was priced at R2.475 million and has been sold – click here to view.“Apartments in Rondebosch fared equally well, with the average price increasing from R900 000 in 2010 to R1.3 million in 2015, and by the second quarter of 2016 it reached R1.6 million.”
Megan Milne, Candidate Agent for Lew Geffen Sotheby’s International Realty in Rondebosch, says there are occasionally still apartments to be found in the R1 million to R1.5 million price band but they are usually in older blocks and usually barely hit the market before being snapped up, sometimes even on the same day.
She says this is especially true if they fall within the university catchment areas and near the Jammie shuttle route as there is a serious shortage of student accommodation.
Parents who live in Durban or Johannesburg are aware of the demand for these apartments and sometimes place offers even before seeing the apartments as they know from experience that in the time it takes them to fly to Cape Town for a viewing, the apartment is likely to be sold, says Milne.
There is also huge demand for sectional title units in modern complexes which offer excellent 24-hour security as well as safe off-street parking.
Milne says these two criteria top the list for many of her clients, and buyers will often increase the amount that they are willing to pay if the apartment includes a garage or parking bay.
This Plumstead home offers three bedrooms, two bathrooms, open-plan living spaces, built-in kitchen, garden and garage. It is currently priced at R2.75 million – click here to view.Rosebank and Mowbray
Tina Malyon, Area Specialist for Lew Geffen Sotheby’s in Mowbray and Rosebank, says although these suburbs still offer good value compared to their pricier neighbours, it is rare to find a house in Rosebank for less than R3.5 million, and in Mowbray house prices now start at R2.6 million.
She says it is common for well-priced homes to sell within a week, and she has a growing waiting list of buyers who lost out on these quick sales.
Instead of show days on Sundays, Maylon says she now has mini show days during the week between 2pm and 5pm which attract the serious buyers, who often put in offers immediately.
Kenilworth and Harfield Village
According to Dave Burger, Area Specialist for Lew Geffen Sotheby’s in Kenilworth and Harfield Village, since the beginning of the year, stock has become much harder to source, and they now have a waiting list of buyers waiting for their ideal property to come onto the market.
He says the problem is also exacerbated by sellers who are holding out for unrealistic prices because they are buying other properties in more expensive areas.
Situated in Rondebosch, this apartment has two bedrooms, one bathroom, an open-plan kitchen and living area, parking bay and ample off-street parking. It was priced at R2.35 million and has already been sold – click here to view. The growing demand has spurred new development in the area and two new sectional title developments are currently under construction, says Burger
Wynberg a development hotspot popular with young professionals
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- Wynberg a development hotspot popular with young professionals
In stark contrast to the belt-tightening national economic slump that is placing consumers under growing pressure, the Western Cape has emerged as the strongest and most stable regional housing market in the country, with an annual price growth of almost double the national average.
This apartment offers two bedrooms, two bathrooms, fitted kitchen, undercover balcony, garage and secure parking bay for one vehicle. It is on the market for R1.595 million – click here to view.While the unfortunate drawback is that property is being placed further out of reach for many buyers, the silver lining is the growing investor appetite for homes in suburbs that were previously considered higher risk purchases that did not deliver platinum returns on investment and were slower to move.
This is according to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, who says the sharp rise in investor interest in areas like Wynberg in Cape Town’s desirable Southern Suburbs has not only uplifted these areas, but is also attracting a wider diversity of buyers than in the past.
Geffen says according to Propstats, the average price of freehold homes in Wynberg measured since November 2015 has been just over R2.95 million, while the average price of sectional title properties has been R1.13 million, up from R1.07 million during the preceding 12 months. He says the average price of freehold homes has also increased year-on-year, by approximately R400 000.
Wynberg is in fact fast becoming a development hotspot, he says. Both residential and commercial investments are set to soar with capital being pumped into the suburb, which is reflected in its growth and buyer demand.
Wynberg is increasingly sought after by young working professionals with families, because it is a catchment area for a number of good schools and this, in turn, is stimulating upmarket commercial development, says Geffen.
Situated in Wynberg, Cape Town, this apartment has two bedrooms, two bathrooms, kitchen with fitted appliances, open-plan living spaces, undercover balcony and a garage. It is selling for R1.595 million – click here to view.“We are now seeing a large number of home renovations happening and new businesses opening, which is resulting in a general upgrade of the area and breathing new life into the suburb. The fact that ratepayers are prepared to pay an additional levy to fund a City Improvement District for their suburb also shows their deep commitment to its growth and development.”
The Chelsea is a recently launched upmarket residential development in Aliwal Road and, backed by Buffet Investments and Investec, nine of the 12 units were already snapped up on launch day.
And national homeware retail giant, HomeChoice, has not only opened shop in Wynberg but they have also bought and converted the old Southern Cross Hospital into A Grade Offices, adding a sixth executive floor which is now home to their corporate headquarters. This alone, brings 700 active business people into Wynberg on a daily basis.
Another recent bold development is My Domain Student Living: innovative, purpose-built student accommodation which is a complete departure from the traditional digs of yesteryear.
Housed in a converted art deco office block, My Domain was developed by the Swish Property Group in response to the burgeoning need for suitable, secure and affordable student accommodation in a city where rentals have kept pace with spiralling property values.
This Wynberg home offers two bedrooms, one-and-a-half bathrooms, fitted kitchen, entertainment patio with built-in braai, and secure parking. It is priced at R1.3 million – click here to view.Giancarlo Lanfranchi, CEO Of Swish Property Group and owner and founder of My Domain, says their goal was to create a safe, upmarket environment with all the necessary conveniences where students can concentrate on their studies and parents can enjoy peace of mind without breaking the bank.
He says key factors were security that extends to each key card-accessed residential floor, as well as comfort. Every single unit, from the 14sqm studio at R3 850 per month to the 25sqm Deluxe Studio at R5 250 and two twin accommodation options, has its own bathroom, kitchenette and study area. In addition to a large communal relaxation area, he says each floor has its own lounge and free Wi-Fi is available throughout the building.
And in an increasingly sought-after suburb with rising property values, My Domain affords students the opportunity to live in an increasingly upmarket area most parents wouldn’t otherwise be able to afford anymore.
The group has also shown their commitment to the area by investing in additional buildings around My Domain for development, consulting with the City Council to further uplift the area with projects like converting the town hall into a library and working closely with other local property owners regarding matters of community importance, such as security.
This apartment has four bedrooms, three bathrooms, two kitchens, lounge and dining room, balcony and double garage. It is on the market for R3.19 million – click here to view.Lanfranchi says Wynberg’s allure is three-fold: it offers excellent value-for-money in a high value property zone where average sale prices in most neighbouring suburbs are considerably higher, it’s only a short drive or train ride to the CBD and investors have a wide variety of residential and commercial property options.
However, he says despite the ongoing development, Wynberg has retained its quaint village atmosphere with a proliferation of historical buildings, and at its heart is Chelsea Village which has an array of eclectic shops, cafes and restaurants. There are also two well-maintained parks in the suburb where families and outdoor lovers can relax and enjoy a tranquil respite, he says.
Wynberg’s desirable location in close proximity to a myriad of top-class amenities including schools and the University of Cape Town, its excellent transport links to all the main nodes in the city as well as its promising return on investment, all bode well for the continued growth of this character-laden suburb.
This property for sale in Somerset West includes a three bedroom, three bathroom home and two bedroom, two bathroom self-contained cottage. The property has a swimming pool and is selling for R3.2 million - click here to view.Steve Caradoc-Davies, principal of Harcourts Platinum, says when you look closely, you can see why Somerset West has experienced phenomenal growth in recent times. It also caters to a wide range of tastes.
“The golden rule when investing in property is ‘location, location, location’. When you consider the location of Somerset West, you’d be hard-pressed to find anything better,” says Caradoc-Davies.
“Nestled in a valley and surrounded by the Helderberg and Hottentots Holland mountains, with the white, sandy beaches of False Bay to the south and the world-renowned Winelands to the north, Somerset West offers a lifestyle loved by all.”
With top government and private schooling, and Stellenbosch University and UCT not too far away, he says this is the ideal place to raise a family.
“It also has a thriving retirement population, outstanding retirement villages, medical professionals, and two world-class private hospitals,” says Caradoc-Davies.
Acorn Creek, a new development in Somerset West, offers three bedroom and two-and-a-half bathroom units from R2.799 million - click here to view.Caradoc-Davies says property has long been in high demand from locals and foreigners alike. There is a strong British and German population, who especially escape the cold European winters for the African sunshine.
“When you consider the outstanding championship golf courses in the area, gourmet restaurants and delightful wineries - it’s not hard to see why so many love this lifestyle,” he says.
Somerset Mall and Waterstone Village cater to everyone’s shopping needs, and Cape Town International Airport is only 20 minutes away.
Caradoc-Davies says property values have consistently delivered strong returns, even in difficult economic times. Bucking the national trend, local property shows annual growth of 12% to 16% in most price ranges, with strong gross rental returns often between 7% and 10% per annum.
This two bedroom, two bathroom duplex townhouse for sale in Somerset West has a single garage and private courtyard. The home is currently on the market for R750 000 - click here to view.“In order to meet this demand, many gated estate developments have been launched with great success in the last decade or so,” he says.
“Kelderhof Country Village, for example, with over 450 homes, has almost sold out, with a standard three bedroom, two bathroom home with double garage selling for between R2.5 million to R3.4 million.”
Freehold homes range from about R2 million to R15 million, with some exceptional sales over the R20 million mark. Caradoc-Davies says the highest demand is for family homes, both inside and outside estates, for R2.5 million to R3.5 million - with supply not able to satisfy current demand.
Situated in an exclusive estate in Somerset West, this three bedroom, three bathroom luxury home boasts mountain views. The home has an enclosed patio, swimming pool, modern designer finishes and an imported kitchen. It is on the market for R8.75 million - click here to view.“We’ve experienced a 37% increase in sales in the last year, showing the healthy state of the local market. Interest in luxury homes up to R10 million is also exceptionally strong, from both local and overseas buyers.”
Caradoc-Davies says Harcourts Platinum will be launching three new developments in the next few months, which they expect will be well received by the market.
Pricing ranges from R 2.595 million to R7.995 million, including VAT - with variable selling features such as fibre-optic internet access, hybrid solar power systems, multi-tier security and lifestyle offerings.
“Somerset West is one of the most desirable residential locations with something for everyone,” says Caradoc-Davies.
“Not only is the lifestyle very special, but property investment returns have exceeded expectations.”
This three bedroom, one bathroom home in Strandfontein has open-plan living areas leading out to a private landscaped garden. It is on the market for R799 900 - click here to view.
This is according to Nazmie Anthony, Pam Golding Properties area principal for Cape Town’s South-eastern Suburbs, including Mitchells Plain, who says combined with accessible pricing, this creates sound opportunities for sound capital returns over the medium to longer term.
“For those wanting to step onto the first rung of the ladder in the residential property market or simply acquire an asset with the potential for sound capital appreciation in the future, Mitchells Plain is a large, sprawling area with a diversity of suburbs and variety of options which make economic sense,” says Anthony.
“It also has its own schools, community centres - some of which include public swimming pools, shopping malls such as Westgate Mall and The Promenade Shopping Centre - as well as diverse places of worship.”
Accessible in and outbound mainly via the R300 and N2 highway, the four key routes within Mitchells Plain are Eisleben Road, AZ Berman Drive, Spine Road and Westpoort Road.
Anthony says Mitchells Plain is so extensive that it incorporates the areas of Beacon Valley, Colorado, Colorado Park, Eastridge, Highlands Village, Lentegeur, Morgans Village, New Woodlands, Portlands, Rocklands, Rondevlei Park, Strandfontein, Tafelsig, Weltevreden Valley, Westgate, Westridge, Wildwood and Woodlands, each with its own property range.
This three bedroom, three bathroom home in Rocklands is set on a 200sqm yard and is on the market for R450 000 - click here to view.
Explaining why Mitchells Plain is increasingly popular among home purchasers, Anthony says today’s buyers are well informed and do lots of research before buying. He says they generally tend to look for properties that are ready for occupation and do not require any work. They also seek a property that offers exterior space, irrespective of how small the actual property is.
According to Lightstone statistics for the period from July 2016 to June 2017, 65% of existing owners have lived in the area for 11 years or more, with the bulk (73%) of stable owners mainly in the age group from 36 to 50 years of age.
“People want to live in Mitchells Plain because properties are more affordable and offer good value for money, and public transport such as buses, taxis and the Metro train service that travels to Cape Town CBD and surrounding areas is extremely convenient, making it very accessible,” says Anthony.
“For example, for a young couple looking for a decent property in a relatively good area, their gross monthly income would have to be approximately R20 000, whereas for a property of the same size in the Southern or Northern Suburbs, their income would need to be double that amount.”
Anthony says in Portlands you can acquire a modern, three bedroom house for about R750 000, while a similar property situated in the Southern or Northern Suburbs could cost anywhere between R1 million or R2 million.
This three bedroom, two bathroom home in Lentegeur has an open-plan lounge and is tiled throughout. It is on the market for R490 000 - click here to view.
He says in areas such as Beacon Valley, Eastridge, Lentegeur and Tafelsig, the typical erf size is under 200sqm and includes a small and basic two to three bedroom, one bathroom property.
“These typically sell for about R250 000. However, there are many properties in these areas that have been renovated, either with an extension or via cosmetic changes, making them more appealing. These generally fetch up to around R450 000,” says Anthony.
He says buyers in these areas are usually the average-income earner, some of whom have benefited from FLISP, the initiative by the Department of Human Settlements and National Housing Finance Corporation to provide a subsidy to aspiring homeowners who meet a certain criteria, namely those earning between R3 501 to R15 000 per month, to purchase a home and improve their affordability.
“In areas such as Colorado Park, Highlands Village, Portlands, Rondevlei, Westridge and Woodlands, although also offering two to three bedroom properties on erf sizes ranging between 200sqm and 250sqm, homes are usually more spacious and offer a bit more than the above. As these areas are older and more established, the residences here are neater and have mostly been modernised, with selling prices ranging between R500 000 and R780 000,” says Anthony.
This three bedroom, one bathroom home in Eastridge has a two living areas and a flatlet. It is on the market for R530 000 - click here to view.
He says Colorado and Strandfontein have always been considered the more elite areas, each with its own merits. While Colorado has properties on large erven, Strandfontein offers its residents seaside living. Both these areas have large properties consisting of two to four bedrooms, one to two bathrooms, en suites, modern interiors, excellent security features, swimming pools and exterior space, which is in high demand.
Anthony says prices for homes in these areas range from R650 000 for a basic two to three bedroomed property, to less than R1.3 million for a modern three to four bedroomed house.
In a transaction concluded in 2016, Pam Golding Properties was the first real estate agency to sell a property in Strandfontein for R1.24 million, at a time when the average selling price was R700 000. Currently the average selling price in the area is R820 000, says Anthony.
“There are many different types of buyers in Mitchells Plain, depending on the locations where they are looking to purchase. Many are young couples, either engaged, newly married or acquiring property for the first time,” says Anthony.
This three bedroom, one bathroom home in Portlands has an entertainment area with built-in braai. It is on the market for R589 000 - click here to view.
“Then there are buyers looking to upgrade from entry-level areas to the more elite areas such as Colorado, Strandfontein and Westridge as these are considered better suited to raise families and provide a better quality lifestyle.”
Anthony says Westridge is home to the beautiful Westridge Rose Garden that hosts the annual Mitchells Plain Festival which showcases the abundance of local talents such as musicians and dancers residing in the area.
It also affords local entrepreneurs the opportunity to sell their wares. Since its inception, this festival has gone from strength to strength to such an extent that the City of Cape Town has included it on its official calendar. The gardens are also a popular location for weddings and children’s birthday parties, he says.
Meanwhile, the Strandfontein area has the annual ‘Meet Your Neighbour’ festival where local businesses come together to showcase their products and services as well as providing a platform for local talent in their area, says Anthony.
This four bedroom, four bathroom home in Glenhaven has open-plan living areas with a fireplace. It is on the market for R1.35 million - click here to view.
This is according to Charlton Williams, Pam Golding Properties' area principal in Athlone, Belhar and Goodwood, who says Athlone and each of its ‘sub-areas’ has its own culture and is vibrant and unique in all respects, which greatly contributes to resident retention.
“Communities have formed with strong bonds developed over time, based in many instances on religious places and heritage. Once your roots are embedded here, it tends to become less likely that you will want to move out of Athlone, hence the migration from one suburb to another in the Greater Athlone area, with the younger generation purchasing within these same boundaries,” says Williams.
“Generally we find that many of those buying homes in Athlone are families upgrading from, for example, a Belgravia or Surrey estate to a location such as Crawford, while in the case of first-time buyers, who purchase across a broad cross-section of suburbs, it’s mainly because of family ties, area knowledge and their desire to remain here.”
Williams says Athlone comprises an array of medium- to high-value suburbs such as Crawford, Penlyn Estate, Belgravia, Belthorn Estate, Rylands, Gatesville, Vanguard, Welcome and Surrey Estates. He says while Crawford is the most preferred suburb, the Athlone area also includes lower-cost, high-density areas such as Hanover Park, Bonteheuwel, Bridgetown, Kewtown, Heideveld and Manenberg.
Overall, Williams says the area is easily accessible to Cape Town’s central city, Southern Suburbs and key highways. Bus and taxi routes are in good use and road works have commenced along the Hanover Park Cape Town route for MyCiti to come into play. Athlone is also about 9km to the west of Cape Town International Airport.
This three bedroom, two bathroom home in Athlone, Cape Town, has a solar-heating geyser system, electric sliding gate and paved parking space for two cars. It is on the market for R1.65 million - click here to view.
Home to the well-known Athlone Stadium on Klipfontein Road, which hosts large football matches and other events, Williams says the area incorporates Vangate Mall on Vanguard Drive, as well as a number of mini-malls including Kromboom Centre on the corner of Kromboom and Jan Smuts Drive in Crawford.
He says this centre offers an array of eateries including The Lounge, Zaaikas Fire Foods, a deli and Hookah bar, as well as Arabian Nights just down Kromboom Road. Wembley roadhouse in Belgravia Road, Belgravia, is still an iconic eatery for residents of the Cape Flats and Southern Suburbs.
Citing examples which demonstrate the value for money on offer in Athlone’s residential property market, Williams says a standard two bedroom property in the lower-valued areas such as Bonteheuwel and Hanover Park can sell for R300 000 to R400 000, providing more affordable homes for first-time buyers.
In the higher-valued suburbs such as Crawford and Penlyn Estate, he says one may find a standard three bedroom property selling for R1.8 million to an extended and renovated property marketed close to R3.5 million.
“While it varies, most recent residential property sales are in the price band between R400 000 and R1.6 million and spread from Heideveld through to Belgravia,” says Williams.
This three bedroom, one bathroom townhouse in Belhar has secure parking for three cars and is on the market for R569 000 - click here to view.
“Buyers generally tend to be well versed with the area they are looking to buy in and unwilling to entertain unrealistic seller demands, particularly in the current market where value for money and affordability plays a key role for the bulk of purchasers.”
Williams says rental units are also popular in Athlone, mostly attracting family tenants. Two bedroom apartments are leased at around R3 500 to R4 000 per month, with freestanding two and three bedroom properties generating rental income from R5 500 to R7 000 per month.
According to Williams, another area that is attracting home buyers whose focus is on value and affordability is Belhar, a suburb just over 14km further east, which comprises a number of extensions.
These include Old Belhar, where homes are priced between R900 000 and R1.6 million for three bedrooms or more, Musicals, with house prices mainly from R750 000 to R1 million for three bedrooms, Mimosa Village and Selfhelp where residential property goes for between R450 000 and R700 000 mostly for two to three bedrooms, Pentech with prices of R350 000 to R600 000 for two to three bedrooms and Extension 13 with a price bracket from R300 000 to R450 000, he says.
The Belhar area is bordered by the R300, Stellenbosch arterial and Robert Sobukwe Road, with easy access to the N2 and to Cape Town International Airport. It is home to two universities, two shopping malls, namely Airport Mall and Cavalier Centre, and Erica Square Shopping Centre that is currently under construction.
This three bedroom, one bathroom home in Hanover Park has open-plan living areas leading out to a covered entertainment area with built-in braai. It is on the market for R650 000 - click here to view.
“There are also two high schools, a few primary schools and many different church denominations plus five mosques. Only a 5- to 10-minute drive to the airport, it’s an easy commute to Bellville CBD and Cape Town via the N2 and other major routes with the use of public transport or car. Plus there are three railway stations, Unibell, Pentech and Belhar station,” says Williams.
“Also within easy reach of Stellenbosch, Belhar offers affordable housing with most of the properties falling under the R900 000 transfer duty threshold. Musicals is an affordable area offering good value with three bedroom family homes to be had from R750 000 to R1 million.”
Williams says home buyers for the areas of Pentech, Selfhelp and Extension 13 are mostly first-time buyers, and these areas also ‘feed’ family buyers to Musicals, Mimosa Village and old Belhar, the latter being areas which also attract investors because of the close proximity to the University of the Western Cape and Cape Peninsula University of Technology.
He says Glenhaven is another well-established area close to the universities, with three bedroom flats selling from R600 000 and houses between R1 million and R1.6 million.
The demand for student accommodation in the Belhar and Glenhaven areas is growing, while academics and staff are also moving closer to their place of work, says Williams.
This four bedroom, two bathroom home on a 10 003sqm stand is one of the oldest properties in Bonnievale. It is on the market for R3.7 million - click here to view.
Neil Rademeyer, an agent with Seeff, says although Bonnievale is a relatively young town it has gone from strength to strength in the past 97 years and is now the Western Cape’s biggest manufacturer and exporter of products like cheese, citrus, wine and fruit, and was recently voted by Die Burger as the best town in the Western Cape.
The town also made headlines when it assisted Beaufort West with its water shortage in 2012.
“Bonnievale has experienced an influx of people from all over the country in recent years, but especially from the Cape due to the ample employment opportunities that exist here,” says Rademeyer.
“Apart from the largest diary factory in the southern hemisphere that is owned by Parmalat in Bonnievale, conditions in the agricultural sector are also very favourable and offer enough water, fertile soil and a good climate to farmers.”
This three bedroom, two bathroom home for sale in Bonnievale has a double garage and flatlet. It is on the market for R1.29 million - click here to view.
He says a technical high school that will be named Jakes Gerwel is currently being built in Bonnievale, and the two government schools were also recently expanded to accommodate the increasing number of school-going children coming to this town.
“On the agricultural side, the industry is continuously experiencing a high influx of citrus plantings that creates many jobs and opportunities,” says Rademeyer.
Rademeyer says the average price of a family home in Bonnievale on a big stand offering three bedrooms and a double garage costs around R1.45 million at the moment, but house prices are growing by between 6% and 8 % annually.
This 94.5ha lifestyle farm for sale in Bonnievale has 360-degree views and a four bedroom, two bathroom home. It is on the market for R9.5 million - click here to view.
“This amount is expected to grow even more with current development in mind, and astute buyers are realising the value of investing in property sooner rather than later,” he says.
“In general, buyers in Bonnievale are younger than before and are earning good salaries. In addition to the good job opportunities the area offers, the hospitality industry, and especially guest houses in town, are also flourishing because of the wine routes, activities and scenery the area offers to visitors.”
Rademeyer says he is currently marketing a special property in Bonnievale that was built in 1930, probably making it one of the oldest properties in town.
This two bedroom, one bathroom cottage in Bonnievale has one garage and carport. It is on the market for R895 000 - click here to view.
“The property is situated on a stand of just over a hectare and was used as doctor’s consulting rooms when it was built almost 90 years ago. Although it is located in Main Road, it is surrounded by farms and smallholdings and has a village-like feel,” he says.
“The home has four bedrooms and two bathrooms and many of the finishes are from Teak and Stink wood. The property also has water rights and a horse stable and is being market for R3.7 million.”
