Lower-priced homes were the biggest sellers during a tough year for Cape Town’s property professionals. By Bonny Fourie
This has undoubtedly been tough for the property market, but this has not stopped aspiring homeowners from claiming their piece of the property pie. The pie, however, appears to be a blend of flavours with a range of areas and suburbs appealing to diverse ranges of buyers and for various reasons.
There does not appear to be an outright winner of the “Most Popular Suburb of the Year” award in Cape Town. However, the Cape Town area to see the most property sales this year was Belhar, shows Lightstone Property data. A total of 990 properties were sold here to date, with an average purchase price of R377 421.
Milnerton’s Parklands follows with 905 properties sold, and Richwood with 744 sales. Among the other top areas in the mix are the southern suburbs, Vredehoek, eastern suburbs and the Atlantic seaboard. Property searches on Property360. co.za for the past 12 months show the majority of interest in Western Cape properties for sale was directed at the eastern suburbs (including Woodstock, Maitland, and Pinelands) with more than 38 000 searches.
This was followed by the southern suburbs with almost 24 000 searches. In the rental market, the southern suburbs generated the most interest, followed by the Parow/Goodwood areas, says Carolyn Savage, Property360.co.za general manager. Citing PropStats data, Greeff Christie’s International Real Estate chief executive Mike Greeff says Vredehoek has seen a high number of sales to date, with an increase in buyers aged 28 to 45.
“Due to its proximity to the CBD and Atlantic seaboard, it is seen as the best area to live in within the City Bowl as it is not too close to the CBD, but has easy access.”
Many of this year’s buyers have family or close friends in the area, or grew up there. “They moved away from their parents’ homes and have now returned for that ‘homely and vibrant’ lifestyle.” Greeff says average prices in the area are R2.5 million for sectional title units and R7.5m for full-title homes.
The southern suburbs are recorded as the top-selling Cape Town suburbs by Lew Geffen Sotheby’s International Realty agents. Within this area, Observatory, Claremont, Plumstead and Muizenberg have had the highest volume of sales during the year, says Arnold Maritz, co-principal in the southern suburbs office.
The reasons for these areas’ popularity include urban renewal measures and good value for money in Muizenberg and Observatory. “Proximity to good schools and UCT benefit Observatory, Claremont, Kenilworth and Rondebosch. The new affordable sectional title developments in Observatory and Woodstock, close to the CBD, are also popular.”
Average prices here are:
- Observatory R2 685 444 (freehold) R1358249 (sectional title).
- Claremont R4 453 083 (freehold) R1335314 (sectional title).
- Plumstead R2 625 592 (freehold) R1070018 (sectional title).
- Muizenberg R2 290 753 (freehold) R1303264 (sectional title).
Knight Frank South Africa’s figures show the highest number of properties sold in 2019 to have been in Claremont, says chief executive officer Richard Hardie. The suburb is close to good schools, UCT and the Claremont CBD.
“It offers a diverse range of properties from high-end luxury security estates to family homes.” He says average prices here are R3.4m for full title and R1.828m for a sectional title property.
The Atlantic seaboard, particularly Clifton and Bantry Bay, recorded the most sales for Pam Golding Properties, and is a “perennial choice” for many reasons, says area manager Basil Moraitis. These include its outdoor lifestyle, cosmopolitan vibe, high-street lifestyle, and accessibility to world-class beaches.
“There is also its proximity to the V&A Waterfront, the Sea Point promenade, and easy access to freeways.” Sectional title properties can start at R1m for a studio unit to more than R100m for a top-end apartment in Clifton and Bantry Bay. Full title, top-end homes in Clifton can exceed R200m, Moraitis says. Lightstone data shows Goedehoop Estate in Noordhoek is the Cape Town suburb with 2019’s highest average purchase price at R29.5m.
This is followed by Bishopscourt with average purchase prices of R21.65m and Clifton with R17.19m.
Kenilworth and Claremont predicted to be among hot picks
Kenilworth and Claremont will be two of the hottest suburbs in which to buy property, believes Knight Frank South Africa’s Richard Hardie. “There has been a boom in development in Kenilworth.
Commercial buildings are being refurbished and the area is attracting big retailers opening convenience stores. There is a surge in new residential development, including apartments and small gated communities.”
Hardie says the suburbs offers a variety of accommodation which attracts a good mix of young professionals, investment buyers and families. Average prices are R3.6 million for full title and R1.74m for sectional title. He says the Claremont CBD is expanding and there is demand for commercial and office space.
“Older commercial buildings are being revamped and mixed-use buildings are becoming popular. “The expansion of the CBD places a bigger demand on residential property as people need to live close to where they work.”
Pam Golding Properties cites Bergvliet, Meadowridge and Observatory as hot picks for property in the near future. In his 2019 property review, the group’s chief executive Andrew Golding says older homes in these areas are popular for renovation if they are selling at the right price. He says: “On the western seaboard, Tygerhof and Sandrift, nestled between Century City and Milnerton, are definitely beginning to upgrade.”
Noordhoek has also become sought after, offering community living away from the hustle and bustle, and so have Woodstock/Salt River/Observatory as rents are lower than the City Bowl and ideal for students and those commuting to the CBD.
“We are also seeing an increase in demand for apartments to rent in secure developments, especially in the southern suburbs, City Bowl, Foreshore, Observatory and surrounding areas.”
Mike Greeff of Greeff Christie’s International Real Estate says Kenilworth Upper will be a future hotspot owing to the amount of development in the area and amenities. “Lots of trendy brands have invested in the area making it appealing to buyers.”
Townhouses range from R3m to R5m and apartments from R2m to R2.5m. Greeff says Brooklyn, Rugby and Lagoon Beach are also promising property markets. They are close to main roads, beaches and Century City, and have access to the CBD. Furthermore, there is good value for money in terms of property sizes.
“The MyCiTi bus route also runs through the area.” Average property prices are R1m for full title and R730 000 for sectional title.
Buyer interest: Cape favoured
Of the almost five million searches for homes to rent and buy on Property360. co.za during the past 12 months, the Western Cape accounted for 1.2million. A total of 792 560 visitors searched for property to buy and 459 513 were looking to rent, says general manager Carolyn Savage.
Analytical data for the page disclosed the top areas searched for, the number of prospective buyers and tenants looking for new homes in each and the percentages of total searches for areas in the province.
Property for sale:
- Cape Town eastern suburbs 38208 4.86%
- Southern suburbs 23850 3.03%
- Parow/Goodwood 17638 2.23%
- Belhar 15484 1.95%
- Mitchells Plain 12236 1.56%
- Khayelitsha 11 349 1.44%
- Eerste River 11043 1.40%
- Grassy Park 10617 1.35%
- Bellville 10053 1.28%
- Retreat 9472 1.21%
Property to let
- Southern suburbs 19796 4.34%
- Parow/Goodwood 16685 4.08%
- George 9942 2.19%
- Durbanville 8929 1.96%
- Bellville 8338 1.84%
- Brackenfell 8266 1.82%
- Eastern suburbs 7 319 1.59%
- Table View 6999 1.51%
- Parklands 68601 1.51%
- Strand 6635 1.45%
Gauteng saw 2.5m of the total number views and KwaZulu-Natal saw 720000. In Gauteng, Joburg central was the most searched area for property to let and Roodepoort the most popular search for property for sale. In KwaZulu-Natal, Durban Central was the most searched area for property in both categories.
Buyers’ choices: Agents report
Estate agents indicate the rest of the suburbs rounding up their top three in terms of the highest number of sales in 2019:
Greeff Christie’s International Real Estate
Both areas are close to amenities, schools and recreational spaces and have good access routes to the city. – Mike Greeff, chief executive
Lew Geffen Sotheby’s International Realty
◆The West Coast
Paarl offers a great lifestyle, lack of traffic congestion, easy access to the N1 to Cape Town or northern suburbs and excellent government schools – Chris Cilliers, chief executive and principal in the Winelands
Knight Frank South Africa
Newlands is popular with South Africans moving from other provinces and looking for smaller properties, while also wanting to be close to the hub of Newlands Village – Richard Hardie, chief executive
Pam Golding Properties
◆Upper Constantia and Newlands (southern suburbs)
The southern suburbs offer an excellent lifestyle and good schools. Newlands Village is also popular and in demand. – Samantha Nel, branch manager for southern suburbs