New middle-class families are snapping up large homes in Kuils River and demand is leading to stock shortages in the middle price range.
This two bedroom house in Kuils River has a modern kitchen, paved driveway, backyard. It is on the market for R450 000 - click here to view.
“Homes that offer value at prices between R1.5 million and R2.3 million are now often sold within a day of being listed,” says Ronelle Venter, owner of the local RealNet real estate franchise.
"Up until the second quarter of 2013, homes in the entry-level price range of R600 000 to R800 000 were hot sellers, but in the third quarter, buyers started turning their attention to undeveloped stands priced at around R500 000 in the Rouxville and Haasendal areas.
"That was quickly followed by a surge in sales of large homes in Rouxville, Haasendal and Soneike. Our sales team of 11 agents, based at our office in the Soneike Centre, has been working very hard the past few months to source enough stock for the stream of qualified buyers."
She says buyers are predominantly upgrading from areas such as Eersterivier and Highbury and bringing their extended families with them. Large homes with up to four bedrooms are consequently in demand, as are homes with granny flats to accommodate buyers’ parents.
This 291 square metre vacant land in Zevenwacht, Kuils River, offers mountain views. It is on the market for R998 000 - click here to view.
Professionals in established careers and academics at surrounding tertiary institutions such as the University of Stellenbosch - a mere 15 kilometres away - are the predominant buyers.
Venter says a new private school in nearby Zevenwacht is partly responsible for the popularity of homes in Rouxville and Haasendal among buyers with young families, while Soneike is targeted because of easy access to the N1 highway.
"Stock shortages are now becoming evident but even so, buyers are not prepared to pay more than market-related prices and strong price negotiation is currently widespread. In the face of banks' conservative approach to valuations it is unlikely that prices will rise substantially in the near future and owners who are keen to sell are thus accepting market-related offers."
However, she says, buyers should note that shortages are unlikely to be alleviated by new units coming to market in popular price categories, as most current development is aimed at entry-level buyers.
Venter says a selection of 800 square metre stands is available in the upmarket Zevenwacht Country Estate at prices around R1 million, but there is slow demand for homes with price tags of around R3 million in the estate.
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