The sectional title property market in the Cape Town suburb of Rondebosch and its surrounding areas Rosebank, Newlands, Observatory, Claremont and Kenilworth has proved to be one of the best performers in the entire South African property sector.
This one bedroom apartment in Rondebosch has a renovated kitchen, en suite bathroom, security and a lock-up garage. It is on the market for R1.1 million - click here to view.
This is according to John Birkett of the Rawson Property Group who has specialised in this market since 1999 and in November 2012 opened the Rawson Rentals Metro Classic office serving the same market.
He says severe shortages of stock halfway through 2013 dampened the market for a time, but since October 2013 the sales tempo has once again picked up noticeably.
Birkett and Steve de Villiers, his selling partner, sold 21 apartments in a price range of R650 000 to R2.5 million in the last three months of 2013 and this year a similar rate of sales is being achieved. “Typically, an available unit will be snapped up within two to three months of coming onto the market,” says Birkett.
He says Rondebosch has been the focus of the strongest demand and old units, some dating back to the mid-1900s, have proved almost as popular as the new ones, many of which have recently been developed by Rawson Developers
This one bedroom apartment in Rondebosch is well located and an excellent buy-to-let opportunity. It is on the market for R695 000 - click here to view.
The strongest demand has been for units in the The Rondebosch, Rondebosch Oaks, River’s Edge, River Song, Albion Place, Edingight, Devonshire Hill, Rusdon Park and Salwood Court.
He says buyers here are mostly the parents of students (or in some cases the students themselves) studying at UCT or buy-to-let investors capitalising on the student market.
They are attracted by the convenient position of these apartments in relation to UCT and, perhaps more importantly, by two further factors: high capital appreciation rates (at The Rondebosch, completed only 13 months ago, a two bedroom unit that sold originally for R1.6 million was recently resold for R2.5 million) and by very satisfactory rentals.
Bachelor flats in the area now rent at anything from R4 900 to R8 000 per month, one bedroom units at R6 500 to R9 000, two bedroom units from R8 000 to R13 000 and three bedroom units from R9 000 to R15 000.
“The demand is always strongest close to the opening of the new academic year, but no property stays empty even if it comes onto the market later in the year,” says Birkett.
This two bedroom apartment in Rondebosch has an open plan living area/kitchen, balcony, bathroom and mountain views. It is on the market for R1.195 million - click here to view.
He says to succeed in this business an agent must have in-depth, well researched knowledge of the market and must be trained to achieve the best possible price for his client. He must also, however, ensure that the landlord is offering a quality product in good condition. The agent must always be prepared to “go beyond” the normal duties expected of him.
“If these basic rules are adhered to, it is possible that the client and agent will have longstanding relationships. We have some clients who have not only given us their rental portfolios but have bought as many as ten units through us,” says Birkett.
Rawson Rentals Metro Classic operates from The Rondebosch itself and the continual letting activity, which Birkett predicts will eventually overtake the sales side, leads to ongoing new sales mandates.
He says prices will rise steadily for the simple reason that UCT, which receives some 20 000 applications for accommodation each year, can only provide for 6 500 students on campus. The remainder of the students have to fend for themselves and find accommodation elsewhere.
He says his office is fielding more than ten enquiries for rentals each day and almost an equal amount of enquiries for urgent buyers.
“We now need more bachelor, one, two and three bedroom flats as well as houses with multiple rooms; stock is in very short supply at the moment,” says Birkett.
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