The growing demand for accessibly priced family homes in Cape Town’s Southern Suburbs has triggered stock shortages in some areas, and it also continues to drive record prices despite the slowdown of the South African economy.
Plumstead not only achieved record median house prices last year (R2.388 million) and again this year (R2.562 million), in January, Glynis Kareklas, Area Specialist for Lew Geffen Sotheby’s International Realty, also realised the highest ever sale price of R5.6 million for a property with an erf size of 1 648sqm and three dwellings.
“The most active price range, however, is R2.5 million and below, and homes with a granny flat are usually snapped up immediately,” says Kareklas.
“Plumstead has become a very vibrant suburb in recent years, with more and more young families and up-and-coming professionals moving into the area, mostly buying homes that the older, existing residents are selling in order to downsize.
“The suburb offers them myriad drawcards, not least the fact that it is home to three primary schools and a high school as well as several crèches, as well as being close to many of Cape Town's best schools including the renowned Bishops Diocesan College, Herschel Girls' and Wynberg Schools' campuses.”
Lightstone data further reveals that the median house price in Lakeside also achieved record highs, both last year (R2.45 million), and again this year when it reached R2.57 million before the end of March. And in 2021, house registrations jumped from 26 in 2020 to 50, the highest it’s been since 2015 (54).
Kirstenhof saw both the median house price and number of registrations also hit record highs last year at R2.815 million and 86 respectively.
Both suburbs have become very popular with a broad variety of buyers, say Dawn Bloch and Lee-Ann Davis, the group’s Area Specialists: “We’re receiving more enquiries and concluding more sales with young families upgrading from apartments, older buyers downscaling from family homes and families looking for homes to accommodate extended family and working from home or have income-producing potential.
“Around 20% of our recent buyers were semigrants and, interestingly, we have also seen a rise in enquiries from foreign investors. We recently sold a Lakeside property to a Dutch buyer who wanted a holiday home that could double as an Airbnb rental.
“Our busiest price bands during the past few months have been R2.8 million to R3.75 million in Lakeside and in Kirstenhof, from R3.75 million and upwards but there is currently a shortage of available stock.”
According to Bloch and Davis, these suburbs have not only gained in popularity because they offer value; they also boast a number of very appealing drawcards: “Lakeside offers an enviable lifestyle with its beautiful views, parks, shopping centres and a close-knit community and nearby Zandvlei Reserve and Muizenberg beach provide for leisure and sports activities.
“Kirstenhof is close to the Blue Route Mall, Tokai MediClinic, Kirstenhof Primary School, several pre-Primary Schools, parklands, greenbelts and mountain views.”
The keen buyer interest is evidenced by the fact that Bloch and Davis are regularly selling homes that are priced above the median price.
“In Lakeside, our recent sales include houses for R3.075 million, R3 080 million, R3.175 million and R3,670m and in Kirstenhof we have just sold a property for the full asking price of R3.75 million within 24 hours of listing.
Bloch adds that in Zandvlei, which has maintained a very consistent median house price of between R2.2 million and R2.4 million since 2016, they have recently sold homes for R2.8 million and R3.1 million, both of which records at the time.
In neighbouring Meadowridge, the 2021 median house was the highest it’s ever been (R3.65m) with the number of house registrations also spiking to a record number (55) last year, with the previous high being 51 registrations in 2013.
Southern Suburbs has currently *792 new property listings, according to property24 Trends Data, with the average asking price for the area being R2.65 million. The average sale price per erf for 2021 was about R2.55 million, while Section Scheme Units for the same period is about R1.26 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R1.795 million. Sellers in the area fall within the 65-years or older 33%), while 39% of buyers fall within 36-49 years age group.
Click here to see all the sale and listing price trends in Southern Suburbs
According to Leonie Wosk and Sally Fidler, Area Specialists for Lew Geffen Sotheby’s International realty, the market in these two suburbs has been very active during the past year, with correctly priced homes selling very quickly, often within two weeks of listing.
“Buyers are mainly young families looking for a secure lifestyle and value for money along with convenience and close proximity to good schools and amenities. And with a shortage of land for further development, we’ve started to see stock shortages in our area for the first time in a number of years.”
They add that homes that allow for multi-generational family living and working from home are very popular, especially those with self-contained flats and double garaging and sizeable gardens for outdoor living are also perquisites for many buyers.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions
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