Grassy Park and surrounds property market booming

Many Capetonians are not as yet aware of the fact that homes in the central Cape Flats residential suburbs, that is south of Wynberg, are currently more in demand than ever before. Prices are now rising at 5% to 7% per annum, and stock shortages have become a challenge for estate agents working in the area.

This is according to Lorenzo Jardine, the Rawson Property Group’s franchisee for Grassy Park and Retreat, who says this situation is prevalent across the board in all the suburbs or precincts covered by his mandate.

The same market conditions are found in Zeekoevlei, Sea Winds, Hillview, Lakeview, Allenby and other nearby residential precincts. Although there can be marked differences in the pricing of these areas, he says.

Jardine says there are four main reasons for the area’s growing popularity. The first is that while a certain percentage of local residents are always working to move up socially and pricewise to areas like Wynberg, Lansdowne, Ottery, and Plumstead, many new buyers, including a steady influx of first-time home buyers, are migrating from outlying districts such as Mitchells Plain and Strandfontein to these more central areas on account of their good schools, excellent retail facilities and their more convenient positions. Such people in most cases save hard to get the necessary finance, he says.

The second reason for the area’s popularity is that these areas still offer neat, well maintained homes, usually standing on their own stands and with two, three or even four bedrooms, at prices that to date have remained affordable. For example, it may be possible to buy a semi-detached unit or a sectional title apartment for as little as R200 000 in Lakeview or R300 000 in Hillview or to pay as much as R3 million for a lakeside property in Zeekoevlei.

Jardine says the average price range of homes throughout the fastest selling districts in his area is now between R850 000 and R900 000. 

A third reason for the growing demand in the area is that in these areas, potential buyers are steadily moving up on the wage and social scale and swelling the ranks of the growing middle class. It is difficult to qualify for a home loan of R850 000, for example, unless the household income exceeds R24 000 per month. However, there are growing numbers of local people who do earn far higher than that level, he says.

Jardine says some 100% bonds are still being given to safe bet risk clients such as professionals, teachers and government employees, but the majority of bonds issued by the banks here are at 90%.

“In many cases, the household income will include a regular payment from another member of the family who may live in the home, but often does not.”

He says the fourth indicator for the area’s popularity is that, like many similar areas, this precinct tends to foster family and community ties and to have an attractive, friendly, welcoming spirit, which is often related to church and mosque activity.

This spirit  is almost tangible in certain areas, and in some cases has resulted in those moving to more affluent homes in the Northern Suburbs returning after two or three years because they haven’t found the same ambience there, he says.

As in other emerging middle class areas, Grassy Park and Retreat rentals have risen even faster than house prices. Rents of R4 500 plus per month, are now standard for three or four bedroom homes, and sectional title units are often renting for R3 000 per month.