Goodwood is one of the most affordable Cape Town neighbourhoods for middle-class buyers and tenants, with two bedroom apartments selling from just R550 000 and rentals from R5 500 a month - you have to look hard to find better value.
This is according to Johann Groenewald, Seeff Licensee for Goodwood and surrounds, who says the greater Goodwood offers the ideal mix of centrality and good value, attracting especially middle-income consumers. It also boasts amongst the highest proportion of young buyers, with just over 30% under 35 years of age, and a further 41% under 50.
Goodwood comprises a number of suburbs including Townsend Estate, Goodwood Estate, Vasco Estate, Richmond Estate, Tygerdal, Glenwood and Ruyterwacht.
It is home to a vibrant community and a bustling commercial centre, largely around Voortrekker Road. However, there are a number of main roads that cross the area, including Frans Conradie, Vasco Boulevard and Jakes Gerwel Drive.
Groenewald says you can live, work and play in the area, and even if you work elsewhere you have access to excellent transport.
Residents have just about any product or service on hand around the neighbourhood, from a variety of services to fast foods and restaurant brands, and in addition to the mega N1 City Mall, you are also close to Canal Walk, another mega shopping centre.
The Grand West Casino, the biggest of its kind in the Western Cape, is a landmark in the area. Here, you will find a host of restaurants, and it also hosts many concerts and events.
Groenewald says family buyers are spoilt for choice as there are excellent primary and high schools, as well as technical colleges. Other facilities include a police station, traffic department, department of labour and magistrates court.
“The properties are generally older, offering great opportunities to renovate, but there are areas with luxury homes with pools in the R2 million to R2.5 million price range,” says Groenewald.
Over the past year, the Goodwood area has seen a slowdown in price increases from 8% in the 2016/2017 period to around 5.5% in 2017/2018, averaging at around 6% for the last five years. “As with most of the Cape, we are now seeing more of a buyer’s market and property prices are flattening out, and in some instances there have been some price reductions.”
He says it is a challenging time for sellers as they will need to rethink their premium pricing and be open to offers if they really want to make a sale. Sellers who are still holding out hoping for a better price could lose out on the current pool of willing buyers.
Groenewald cautions sellers to be mindful that buyers are starting to bargain, offering below the asking prices, especially on overpriced properties. That said, there is still a shortage of sellable stock, so buyers should not be too choosy either, or they may end up losing out on a good deal.
“Some of the best value on offer are in the suburbs of Vasco Estate, Townsend Estate, Goodwood Estate and Ruyterwacht. Two bedroom apartments in the greater Goodwood area range from R550 000 to R850 000 while three bedroom units are scarcer and fetching prices of R900 000-plus,” he states.
Townhouses are popular with first-time buyers, and prices range between R1.1 million and R1.7 million. Traditional three bedroom family homes offering basic living and sleeping arrangements start at R1.2 million, while those with extras range to about R2.5 million.
“There is a huge demand for rental homes and flats in the Goodwood area, and these are still in short supply,” says Groenewald.
“The high demand for rental homes has sparked higher rental rates and a steady 10% year-on-year increase in rentals. A two bedroom apartment rents out at around R5 500 to R8 500 a month and family homes at around R12 000 to R16 000 a month.”
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