That's according to Craig Bell, principal of Acutts Bluff, which enjoys membership of the National Referral Network (NRN).
"With six interest rate hikes over a period of 12 months, affordability-driven buyers are increasingly choosing to rent rather than buy their homes," he says.
Commenting on his rental division's third quarter results, Bell says the most sought-after properties are those for less than R5k a month. These include two-bedroom flats which, a year ago, achieved monthly rentals of R2,500 and are now commanding up to R3,500.
He says sales activity, though having dipped in the lower and middle segments of the market, is still reasonably strong, with top-end buyers seemingly untouched by affordability issues. According to Bell this is evidenced by a marked increase in interest and sales of luxury homes in the R2m-plus price range.
Bell says more than 60% of the area's real estate activity stems from residents scaling down or upgrading to larger properties, with the suburb's "unique character" luring back people who grew up there, even if it's just to retire.
"Neither a holiday destination nor a thoroughfare, access to and from the Bluff is restricted. Its relative seclusion, along with its lack of industrial and commercial growth, has ensured its popularity among those wanting a quieter, more secure environment while simultaneously protecting its coastline, reputed to contain some of the country's top surfing spots."
However, the Bluff does offer residents a comprehensive retail and educational infrastructure. This offering has been improved by the recent R80m upgrading of Bluff Towers, one of two upmarket shopping malls in the area.
According to Bell, at 22,000sq m, it is now more than double its original size and home to national franchises such as Woolworths and Checkers.
Additional shopping facilities will become available after the revamping of the Bluff Shopping Mall, which is set to commence early in 2008.
Although relatively small, the Bluff offers a broad spectrum of residential properties and prices. At the lower end of the market, 65sq m flats can be bought for as little as R550k.
Plush mini mansions with breaker views sit at the other end of the market, selling for up to R2,8m. That's the price ticket on one specific property in exclusive Marine Drive, which boasts 250sq m under roofing, he says.
Almost completely built-up, new residential development is extremely limited though, and tends only to occur on sites where existing properties have been demolished.
Bell puts the average price of a home on the Bluff at around R900k. He says this will buy a small family house with three bedrooms, two bathrooms and a swimming pool in Wentworth and Austerville, two suburbs which are becoming increasingly popular owing to their affordability.
In conclusion, Bell says that although the average selling price on the Bluff has risen from R750k to R900k in the last 24 months, the trend is likely to flatten off until the interest rate has stabilised.
For more information contact 031 467 3030 or send an email. Click here to visit the website.
Readers' Comments
Have a comment or question about this article? Email us now..
Get up-to-date property news
Would you like to receive free weekly news and information about property in South Africa? Click here to register and sign up for Property24's Week in Review.
Property News
Click here for more property news articles.
Need a blog?
Start your own blog with a free blog from 24.com.
Print
