The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch in Cape Town enjoying the buffering benefit of being ideally situated.
Lesley Payne, Area Specialist for Lew Geffen Sotheby’s International Realty, says their office saw an increase in sales last year and, unlike most areas, and the upper end of the market also didn’t slow down dramatically.
This four bedroom, two bathroom home has a newly-renovated Caeserstone open-plan kitchen, a lounge with wooden floors, bay window and fireplace and covered entertainment patio with built-in braai. It is on the market for R6.5 million - click here to view.Although property prices at the top end of the market definitely stabilised, the number of sales remained consistent, and this can largely be attributed to the fact that most of these properties are located near the most sought-after schools.
“In fact, Golden Mile, arguably the best address in Rondebosch, which is within walking distance of the best schools, had the most sales,” says Payne.
“However, we did see an increase in the time properties spent on the market across the board, which is clearly evidenced by Propstats data,” says Payne. Between 2015 and 2017, the average time houses spent on the market rose annually from 25 days to 52 and finally 61 days last year.
“During the same period, time sectional title units spent on the market increased from 47 days to 80, but then last year this dipped again to an average of just 27 days,” she says.
Payne attributes this reduction to the lack of entry-level properties as well as the growing shortage of suitable student accommodation.
This 1 760sqm seven bedroom, seven bathroom home with an oak tree garden and mountain views features a large entrance hall with original pine flooring, open-beam ceiling and cottage pane windows. It is listed for R7.85 million - click here to view.“Although the sharp upward trajectory of property values in this popular leafy suburb has evened off, there has still been solid growth, especially in the housing sector,” says Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty.
In 2015, he says the average house price in Rondebosch was R4.55 million, increasing to R4.86 million (6.81%) in 2016, then by a substantial 12.75% last year to R5.48 million.
“The situation was a little different in the sectional title market where apartment values rose from R1.8 million to R2.06 million (14.4%) in 2016, but dipped slightly again last year by around 4%, ending on R1.98 million, despite the time spent on the market being more than half that of the previous year,” he says.
“The consistent popularity of the suburb is further evidenced by Lightstone’s demographic statistics, which reveal that a whopping 40% of current owners have owned their homes for seven years or less,” says Geffen.
He says one emerging trend that Rondebosch does share with most areas in the city is an increase in renovation.
This three bedroom, three bathroom well-positioned Park Estate home has a study that opens onto a wooden deck, a swimming pool, garden and enclosed double carport with excellent security. It is on the market for R4.85 million - click here to view.“More people are renovating rather than moving, due to the costs involved, when their families’ needs change, especially if their children still have many school years ahead,” he notes.
Unfortunately, however, Rondebosch’s sought-after location cannot buffer it from the growing water crisis and, like agents around the city, Payne also reports a significant drop in queries from upcountry buyers.
“However, despite the looming threat of Day Zero, the year has got off to a good start with an unexpected number of queries for valuations as well as several sales within the first month,” says Payne.
“If a solution to the water situation is found soon and the current political turmoil is resolved in the near future, I think it could be a great year for the real estate market in Rondebosch.”
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