While many estates and areas are experiencing a drastic slowdown in price growth, average selling prices for the Welgevonden Estate in Stellenbosch have spiked to a record high of 14.9% year-on-year, on top of the 7.5% growth clocked up in 2015.
This three bedroom, three-and-a-half bathroom home in Welgevonden Estate has an undercover balcony and double garage. It is on the market for R2.75 million - click here to view.This is according to Droeks Malan, Seeff’s agent for the Welgevonden Estate, who says the estate has seen a massive influx of new buyers from Gauteng and KwaZulu-Natal looking for security and an affordable home in the winelands, and a recent security upgrade has further enhanced the desirability of the estate.
“The estate ticks so many boxes for buyers that it probably should come as no surprise that property here has continued to perform so well. Aside from a picturesque location and stunning mountain and vineyard views, residents enjoy a healthy outdoor lifestyle with access to parks and play areas, walking trails and dams and shopping facilities,” says Malan.
“During the post 2007/8 recession period, prices rose by only 4% to 7% on average yearly, and despite a slower economy, we are seeing prices here just continuing to rise. This puts the estate amongst the best performers in the winelands.”
Malan says most buyers in the estate are still reliant on bonds. The average loan-to-value ratio is at around 82.5%, slightly worse compared to 2015 when it was 85%. Buyers also now seem a little more cash strapped and struggle at times with the deposit requirements.
This two bedroom, one bathroom apartment in Welgevonden Estate has open-plan living spaces that lead out to a balcony. It is on the market for R1.3 million - click here to view.During 2015, he says 61 houses sold to the total value of R117 214 850, at an average selling price of R1 921 540. Sales ranged from around R1.38 million at the lower end to R3.6 million at the top end.
Last year, only 52 houses sold - largely due to low stock levels - to the combined value of R114 861 000 at an average selling price of just over R2.2 million. Malan says that only two units remained unsold due to occupation issues.
The lowest price was R1.4 million for an older small one bedroom cottage, and the highest price achieved was R3.65 million for a modern four bedroom home on plot of 292sqm in Fynbos Street.
Notably, Malan says the average gap between the asking and selling prices was just 3%, and properties spent on average just 27 days on the market.
Higher value homes were also sold last year, with about 60% of all sales above the R2 million price band.
This one bedroom, one bathroom apartment on has open living spaces and is on the market for R1.795 million - click here to view.“Demand still outweighs supply as sellers seem to hold on to their homes as it is becoming too expensive to upgrade. In uncertain economic times, people tend to hang onto assets that weather the storm better, those assets are their homes,” says Malan.
“Welgevonden Estate has shown its investment value over the last two years.”
He says it is for example now similarly priced to Simonsrust in the suburb of Simonswyk that offers similar two and three bedroom simplex and duplex townhouses in a secure complex, conveniently located in Stellenbosch.
“A small entry level two bedroom unit costs around R1.5 million, and a three bedroom duplex well over R2 million, very similar to that of Welgevonden, but you do not have the added lifestyle benefit,” says Malan.
“At the top end, the estate is simply unbeatable for value. The nearest competitor would be Brandwacht-on-River where entry-level prices start at R5.5 million.”
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