For many years, the well-established leafy suburb of Tokai has been one of Cape Town’s most popular residential locations that ticks all the boxes. However, one key commodity has become rare in this sought-after area, Greenfield land for new development.
"It is essential that the development of this prime site is not only in harmony with the area, but that it is also flexible enough to meet buyers’ individual needs and budgets."This is according to Herculene Visser, Area Specialist for Lew Geffen Sotheby’s International Realty, who says this has been the case for a number of years, which makes the release of four 500 square metre stands a rare investment opportunity.
Visser says these four stands not only offer investors a chance to obtain one of the last available stands in Tokai, but as they are being sold as individual freestanding units rather than as part of a cluster development, buyers have the luxury of freedom of choice.
“Investors have the option to buy just the land that they can build themselves according to the developers or they can buy off-plan and work with Royal Africa Projects’ experienced team to create their dream homes, thereby alleviating the burden of overseeing the construction as well as saving considerable time as all the initial groundwork will have already been done.”
Stan Evans, Managing Director of Royal African Projects, says it is essential that the development of this prime site is not only in harmony with the area, but that it is also flexible enough to meet buyers’ individual needs and budgets.
He says to this end, they have created three unique styled designs and allocated a substantial prime cost allowance in the contract to allow buyers to select their own fittings, fixtures and finishes rather than have to choose from a pre-selected range.
Additionally, he says although the basic design templates are complete, they can be adapted according to investors’ lifestyle requirements. He says they can, for instance, incorporate a family TV room or study instead of an extra bedroom.
According to Evans, the individual designs also vary in size, one being a compact, low maintenance single level home which is ideal for downsizing empty-nesters and young professionals seeking lock-up-and-go convenience, while the other two design options are spacious double storey family homes.
Due for completion at the beginning of the third quarter of 2017, stands in the new development are priced at R2.5 million and off-plan contracts including land are priced at R5.5 million, R6.25 million or R6.75 million (VAT inclusive), depending on the chosen design.
Visser says an additional appeal factor is that the stands are ideally positioned in a quiet cul-de-sac which not only offers a security advantage but also a tranquil environment undisturbed by passing traffic.
He says homeowners will have the best of both worlds, a peaceful suburban lifestyle along with the convenience of being in proximity to a myriad of amenities that are available in the area.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says many investors are realising the advantages of buying off-plan rather than buying an existing home.
He says they get to move into a brand new home with no defects, and not only do they save on costs such as project management, labour costs and materials as these expenses are shared between the buyers, but they also avoid certain costs altogether such as the transfer duty, from which newly built properties are exempt. The attorneys transfer fee, however, is separate.
“Additionally, for qualified buyers, banks will frequently finance the total cost of the house, including the VAT and all the fees. When you’re buying an existing house, these costs, including the transfer fees, are always separate and require a considerable additional outlay at the time of purchase.”
Geffen says buying off-plan also has the financial edge over building your own home from scratch as certain initial steps have already been completed, and expenses such as design and quantity surveyors’ fees are avoided.
Claude McKirby, co-principal of Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs, says there is only one other similar development in Tokai, and all three units in that development were quickly snapped up.
McKirby says not only is there a dearth of available land in Tokai, but with just over half the residents remaining in their homes for 11 years or longer, there is also a low turnover of properties and therefore not a lot of stock available.
The suburb is also seeing a growing demand from younger buyers, with under 35s now making up a quarter of new buyers, he says.
Part of Tokai’s appeal for families is that the property landscape is still dominated by freehold homes and also offers buyers a choice of options across all price bands.
McKirby says the entry-level price for an older family home is around R3 million, with the accessible mid-market price band of up to R3.5 million accounting for 50% of house sales. Despite the economic slump, he says the upper end of the market is still fairly active, with 20% of house sales being homes priced between R4.5 million and R10 million during the last year.
Mckirby believes that the market appetite for residential property in Tokai is unlikely to wane and the high demand will keep prices steady for the foreseeable future.
He says the suburb’s desirability attracts a cross section of buyers, from families who are looking to upgrade from nearby areas like Plumstead, Kirstenhof and Muizenberg to upmarket empty-nesters looking to downsize.
“We are also fielding an increasing number of inquiries from False Bay suburbs, as many families want to be closer to facilities such as schools and also eliminate a section of the peak-hour commute to town.”
According to Visser, Tokai is a stone’s throw from the recently upgraded Blue Route Mall as well as Steenberg Shopping Centre, and only a few minutes’ drive to several of Cape Town’s top schools, including Reddam, the American International School, Waldorf and Wynberg Boys’ and Girls’ Junior and High Schools.
He says residents also enjoy a wide array of recreational and outdoor facilities on the doorstep, including several mountain biking and hiking trails in the Tokai forest and access to two top golf courses.
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