Due to lack of supply within the affordable housing sector, more and more developments have been built to meet this growing demand.
An entry-level 50 square metre two bedroom unit will cost from around R445 000, while a 60 square metre three bedroom unit will cost from around R499 000, and a 70 square metre three bedroom unit will cost from R559 000 upwards.
This is according to Charles Louw, Broker/Manager of RE/MAX Property Associates, who says buyers have been particularly interested in areas such as Blackheath, which is one of Cape Town’s north eastern suburbs.
He says there has been growing demand within this area and numerous requests for affordable housing options. Louw says the demand for properties between R400 000 and R600 000 is increasing on a monthly basis in Blackheath, and as a result there have been a fair number of developments that have recently been built in the area and the surrounding suburbs to cater to this section of the market.
He points out that one such development in Blackheath is Greenfields Village, which is the only security village in the area, making it sought after among buyers. “With the decline of secondhand properties available to buyers, new developments such as Greenfields Village have seen great success over the past few months. The development’s security features have also greatly added to its allure, with many property buying decisions driven by a property’s safety elements.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says for many home buyers in South Africa, security has become one of the main influencing factors when deciding which home to buy. He says South African home buyers are among the most security conscious people in the world, which is why property within secure estates or complexes is generally sought-after and has a greater return on investment.
Aside from the security aspects of the development such as an electric fence, armed response and an access-controlled entrance, the development features a children’s playground, garden services for all owners, public open spaces and maintenance of sprinkler systems. The development is also within proximity to amenities such as schools, shopping centres and transport routes. According to Louw, the concept of the development is geared towards a family lifestyle and building a sense of community, where neighbours feel like neighbours and not like distant strangers.
He says Greenfields Village has 93 houses with three plans for buyers to choose from in two and three bedroom formats. An entry-level 50 square metre two bedroom unit will cost from around R445 000, while a 60 square metre three bedroom unit will cost from around R499 000, and a 70 square metre three bedroom unit will cost from R559 000 upwards.
Louw says in order for buyers to qualify for finance within these price brackets, they would have to earn a basic salary starting at around R14 000. So far, he says the sales in the village have been successful and there are only 38 houses left, which proves how much demand there is.
Some of Blackheath’s surrounding suburbs also offer affordable buying options such as Dennemere, where two bedroom homes cost around R460 000 and three bedroom homes sell at around R510 000, says Louw. He notes that slightly more expensive homes can be found in areas such as Austinville and Gaylee, where homes would on average, sell in the R650 000 region.
“Given the current market conditions, it is an excellent time to buy, and with strong demand in this sector of the housing market, these homes are likely to see a good return on investment in the future.”
For more information, email Corena Botha.
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