Something property buyers should always be aware of is the trends and future prospects of the areas they are looking to buy in, as these can either have a positive or detrimental effect on property values.
This is according to Rowan Alexander, Director of Alexander Swart Property, who says one wholly positive trend is the uplifting effect that good new development corridors have on the already established suburbs next to or near them, as can now be witnessed in Cape Town’s Northern Suburbs.
“New developments often complete the enclosure of existing suburban areas, and the consequent lack of expansion opportunities and new land inevitably raises the value of existing stock in these areas,” says Alexander.
“At the same time, the higher prices and more modern designs of the new stock coming on stream in the adjacent areas also raises the value of the older stock nearby. It can pay, therefore, to buy in an established area alongside which good, new developments are taking place, or will take place.”
According to Alexander, Northern Suburbs corridors which fall into this category, and can expect upliftment, are:
1. The territory bounded by the Wellington Road corridor to the east of Durbanville. This includes the existing suburbs of The Crest, Uitzicht, Graanendal and Durmonte.
2. The areas north of Kraaifontein. The relevant suburbs likely to be affected here by new development on their fringes are Bonnie Brae, Bonny Brook and Langeberg Heights.
3. The Bottelary corridor to the east of Brackenfell. The precincts that will probably be affected here are Brackenfell South, Amandelrug, Rouxville and Hazendal.
“When we predict that these territories will be subject to an upliftment as a result of adjacent development, we also have to remind buyers not to be impatient. In these areas one must think long term, perhaps a period of five or more years,” says Alexander.
“The principle, however, remains sound. Good new greenfield developments in the hitherto undeveloped territories adjacent to established areas always uplift the latter significantly.”
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