Somerset West property under R2 million is proving popular with buyers while higher priced homes are still selling.
This three-bedroomed home, located in a secure complex in Parel Vallei, was recently sold by Pam Golding Properties for R2.35 million.
Pam Golding Properties’ (PGP’s) Somerset West office has reportedly recorded a 63 percent increase in total sales value over the past financial year.
For the year ending February 2012, the company sold 108 residential properties in the town, to a total value of R217 million. The average PGP selling price was just over R2 million.
These figures represent a significant increase on the 2010/2011 financial year, when the same office sold 75 homes to a total sales value of R135.4 million, at an average price of R1.8 million.
PGP’s area manager for Somerset West, Linda Killick, says the most notable trend during the course of the year was the dominance of sales in the price categories below R3 million.
“While Somerset West may be renowned for its beautiful luxury homes with magnificent mountain backdrops, it also has a lot to offer buyers looking for a simpler family lifestyle in a good-quality home on a decent-sized plot,” she says.
Of the 108 properties sold during the year, she says 70 of those were purchased for between R375 000 and R2 million, and a further 24 were sold between R2 million and R3 million - that’s a total of over 87 percent of all sales.
“Top-end homes priced over R4 million are still selling, but the most significant sales activity is definitely occurring in the town’s lower to middle price ranges.”
Killick says by far the majority of sales were to existing Somerset West residents, either up-scaling due to growing families and improved financial circumstances, or downscaling for retirement or due to children leaving home.
This home in Bizweni, Somerset West located in Cherrywood Estate is for sale through Pam Golding Properties for R2.15 million.
Other reasons for purchase were the search for a more secure lifestyle, families buying for proximity to top-rated schools and businesspeople either starting their own ventures or being transferred into the Helderberg area, she says.
“Given the ease of access to both Cape Town International Airport and Stellenbosch, Somerset West is an excellent alternative to those who want to live in a smaller town environment, but still enjoy access to big city amenities and work opportunities.”
Just over 20 percent of buyers were moving into the town from another area, including 13 from Stellenbosch and eight from the UK, Germany and Switzerland. While there was one foreign sale priced over R13 million, says Killick, the bulk of the sales to overseas buyers were in the R2.5 million to R3 million range, with one foreign buyer purchasing a R575 000 lock-up-and-go pad.
“The previous year we had just one foreign buyer, who purchased a property for R1.6 million.”
PGP’s MD for the Boland and Overberg regions, Annien Borg, says the retirement market is also an important one for Somerset West, which has a number of highly reputable retirement villages as well as small lock-up-and go homes and security estates, which are ideal for more independent retirees.
“We sold a number of properties to retirees, either for immediate personal use, or as investment properties to which they will retire in the future,” she says.
PGP currently has over 250 properties for sale in Somerset West, ranging from a one-bedroom starter apartment priced at R450 000, to a popular 41ha wine farm and wedding venue sale at over R70 million.
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