Situated roughly 50km east of Cape Town’s metropolitan area in the Cape winelands is the quaint town of Stellenbosch. As the second oldest European settlement in the province, the town has become known as the City of Oaks due to the many oak trees that were planted by the town’s founder, Simon van der Stel. Van der Stel, who was the Governor of the Cape Colony at the time, founded Stellenbosch in 1679 and named it after himself.
This three bedroom house in Kylemore, Stellenbosch, offers an open-plan living area, fireplace, outdoor patio with built-in braai and 24 hour security. It is on the market for R1.75 million - click here to view.
Huguenot refugees settled in Stellenbosch during 1690, planting grapes in the area’s fertile valleys. Not long after this, wine production began and Stellenbosch soon became the centre of the South African wine industry.
While the first school was opened in the area in 1683, it was in 1859 when the first seminary for the Dutch Reformed Church opened that more focus was placed on education. Rhenish Girls’ High School was established in 1860 and is now the oldest school for girls in the country.
Victoria College was the first of the higher learning institutions to be established in the area during 1874, with the University of Stellenbosch following in 1918. Today the university caters to over 25 000 students.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says while there are a vast number of students living in Stellenbosch, it is the older generation who are most active in the property market.
This two bedroom house in Paradyskloof, Stellenbosch, offers an open-plan lounge, dining room and kitchen, 2 bedrooms, 2 bathrooms, single garage and a secure carport. It is on the market for R2.15 million - click here to view.
This is backed up by Lightstone data which reveals that 41.96 percent of recent buyers are between the ages of 36 and 46 years old, while 35.66 percent are between the ages of 50 and 64 years old. The latter demographic also represents 44.62 percent of existing owners in Stellenbosch and 44.2 percent of recent sellers.
A large majority of property in Stellenbosch is made up of sectional title units (83.84 percent), while the remaining property consists of freestanding property (15.69 percent) and estates (0.47 percent). This would explain why sectional title units outsell freestanding homes by around 10 to one.
Goslett says property transactions saw a steady but gradual decline from 2004 to around 2009, however, the number of sales has subsequently picked up with an average of 241 properties selling each year.
He says freestanding home prices saw a steady growth period between 2004 and 2007, dipping in 2008 and again in 2009. The price shot up to a record high of R3.569 million in 2010. Although the average price of a freestanding home eased off in 2011, it has since gained momentum and is currently sitting at around R3.516 million.
This five bedroom house in Onder Papegaaiberg in Stellenbosch offers three reception areas, a large garden and undercover braai area. It is on the market for R2.55 million - click here to view.
Sectional title unit prices have been far less erratic, although also reaching their record high in 2010 of R1.125 million. The average price of a sectional title unit has remained around the R1.03 million mark ever since.
Goslett says more than half the properties sold in Stellenbosch between September 2012 and August 2013 were those priced between R800 000 and R1.5 million. Around 23.4 percent were priced between R400 000 and R800 000, while properties between R1.5 million and R3 million represent 18 percent of the area’s sales.
He says properties that were sold during this period above R3 million represented just 5.9 percent, while those below R400 000 represented just 2.4 percent.
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