The resilience of South African property market has largely been driven by the more affordable price-bands as first-time buyers continue to capitalise on the favourable 7% interest rate.
But whether the current buyer's market will continue remains to be seen, as stock shortages in certain sought-after suburbs in the Western Cape have an impact on asking prices.
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According to AÏDA statistical data the rise in values in the past year was being driven by people wanting to relocate to the beach, low interest rates, and very limited stock.
"We believe the outlook has moved rapidly from a buyers’ market to a sellers’, with a lot of those buyers entering the market for the first time. It’s first-time buyers and upgraders who are pushing the market. Plus there’s just not very much stock so as soon as something decent comes up it gets snapped up quickly," adds De Jager.
READ: Bond approval rates decline but first-time buyers continue to capitalise
“We are seeing record sales and new benchmarks for properties every week so you can sense how keen people are to get in, and not get priced out.”
Desirable Southern Suburbs
Cape Town’s Southern Suburbs are renowned for being an excellent area for family buyers especially given the access to some of the country’s top schools, says James Lewis, managing director for Seeff Southern Suburbs.
Buyers have a choice of great suburbs that offer family houses in the R2 million to R4 million price range to choose from depending on their needs and type of home and area that they are looking for. This popular Cape Town area is green with tree-lined roads, offering a great suburban lifestyle, yet with all the amenities that you need on your doorstep.
Dawn Bloch, Area Specialist for Lew Geffen Sotheby’s International Realty in Lakeside and Kirstenhof and Zwaanswyk, says properties priced between R2 million and R3 million have always been desirable in Lakeside and Kirstenhof, which both offer excellent value for money. “My partner, Lee-Ann Davis, and I have concluded many sales in this price bracket since June 2020 when the market opened up after lockdown.“
The Constantia Wine Valley is also a big drawcard and there are plenty of outdoor opportunities to walk, cycle and enjoy a horse ride all the way across Constantia Nek to Hout Bay. The Southern Suburbs are also popular with semigration buyers from Gauteng and other inland areas as well as foreign buyers.
Rondebosch and Newlands are sought for the close proximity to UCT and top schools, for example, Bishops, Rondebosch Boys and Rustenburg Girls. Harfield Village, Claremont and Lynfrae are particularly popular for the well-priced houses in the area. Other popular areas which offer houses in the R2 million to R4 million range include Tokai, Bergvliet and Plumstead.
The Southern Suburbs has currently *754 new property listings, according to Property24 Tends Data, with the average sale price for the area being R1.825 million. The average sale price per erf for 2020 was about R2.3 million, while Section Scheme Units average sale price for the same period is R1.25 million.
The latest residential listings on Property24 show that two bedroom homes are most widely available, at an average list price of R1.8 million. Sellers in the area fall within the 36-49 years (32%), while 39% of buyers are between 18-35 years - followed by 37% within 36-49-years age group.
Click here to see all the latest trend data for the Southern Suburbs
“Most of our buyers are searching mainly for three- and four-bedroom freehold family homes with two bathrooms, an open-plan to the living area, double garage, garden and pool, if available. There are also apartments and smaller homes available which make great starter homes and a foot into this market,” says Bloch.
With remote working now the ‘new normal’ for many people, the Winelands is very popular with Cape Town buyers as it boasts excellent schools, many amenities and a great country lifestyle, and is only 20-minutes from the airport and no more than half an hour from the Cape Town CBD. Security is also good with efficient neighbourhood watches, effective security companies and strong community spirit.
Paarl's appeal
Another area popular area in the winelands town is Paarl here you can find great value in the R2 million to R4 million range in the town itself as well as in the Boschenmeer Golf Estate, says Pierre Germishuys, managing director for Seeff Winelands and Boland.
The town is a popular alternative for family buyers given the proximity to Cape Town. Aside from local buyers, the town also attracts semigrating buyers from Gauteng and other inland provinces. Top schools such as Paarl Boys and Paarl Gymnasium are a big drawcard, and it is also close to the University of Stellenbosch.
"We are seeing very high demand in Paarl and Wellington in this price band. There is limited availability in properties priced between R2 million and R3 million in Stellenbosch and more limited to much older suburbs or new developments outside of town, according to Chris Cilliers, CEO and Co-Principal for Lew Geffen Sotheby’s International Realty in the Winelands.
“We are seeing a big push from younger people due to the lower interest rates. Although many people still look for the traditional suburban homes in this price range many others are looking for homes in new security complexes. Our apartment buyers are a bit scarce as there are no real investment buyers at the moment and the uncertainty around universities and term times has made parents also apprehensive concerning purchasing property for student children.”
Both towns offer more peaceful and secure environments in which to raise their families and Paarl offers many key drawcards, such as easy access N1 and Cape Town, comprehensive retail offerings at Paarl Mall and, most importantly, excellent schools, says Cilliers.
Golfers are spoilt for choice with several excellent courses in the area and there are loads of family-friendly activities for those who enjoy outdoor living, including scenic hiking and mountain biking trails, beautiful wine estates, numerous sporting facilities and picturesque fishing, picnic and braai spots.
Paarl has currently *245 new property listings, according to Property24 Tends Data, with the average sale price for the area being R1.8 million. The average sale price per erf for 2020 was about R2.67 million, while Section Scheme Units average sale price for the same period is R701 000.
Click here to see all the latest trends data for Paarl in the Cape Winelands
Family-friendly Plattekloof and Edgemead
In Plattekloof and Edgemead you can get a three bedroom family for around R2.2 million, according to Pam Golding Properties.
Many of our buyers in this price range are looking for space and upgrades and most of them are from the ages of 18-38 years, first-time buyers or buyers who are upgrading from sectional title apartments.
Read : SA coastal gems seeing ongoing 'zoom town' demand
Zooming in on Hout Bay
This popular coastal town along the Atlantic Seaboard offers up big value for buyers seeking a wholesome outdoor lifestyle, whether seeking out the sun, mountains or blue waters. You can still find a comfortable family house with a pool in the R3 million to R4 million range in Hout Bay, says Stephan Cross, manager for Seeff Hout Bay.
Buyers looking for a coastal location find Hout Bay ideal given its affordable homes and quick access to the top schools, beaches, mountains, forests as well as the CBD. Aside from local buyers, Cross says they deal with many semigrating buyers as well as foreign buyers, especially from Germany and the UK who invest in second homes.
Hout Bay’s appeal as a 'zoom town' has grown exponentially as more buyers look for properties in beautiful and safe surroundings with world-class infrastructure. Demand for properties exceeds supply as the striking beauty and lifestyle of Hout Bay becomes more apparent to buyers.
Click here to see the latest trends for Hout Bay.
Lock-up-and go Atlantic Seaboard
The R2 million to R4 million range on the Atlantic Seaboard will only really buy you a sectional title property in areas such as Sea Point, Green Point, De Waterkant, Mouille Point.
Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl says the price band has been very active over the last year as buyers look to capitalise on the favourable buying conditions including the low borrowing costs.
The area ranks as the most desirable real estate belt in the country and attracts a cross-spectrum of buyers, from locals looking to move into the area or downscale to a lock-up-and-go seaside lifestyle as well as upcountry and foreign buyers looking for a second home in the area. The lifestyle and amenities are key attractions.
Atlantic Seaboard has currently *374 new property listings, according to Property24 Tends Data, with the average sale price for the area being R3.3 million. The average sale price per erf for 2020 was about R8.24 million, while Section Scheme Units average sale price for the same period is R2.9 million.
The latest residential listings on Property24 show that two bedroom homes are most widely available, at an average list price of R4.799 million. Sellers in the area fall within the 65 years or older (38%), while 31% of buyers are between 50-64 years - followed by 30% within 18-35 years age group.
Click here to see all the latest trend data for the Atlantic Seaboard
Emarie Campbell, Pam Golding Properties area principal on the Cape’s Western Seaboard: “We have a very active middle price buyer market R1.5 million to R2.5 million in Sunningdale and Parklands
“Many of these buyers have been tenants in apartments or been sharing with family or friends. We do have a severe stock shortage in this price range so prices are showing signs of increasing.”
Welgedacht and Durbanville form part of Cape Town’s popular northern suburbs which are particularly favoured by family buyers for the great suburban lifestyle, good value for money, access to excellent schools and world-class medical facilities.
Fanie Marais, licensee for Seeff Welgedacht and Durbanville says the areas are sought-after for the better quality lifestyle, wide choice of accommodation and price points on offer. Durbanville, nestled among rolling wheat fields and vineyards is one of the fastest-growing towns of the northern suburbs.
Welgedacht is just 30-minutes from the CBD and is regarded as the “jewel” of the northern suburbs. It stretches from Hoheizen next to the N1, through well-established Loevenstein and leafy Welgemoed past Tygervalley Centre towards the hills next to picturesque vineyards. Value-for-money suburbs include De Bron, Door de Kraal and Proteavalley, are situated close to all amenities. Further along, you will find the modern and secure Oude Westhof, Van Riebeeckshof and security lifestyle estates like Welgedacht and Kanonberg.
The suburbs offer a great lifestyle. You have the Durbanville Wine Valley with many well-known wine farms. It is also well suited to those who enjoy an outdoor lifestyle as residents can enjoy walking and cycling. The Tygerberg Mountain Bike Club offers over 150kms of trails to enjoy along with fabulous hiking and horse riding in the area. There is also the Tygerberg Nature Reserve for picnics and the like. There are excellent shopping, retail and services as well as restaurants in the area.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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