Anyone looking to buy Cape residential property at affordable prices in a fast appreciating area should look no further than Bothasig and its surrounding suburbs.
This two bedroom house in Bothasig, Milnerton offers an open plan kitchen and two reception rooms. It is selling for R985 000 - click here to view.
This is according to Colin Kretschmer, manager of the Rawson Property Group’s franchise in this precinct, who says Deeds Office figures show that in 2012 the average sales price of a Bothasig freehold home was R979 000 (R447 000 for the few apartments in the area) and the average freehold asking price was R1.02 million, which is more than 10 percent higher than the average price achieved in 2012. He predicts that these price rises will continue at the same pace this year.
“The simple truth is that demand is running well ahead of supply and, as we all know, this always leads to steady price increases.”
In 2012 Bothasig had exactly the same number of sales as in 2013, despite the demand, another indication that stock is in short supply.
The highest price achieved by the agency in 2013 was R1.58 million, and that home was sold within nine days, says Kretschmer.
Rental demand throughout the area is even stronger than that for sales and at the current price levels buy-to-let investors (even those with 100 percent bonds) often from the outset come close to covering their monthly bond repayments through rentals.
This three bedroom house in Bothasig has undercover braai area, bar and entertainment room with Jacuzzi. It is on the market for R1.45 million - click here to view.
Bothasig is located 15km from the city centre, it has excellent retail centres and sports clubs, good schools (many buy into the suburb in order to qualify for entry into Edgemead’s primary and secondary schools) and its relatively low crime rate have all helped to raise its image in the buyers’ minds- as a result, this has led to on-going upgrades, according to the agency.
Kretschmer says even the original homes of ‘old’ Bothasig built in the 1960s on the instructions of P W Botha, then Minister of Housing, have in many cases been transformed with brick cladding and other improvements, while in ‘new’ Bothasig, to the northeast of the original suburb centre, the standard of both design and finishes is noticeably higher.
The area’s surrounding suburbs have seen a similar rise in popularity - in Edgemead prices are 15 to 20 percent higher than those of Bothasig and agents often do not even advertise stock - it sells as soon as it is listed. At Richwood prices are significantly lower than those of Bothasig (they range from R600 000 to R950 000) and at Summer Greens they are lower still at R550 000 to R750 000. Richwood is witnessing major developments on either side of it and Phoenix is equally affordable.
This three bedroom house in Phoenix, Milnerton is on the market for R650 000 - click here to view.
He says all these areas are seeing price increases on a similar scale to those of Bothasig. At Richwood a home was recently sold for the astounding price of R1.4 million, way above the average for the area.
This mega-development, launched some three years ago on the Table Bay facing slopes of the Tygerberg, is made up of 20 sectional title apartment complexes. Soon after the launch, which brought in a host of developers, the recession hit and some buyers found themselves having to sell at prices below what they had originally paid.
Kretschmer says currently, prices are stable and, in fact, rising, the long term prospects for this estate are excellent because it has such good facilities - its own chic retail centre, a school, walking and cycling trails, good landscaping and a golf club with a restaurant and bar.
“For the long term investor Burgundy Estate is definitely the place to be.”
As indicated, rents in all these suburbs are, as in most affordable areas in South Africa today, running well ahead of previous levels. Rental houses in Bothasig range between R4 500 to R9 500 per month (with one or two going above R12 000). At Edgemead R7 000 to R11 000 rents are now standard and in the other suburbs of this area the rental range by-and-large is from R4 500 to R8 000 per month.
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