Recent reports about an almost startling run in demand for residential property in Strand have been confirmed by Wouter Joubert, manager and co-franchisee for the Rawson Property Group’s Strand franchise.
“Our sales in September and October 2013 were, on average, 32% up on the same months in 2012 – and we hear that other agencies are also achieving big increases, although possibly not at this level,” said Joubert.
Asked to give the details of these sales, Joubert said that in September last year, his team sold 21 homes with a value of R19 million and in October 2013, 19 homes with a value of R21 million.
For the last four months, he said, his team has averaged 15 sales per month, making them one of the two top agencies in Strand.
“What is particularly significant,” said Joubert, “is that the sale prices now being achieved are 30% to 80% up on those of only two years ago. Taking both freehold and sectional title units into account, prices have risen from around R600,000 to R900,000.
Particularly fast appreciating, said Joubert, is the affordable market, with a value of R1 million to R1,5 million. Here, he said, it is now difficult to get stock. In the sub-R1 million bracket demand also currently outstrips supply.
As yet, said Joubert, the upper middle and upper bracket homes have not shown much price improvement. As he has said before, Joubert reaffirmed that, in his view, there will be long term price appreciation in many of the nearby beachfront homes. Here, homes and apartments (many in avant garde modern blocks) are selling from R1,5 million to R4 million.
“Possibly nowhere in South Africa are such luxurious units still available at today’s prices.”
The Strand Municipality’s plan to upgrade the CBD, the Pavilion, the beachfront boulevard and the seawall (to create a Sea Point type recreational area) as well as the reinstatement of the dune area with indigenous vegetation (it is currently overgrown with aliens) and the treatment of the local sea water polluted by the Lourens and Soet Rivers will all, said Joubert, add value to the Strand properties.
“Despite the tight economic climate, we are now confident that we can maintain our current growth rate this year,” said Joubert, “because the simple truth is that despite prices rises, the value-for-money here at the Strand is excellent (especially in comparison with the other Helderberg and Boland towns) and demand is increasing not decreasing.”
Quoting examples of this ‘good value”, Joubert mentioned:
· A three bedroom, three bathroom home in Strand with an outdoor braai area and a swimming pool on offer at R1,550,000.
· Another three bedroom, three bathroom double storey home that is one block from the beach. On the top floor there is an additional small kitchen, making this area almost self-sufficient. The asking price is R2,695,000.
· An example of a good apartment on offer is a three bedroom, two bathroom home with a balcony in the Cape Sands complex right on the beach. The price is R2,850,000.
All the apartments in the complex will have the use of the Cape Sands gymnasium, sauna, steam room and swimming pool.