An artist’s impression showing the type of home that is currently being built in Brackenfell’s Burgundy development.
Predictions made by Andre Swart, the Rawson Property Group’s franchisee for Brackenfell, and Rowan Alexander, the franchise’s manager, have been surpassed by what has actually been achieved by this franchise – which in 2014 took the first place in the Rawson Property Group’s nationwide approved sales competition as well as the prize for the most residential units sold.
Discussing the way in which sales have run ahead of even the most ambitious targets, with special reference to the Burgundy development at Brackenfell, Alexander said that with the 550 homes that the developers Brick n Board and Trinity Projects promised to bring to the market at Burgundy, 70% have been sold in three years – and there are now only 160 left to sell, of which 120 are already in the marketing pipeline.
Almost from day one, said Alexander, investors at Burgundy have seen substantial capital growth on their units. A 175 m2 three bedroom, two bathroom home with a covered patio, a swimming pool and a garage which sold in 2013 for R1,275,000 now costs R1,8 million and this applies whether the buyer opts for a new or a secondhand unit.
“That increase,” said Alexander, “equates to a ± 14% per annum growth rate — something only a few other developments in South Africa can claim, which is considerably more than the provincial or metropolitan area’s average residential property growth.”
This year he predicted that a minimum further growth of 10% will be achieved.
Those who invest now in Trinity Projects and the Westmont Security Estate (at prices of R1,3 million to R1,5 million) will take ownership of the land in May/June this year and will be given occupation of their homes by October/November.
Buyers who opt for one of the more traditional freestanding homes (selling in a price range of R1,65 million to R2,6 million) will have their land registered in their names by January 2016 and will be able to take occupation of their homes from June of that year.
Alexander said that from the start he and his team had been impressed that some 90% of new homeowners are generally ready to upgrade their homes — investing extra in the process – and developers, he said, had been more than accommodating in meeting these people’s requirements provided that the main architectural guidelines, which apply mostly to the exterior of the homes, are adhered to.
As a result of this ability to accommodate buyers, a large number of Burgundy’s single residential homes have been sold in the R2 million to R2,2 million bracket, i.e. at above average prices.
The performance of Burgundy makes it the fastest selling of any development ever launched in Brackenfell – and has contributed to the very significant value rises in all Brackenfell homes. Lightstone, who use Deeds Office figures, record that these increases have been on-going since 2012, when a sectional title unit in Brackenfell on average cost R448,000 and a freestanding unit R891,000. Today the figures are R458,000 and R1,206,000 respectively. These figures for freestanding homes are however grossly understated as they only record erf prices for new developments and do not include top structures. The true average selling price would be in the region of R1,6 million, said Alexander.