This spacious family home in Panorama was recently sold by RealNet for R2,45m. It has four bedrooms, two bathrooms, three reception rooms, a modern kitchen with separate scullery, patio with built in braai, salt-water pool and double garage.
The rising popularity of Cape Town’s northern suburbs among young families looking for community-orientated neighbourhoods is rapidly driving up home prices in these areas.
“In Panorama, for example, prices have shot up by as much as 25%,” says Ingrid le Roux, owner of top local agency RealNet Platinum, “although some very good value for money can still be found in this area, which offers proximity to the CBD and Durbanville, top schools and many safe parks.”
She says there has been a significant increase in demand for homes in Panorama the R2,2m to R2,6m price range, because of the trend towards purchasing larger homes that can accommodate extended families. “At least half of the properties in the area require modernization, and that is also happening on quite a large scale now as older residents sell up and new families take the opportunity to buy bigger homes at good prices and spend money on renovations.”
At the same time, Le Roux says, there is strong demand for smaller, more secure and lower maintenance properties in this area among career couples and those downscaling from the bigger homes. Overall, the highest demand in the area is for freehold homes in the R1,8m to R2,3m price range and the majority of sales currently are to cash buyers.
Meanwhile prices in the suburbs of Plattekloof and Welgemoed, she says, are also being driven up by strong demand and supply constraints as more well-to-do buyers find they don’t wish to pay the prices currently being asked on the Atlantic Seaboard or in the southern suburbs.
“The strongest increase in demand in these areas has been for homes in security complexes and gated estates that are priced from R2,5m to R3m. However, the average house price in Plattekloof is now R4,25m and there are luxury homes available here at prices up to R16 million”.
“In fact, Plattekloof is beginning to rival the Atlantic Seaboard and southern suburbs in terms of prestige, with potential buyers generally opting for homes that have already been extensively modernised and upgraded rather than fixer-uppers. Well-priced properties here are usually sold within 14 days now, and many of these purchases are also being made for cash.”
Le Roux says buy-to-let investors are active in these areas, and are purchasing houses in the R2m to R2,2m price range as well as flats and apartments in developments such as the Burgundy Estate, which can deliver yields of up to 10%.