An entire phase of a development in Brackenfell has been picked up by a single investor, to the tune of R75 million, who recognizes the growth in the buy-to-let market there.
The unprecedented demand for quality rental accommodation and new family homes in the Cape’s Northern Areas has led to the record sale of R270 million worth of stock at one development in Brackenfell, with a single investor laying claim to the entire last phase.
Created by Trinity Projects, the development at Burgundy in Brackenfell has, since building started in 2013, offered a lifeline to young families seeking a safe, community-oriented environment close to schools and major transport routes. Because of the phenomenal growth and success of the development, an investor has now snapped up the entire R75 million final phase as a rental investment.
Construction of this phase, known as Brittany, has now started and is scheduled for completion in 2017. This means that another 47 three-bedroom family homes, ranging in size from 142 m2 to 170m2, with double garages on 350 m2 plots, will become available to the notoriously under-supplied Northern Suburbs market by next year.
“We identified the Burgundy Brackenfell area as strategic land for those people who always wanted to settle and raise their families in the Northern Suburbs, where quality yet affordable rental stock, especially of new homes in security estates, would rarely come onto the market,” says Erik Joubert, Managing Director of Trinity.
Joubert says part of the challenge when building new communities from the ground up, as was done at Burgundy, was always the ability of its residents to access quality education opportunities close to home.
“Therefore we took a holistic and community centred approach to development planning right from the start, and partnered with Curro Holdings to bring two private schools to the area – a Curro Primary School and a Curro Castle Pre Primary School. The success of this approach has been evident this past year, as the schools successfully served their first intake of learners.”
Since the start of the Trinity development just three years ago, more than 200 residential homes to the value of R270mil were sold at Burgundy Brackenfell, to a mix of owner occupiers and investors.
Le Roy Viljoen, Development Director at Trinity Projects, says that notwithstanding the current economic climate, there remained strong consumer demand in the Northern Areas of Cape Town.
“Our single residential development in Disa Street Durbanville, which was recently completed, rapidly sold out at an average of R3 000 000 per unit. We are seeing a similar rush in other newly rising communities, such as at Sitari Country Estate in Somerset West where Trinity is the appointed developer for the single residential turnkey homes”.
“This can be attributed to the pent up demand for primary as well as investment properties in the market which continues, despite rising interest rates, to ensure a constant supply of serious buyers who seek properties that provide value and make investment sense, and which are delivered on time.”
Viljoen says another factor stimulating demand for new homes in upcoming areas, is the shortage of second hand residential stock.
“The average property available in this market is old fashioned and requires substantial refurbishment that is costly, time consuming and demands skill and expertise. And as consumers are increasingly looking for a stress-free solution to purchasing a new home, it makes sense to, from the earliest stages of design through construction to handover, provide a seamless turnkey service. This includes, for instance, taking care of all paperwork and facilitating excellent finance options.”