Areas and Places

Buyers, investors packing for Plumstead, ave selling price up YOY by 25%

Buyers looking to get a foothold in the prestigious southern suburbs’ property market are still packing for Plumstead and surrounding areas such as Meadowridge and Diep River according to Seeff agents, Peter Thornton and Peter Marais.

This year, sales in Plumstead alone already amount to some 79 transactions worth over R151 million at an average sales price of almost R2 million. According to Propstats data, that is incidentally up from just R1.3m four years ago, thus some 54% more in just four years.

This year’s average price is also about 25% higher than last year’s average selling price of R1.6m.

Almost 70% of all sales in Plumstead since the start of 2015 to early August 2016, were freehold houses. According to the agents, just over one third of all sales fell above the R2m price band as buyers are prepared to pay ever-higher prices, provided they find good value.

“We have for example already seen ten sales priced upwards of R3m with sales this year ranging from R3.2m in Meyrick Avenue to as much as R5.45m in Denbigh Road. These were large houses though with four and five bedrooms respectively”, note the agents.

In neighbouring Meadowridge, famed for its status as one of the Garden Cities of the metro, the average sales price for this year is now standing at just over R3m, up by over R1m from 2012 when it was about R2 million. Thus, some 50% higher.

Three bedroomed houses have been the most popular this year in Meadowridge and have achieved prices of up to R3.95m in Newton Drive. Larger, five bedroomed houses have sold for upwards of R3.725m in Darwin Way to R4.925m in Newton Drive.

Diep River, yet another sought-after neighbour of Plumstead meanwhile now boasts an average selling price of just short of R1.5m, up from R1.1m four years ago. That it offers excellent value is clearly demonstrated by the average price and activity in the suburb.

Recorded sales for the suburb include smaller semi-detached houses that have sold for upwards of just R1.175m (Rambler Road) to R1.53m and R1.6m, both in Hamilton Road. Freehold houses meanwhile have reached prices of R2.8m in Avon Road (three bedrooms) and R4.6m in Rambler Road (six bedrooms), the latter being the highest price achieved so far for this year according to the data from Propstats.

“We are finding the market on this side of the mountain still quite active”, says Thornton. “Conditions are still quite favourable for sellers and good quality stock is in short supply. There is still plenty of demand, but buyers are now looking for value and resisting high asking prices”.

“The desirable lifestyle offered by the southern suburbs combined with the excellent value on offer and access to top schools, are a powerful combination that drives a strong appetite to live and invest in the area”, say the agents.

Young people, especially young families are drawn to the areas for its good value and access to good schools, the latter adding value to property in the areas according to the agents.

Older houses, especially in Plumstead, are being snapped up for their location and value on offer and then upgraded and renovated to suite the buyer’s needs. The area is especially popular for its solidly built old homes that are often renovated to make use of the large dimensions and high ceilings of old to good effect.

Even top end homes still offer exceptional value, often with three or more bedrooms such as a five bedroomed home with a nice sized garden and swimming pool, located practically on the border of Constantia that is up for grabs at just R3.95m. This is simply unbeatable value in the southern suburbs and, conclude the agents, a clear demonstration of just why the area is now so popular and values are rising accordingly.