Cape Town’s Southern Suburbs have been among the top performers in the South African residential sector for several years, with popular suburbs like Claremont, Rondebosch and Newlands experiencing year-on-year growth which have increasingly priced them beyond the budgets of many investors.
Cecile Leck, Area Specialist for Lew Geffen Sotheby’s international Realty says: “In the most sought-after areas, house prices now start at around R5 million with average sale prices of around R7.5m, however, there are still nodes where investors can enter the market for considerably less”.
“Lynfrae, Clare Park and Below Belvedere were often overlooked because of their location “below the railway line” but this is no longer the case as they still offer excellent value for money in a high value zone where average house prices in directly adjacent suburbs are considerably higher.”
According to Leck, between January and August this year, 20 homes were sold in Lynfrae at an average sale price of R3.6m and during the same period 17 sales in Below Belvedere realised an average sale price of R2.9m while Clare Park averages slightly higher at R4m.
“Correctly priced, well-maintained homes in these suburbs will be snapped up, often within days, regardless of whether or not they have been renovated and we are now experiencing stock shortages of lower to mid-market homes.”
Although most of the properties in these areas are still freehold, there is now a growing demand for the lock-up-and-go properties, including sectional title schemes, cluster developments and townhouses.
“These property options are very popular with young professionals and empty-nesters downsizing and currently there are only four developments in the area which cater to this rapidly expanding niche market: Keurboom Close, Victoria Mews, Queen Victoria and Belvedere Court, a sectional title scheme”.
Leck adds: “An increasing number of current owners as well as new buyers are renovating their homes, either to meet their lifestyle needs or with a view to selling in the near future.”
Lew Geffen, Chairman of Lew Geffen International Realty, says: “Although almost half of existing residents have owned their properties for more than a decade, the majority of new buyers are recently married couples starting out and young families who want to be in the school catchment area”.
“There is also a high demand for affordable rental accommodation, however as many investors are buying to live in their homes, demand far outweighs supply.”
Geffen says that in addition to the accessible pricing of these suburbs and their proximity to several excellent schools, they also offer a number of other compelling appeal factors.
“Residents are within walking distance to a number of popular sporting facilities such as Newlands cricket and rugby grounds, Western Province Cricket Club and Villagers’ Rugby and there is also a comprehensive selection of local small shopping centres, including Palmyra Junction and Belvedere Square, as well as easy access to larger malls such as Kenilworth Centre and Cavendish Square”.
“There are also numerous doctors’ practices located along Belvedere Road and excellent private medical care is available at the nearby Life Claremont/Kingsbury hospital cluster”.
Leck says: “One of the biggest drawcards for young families is that this is still very much a community-minded neighbourhood with a number of play-parks for children, including popular Keurboom Park where families can safely enjoy outdoor activities after work and on weekends as security has been prioritised and environmental sensitivity maintained.”