Underpinned by a huge demand for student accommodation, coupled with a shortage of vacant land and new development stock, all 32 units in the final release of apartments in Andringa Walk residential development situated above Eikestad Mall in Stellenbosch have been snapped up by eager buyers, including existing owners, reports Pam Golding Properties.
Although the development is fully complete with all 116 units constructed in November 2014 and the first transfers taking place in February 2015, the developer held back 32 bachelor and two bedroom units, which have only recently been released to the market.
“Approximately 90 percent of this final tranche of developer units, which are spread throughout the complex, sold in just two months,” says Louise Varga, Pam Golding Properties projects manager in the Boland and Overberg regions.
And 12 of these apartments were acquired by existing owners in Andringa Walk, some of whom own two, three and even four units in the building.
Says Varga: “Such is the demand from current owners that when canvassing for stock to sell, they say if we find any available they want to buy them.”
Pam Golding Properties Stellenbosch agent Vanessa Johnson says: “One of the owner-occupiers is a retired couple who purchased and consolidated three, two-bedroom units into one penthouse apartment, while a Namibian client has acquired four units to date”.
“Many buyers are parents of students attending Stellenbosch University, and about 80 percent of these retain ownership even when their student children have completed their studies. Others are permanent residents or buy-to-let investors, including international cricketing greats Dale Steyn and Jacques Kallis.”
Bounded by Andringa and Bird Streets in prime location in the heart of Stellenbosch, literally a stone’s throw from the university campus, Andringa Walk is considered the most sought after block in the town, with top security, basement parking, 24/7 concierge entrance and direct access to Eikestad Mall’s Virgin Active gym, Food Lovers Market, Woolworths and Ster Kinekor cinemas.
Says Varga: “Each year the demand for quality student accommodation in a central location and with easy access to all amenities increases exponentially and is rapidly pushing up prices in Andringa Walk. To illustrate this, in 2015 a 70sqm two bedroom unit sold for R2.85 million, in 2016 such a unit fetched R3.75 million and we have just concluded a two bedroom apartment re-sale for R3.8 million.”
The final two bedroom, two bathroom developer units just sold through Pam Golding Properties went for R3.75 million including VAT, compared to the original two bedroom units which sold on launch from R2.65 million. Similarly, the last bachelor units fetched R1.785 million including VAT, compared to the initial launch price of R1.4 million for 31sqm.
Adds Johnson: “Other re-sales in the building are being transacted at prices of up to R4.85 million for three bedroom units”.
“From a rental perspective for buy-to-let owners there are some tenants who request a two-year contract to ensure the accommodation is secured, not to mention a long waiting list of new clients”.
“Currently Andringa Walk commands monthly rentals -ranging from unfurnished to furnished – for bachelor units at R9 400 to R11 200, one bedroom apartments from R10 200 to R13 400 and two bedroom units from R15 400 to R22 600.”