Well priced properties in desired areas are selling quickly in Mitchells Plain, an area which offers good value for money, says Nazmie Anthony, Pam Golding Properties area principal for Cape Town’s south-eastern suburbs – including Mitchells Plain.
Combined with accessible pricing, this creates sound opportunities for sound capital returns over the medium to longer term, he says. “For those wanting to step onto the first rung of the ladder in the residential property market or simply acquire an asset with the potential for sound capital appreciation in the future, Mitchells Plain is a large, sprawling area with a diversity of suburbs and variety of options which make economic sense. It also has its own schools, community centres – some of which include public swimming pools, shopping malls such as Westgate Mall and The Promenade Shopping Centre, as well as diverse places of worship.”
Accessible in- and outbound mainly via the R300 and N2 highway, the four key routes within Mitchells Plain are Eisleben Road, AZ Berman Drive, Spine Road and Westpoort Road. So extensive is Mitchells Plain that it incorporates the areas of Beacon Valley, Colorado, Colorado Park, Eastridge, Highlands Village, Lentegeur, Morgans Village, New Woodlands, Portlands, Rocklands, Rondevlei Park, Strandfontein, Tafelsig, Weltevreden Valley, Westgate, Westridge, Wildwood and Woodlands, each with its own property range.
Explaining why Mitchells Plain is increasingly popular among home purchasers Anthony says: “Today’s buyers are well informed and do lots of research before buying. They generally tend to look for properties that are ready for occupation and do not require any work. They also seek property that offers exterior space, irrespective of how small the actual property is.”
According to Lightstone statistics, for the period from July 2016 to June 2017, 65 percent of existing owners have lived in the area for 11 years or more, with the bulk (73 percent) of stable owners mainly in the age group from 36 to 50 years of age.
“People want to live in Mitchells Plain because properties are more affordable and offer good value for money, while public transport – with buses, taxis and the Metro train service that travels to Cape Town CBD and surrounding areas is extremely convenient, making it very accessible. For example, for a young couple looking for a decent property in a relatively good area, their gross monthly income would have to be approximately R20 000 whereas for a property of the same size in the Southern or Northern Suburbs their income would need to be double that amount.”
Anthony says in Portlands you can acquire a modern, three bedroom house for about R750 000 while a similar property situated in the Southern or Northern Suburbs could cost anywhere between R1 million or R2 million.
In areas such as Beacon Valley, Eastridge, Lentegeur and Tafelsig, the typical erf size is under 200sqm and includes a very small, very basic, two to three bedroomed, one bathroom property. These typically sell for about R250 000. “However,” says Anthony, “there are many properties in these areas that have been renovated, either with an extension or via cosmetic changes, making them more appealing, and these generally fetch up to around R450 000. Buyers in these areas are usually the average income earner, some of whom have benefited from FLISP, the initiative by the Department of Human Settlements and National Housing Finance Corporation, to provide a subsidy to aspiring home owners who meet certain criteria – namely those earning between R3501 to R15 000 per month, to purchase a home and improve their affordability”.
“In areas such as Colorado park, Highlands Village, Portlands, Rondevlei, Westridge and Woodlands, although also offering two to three bedroom properties on erf sizes ranging between 200 and 250sqm, homes are usually more spacious and offer a bit more than the above. As these areas are older and more established, the residences here are neater and have mostly been modernised, selling at prices between R500 000 and R780 000.”
Colorado and Strandfontein have always been considered the more elite areas, each with its own merits. While Colorado has properties on large erven, Strandfontein offers its residents seaside living. Both these areas have large properties consisting of two to four bedrooms, one to two bathrooms, en-suites, modern interiors, excellent security features, swimming pools and exterior space – which is in high demand. Prices for homes in these areas range from R650 000 for a basic two to three bedroomed property, to less than R1.3 million for a modern three to four bedroomed house. In a transaction concluded in 2016, Pam Golding Properties was the first real estate agency to sell a property in Strandfontein for R1.24 million, at a time when the average selling price was R700 000. Currently the average selling price in the area is R820 000.
Adds Anthony: “There are many different types of buyers in Mitchells Plain, depending on the locations where they are looking to purchase. Many are young couples, either engaged, newly married or acquiring property for the first time. Then there are buyers looking to upgrade from entry level areas to the more elite areas such as Colorado, Strandfontein and Westridge as these are considered better suited to raise families and provide a better quality lifestyle.”
Westridge is home to the beautiful Westridge Rose Garden that hosts the annual Mitchells Plain Festival which showcases the abundance of local talents such as musicians and dancers residing in the area. It also affords local entrepreneurs the opportunity to sell their wares. Since its inception, this festival has gone from strength to strength to such an extent that the City of Cape Town has included it on its official calendar. The gardens are also a popular location for weddings and children’s birthday parties.
Meanwhile the Strandfontein area has the annual ‘Meet Your Neighbour’ festival where local businesses come together to showcase their products and services as well as providing a platform for local talent in their area.