Sea and mountain views on Cape estate
REAL estate and especially small business investment is growing in Somerset West, the heart of the Helderberg Basin. This is according to Seeff licensee Keith Colley, who says that aside from steady sales of residential homes, demand from investors looking for exceptional, so-called trophy homes in the area is also slowly increasing.
With the exception of the 2008-09 year when property value declined by 3%, year-on-year growth since has been positive.
Data sourced from Lightstone, a property data provider, indicates that the average valuation of properties in Somerset West is around R1.2m. However, Colley says that the town offers properties to suit every buyer and budget from entry level through to trophy homes that can cost up to R39m.
Demand for affordable homes in Somerset West has improved over the past year with around 80% of all properties sold falling in the sub-R1.5m price mark. Sales of family homes priced above R1.5m has also been good with around 10% of all sales in the town falling above this price band, he says.
Buyers have been mostly from within the area that have either upgraded or downgraded with about 20% of new buyers moving into the area over the past year, adds branch manager, Loretta Diab. First timers and young families have been active as a category, followed by older buyers looking for a tranquil country environment in which to retire.
Lightstone data shows that 34% of recent sellers in Somerset West were between 36 and 49 years of age, while 30% of recent buyers were aged between 18 and 35 years.
While the town has a bustling commercial centre and a light industrial area, Diab says that a large number of residents commute daily to work in Cape Town and Stellenbosch. There is also an influx of small entrepreneurs setting up business here, she says.
Seeff attributes the sustained performance of the property market to a number of factors. The good value offered by homes in the town along with the cosmopolitan, yet country-side lifestyle and proximity to the city is a strong motivator for buyers. Many of the suburbs and homes also enjoy sea views. Facilities and amenities are also top class including world-class medical and retirement facilities along with the biggest regional shopping centre, superb restaurants and of course, top wine estates on the doorstep.
Somerset West is also close to major arterials, the airport as well as universities and colleges and top schools such as Paul Roos, Bloemhof Girls School, Rhenish, Herschel Girls School and Somerset College.
Diab says that buyers and investors looking for strong capital growth and trophy homes in a secure estate, should look at Erinvale. “It is ranked by Lightstone as one of the best golf estates in the province and country with strong, year-on-year value growth. The average price of homes in the estate has grown by 50%, from R4m in 2006-07 to just over R6m in 2011-12. Sellers have also seen exceptional capital growth. For example, we sold a home for R11m recently that yielded 66% capital growth for the seller who bought it for R6.635m in 2003.”
Situated in Lourensford Road, Erinvale is one of the golf estate gems in the country. It is a low- density estate nestled between wine estates and a fynbos reserve with stunning views of the surrounding Helderberg and Hottentots Holland mountains.
The estate offers a wide range of residential options; from twobedroom apartments and townhouses priced from R2.7m to three-bedroom homes that sell upwards of R4.5m.
At the top end is this trophy home that offers approximately 1,500m² of floor space. Set on a large plot of 2,417m², it boasts exceptional privacy, both an indoor and outdoor swimming pool along with luxurious living spaces. Added extras include two wine cellars; one for white wines and the other for red wines along with a bar room, snooker room, braai room, gymnasium and sauna. The home has three luxurious bedroom suites, two guest suites each with a living area, a kitchen as well as a butler’s flatlet. Price: R39m Contact: Seeff Properties Loretta Diab 082 416 6982 Office 021 851 4141