Thrifty Thornton’s home prices hit the roof
PROPERTY prices have soared over the past year in the affordable Cape Town suburb of Thornton, says Linette Smith of Jawitz Properties Pinelands.
“At this time last year, entry level homes were priced between R850 000 and R950 000, but this price point has increased to R1.1 million. Homes that sold for R1.1m last year are now priced at R1.3m.
“A recent sale shows that in just one year R200 000 can be added to the price tag of a property. We sold a home exactly a year ago for R1.05m and we’ve just resold that same property for R1.25m. Values are increasing quickly,” Smith says.
She says properties that come on the market barely make it to being advertised. Buyers on the books are snapping up stock as soon as it becomes available, even competing against each other. This contributes to the price hikes.
Thornton has always been an affordable suburb and is almost seen as a gateway into the southern suburbs of Cape Town such as Pinelands. Buyers don’t always live there for the long term and it’s remarkable to see, with prices increasing so quickly, the returns on investment they’re achieving.
Smith says townhouses are among the best investments as they attract the most interest from tenants. Rentals for a twobedroomed townhouse can be between R5 500 and R6 800 a month.
She says some of the properties in Thornton are in need of renovation and although there are buyers in the market for fixer-uppers, these homes don’t command high prices as the ceiling for the market is about R1.5m, and buyers should be wary to over-capitalise.
“If buyers do upgrade their homes quite a bit, they will need to wait at least five years to make it worthwhile to sell.
“Sellers in Thornton do best if their properties are wellmaintained, but they don’t have to have every modern convenience.
“These properties are 65 years old, most of them have been revamped over the years, and buyers here are generally looking to move straight in without having to do repair work.”
Thornton offers value for money where the average plot is 600m2, and it is in a convenient location, close to the arterial roads that provide quick access to the CBD and the airport. It has its own small train station and recently, the face of Thornton has been improved.
“There’s been some upgrading, the area looks good and the average prices are demonstrating that Thornton is a good place to invest,” Smith says.