Investors are finding opportunity and value in Vredehoek
VREDEHOEK is fast becoming an investor’s playground offering some of the best yields in the Cape Town City Bowl, says Ryan Greeff of Lew Geffen Sotheby’s International Realty.
“Affordability and strong development are the main driving factors behind this renewed interest, with many investors now preferring Vredehoek to the central busines district. Investment buyers are mainly coming from Johannesburg, along with a considerable amount of foreign interest from Dubai and Europe.
“Six developments have been completed in the past few years and a further six are under development.”
“It’s a relatively cheap area in which to build because although the suburb is on a slope it isn’t as steep as some other areas. Also, there’s a fair supply of low-end housing that can be demolished,” says Brendan Miller, area principal for Lew Geffen Sotheby’s International Realty.
“Net yields in the area are around 7 percent to 8 percent and buyers can expect capital growth of up to 13.6 percent on their cost a square metre.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says: “Sectional titles in particular are offering great rewards a few years down the line.”
Greeff says parameter advertising, a technique that invites bids that are lower than the listed price, has been widely successful in the area.
“I’ve made 57 sales this year and about 90 percent were completed this way. It’s just a question of getting the seller on board. This method leverages the concept of supply and demand to come to a price that suits both parties, and also increases the chance of a bond being approved.
“People wanting to move into the area tend to be young couples, many of whom are considering starting a family and are attracted by the area’s many green spaces and the community spirit they foster. The two- to three-bedroomed cottages common in the area are proving popular with this kind of buyer as it offers an accessible next step on the property ladder.
“You can get the same property in Vredehoek as you would in Tamboerskloof, but at up to 30 percent less.”