In­vestors are find­ing op­por­tu­nity and value in Vre­de­hoek

Weekend Argus (Saturday Edition) - - PROPERTY -

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.”

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