Claremont property values have doubled in five years
IT SEEMS buyers cannot really go too far wrong in Claremont unless they hopelessly overpay for a property.
The suburb is a definite keeper when it comes to property and most residents agree, with more than half of all properties staying in the same hands for more than 10 years.
That is according to the latest Lightstone data which also shows that buyers and investors have seen excellent rewards with the average property values doubling in just five years.
Smart buyers are getting into the market here, upgrading and some are now selling at a handsome profit.
Sean Guy and Belinda Keys, Seeff ’s sectional-title agents for the area, say that Claremont ranks among the most sought after and dynamic property markets in the city.
“Although many areas are beginning to experience a slowdown in property sales, buyers just keep flocking to Claremont. A shortage of stock is the most significant challenge here right now,” they say.
“This is the time of year when student housing enquiries pick up notably as do enquiries from young professionals looking for a foothold in the housing market. However, we are heading into the busy summer season faced with a shortage of properties to meet the demand for apartments especially.”
The agents believe that Claremont has been one of the better performers for buyers and investors. Part of the attraction is the good mix of sectional title and freehold property options. Prices too still tend to range from slightly more affordable, generally older properties, priced at around R1.5 million to R2.5m to trendy homes with luxury finishes, now priced to around R10m.
Property values have been growing at a healthy 5 percentplus above inflation and by about 20 percent on average over the last two years according to the latest Lightstone data.
“In 2010, the average sectional- title price was just R820 000 and for freehold property, about R1.8m. Today, the average price for sectional titles is around R1.3m and R3.2m for freehold property. In reality though, a two-bedroom apartment in the more expensive parts of the suburb now sells for about R2m on average.
“The average rate that buyers are paying a square metre for a flat in the area is now about R23 000, but this ranges to R30 000/m² in the desirable blocks such as The Herschel and the Intaba,” say the agents.
They say the average prices paid in Claremont are up yearon-year by about 18 percent for sectional title and 28 percent for freehold property based on the comparative sales data recorded on Propstats.
Older properties are fast being snapped up and renovated and, according to Guy and Keys, are often resold at a handsome profit. A two-bedroom penthouse in Eversley in Grove Avenue was bought in May last year for R1.6m. The owner carried out renovations including showcasing the magnificent mountain views from virtually every window and the agents recently resold the apartment for R3.25m/
“It is still very much a sellers’ market in Claremont and most sellers are still seeing offers of well within 5 percent of their listing prices. About half of sales are now taking place for just about or at the full listing price,” say Guy and Keys.
Claremont is quite densely populated with about 12 000 residents in addition to those who commute to the suburb daily for work and shopping.
Close by are landmarks such as Newlands rugby and cricket stadiums and Kelvin Grove Country Club. Claremont is also one of the main school-belt suburbs and is on the UCT Jammie Shuttle route, so it’s a popular choice for student accommodation.
Guy and Keys say sectionaltitle properties are particularly popular and well-priced homes sell quite quickly, especially those with security and parking.
Although there are still older apartments at around R1m, most apartments are now selling from R1.5m for one-bedroom units and R1.8m for two bedrooms. Luxury new developments though are selling for R1.8m to around R4m in complexes with facilities such as parking, a gym and a swimming pool. This year, about 80 sectional-title properties worth just over R130m have already been sold in the suburb. About a third of all sales have been properties priced at over R2m.