Weekend Argus (Saturday Edition)
Perception was also
spurred by the fact
with many more investors keen to get their foot in the investment door, Botha says there has been a notable increase in demand for properties in the R4m to R6m price band.
“Gardens and Vredehoek currently offer the best value for money at the entry level, with apartments starting at around R850 000 for bachelor and R1.8m for two-bedroom apartments if one happens to come onto the market. Older houses which need a little TLC can be found for between R3.8m and R4.2m.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says that several key factors prompted the turn-around of the property market in the City Bowl.
“Cape Town’s population has grown massively over the past decade and the resultant traffic congestion and ever-increasing commuter time from the suburbs has prompted people across the demographic spectrum to reconsider their priorities and lifestyle values.
“The change in perception was also spurred by the fact that the City Bowl offers investors a wide range of options, from starter bachelor pads through to opulent modern homes, which makes the City Bowl accessible and attractive to most investors, from first time buyers to established professionals.” Geffen believes that the City Bowl will increase in popularity as there is no more available land for development, while rapid development in the CBD is significantly increasing the daily working population in the downtown area.
“The city centre is benefiting greatly from investment of billions of rands, with massive projects like the recently completed 32-floor commercial Portside building, the doubling in capacity of the Cape Town International Convention Centre and the construction of the new Christian Barnard Hospital.”
Botha says that a spin-off of the increased business activity in the city is that more corporate investors are snapping up City Bowl properties as an investment or for their commuting executives.
“It also bodes well for the rental market which is currently very active, with agents experiencing a shortage of stock in certain areas and market segments.
“Although correctly priced rental properties are almost always snapped up as soon as they hit the market, the monthly rentals that can be achieved vary substantially depending on a number of factors including size, location, condition, views and security.”
Greeff says the current political uncertainty in the country doesn’t seem to have had much impact on foreign investment, particularly South Africans living abroad, who remain keen to take advantage of a weaker rand and invest in property in Cape Town.