Weekend Argus (Saturday Edition)
Buoyant demand for ‘school belt’ homes
BUYER activity in the school-belt suburbs of Rondebosch, Newlands and Plumstead is at its most buoyant in recent years, according to Seeff ’s southern suburbs managing director, Andy Todd.
“Although demand has been steady over the past three years, sales are up by about 37 percent for the first few months of this year compared to last year. The demand is so strong that we have introduced a mid- week s how house p r o - gramme,” says Todd.
“About 118 freehold homes worth just over R394 million have already been sold in the southern suburbs this year compared to 86 homes worth around R255.4m during the same period last year.
“That this is one of the f irst areas to show signs of a recovery is not surprising given that it is home to top schools and on the UCT route. These suburbs are also conveniently located for commuting into and around the city.
“They are also close to the Claremont/Newlands business precinct so residents don’t have to travel far for retail, medical and leisure facilities.”
He says that although property values in these school-belt suburbs have been relatively i nsulated against market fluctuations, properties are likely to increase in value as the city becomes busier and basic living costs continue to rise.
“For example, recent research done by zoopla.com in the UK shows that properties near schools are worth between 25 percent and 100 percent more than homes further away,” says Todd.
According to Seeff ’s agents, who operate in the suburbs, there is now a significant shortage of family homes to meet the demand.
In Rondebosch, for example, Charmaine Scott-Wilson and Linda Knoop sold 10 homes in the first five months of this year compared to six properties last year. Recently, the agents sold seven homes in seven weeks – mostly family homes priced over R2.3m.
The most recent sale was a home in Oakvale Road that was sold for R5m within five days of being listed, to a young family moving to be close to Bishops.
The agents say they are struggling to meet the demand for family homes in the area.
“Aside from school-belt buyers, the area is also attracting medical professionals who want to be close to Groote Schuur, Vincent Pallotti, Kingsbury and Red Cross Children’s Hospital.
“Buyers don’t mind if the homes are older, as many young families are moving into the area and renovating and upgrading these to suit their needs,” say Scott-Wilson and Knoop.
Newlands agents Barbara van der Westhuyzen and Vanessa Clerke say they have sold 13 homes in the first five months of this year compared to nine properties during the same period last year.
Additional sales include two Rondebosch homes for R2.15m and R4.05m and a Claremont home for R6.2m.
“Family homes o n pl o t s o f between 600m and 1 000m2 are most in demand. Homes priced between R3m and R5m are selling well right now,” say the agents.
Plumstead agents Peter Thornton and Peter Marais say demand is significantly up for homes across all price ranges in the suburb. They have sold 12 homes this year compared to eight during the first half of last year.
“Homes here are cheaper than in the neighbouring suburbs and the solidly built homes and good-sized plots appeal to buyers, especially given the proximity to Wynberg, Springfield, Plumstead, Westcott Primary and John Graham Primary,” they say.
“The average sales price in Plumstead has increased to R1.5m and the difference between the listed and selling price is only 6.5 percent. The average price in the first half of 2012 was R1.2m and the gap between listed and sales price was 9.8 percent. The number of days on the market has dropped to around 38 days compared to 47 days last year. Stock, though, is a major issue, especially freestanding homes priced from R1m to R2.5m.”