Kuils River an attractive alternative

Bagging bargains aplenty, first-time buyers boost northern suburbs sales and average prices

ALTHOUGH the national average house price now tops R1 million according to a recent FNB Property Barometer, younger buyers under 35 – often first-time buyers – are still bagging plenty of bargains under this price level in a number of neighbourhoods across Cape Town’s northern suburbs.

That is the word from Seeff ’s branches in Kuils River, Kraaifontein, Brackenfell, Bothasig and Goodwood, who say that first-time buyers have headed to the suburbs in greater numbers over the past year. The latest Lightstone data also shows that this has been a boost to sales numbers and prices.

“In Kuils River, although a relatively small outlying suburb, about 35 units were sold for the last year with a combined value of just under R28.5m. This is 50 percent more in from Goodwood along the N7 to Burgundy Estate.

One such suburb is Bothasig, which lies next to the N7 near Milnerton and Montague Gardens. Aside from the quick access to the N7, it is also close to the N1 and fairly central. Best of all, it still offers excellent value, something that is being sought by an increasing number of younger, generally first-time buyers, says Groenewald.

Here, millennials comprise over 40 percent of recent buyers and although the 2013 to 2014 sales volumes for the suburb has remained fairly flat, largely due to a shortage of stock, the average freehold house price is up to around R1.1m from R1m last year.

That said, there is still excellent value here. Most of the sales still fall under R1.2m and many homes still sell within the R900 000 to R1m price range, says Groenewald.

Closer to the CBD area, Goodwood Estate is yet another suburb where younger, generally first-time home buyers comprise more than 40 percent of recent activity. This boosted the market to just over 100 transactions worth almost R96m for the past year, some of the best activity in years according to the licensee. This was also up on the previous year by about 10 percent.

While one of the most affordable and central areas, Goodwood also has excellent facilities including schools, a mix that is very attractive for younger buyers, says Groenewald.

While Goodwood has seen its average prices and values strengthen, he says it remains one of the more affordable areas. Apartments for example still sell for around R450 000 for two-bedroom units, whereas house prices start from about R900 000 for a small three-bedroom home. A three-bedroom home with a garage and a swimming pool was for example recently sold for R1.1m.

“In almost every one of the more affordable areas of the northern suburbs, we are experiencing a shortage of good stock and still favourable selling conditions. The excellent price growth we have seen over the last year should be a good incentive for home owners who want to sell, especially as we expect the demand to pick up into the approaching summer months,” says Groenewald.

‘The excellent price