Weekend Argus (Saturday Edition)
Schooling, security are buyers’ priorities
A safe environment and access to excellent education has made Constantia a potential target for Gauteng buyers
THE CONSTANTIA residential property market is experiencing critical stock shortages, with homes in security estates in the R6 million to R15m price band being most in demand, especially among buyers from upcountry.
Joanna Thomas of Lew Geffen Sotheby’s International Realty says there has been a notable increase in queries from Gauteng investors in the past three years.
“Upcountry buyers prioritise security when selecting a property and they are predominantly interested in secure lifestyle estates, of which Constantia has a limited offering – and quite frankly needs more.
“Property seekers f rom Gauteng, especially, will usually only consider freehold properties with good security systems in place that don’t have any obvious vulnerability such as adjacent open land.”
According to Lew Geffen,the lack of available stock is only one of the reasons that sales to Gauteng investors don’t mirror the spike in interest.
“Typically, it takes longer to sell property in Johannesburg than it does in Cape Town, as the market is slower there and more negotiable, whereas in sought-after suburbs such as Constantia the current stock shortage means that a cash deal close to the listed price is often required to clinch the sale.”
He says upcountry buyers can also be a little discouraged when they compare the size of the home they are leaving behind to what they are able to buy for the same value in areas like Constantia, because property prices in the Western Cape’s desirable suburbs are certainly higher than those in Gauteng, and the province tends to be pricier overall.
However, i nterest f rom Gauteng buyers continues to rise as investors are increasingly seeking the reliable service delivery that Cape Town enjoys, the perception that the province is much safer and the relaxed “country” lifestyle and outdoor activities that residents have right on their doorstep.
According to Thomas, this has resulted in dual living becoming increasingly attractive. “It’s become a popular option as you can buy a better home with consolidated funds and dual living also offers increased security.”
Constantia certainly lends itself to this trend, as most erf sizes are generous and homes are spacious. According to a recent FNB Property Leader report, most single-title houses in the area have four to six bedrooms, and erven range from 1 350m² to 0.8ha plus, but there are some cluster complexes at the smaller 300m ² to 500m ² erven size.
Recent Propstats reports reflect t he rising property prices in Constantia over the past two years as demand has increased while availability has diminished.
Geffen says: “In 2013 the average sale price of single title homes in the Constantia area was just under R6m and by the end of the second quarter of 2015 the average price had increased to almost R8.5m. In the most sought-after areas, the median prices were R8.3m and R11.04m.
“We are increasingly seeing homes in the R6m to R15m price band realising their listed price, when correctly priced, these properties often sell within three months of hitting the market.”
The growing popularity of suburbs such as Constantia is also driven by their proximity to good schools as demand for quality education has resulted in long waiting lists at resultproducing schools.
Says Thomas: “Sales trends reveal that potential buyers are more inclined to settle where schools are within a short commuting distances from home, and Constantia is home to schools such as Reddam House, Herzlia and Constantia Waldorf, and just a short drive from Bishops and Rondebosch Boys’ High School.
“An established infrastructure, access to first-class amenities and the many activities for outdoor and sports enthusiasts are also draw cards that attract buyers to the region,” says Thomas.