Weekend Argus (Saturday Edition)
Bishopscourt gets a strong rival
Constantia average sales price up by R1.6m as locals, upcountry buyers vie for rare homes
THE SMALL enclave of Constantia that stretches from Constantia Main Road and is bordered by Rhodes Drive, Spilhaus Avenue and Spaanschemat River Roads is now rivalling Bishopscourt when it comes to property prices and demand, according to Marie Durr, Priscilla Young, Janine Stevenson and Liza Snijman, Seeff ’s team for the area.
The team recently sold a luxury home in Klein Constantia Road for R33 million, which they say is the highest price achieved in the southern suburbs since the start of the summer.
“This is also one of the few areas where there has been no let-up in the demand for property. According to the latest Propstats data, about 80 property transactions worth over R800 million were recorded in 2015, which is similar to 2014,” say the agents.
“Most notably though, the average price was over R10m, which is R1.6m more than the R8.4m average for 2014. About 40 percent of all sales are now homes priced above R10m with the R10m to R16m price range being the most in demand.”
Durr says the influx of people from other provinces into the Cape has boosted demand and about 20 percent of sales over the last year are attributable to outside buyers from Johannesburg as well as KwaZulu-Natal, the UK, Switzerland and Germany.
“Most are cash buyers, which is a welcome trend for sellers, and where properties are accurately priced, they sell for close to or at the full listing price. Our recent sale in Klein Constantia Road was sold for R33m, and the listing price was R35m.”
Seeff is marketing the Old Klaasenbosch winery, which dates back to 1790, at R16.5m.
Klaasenbosch in Brommersvlei Road was one of the original farms in the area. Today, it is a four-bedroom home set around a courtyard with a two-bedroom guest cottage and a swimming pool on almost 3 000m of land.
Durr says it has been restored, with modern living spaces and top class finishes and a farm-style outside staircase leading up to a spacious loft room and a vine-covered pergola. Features include a study/library, an outside laundry, twin dressing rooms in the main bedroom suite, store rooms, staff accommodation, an irrigation system and a sophisticated security system.
Joanna Thomas of Lew Geffen Sotheby’s International Realty in Constantia Upper, agrees that 2015 was an exceptional year in this luxury market. “Last year 171 properties worth a total R1 396 341 720 changed hands in Constantia, with 71 sales and R753.72m of the total value being in this part of Constantia, at a median price of R10.6m. This is the highest combined value of sales since 2010 when 84 properties changed hands for R695.87m, with an average transaction value of R8.28m.”
According to Lightstone data, the average year- on- year percentage increase in the value of property in period reveal that average house prices increased from R3.27m in 2010 to R6.43m in 2015.
According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, in addition to sales volume and rand value, two other key factors are also clear indications of this prestigious market’s strong recovery and growth in recent years.
“We have seen a significant decline in the length of time properties remain on the market. In 2013, less than half the properties were sold within three months, with many remaining on the market for between one and three years.
“However, in 2015 only a handful of houses were on the market for as long as a year in this neighbourhood, with most selling in less than three months and some even in a matter of days.
“We have also noted a steady decline in the gap between listing prices and selling prices,” says Geffen, “from an average of 19 percent in 2010 and 15.1 percent in 2013 to 11.8 percent in 2014; shrinking even further in 2015 to just 9.8 percent.”
The two highest value sales in this part of Constantia in 2015 were in Southern Cross Drive at R51.5m and Oak Avenue for R24m.
Arnold Maritz, southern suburbs co-principal for Lew Geffen Sothebys International Realty, says although there is a strong local market in Constantia, the top price band is most likely to appeal to foreign buyers. “They come to South Africa with remarkable buying power since the value of the rand has declined so much. They are spending sterling, euros and dollars, which makes luxury property affordable. This is evidenced by the fact that the most expensive properties sold in Constantia last year went to European investors.”
Thomas says a major driving force behind recent year- on- year property price increases in Constantia has been the dearth of available stock coupled with growing demand. “Most local home owners are reluctant to put their properties on the market at the moment for various reasons. The current economic climate is a big factor, as is concern that they won’t be able to find another property they want. This as buyer demand grows, especially for homes in the price band between R6m and R10m. “In fact, 54 percent of properties in this Constantia enclave have been owned by the same people continuously for 11 years or longer, and a further 15 percent have not transferred ownership for between eight and 10 years.”
There is a growing percentage of recent buyers with 23 percent of owners having bought less than five years ago, but Thomas believes this figure would be considerably higher if supply matched demand. “Many SA investors are buyers from Gauteng who want to move their families to an area with lower crime rates, better municipal services and good schools. Constantia ticks all those boxes.”
Although the large grounds of properties in Constantia create the illusion of wide open space, available land is a sought-after commod- ity, with developers keeping an eagle eye on the market for properties with subdivision opportunities to become available. Sillery is the latest in the slowly rising number of gated estates in the area, with 24 of the 26 available plots already snapped up. “All plots are in the region of 1 350m², with prices ranging from R4.6m to R6.7m plus VAT for the plot alone,” says Thomas, adding that investors in these luxury estates are not just buying homes but also a luxurious and relaxed lifestyle with state-of-theart security.
Thomas says a growing number of buyers are families with young children looking to move into a catchment area of good schools in time to circumvent growing waiting lists. “Constantia is close to excellent schools like Reddam House, Herzlia and Constantia Waldorf School, and a short drive from schools like Bishops and Rondebosch Boys’ High School.
“Constantia residents also enjoy the convenience of an established infrastructure, access to first class amenities and the many activities for outdoor and sports enthusiasts which are on their doorsteps.”