Could level 3 water restrictions affect property prices in the Western Cape?

WHEN water supply is ample, a beautiful, established garden increases the value of a home by up to 20 percent, and a pool adds about 10 percent of its installation price to the home’s value.

But with water restrictions in place in Cape Town from this month, could this all change? Could we see a decline in the prices of the Peninsula’s more thirsty properties?

Crispin Inglis, co-founder of PropertyFox, an online property seller, says it is too early to tell, but if the drought continues long-term, there is a good chance demand for properties at the higher end of the market could fall due to the costs involved with general water maintenance – with prices declining as a result.

“Houses with large pools or sprawling gardens could expect a slight drop in interest in the short-term. However their value is unlikely to be affected this year. But if next year’s winter is dry and the restrictions continue, the situation could really change.

Prospective buyers may start to be put off by the thought of lugging buckets of water across the rolling lawns of Constantia and look for more waterwise homes instead.”

Inglis says that penalties in the tariffs of domestic water use may also be weighing on the minds of property hunters. “Water is traditionally a very cheap resource, and if you use a moderate amount it will remain so.

“But the level 3 water restrictions mean that if you go over a certain level of consumption, your water bill will go through the roof. So if you opt for a sprawling mansion in Bishopscourt, utility bills could get quite brutal.”

Inglis says that houseowners should take some steps to make their home waterwise. “This will this help keep bills down in the short-term, and will also preserve the value of the property investment.”

He suggests some steps to consider:

Choose waterwise plants: Plants that are indigenous to the area don’t need a lot of water, and can tolerate extreme heat. The Garden Centre at Kirstenbosch is an excellent source of advice on all things indigenous.

There are also lawns that endure drought much better than others, so worth planting one of these if you are making any updates to your lawn.

Also consider expanding decks and patios to cut down on plant life in your garden.

When watering a garden involves lugging water in buckets, group plants together that need similar water levels to keep your garden thriving and save some backache.

Install a grey water system: A system that pumps water from your washing machine, basins, shower and bath into a tank for watering the garden will keep your bills down. Grey water systems are priced from about R4 500.

There are also other tricks for keeping water bills down, a good source of information is http://forloveofwater.co.za/ facts-tips/water-saving-tips/