Agents look at some of the property highlights of the year

Buying a first home has always been tough for Capetonians, who have to compensate for living in one of the most beautiful parts of the country by forking out much more for property than their fellow South Africans.

Statistics this year showed affordability issues among these buyers were evident as they struggled to buy in the light of high house price growth. Some Cape Town areas saw price increases of almost 30% in just one year, says Rode & Associate’s Erwin Rode.

Recent Lightstone statistics show the price growth in Cape Town climbed to about 15%, compared with about 5% nationally and in Gauteng.

Still, many Capetonians bit the bullet and purchased their first homes, with the most popular areas being Bothasig, Kraaifontein,

Rosebank, Mowbray, Park Estate, Observatory, Woodstock, Plumstead, Kirstenhof, Bergvliet, Somerset West and Claremont. Seeff Property Group chairman Samuel Seeff said young professionals with bigger budgets sought properties in areas like the CBD, Sea Point, Green Point and De Waterkant.

Gauteng, however, remained the best province for first-time buyers to get their feet in the door, while in stark contrast aspirant young buyers in the Western Cape struggle with a f f o r d abi l i t y challenges.

Home upgrades and renovations continued unabated in a number of Cape Town suburbs as homeowners invested in their properties despite the economic uncertainty.

In fact, it was the economic crunch and cost of purchasing new homes that made people stay put and alter their prop- erties to suit their changing needs instead of looking for new homes.

This trend was seen in the southern suburbs and on the Atlantic Seaboard.

“Homeowners also renovated to accommodate more family members, or built separate cottages for the Airbnb market,” says Colette Jackson, an agent for Seeff City Bowl.

Vredehoek and Oranjezicht were popular areas for those looking to renovate the older homes there. On the Atlantic Seaboard, potential investors scouted for opportunities to purchase un-renovated apartments in older buildings.

The southern suburbs saw constant renovations and upgrades, says Samantha Nel, Pam Golding Properties’ agent for the area. Upgraded kitchen and bathrooms add the most value.

This trend occurred at all stages of home ownership from entry level upwards, says Chris Tyson, chief executive of Tyson Properties.

Major alterations, like extensions, were also usually carried out by people not wanting to sell.

Jason Shaw, national sales executive at Pam Golding Properties, says value-adding alterations include:

The conversion of lofts into bedrooms or studies.

Conversion of garages into cottages, bedrooms or offices.

Conversion of domestic quarters into flats or cottages.

Building patios with built-in braais.

Adding air- conditioning or heating.

Cape Town boomed with new developments this year, and private developers spotted plenty of opportunities, even in the economic climate.

From schools and student accommodation to brownfield redevelopments and gated residential estates, developers saw enormous potential in various sectors of the local market.

“The property industry is so diversified and full of opportunities. All developers see different opportunities in different markets and most tend to focus on opportunities in their niche markets,” says John Chapman, a director of the Rabie Property Group.

Although Rabie’s focus is generally on mixed- use development, as in its flagship Century City project, a number of factors influenced the market, such as affordability, security, semigration, schooling and retirement.

Another factor was the dire need for affordable housing, says Jacques van Emdben, managing director of Blok. Because the government is required to cater to the needs of people in the lower income brackets, while the private sector traditionally caters to the needs of high income earners, there was a need for affordable housing for the “in-betweeners” – people whose incomes are between about R3 500 and R30 000 a month.

For this reason, Blok introduced the 80:20 model, which caters to middle-income affordable housing.

The year also saw a bigger move towards gated communities and estates as crime continued to plague residents.

RENOVATIONS