TIME BEST BUYS IN MOTHER CITY

The slump in the property market has led to price adjustments, and buyers can now look at desirable suburbs

IT SEEMED it was a bubble that would never burst, but since mid-2018 the Cape Town property market has seen a significant shift downwards, and while still high, it certainly has felt a price correction.

This has shaken up the pricing of homes for sale and to let, leaving owners with little choice but to adjust their prices or face the risk of properties sitting on the market or staying vacant.

This year, for the first time in years, areas once out of bounds for first-time home buyers, such as the Atlantic seaboard and the City Bowl, have started to slowly re-emerge on the market.

That is, if buyers are prepared to live in a small space, and sometimes without parking.

But, is it wise, if you have only R1 million or R1.5m, to buy in an exclusive area? Or should buyers instead venture further out to get more bang for their buck?

Seeff’s Adrian Mauerberger, who works in the luxury segment in Bantry Bay, Fresnaye, Sea Point, Three Anchor Bay and Green Point, has this old wisdom: Buy the worst apartment in the best area.

“If it means buying a storeroom in Sea Point because that’s all you can afford, or a 38m² studio, just make sure it’s in the best area,” he says.

“If you buy in an area where there has been absolutely no growth, you are not doing well.

“Your ultimate aim when investing in real estate is capital growth, and that is what the Atlantic seaboard has always offered.”

Susan Watts, broker/manager at Re/Max Living City Bowl, says there are very few properties in the City Bowl in that price range, but she suggests looking at something small in Woodstock.

“I have a personal affinity for the Woodstock and Observatory area. They are really nice and integrated suburbs. The area is fun, vibey, young, and with lots of different kinds of people,” she says.

Jeremy Barnes, Greeff Properties South Peninsula regional manager, advises those on a budget to look at the south peninsula.

“The range of pricing in Simon’s Town can go from sectional title apartments at the bottom (close to R1m) to the top end, with magnificent homes on the water’s edge for around R20m.”

Barnes says the most common objection from potential buyers is: “It’s too far.”

“Our response has always been: ‘From what?’ Yes, if you are working in the City Bowl, it is too far to battle traffic. But if you work in the southern suburbs, it’s not.”

In the past, there was very little in terms of retail or medical services in Simon’s Town.

“But with the new development at Harbour Bay, that has all changed,’ Barnes say.

“There is now convenient shopping, chains, optometrists, hairdressers, restaurants and, most importantly, a medical centre. Simon’s Town is becoming more of a residents’ destination than a holiday town.”

AFFORDABLE For the first time in years there are properties for sale for under R2m on the Atlantic seaboard. While they are small and often without parking, experts say even a storeroom in the area is a good investment.