Now’s the right time to buy student flats

For investors planning to get into the student accommodation market, timing and understanding what factors drive the market are the keys to building up a successful portfolio.

A two-bedroom, two-bathroom student flat in this complex was recently sold by Harcourts Capital for R1,4m.

So says Soti Christodoulou, the Harcourts Capital area specialist for Hatfield and Hillcrest, which are Pretoria’s most sought-after suburbs for student accommodation.

“For example, there is always a scramble for student units between October and the beginning of the academic year in February, but sellers know this so that is usually also when they push up their prices, hoping to make more of a profit.
“Consequently, we recommend that parents who are planning to buy a single student flat for their children to use should start looking at properties long before they need them – and if necessary let them out until they are ready to use them. We have in fact seen parents purchasing one- or two-bedroom sectional title units five or six years before their first child goes to university and renting them out in the interim.”
And now is the best time of the year for investors to get into the market as sellers are more reasonable, she says.
As for new student unit developments, these are currently selling for between R18 000/sqm and R23 000/sqm, depending on their proximity to the University of Pretoria campus and Gautrain station in Hatfield,and those who buy a 40sqm, one-bedroom unit in this area for around R900 000 can expect a rental of R6500 to R7000 a month,” Christodoulou says.
“However, not all students want to live that close to campus. Some prefer to be on the eastern side of Jan Shoba(Duncan) Street, which is a short walk to the sports grounds or main campus. And student units in this area and in Hillcrest are often better value for money.
“Our recent sales, for example, include a two-bedroom, two-bathroom unit of 62sqm in The Circuits complex in Prospect Street east of Jan Shoba that was priced at R1,4m, including a double carport. (See photo). We recently also sold a two-bedroom, one-bathroom, on carport unit of 58sqm in the Lunnon Crest complex for R1,38m.”
Meanwhile for serious investors in this sector, Christodoulou is currently marketing a whole student complex, consisting of five furnished full-title houses on one property that have already been converted to communal accommodation. These houses are priced at R2,6m each, and attract rentals of R18 500 a month per house.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us