Mostertsdrift continues to yield excellent returns on investment

With a hefty 55 percent increase in return on investment recorded in just over five years between 2009 and 2014, the exclusive suburb of Mostertsdrift retains its status as the most sought after address in Stellenbosch.

Marelise Visagie, platinum select agent for Lew Geffen Sotheby’s International Realty in Stellenbosch says There is no remaining space for new development, so demand has begun to outweigh supply and this is pushing up prices even further.

“In 2009, the average property price in area was R4.7 million, almost doubling in six years to R7.3m in 2014 – which is twice the average property price of Stellenbosch which now sits at just over R3m.

“The entry level price for a house that will be completely renovated or demolished is between R5.5m and R6m, and at the upper end of the market, buyers can expect to pay around R25m. In the past two years we have also seen a notable increase in properties selling above the R10m mark.”

Visagie says that contributing to the stock shortage is that once people buy in the Mostertsdrift they rarely sell, and the average length of home ownership there exceeds that of any other Stellenbosch suburb.

She says: “Mostertsdrift has been a lucrative investment option for many years, with the average ROI (return on investment) remaining above double digits and averaging between 15 percent and 17 percent, with the annual nominal return on investment measured during 2013 and 2014 being a solid 17 percent a year recorded over a period of eight years.

“Because of its historical value and the prestige of ownership in Mostertsdrift, as well as the excellent return on investment, the average holding period for property in the area is 11 years, according to Lightstone figures.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says that additional factors driving up property prices in Mostertsdrift are its location, excellently maintained grounds, spacious homes and exclusive lifestyle.

“Since the early 2000s we’ve seen numerous older properties being bought and totally demolished, with new designer homes built in their place. The strict building and heritage restrictions in Stellenbosch have contributed to the superior quality of the wave of newly built properties.”

As one of the oldest, most established suburbs of Stellenbosch, all the properties in Mostertsdrift, except for one apartment block and a security complex, are single title ownership.

Surrounded by mountains and vineyards and flanked by the historical Eerste River, Jan Marais Park and Jonkershoek Valley with Stellenbosch University a stone’s throw away, Mostertsdrift has long been home to famous families such as the Ruperts, who appreciate the sense of history, tranquillity and secure yet laid back way of life the area offers.

Visagie says: “These factors are big draw cards for families seeking secure country living. Some of the oldest oak trees in Stellenbosch line the streets of Mostertsdrift, and here you will still find children walking and cycling to school and playing safely outdoors.

“The amenities on their doorstep include several excellent learning establishments such as Stellenbosch Primary and High Schools, and the Stellenbosch Institute for Advanced studies (STIAS), a shopping centre, a retirement complex and, of course, an abundance of outdoor activities including many world-class hiking and biking trails, the Jonkershoek Nature Reserve and wine estates.”

Situated only 45 minutes from Cape Town and 25 minutes from Cape Town International Airport, the second oldest town in South Africa offers its residents a tangible sense of history steeped in culture and surrounded by unsurpassed natural beauty, while still being close enough to the city to make it a convenient commuter location.

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