select
|

Franschhoek offers excellent development opportunities



Picturesque Franschhoek offers opportunities for developers.

There are many opportunities now await enterprising residential property developers in Franschhoek, according to Johan Hugo, the Rawson Property Group’s franchisee for Stellenbosch and Franschhoek.

“To be a successful developer in Franschhoek you must understand that the Stellenbosch/Franschhoek Municipality is determined to limit the widening of its built environment as much as possible. In particular, encroaching on surrounding agricultural land is just not on the agenda.

“The municipality is, however, prepared to approve densification in the built areas and, if possible, wants more duplex and apartment projects, provided these conform to the strict architectural guidelines that apply here. In Franschhoek, in particular, these have played a very significant role in preserving the town’s character and general appeal.”

The second point to be grasped, says Hugo, is that since the low point in 2010 Franschhoek has been flourishing. The average price of freehold units in 2010 is recorded by Lightstone as being R1.735 million, but the average price has now reached R3.645m, giving an annual increase in the region of 16 percent. The performance on sectional title units has been very similar.

“As in all thriving economies, the good conditions have resulted in a steady influx of employees to the town. They come to serve the shops, banks, restaurants, pubs, delicatessens, home maintenance and other service industries and, of course, the municipality itself, which is a large employer. Most of the people working in Franschhoek have to commute because they cannot be accommodated in the town, because there are not enough homes in the R2m to R3.5m price range. Properties available at present tend to be more expensive.”

Hugo says Franschhoek now needs new duplex units priced from R2m to R3.5m and apartments priced from R900 000 to R1.6m.

“To achieve this may well mean replacing certain older houses with little architectural merit, with high density units. It can be accepted at the outset, that sites will not be handed to the developers on a silver platter and that conforming to the municipality’s architectural wishes may be difficult. However, I believe that if units of the kind described are produced they will prove to be good investments because rents in Franschhoek are high and the capital appreciation on the investment of residential property here is impressive.

“The general perception that Franschhoek is a no-go area for developers is not accurate,” says Hugo. “There are huge opportunities for developers here.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
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.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK