select
|

Constantia Upper demonstrates market durability

Last year Constantia achieved the highest total sales value of all the Southern Suburbs in Cape Town, demonstrating the durability of this established and exclusive market that has at its top end the elite Constantia Upper.


TIMELESS ELEGANCE: This perfectly situated north-facing four bedroom family home is an entertainers dream with spacious reception rooms, a fitted Assirelli kitchen and generous covered patio. On the market for R19.5m, it includes two separate cottages, solar water heating and top end security.
 
Joanna Thomas, Select Area Specialist for Lew Geffen Sotheby's International Realty in Constantia Upper, says 2015 was an exceptional year in this luxury market.
 
“Last year 171 properties to the value of R1 396 341 720  changed hands in Constantia, with 71 sales and R753.72 million of the total value being in Constantia Upper, at a median price of R10.6m per property. This is the highest combined value of sales since 2010 when 84 properties changed hands for R695.87m, with an average transaction value of R8.28m.”
 
According to Lightstone data, the average year-on-year percentage increase in the value of property in Constantia Upper since 2010 equates to almost 8% per annum over five years, with a sharp spike over the past two years. The average selling price increased by 15.87% between 2013 and 2014, and by 17.1% between 2014 and 2015.
 
Thomas says: “In simple monetary terms, an investor who spent around R8.3m on a house in 2010 could have sold it last year for about R10.6m, which approximates to a 30% return on investment; healthy in anyone’s book.”
 
The average sale price in greater Constantia is more accessible and Propstats figures for the same period reveal that average house prices increased from R3.27m in 2010 to R6.43m in 2015.
 
“Although the whole of Constantia is indisputably one of the most scenic suburban areas in South Africa, Constantia Upper is in a class of its own and buyers are drawn by the larger plot sizes, the suburb’s elevated position closer to the mountains and its authentic country feel,” says Thomas.
 
According to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, in addition to sales volume and rand value, two other key factors are also clear indications of this prestigious market’s strong recovery and growth in recent years.
 
“We have seen a significant decline in the length of time properties remain on the market. In 2013, less than half the properties sold within three months, with many remaining on the market for between one and three years.
 
“However, in 2015 only a handful of houses were on the market for as long as a year in Constantia Upper, with most selling in less than three months and some even in a matter of days.
 
“We have also noted a steady decline in the gap between asking prices and selling prices,” says Geffen, “from an average of 19% in 2010 and 15.1% in 2013 to 11.8% in 2014; shrinking even further in 2015 to just 9.8%.”
 
The two highest value sales in Constantia Upper in 2015 were in Southern Cross Drive (R51.5m) and Oak Avenue (R24m).
 
Arnold Maritz, Southern Suburbs Co-Principal for Lew Geffen Sothebys International Realty, says while there is a strong local market in Constantia, the ultra-luxury price band is most likely to appeal to foreign buyers.
 
“They come to South Africa with incredible buying power since the value of our local currency has declined so much. They are spending sterling, Euros and dollars, which makes luxury property affordable. This is evidenced by the fact that the most expensive properties sold in Constantia Upper last year went to European investors.
 
“Our company’s international affiliation and being able to market these properties on a globally recognised platform is invaluable in this price band, and numerous buyers have found their way to us through these channels.”
 
Thomas says a major driving force behind recent year-on-year property price increases in Constantia Upper has been the dearth of available stock coupled with growing demand.
 
“The vast majority of local home owners are reluctant to put their properties on the market at the moment for a combination of reasons. The current economic climate is a big factor, as is concern that they will not be able to find another property they want. This as buyer demand grows, especially for homes in the lower price band between R6m and R10m.
 
“In fact a whopping 54% of properties Constantia Upper have been owned by the same people continuously for 11 years or longer, and a further 15% have not transferred ownership for between eight and 10 years.”
 
There is a growing percentage of recent buyers with 23% of owners having bought less than five years ago, but Thomas believes that this figure would be considerably higher if supply matched demand.
 
“Many South African investors are buyers from Gauteng who want to move their families to an area with lower crime rates, better municipal services and good schools. Constantia Upper ticks all those boxes,” she says.
 
Although the large grounds of properties in Upper Constantia give one the illusion of wide open space, available land is a scarce and very sought-after commodity, with developers keeping an eagle eye on the market for properties with subdivision opportunities to become available. 
 
Sillery is the latest in the slowly rising number of gated estates in the area, with 24 of the 26 available plots already snapped up.
 
“All plots are in the region of 1 350m², with prices ranging from R4.6m to R6.7m plus VAT for the plot alone”, says Thomas, adding that investors in these high-end estates are not just purchasing a home but also a luxurious and relaxed lifestyle that accompanies state-of-the-art security.
 
Thomas says that a growing number of buyers are families with young children looking to move into a catchment area of good schools in time to circumvent growing waiting lists.
 
“Constantia is not only home to excellent schools like Reddam House, Herzlia and Constantia Waldorf School, it’s also a short drive from schools like Bishops and Rondebosch Boys’ High School.”
 
“Constantia residents also enjoy the convenience of an established infrastructure, access to first class amenities and the myriad activities for outdoor and sports enthusiasts which are quite literally on their doorsteps.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    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