select
|

Tamboerskloof dominates solid City Bowl market in Cape Town

The City Bowl is emerging as one of the most resilient markets in Cape Town as ongoing commercial development in the CBD and unabated demand for residential property continue to buffer the area from the brunt of the subdued economy and property market slump.


This supurb two bedroom house is high up in Tamboerskloof, between Signal Hill and Lions Head offering sweeping 360° views of the sea, city and Table Mountain. On the market for R16.75 million and set in a quiet cul-de-sac, it has a study/third bedroom as well as separate staff quarters/work space, a wine cellar and a stunning outdoor entertainment area.
 

This is according to Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO, who says: “Although there has been a slight dip in sales this year, property values have remained stable, especially in the lower to mid-markets, while the most sought-after pockets have continued to achieve solid growth.”
 
“One suburb which hasn’t wavered from its upward trajectory is Tamboerskloof where high demand has resulted in a steady year-on-year price increase since 2010 when the average house price was just under R3 million, increasing to R5.6m in 2014 and nudging the R7m mark by the end of 2015.”
 
Miller says that despite the economic and market downturn, the average sale price in this sought-after suburb has continued to rise steadily.
 
“An analysis of the sales recorded on Propstats reveals that during the first quarter of 2016 the average house price increased to R8.4m, jumping again to just over R10m by the end of June.”
 
Tina Katz, Freehold Area Specialist for Lew Geffen Sotheby’s International Realty attributes the suburb’s market strength to several key factors which have seen Tamboerskloof become one of the city’s most sought-after residential destinations.
 
“Although Tamboerskloof enjoys the same convenient proximity to the CBD as the rest of the City Bowl, its prime position against the slopes of Signal Hill affords residents a more peaceful, suburban lifestyle which is especially appealing to families with children.
 
“And unlike areas like Vredehoek and Gardens where smaller houses and semi-detached homes are common, most of the freestanding properties in Tamboerskloof are spacious double storey Victorian houses on sizeable stands, interspersed with ultra-modern designer homes.”
 
Katz adds that although it is often assumed that freestanding homes dominate the property landscape, they actually only account for 36% of the properties in Tamboerskloof.
 
“There are therefore often limited in available options available to investors and this scarcity is exacerbated by the fact that owners tend to hang onto their houses for many years, often for the duration of their children’s schooling.
 
“They also realise that they will not easily replace the lifestyle and convenience they enjoy in Tamboerskloof.”
 
According to Lightstone, 53% of all current owners have lived in their properties for 11 years or longer with the majority (71%) aged between 35 and 64.
 
Mikaela Pace, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty, says that the comparative affordability of sectional title properties in Tamboerskloof has ensured that sales volumes in this sector have remained steady.
 
“During the past three months between May and July this year, 14 apartment sales realised an average sale price of R2.92m, which was up from an average sale price of R2.66m realised during the previous 12 months ending 31 July.
 
“During both periods, the mid-market R1.5m to R3m price band was most active with six and 29 sales respectively.”
 
Pace adds that this market is largely driven by younger first time buyers wanting to get a foot in the City Bowl market.
 
“Although apartment prices are a little higher in Tamboerskloof, buyers are attracted by the suburb’s excellent position that offers dramatic mountain, and ocean views as well as a measure of protection from the worst of the south-easter wind which often batters suburbs like Vredehoek.”
 
Underpinning the City Bowl markets buoyancy is the fact that there is no more vacant land for further development.
 
“The only option open to developers is to acquire adjacent homes with GR4 zoning to build sectional title properties and there is fierce competition between developers as many home owners are reluctant to sell,” says Pace.
 
Miller concludes that given rampant development in the CBD and the unique and strong appeal factors of the City Bowl, it will not only remain a solid investment but values are likely to be more immune to market fluctuations than most other areas.
 
“Nestled between iconic Table Mountain and the cosmopolitan CBD as well as being only a short drive from world class beaches and the V&A Waterfront, the City Bowl is still a favourite with foreign buyers.
 
“And locals are drawn by the excellent schools and myriad amenities in the area as well as being able to escape the burgeoning traffic congestion during peak hours.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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