Urban regeneration extends the City Bowl value corridor

Cape Town’s growing urban population and increasing demand for residential property close to the CBD has driven the revitalisation of adjacent suburbs with Woodstock, Walmer Estate and University Estate now attracting broad buyer interest.

Rapidly rising as three of the city’s most dynamic and active property markets they have enjoyed strident year-on-year increases in average home values in recent years, with ongoing upgrades and regeneration underpinning their strength.

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says: “According to Propstats, a total of 32 sales were recorded in Woodstock in 2012, with only two of these transactions realising more than R2 million, but just two years later the number of sales had almost doubled, with five of them breaching the R3m mark.

“Last year 68 properties changed hands, 10 sales exceeded R3m and one fell just short of R5m.”

Lightstone data reveals that in the Estates, property values have risen this year alone.

“In the 12 months ending 30 April, 29 house sales in Walmer Estate realised an average sale price of R1.98m and in University Estate, eight houses sold at an average sale price of R2.1m.

“In Walmer Estate, 12 of the transactions were concluded between February and April this year at an average price of R2.07m and in University Estate the average house price during the same period increased to R2.28m.”

Geffen adds that the pervasive trend of property renovation in recent years has seen the upper end of the market surge in the Estates with homes in this segment selling for between R3.5m and R4.5m, and properties further up against the mountain – most with breath-taking views across Table Bay – realising as much as R9m.

Dave Burger, Area Specialist for Lew Geffen Sotheby’s International Realty says: “These suburbs have become very popular with young professionals working in the city who can’t afford the spiralling City Bowl prices.

“Extensive investment in Woodstock over the past decade has seen former light industrial properties being converted into modern mixed use developments and the development of these residential spaces offers busy singles and couples lock-up-and-go convenience.

“But one of the biggest selling points of the area is its all-encompassing sense of community. Woodstock is a Mother City institution; many families have lived there for generations and this kinship embrace affords new residents a unique insight into Cape Town’s long and multi-cultured history.”

Burger says the Estates are especially sought after by young families, as the properties are mainly freehold and most of the homes are spacious and set on sizeable plots with stunning views, offering exceptional value when compared to the Southern Suburbs and City Bowl.

The rental market has grown in tandem with the sales market, which has precipitated a surge in investor purchasing. Sectional title properties in particular are realising excellent returns.

“There is now massive demand for these properties, with up to 90% of the units in new developments selling off-plan within a few days of launch.

“These units start at around R1m for a studio apartment that will realise a monthly rental of around R8 000 and range up to around R2.5m for a spacious two bedroomed flat. Average monthly rentals on the larger units are between R12 000 and R15 000.”

But Burger cautions: “The window of opportunity to get a foot in the market is closing quickly as entry level properties are becoming a scarce commodity and property values are increasing monthly.

“The wide-ranging regeneration, easy access to CBD and to the major freeways out of town, as well as the proliferation of new first rate amenities, have made this part of the city very appealing to local and upcountry buyers.

“Roodebloem Road in Woodstock is lined with restaurants offering a wide variety of cuisines and the area surrounding the popular Old Biscuit Mill is home to an array of craft and artisanal eateries as well as quirky boutiques and décor outlets.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    • 12 Jan 2018
      After an exceptionally good 2016 during which the Winelands residential market outperformed the national average by a considerable margin, 2017 was marked by a difficult winter which saw a notable slump in sales and demand.
    • 12 Jan 2018
      Small spaces can make a big impact. Irrespective of size, an aesthetically pleasing outdoor space can be a major selling point for prospective buyers. “Even if the outdoor area is small and only enough to sit and have a cup of coffee, it might just be the feature that makes the stand out from others in the neighbourhood,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 12 Jan 2018
      The boom of the digital age has opened up many doors to the way we buy and sell property. In the past we used to pop out and pick up the latest copy of the property magazines available, today we switch on the PC or grab our smart phones as online property portals & Facebook has become the new ‘go-to’ for anything, including shopping for your new home from the comfort of your couch.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us