select
|

Pinelands bucks the trend, still showing real price growth and value

Although the Western Cape market is still enjoying a higher than average nominal price growth, recent reports show it has begun to stabilise. However, there are a few Cape Town suburbs like Pinelands which are still showing significant growth.


This recently refurbished four-bedroom thatch home in Pinelands with a separate two-bedroom cottage is for sale at R4.55 million. It is currently run as a guest house, but would also be ideal as a family home.

Lew Geffen Sotheby’s International Realty area specialist for Pinelands, Charlene MacPherson, says one of the suburb’s key drawcards is that erfs are generally substantial, making property here good value for money compared to the surrounding suburbs.

“Many homes also have dual living options which a lot of our clients want - either to accommodate family members or to rent out,” says MacPherson.

“The Pinelands market remains strong in spite of the prevailing economy and there seem to be more properties on the market at higher prices than two years ago. For instance, according to CMA the average house price in 2015 was R2.735 million and this has increased to R3.4m this year.

“According to Propstats, the average house price for the period 2012 to 2013 was around R2.1m and homes spent around 16.5 days on the market before being sold. In 2017 the number of days homes are listed increased to around 27 days, mainly because there are fewer buyers around, but properties are still selling at higher prices, and showhouses are well attended, with about 12 people on a show day.”

MacPherson says that although the Pinelands market is still active, sellers need to keep in mind the current economic conditions and tailor their price expectations accordingly.

“Some sellers have unrealistic sale price expectations and assume that the growth we have had over the last two years will be maintained, but realistically it has to begin slowing down. We now have some homes on the market at prices above those of Rondebosch and even Constantia, which will struggle to compete with the realistically priced properties.”

Stephen MacPherson of Lew Geffen Sotheby’s International Realty says most recent sellers are downsizing and retiring, and the majority of recent buyers have been in the 36 to 49 age group.

“Pinelands is a popular family area, and many of the current residents have lived here their entire lives. They understandably want to retire here, but the local retirement villages are full and waiting lists are closed, so they are obliged to stay put or look elsewhere,” he says.

“A lot of home owners are extending and renovating their properties as they realise that it would be difficult to find the same value and lifestyle elsewhere. At the same time, many buyers are looking for a ‘renovator’s dream’ as the older homes in Pinelands have huge potential depending on position and price.

“Sellers should therefore not do more than repair the basics before they put their homes on the market as the next owners will want to add their personal touch.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says that Pinelands currently offers excellent returns in the short, medium and long-term.

“Investors who buy now are likely to realise a solid return within five to 10 years. There is also a strong demand for rental properties in Pinelands, with well-presented rental units offering good returns.

Geffen adds: “Another reason for the steady demand for property in Pinelands is its central location; close to the Cape Town CBD and with easy access to the airport and the northern suburbs. This makes it an excellent choice for buy-to-let investors looking for profitable long-term investments,” concludes Geffen.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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