Going back South

Gavin notes that the property market in the Southern Suburbs has been active in the first quarter of 2011, however they are currently experiencing the anticipated winter slow down. “It is normal for property transactions to dip during the winter months and during school holidays, but now that the schools are back we should see more activity in the market again,” says Gavin.

Due to the highly diverse nature of the Southern Suburbs and the vast variety of properties and amenities that are on offer in these areas, buyers from all walks of life are attracted to property investments here. Gavin notes that one particularly big draw card to these areas are the extremely good schools and universities.

The Southern Suburbs are primarily residential, and most of them incredibly beautiful offering property investors a wide selection of property options to choose from.  There are older-style homes and cottage-style semis in areas such as Mowbray, Claremont and Wynberg, to the more ornate and larger homes in the likes of Constantia, Bishopscourt and Newlands.  

“Most homes in the Southern Suburbs are in demand because of the excellent facilities in these areas. The Southern Suburbs are situated close to the Cape Town CBD and there is easy access to the freeways and shopping centres. Many investors are also attracted here because of the up-market feel and the area’s natural beauty,” says Gavin.

He continues by saying that although the property market still has a long way to go before making a full recovery, more and more property investors are beginning to emerge.  “Houses are still taking about six months to sell on average, but we are generally seeing more interested buyers and movement in the market. Competitive pricing will be one of the catalysts to property being sold in a shorter time frame. Many sellers have adjusted the price of their home to be in line with current fair market value in order to secure a buyer,” says Gavin.

According to Gavin entry level homes in the Southern Suburbs sell between approximately R600 000 and R1,2 million, while mid level homes range from around R1,5million to about the  R3,5 million bracket.  Top end homes are priced between approximately R4 million and R8 million, with luxury homes being priced anywhere from about R10 million up to the R35 million mark depending on location and finishes.            

Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “While conditions currently favour savvy buyers who are able to find value-for-money deals in the market, buyers should still make sure that they invest in areas that will remain in demand. The Southern Suburbs of Cape Town have proven to be just that.”

Looking at the performance of the property market going forward, Gavin explains that he doesn’t expect much to change over the next 12 to 18 months.  “Steady seems to be the name of the game for now, in fact we may even see another slight decline in the market before it improves. I would go as far as to say that we will only start to see a more visible upward trend from the middle of next year or possibly the beginning of 2013. Property is a long term investment and should be viewed as such for investors to see good returns on their property investments,” Gavin concludes.

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