select
|

Wellington sees growing demand for student accommodation

When one thinks of student towns in the Western Cape, the Boland town of Wellington might not be the first to spring to mind.  

But thanks to the presence of a substantial campus of the Cape Peninsula University of Technology (CPUT) in the town, as well as the smaller Huguenot College, the student population is on the rise – and with it, demand for student accommodation. Pam Golding Properties (PGP) reports that while there was previously very little demand for student-focused residential properties, that trend is changing noticeably – with demand growing from would-be residents as well as investors wishing to capitalise on student rentals.


?3 Bedroom House for sale in Wellington

The CPUT campus in Wellington is housed in historic buildings dating back to the 1800’s, and currently has over 2500 students enrolled in the faculties of Business, Applied Sciences, and Education and Social Sciences. The figure has grown by around five percent per year over the past few years, and is expected to accelerate into 2014 and beyond. Huguenot College meanwhile has nearly 350 students enrolled for 2014.


?1 Bedroom Flat for sale in Wellington

PGP agents Lynette Kannemeyer and Erika Odendaal say Wellington’s peaceful small-town atmosphere is conducive both to study and to a convivial social life. “The solid reputation of these institutions will continue to attract students to the town,” they say, “and as the student population grows, so too will the need for suitable accommodation. Investors can expect to earn steady rental income, with the demand being replenished every year as a new crop of students enrols. Parents might even wish to consider buying for their student children and then holding onto the properties for investment purposes after their own offspring have finished studying.”


?House for sale Wellington

The most sought-after student properties have ample accommodation which can be shared by several students, subject to applicable local government regulations on maximum occupancy. This option is viewed as a more secure, sociable and affordable option than students living alone. Good security features, the overall condition of the property and proximity to campus are other key factors which can influence rental returns and asking prices. “There is generally a shortage of student accommodation in the town,” say the agents, “and even flatlets attached to family homes are highly sought-after. In general, rental income of around R2500 per room can be achieved, or even more if the property is very close to campus or in particularly good condition. Those wishing to purchase can expect to pay around R1.5 million for a home with several bedrooms – for example, we sold an eight-bedroomed home in Murray Street earlier this year for R1.65 million, to an investment buyer.”

Investors wishing to capitalise on the student rental market may wish to view a home in Fontein Street which has recently come onto the market exclusively through PGP, priced at R1.48 million. The property is located within walking distance of the CPUT campus, in the buzzing heart of the student district. The main homestead has four bedrooms, two bathrooms and a reception room, while a self-contained flatlet offers an additional bedroom. The well-maintained home occupies an erf of close to 450sqm, and has good security and off-street parking. 


  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