Phenomenal home price rises in Upper Wynberg likely to continue

The great appeal of the Upper Wynberg residential precinct, the area bounded by Constantia Main Road, Main Road, Tenant Road, and Waterloo Road, has grown exponentially over the last year – and more noticeably in the last three months. As a result, sales prices here year-on-year have risen by a staggering 25%.

?3 Bedroom House for sale in Wynberg

This was said recently by Judy-Leigh Moffett, the Rawson Property Group’s sales agent for Upper Wynberg (which she has served for six and a half years), Plumstead’s Timour Hall Estate and another small section of Plumstead. All of these territories fall under the Rawson Property Group’s Constantia franchise, which is owned and run by Eugene Pienaar.

A year ago, said Moffett, the majority of her sales in Upper Wynberg were in the R950,000 to R1,8 million bracket, with a fair percentage close to R1,2 million. Recently homes in this price range have almost disappeared from the stock lists and when they do come about, they are sold for the full asking price within three or four days of being listed.

Today, said Moffett, she is selling in a price range of R1,6 million to R2.8 million, with the majority of the sales being above R1,5 million.

The phenomenal success of Upper Wynberg, she warned, should not tempt sellers to overprice because this tactic has proved, time and again, not to work.

“Today’s buyers are highly market conscious and will simply not pay above going rates,” she said.

?4 Bedroom House for sale in Wynberg

“In the one or two cases where clients have persuaded us to go for a too high a price, we have always ended up having to reduce the cost later. There is also a danger that the banks’ assessors will not accept the new value when called to do so. The banks rely on reports that capture sales up to two months after the transaction has occurred leaving them with old data. In cases like these the area specialist can furnish the banks with recent sales to assist in finding the value.”

A case illustrating this, she said, was a newly renovated home listed at R1,695,000, a price which was deemed correct as it was based on the home’s appeal and the demand to the market. In the initial two weeks, the buying public showed interest but no offers were made. When the price was reduced to R1,595,000 it was sold in one day at full asking price. The maximum value for a 100% bond was R1,500,000 – so, to help the buyer qualify for this bond, the seller knocked off a further R95,000.

Much the same bullish conditions, said Moffett, are currently found in Plumstead’s Timour Hall Estate, where the last year’s standard lower price of R1,6 million has risen significantly so that today the majority of houses sold here are priced from R2,2 million to R2,8 million.
Asked to predict how much longer the Upper Wynberg prices can be expected to rise at the current rate, Moffett said that the chronic lack of stock coupled with Upper Wynberg’s attraction as a school catchment area, excellent central position and attractive environment are likely to ensure that prices continue to rise year-on-year.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us