Strong demand and good price growth for affordable homes in Welgevonden Estate, Stellenbosch

Property owners in Welgevonden Estate, located on the edge of Stellenbosch have reason to be pleased as values in the development continue to grow above the national average, says Seeff agent, Droeks Malan. 

3 Bedroom House for sale in Welgevonden Estate

The estate continues to attract mid-market buyers to its well-priced selection of homes and vacant plots. In the last year about 62 houses and 10 vacant plots have sold here to the total value of almost R114 million. The average house price is now at around R1,718 million, up from around R1,6 million in 2012. The average price for vacant land has risen to R731,900, up by just over 10% from 2012.

The agent attributes the good growth to the shortage of affordable homes priced below R3 million in the Stellenbosch area, especially in security estates. While the mortgage granting landscape remains challenging, the gradual relaxation of the stringent conditions has also aided sales, he adds. Having said this, a good job and credit record along with the ability to pay at least a 10% deposit remains paramount for prospective buyers.

2 Bedroom House for sale in Welgevonden Estate

The development still offers a diverse selection of property to suit every budget, says Malan. Smaller homes in the older part of the estate now sell for around R1,2 million. Medium sizes homes sell for between R1,48 million and R1,68 million. Larger, four bedroomed homes sell for around R2,8 million. Vacant plots sell for between R540,000 for 144sqm and R1,2 million for around 500sqm.

Welgevonden Estate is now well established and aside from the security, offers plenty of open areas and parks and stunning mountain and vineyard views, says the agent. It is popular with families, but is also attracting young, first time buyers and parents seeking accommodation for their student children. We have also seen an influx of investor buyers looking to capitalise on the strong demand for rental homes. Rental demand still outweighs supply and there is thus a good opportunity for more buy-to-let investors to look at the development. Three bedroomed homes are now let out at monthly rental rates of between R8,500 and R12,000 per month for an exceptional home with added extras.

While values in the estate continue to grow year-on-year, the agent says that existing home owners should ensure that they take advice before undertaking renovations to ensure that they do not over-capitalise. Sellers should ensure that their homes are in a good condition if they hope to get a good price.

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