|Between May 2004 and May 2005 the average price of homes sold in Cape Town’s suburb of City Bowl rose by 60 percent from an average selling price of R801 195 to R1 383 229, according to the Residential Property Price Indicator (RPPI).|
Releasing the figures in Cape Town this week, Michael van der Westhuizen, Rawson Properties franchisee for the City Bowl area, noted that most of the buyer activity in the area some two or three years ago had been concentrated on the low priced units and driven hard by shrewd investors.
The surge in prices had now made it increasingly difficult for the first-time and young family buyer to find a large City Bowl home similar to the type found in Table View or Parklands.
The rise in prices has, according to van der Westhuizen, upgraded City Bowl’s typical buyer profile to that of the more affluent person, quite possibly buying a home for the second or third time in their lifespan.
"This sort of buyer is prepared to buy in at prices of between R2 million to R6 million often with financial reserves to improve the property and with the intention of occupying the unit.” Buyers are also drawn by the city’s vibes and reduced commuting times to their work place in the city.
Demand from this sort of buyer, said van der Westhuizen, has in the past year driven up the average price in areas like Higgovale to R3,5 million and raised that of many of the better properties here to way above this.