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Constantiaberg estate sector remains robust
Category Property News
While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
This is according to Dave Burger and Brenda Pretorius, Security Estate Specialist Agents for Lew Geffen Sotheby’s International Realty in the Southern Suburbs and Constantiaberg who say have achieved record sales thus far this year.
“Strong demand is driving up prices, but that has not impacted the market as buyers are increasingly prioritising lifestyle and security, and we find that they are happy to make the investment, especially as they can be confident that they have made solid investments that will yield decent returns, even in a subdued market.
“The sad reality is that we are dealing with serious and brazen crimes committed against homeowners even when they are at home. There is no price for peace of mind and family security and those who can afford it are making the move.
“Last year the average price of estate homes in the entry to mid-level market was R6.9 million and this year to date, it’s risen to R8.35m, however, we do find some resistance when sellers’ expect prices higher than R10 000 000.”
They add that, despite this markets buoyancy, correct pricing is still crucial which is why it’s essential to appoint experienced, specialist agents who are able to advise correct marketing prices.
Lew Geffen, Chairman of Lew Geffen, Sotheby’s International Realty, says that Propstats sales data of three of the most sought-after estates situated in Tokai clearly demonstrates the current market strength. “In 2015, the average sale price achieved by the Stonehurst, Silvertree and Steenberg combined was R7.45m and the majority of the 14 sales were between R6m and R8.5m.
“In 2016, 13 homes at the estates sold for an average of R6.68m with most selling for between R5m and R7.5m while this year, 13 homes were sold by the end of August but at an average sale price of R7.25m.” However, while secure estate living is at a premium and prices are climbing, Burger says that there are still accessible options. When they are available, townhouses and smaller single storey homes are priced from around R3.8m.
Burger and Pretorius say that investors are also earning very good returns as these estates are popular for corporate rentals with rentals of R60 000 to R80 000 not being uncommon.
According to them, there are several other key factors which determine demand and, in turn, property values in estates.
“Well-established developments with proven management track records are always more sought after as are those with excellent security which includes features like camera monitored electric fencing, manned gates and armed patrols.
“Lifestyle is another big drawcard and buyers are attracted by on-site facilities like golf courses, gyms, sports facilities, walking trails and parks.”
Geffen adds that proximity to good schools and amenities are factors investors consider and in the Constantiaberg area there are several of the city’s top schools as well as an array or upmarket shops and restaurants, especially in Tokai where locals now have most amenities on their doorsteps, either at Steenberg Village shopping centre, Blue Route Mall and myriad shops and restaurants. There are a number of secure office parks as well and a Medicross clinic.”
Author: Lew Geffen Sotheby's International Realty