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Convenience and great lifestyle on offer in Cape Town's Newlands
Category Property News
Lifestyle and convenience are key factors underpinning the market resilience in upmarket Newlands where median prices have continued to steadily rise, despite the flagging economy and political uncertainty.
This is according to Lew Geffen Sotheby's International Realty Area Experts, Nina Smith and Jo Fourie, who say that over and above the unique village feel that has always attracted buyers to the peaceful neighbourhood, many of their clients now see more value in buying a smaller home in a suburb that is no more than 10 minutes from top schools and a host of other amenities.
"With Cape Town becoming increasingly congested, the daily commute to get children to and from school and themselves to work is now foremost in many people's minds," say Smith and Fourie.
"We are also seeing a growing number of young buyers migrating from the Atlantic Seaboard, looking to buy this side of the mountain where they are closer to the schools and get more space and value for money."
The increase in younger investors is borne out by Lightstone statistics which reveal that whilst 61% of existing owners who have owned their properties for eight years or longer are aged 50 and older, 65% of recent buyers (last 12 months) are 49 or younger, of which 32% are under the age of 35.
Property prices across the peninsula have held their own over the last 18 months, with modest growth in many areas, even under conditions of lower demand, says Arnold Maritz, Co-Principal in the Southern Suburbs.
However, the market in Newlands has seen consistently solid growth, even during the first quarter of 2019 when investor sentiment was especially cautious in the months leading up to the elections, says Maritz.
According to Lightstone, the median house price in Newlands shot up by 21.5 % in 2015, from R3.95 million to R4.8 million in 2015, and has continued on its steady upward trajectory ever since, jumping again this year by 18% from R6.1 million to R7.2 million.
Smith and Fourie say the most popular homes at the moment are those which are modern (new or renovated) with bright and airy open-plan living areas that flow out to generous outdoor entertainment spaces, preferably with views and low-maintenance gardens.
Also sought-after, are homes in the smaller secure developments which are becoming increasingly prevalent in the Southern Suburbs as they offer an attractive combination of drawcards including prime location, modern luxury design, privacy and excellent security, say Smith and Fourie.
There are only a handful of them in the area and only four in Newlands with 24-hour security so they seldom come onto the market. The latest offering is Cavendish Mews which is in the final stages of construction and due for completion in July with one completed and furnished unit ready to show buyers.
Situated only a stone's throw from the Cavendish Square precinct and Newlands Village, it comprises 12 double-storey designer homes, all with stunning roof terraces which have pools, braai areas and beautiful mountain views.
The rental market in Newlands has also remained active, says Lorraine Dellbridge, the group's Southern Suburbs Rental Manager, adding that realistic pricing is key.
Stock levels have increased somewhat during the last year so, whilst demand is still strong, landlords need to be cognisant of the fact that prospective tenants do have more choice in the current market and that there has been a decline in rental prices across the board in all areas, says Dellbridge.
Landlords who are unwilling to adjust their expectations from the rentals achieved in 2015 will find their properties sitting vacant for months, which is far costlier at the end of the day, she says.
Dellbridge adds that rental properties at the top end of the market are taking longer to rent out, while most popular and quickly snapped up are well-priced one and two bedroom apartments favoured by young professionals and students.
"If demand starts picking up as economic and political circumstances improve, and certainty returns, it is very possible that property prices may start to grow at a faster rate, which means that rental returns will also improve and the time taken to 'break-even' on a geared property investment will diminish," says Maritz.
"Now would therefore be the best time to buy, especially in a consistently stable market like Newlands which also enjoys an ideally central position in the Southern Suburbs with easy access to main routes to the CBD, Constantiaberg and False Bay."
Author: Lew Geffen Sotheby's International Realty
