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Densification is not all bad and better for local businesses
Category Property News
YOUR heart may sink when you realise the grand old house next door that once accommodated a single family is being torn down to provide six new units in a security estate, with six times the number of people and cars.coming and going. But densification is not necessarily something to be feared, say agents. "This is particularly true when one views the way the trend has already been unfolding in the southern suburbs of Claremont, Rondebosch, Wynberg and Kenilworth, where a number of properties on which single residences previously existed are now home to desirable, upmarket security sectional title apartment blocks," says Mike Greeff, CEO of Greeff Christies International Real Estate. In many cases, such properties have actually raised the value of neighbouring real estate, he says, and they bring muchneeded income to local businesses. "Due to stock shortages and a desire for lockandgo real estate, this sector is becoming one of the most valuable in the province, with an increase in the average selling prices of around 12% to 14% a year " Lew Geffen, chairman of Lew Geffen Sotheby's International Realty, says traditionally the southern suburbs market was synonymous with spacious family homes and large gardens. "This is no longer the case, though, with section title properties now accounting for between 30% and 40% of title deeds in the area." But there is a difference in the way densification is happening in the southern suburbs Geffen lists Claremont, Rondebosch, Wynberg, Newlands, Claremont, Kenilworth and Constantia and the way it has happened along the western seaboard. Referring to what he calls "vast, entrylevel developments" in the western seaboard, he says the southern suburbs are seeing "small luxury clusters of between three and 10 homes", and these are the dominant feature of the evolving property landscape in the area. "Until recently, Constantia was 100% freehold, and there are currently three developments under way, with exclusive.complexes like Hoogeind in Claremont having pioneered the trend." Cyndy Minnaar, of Lew Geffen in Newlands, says these sort of developments have been reshaping suburbs like Newlands and Claremont over the past couple of years. "Pit least a dozen big older homes are making way for.compact developments. These new.complexes usually.comprise four to six freehold townhouses with a.common entrance, the most recent being 54 on Dean in Newlands." As other examples, Greeff cites Wycombe, one of several properties he is marketing. Wycombe, in Upper Constantia,.comprises six luxury sectional title homes, while 26 on Bromaert, also in Upper Constantia, will have 10 luxury sectional title homes. Nearby, in Old Kendal Road, a development is offering four luxury family homes. Greeff says: "Pis water restrictions bite and rates inevitably rise, there is an increased appetite for these properties. The large garden with a pool is not appealing to all buyers, and talk of imminent densification in suburbs like Constantia has got a number of property owners considering the possibility of subdivisions, which means capitalising on their land. "Some may consider selling off a section of an erf, but remaining in their home with a smaller garden, for example. "If anything, densification as we are seeing it currently is likely to boost the growth of property prices, provide more stock in a stockshort market and offer more appropriate lifestyle options to a number of new buyers." Geffen points out that densification is also being driven by people wanting to live along public transport corridors to avoid traffic congestion, and young professionals gravitat ing to city centres. "Densification in certain areas is a global trend and South Africa is unlikely to be different." Dr Andrew Golding, CEO of the Pam Golding Property Group, says densification and urbanisation is driving demand for residential accommodation and that means cities become more crowded. "In line with this, the demand for land for residential accommodation increases exponentially," says Golding. Not everyone is delighted by the trend, particularly road users. One southern suburbs resident, who asked not to be named, said his neighbour used to have one car, "and then they divided up the land and built clusters and now we have eight to 10 cars. It causes quite a lot of traffic congestion"
Author: Lew Geffen Sotheby's International Realty