Somerset West average property prices on the rise

Somerset West average property prices on the rise

Category Property News

The average price of properties sold in Somerset West has risen nearly R400 000 year-on-year, with the average price across sectional title and free standing houses around R2.2 million in 2014.

In 2013, the average sales price across the board was just over R1.8m and shows how significantly demand for properties in the area has grown, says Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty.

“Somerset West is growing incredibly fast with new developments being planned all the time.

“It is one of the few areas of Cape Town that still has development land available and it’s particularly attractive to families who want to raise their children in a place that still feels like a small town, yet has all the amenities of the city and is within easy commuter distance of the Cape Town CBD,” says Geffen.

“That’s one of the main reasons prices are rising so fast and will continue to do so as the town develops.”

Ricci Marais, Lew Geffen Sotheby’s International Realty Specialist Consultant in Somerset West says: “There is a huge demand for stock in the price range up to R1.5million. If a house is priced correctly, it will sell within the first week or so on the market.”

Marais says the areas in highest demand are in the suburbs around those schools considered to be among the best, because residential location determines which school a child will feed into.

“We’ve had a number of buyers who have made offers on properties subject to their children getting access to a specific school.”

In total last year, property worth well in excess of R180m changed hands in Somerset West; a total that is set to rise as the Deeds Office releases the confirmed sales in the fourth quarter.

Marias says one of the reasons the town attracts so many potential residents is because there are still large properties to be had for under R2m.

“You can still find houses that sit on 1 000m² of garden for around R1.8m. They’re not as abundantly available as they used to be, but they are still out there if buyers are prepared to spend some money updating and renovating.”

Marais says apartments and sectional title developments present even better value.

“Last year the average price of all sectional title properties sold was around R1m. Units in complexes go for around R1.5m for three bedrooms and two bathrooms, but apartments are far more affordable.”

According to Marais two-bedroom apartments in the town in good condition can still be found for between R500 000 and R700 000.

Geffen says an added attraction of Somerset West property is the investment aspect.

“There are incredibly good schools, the University of Stellenbosch is just down the road and there are a number of large companies in Somerset West and Stellenbosch with staff who need accommodation, so there is a large rental market and not enough stock available.

“Add to that the rate of property appreciation and it’s a sensible place to invest,” says Geffen.

• Weekend Argus 16 February 2015

Author: Weekend Argus