Featured
On Show
Winelands residential market spurred by decentralisation
Category Property News
THE INFLUX of highly skilled employees from upcountry is not only spurring decentralisa-tion in Cape Town and increasing the demand for commercial space in Century City and the northern suburbs; it is also having a significant impact on the residential market as far as the Winelands. This is according to Anton Kotzee, chief executive of Lew Geffen Sotheby's International Commercial Services in the Western Cape, who says: "The Rode Report on commercial property released in the fourth quarter of last year, revealed that Tyger Valley showed the highest growth of all decen-tralised commercial areas in the country at 12.6 percent, fol-lowed by Century City and Sandton at 12.2 percent. "House prices in the north-ern suburbs are still a little more affordable than most other areas of the city so a lot of companies are opening their doors there as well. However, many of the province's new residents who work in the northern suburb's growing commercial node are opting to live just out of the city in towns like Paarl and Stellenbosch." According to Chris Cilliers, chief executive and principal for Lew Geffen Sotheby's Inter-national Realty in the Winelands, this emergent trend has had a considerable impact on the Winelands residential market, irrevocably altering the face of the once sedate rural area. "The accessibility of north-ern suburbs, particularly by means of the back roads from Paarl and Wellington, means that people can enjoy all the benefits of a country lifestyle which offers access to excellent schools and amenities as well as a short and relatively easy commute to work." Cilliers says the movement to the Western Cape and the resultant congestion and prop-erty price hikes in the city have also triggered commercial development in the Winelands, with many blue chip compa-nies now moving their head-quarters to the region. "There has been a lot of office development in and around the Winelands in the last few years, the latest being Brandwacht office Park in Stel-lenbosch. Nearby Technopark has been a phenomenal success and is now home to one of the highest concentrations of cor-porate headquarters in the country" According to Cilliers, the massive commercial growth in the area and the ever-increas-ing need for accommodation has also triggered the emer-gence of another trend in an effort to limit congestion in the Winelands towns as the popula-tion continues to grow "Mixed use developments are becoming more common and most new development areas now include residential, commercial and retail compo-nents. Four office block oppor-tunities which were recently released off plan in the Val de Vie Estate were snapped up and the next phase is already being planned. This has been well received by professional residents as it allows them to have an office on the estate and not have to work from home or drive to work." Cilliers says that Gauteng investors now account for the majority of new buyers in the Winelands, although their offices are fielding an increas-ing number of queries from KwaZulu-Natal. Estelle Denys of Lew Geffen Sotheby's International Realty in Wellington, says: "For many years Wellington was regarded as the wallflower of the Wine lands, attracting far less atten-tion and experiencing slower growth than Paarl and Stellen-bosch, but this has changed significantly in recent years. "Until very recently, almost all residential buyers in Wellington were either local or from Cape Town, but it's now completely reversed and a vast majority of the enquiries I now receive are from other pro-vinces." Denys says the surge in demand for property in this small town has also been fuelled by the fact that it still offers good value and buyers generally get more house for money than can be found in its larger neighbours. Lew Geffen, chairman of Lew Geffen Sotheby's Interna-tional Realty says that the influx of new residents has also boosted the rental market, with stock shortages being felt throughout the Winelands. "This, in turn, creates an excellent investment opportu-nity for buyers who will realise solid returns by capitalising on this scarcity especially if they buy property in secure estates where demand is largely being driven by relocation from other provinces. "Secure, lifestyle estates are by far the most popular as they offer security-conscious buyers from upcountry an active, out-door lifestyle in a safe environ-ment, with those near Paarl especially sought-after as they offer easy access to the Ni." Geffen says suburban homes in Stellenbosch are also in great demand due to the proximity to good schools, the university and the vibrant lifestyle the town offers. While the unprecedented growth and development in the Winelands has had many posi-tive effects, Cilliers says it has also contributed to increased traffic in the area. "Luckily the Western Cape Roads Department is now busy with upgrades on the major access routes into Stel-lenbosch." Winelands residential market spurred by decentralisation Secure, lifestyle estates are by far the most popular choices
Author: Lew Geffen Sotheby's International Realty