Young professionals, drawn by excellent schools, established infrastructure and a central location relative to Cape Town's business district and Durbanville, are keen to buy homes in Plattekloof and Panorama.
This home in Plattekloof is on the market for R2.5 million through RealNet.
This is the word from Ingrid le Roux, owner of the local RealNet franchise, who says many of the buyers are upgrading from nearby areas such as Parow and Goodwood. Prospective buyers are typically young professionals who have established their careers and are taking the plunge to buy larger properties with the goal of starting a family or to house a young family.
She says the jump is considerable. They are moving from homes in the R800 000 to R1 million price range and targeting entry-level properties at around R1.5 million in Panorama and R2.5 million in Plattekloof, which offers larger stands and homes as well as sweeping views.
However, she says, these buyers seem willing and able to take on larger financial obligations in order to settle their families at a good address.
She adds that entry-level properties in these areas often require upgrades or modernisation to the tune of an additional R300 000 to R400 000.
Le Roux says the growing demand has led to a shortage of stock, especially at entry-level. She explains that older residents planning to buy retirement homes seem to want to hang on a little while longer in the hope that the market will shortly show a marked upturn.
"However, new electricity and water tariffs are placing more pressure on household budgets for people on fixed incomes and the trickle of homes coming to market seems to be increasing slowly."
She says updated property values on the valuation roll are to be implemented shortly and will likely add to budget pressures among fixed income residents, who may then decide to sell their properties to buy retirement units.