03 Jul 2013
Located in what could be described as one of the most beautiful wine valleys in the country, much of the original Cape Dutch architecture has been preserved due to restrictions placed on the extent of renovation and new construction allowed in the area.
Franschhoek has become synonymous with fine wine and world class cuisine as eight of the country’s top 100 restaurants are located in the area, not to mention the 30 wine cellars. A Cap Classique route has also recently been launched, featuring nine cellars within 4 kilometres of each other.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that as with most regions in the country, the largest demographic of buyers in the area are between 36 and 49 years old. He says these buyers account for approximately 40 percent of recent buying activity. The largest group of sellers were older with around half of the recent sellers aged 65 years or older.
According to Lightstone, property consists of 57.53 percent freestanding homes, 36.78 percent estates and 5.69 percent sectional title units. Goslett says the average price of property has grown steadily from 2004, reaching a peak in 2009 of R3.337 million for a freestanding home and R1.259 million for a sectional title unit. Prices dropped in 2010 with a freestanding home costing around R2.568 million and a sectional title unit around R1.138 million.
Since 2010, the average price of a freestanding home has gained momentum and has continued on an upward trend reaching its current price of R3.131 million. He notes that approximately 57 percent of estates sold between April 2012 and March 2013 were priced from R800 000 to R1.5 million. Within the same period around 14.3 percent of estates sold for between R1.5 million and R3 million, while 7.1 percent sold for R3 million or more, bringing up the current average price to R1.611 million.
Goslett says that sales transactions peaked at 151 properties sold during 2007, the year widely regarded as the apex of the boom period. The number of transactions has dropped since then, with an average of around 50 properties sold per year from 2009 up until this year.
According to Goslett the most popular properties sold between June 2012 and May 2013 were those priced between R1.5 million and R3 million. These properties accounted for 42.9 percent of all the properties sold during this period. Around 30.4 percent of properties sold within the same time frame were priced at R3 million or more, while those priced from R800 000 to R1.5 million accounted for 17.9 percent.
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