26 Jul 2012
This is according to the FNB Western Cape House Price Index Q2 2012 report which shows a year-on-year (y/y) growth rate of 8.7 percent from 7.5 percent in the previous quarter.
FNB says this has been the fourth consecutive quarter of y/y growth acceleration according to the latest revised figures.
On a quarter-on-quarter basis, however, the growth rate slowed slightly in the second quarter, from a previous 2.5 percent to 2.3 percent, but this remains a very healthy quarter-on-quarter rate, says the bank.
The bank notes that this price growth is slightly above the national average y/y growth rate of 8.6 percent for the quarter
Read about the Western Cape home prices here.
According to Clinton Martle, FNB Home Loans Western Cape property leader manager, the FNB valuers perceive the City of Cape Town metro to be a stronger residential market than the country areas.
“The bank is of the opinion that the more affordably-priced segments of the market have contributed more to price growth in the region.”
Martle notes that a strained global economy and indicators pointing to a simultaneous Western Cape economic weakening could imply near term slowing in the province’s house price growth.
He points out that the solid period in house price growth appears to have been driven more by the full title segment than the sectional title segment.
It is believed that the sectional title segment is still suffering from the overhang of a stronger supply of new stock built a few years ago during the boom.
The sectional title market also appeared to be a major target of buy-to-let buyers in the boom years and buy-to-let demand still remains mediocre by comparison to back then.
Click here to read about the full and sectional title house prices.
Martle says in the full title segment, the affordable housing segment is believed to have been a key driver in recent times, boosting the two bedroom sub-segment, while the relatively stable established family demand is the driving force behind the three bedroom full title market.
He says in the Western Cape, the lower priced areas have mildly outperformed the upper end areas - a reflection of the household sector financial pressures and the rising costs of owning a home such as rates and tariff increases, notably electricity.
Meanwhile, Anne Porter Knight Frank (APKF) says Rondebosch remains a sought-after suburb because of its close proximity to the Newlands Cricket and Rugby stadiums and its central position in relation to the M5 and M3 highways.
Jeanne Cowan, APKF area agent says Rondebosch homes offer good value pointing out that the CMA reports show that house prices in Rondebosch have risen steadily from an average of R1 125 million to R2 825 million over the last 10 years.
Cowan says a large family home with four bedrooms in Rondebosch is selling for R4 250 million.
It is set on a 618 square metre plot, featuring three reception rooms, a study, a garage and a swimming pool.
Cowan points out that family buyers would love the property as it is located across the road from Bishops, on a corner plot opposite a park.
It is within walking distance of Rondebosch Boys Prep and Senior schools, a few minutes’ drive from Rustenburg Girls, Westerford and Herschel and very close to University of Cape Town and a number of retail centres.
Situated on the banks of the Grobbelaars River against the backdrop of the Swartberg and Outeniqua Mountains, the town is a stopover point between Cape Town and Port Elizabeth.
It is part of the Cape Route 62 Wine Route with a number of top quality wine farms in the area and also home to the annual Klein Karoo Nasionale Kunstefees, the largest Afrikaans language arts festival in the country.
The town still boasts the largest Ostrich population in the world with a number of specialised breeding farms in the area, he says.
A four bedroom home currently on the market is priced at R1.1 million noting that besides the property being of interest to country buyers, its location also makes it ideal for business use, according to the agent. –Denise Mhlanga
Denise MhlangaProperty journalist at property24.com
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