Despite some gloomy predictions for the property market there are all still pockets of good value for those looking to buy homes in Cape Town. 

“Many Cape Peninsula 'special' areas can be seen now undergoing a transformative phase and moving up in the public’s estimation, but can still offer really good value.”

Property analysts operating on a national footprint have an unfortunate tendency to create pessimistic and negative perceptions which may not be applicable to “special” areas, says Lanice Steward, MD of Anne Porter Knight Frank.  

Steward says the Cape Peninsula, in her opinion, has a higher concentration of such “always popular” suburbs than almost any other precinct in South Africa - and she is not referring to the high-priced suburbs which have always been and always will be in demand, and to an extent are able to buck economic trends. 

“Many Cape Peninsula “special” areas can be seen now undergoing a transformative phase and moving up in the public’s estimation, but can still offer really good value.” 

In this category Steward lists the following Cape Town hot spots: 

Lynfrae

This area attracts 25% more hits on the APKF website than any other, she says, and adds it is still possible to buy a home for R2.2 to R2.8 million. Typically it would be on a 500sqm to 600sqm stand and it would be well built. It would have three bedrooms, two reception rooms and a study and although a little “old fashioned”, would be welcoming, comfortable and not in need of extensive repairs. 

Steward says Lynfrae has the advantages of being within cycling distance of some of the Cape’s best schools and reasonably close to the city, retail centres and top-level sports stadia. 

PropStats figures, adds Steward, reveal that in 2011 Lynfrae homes sold on average only 8.5% below their asking prices and were on the market for an average of 46 days. Both these statistics are a big improvement on average SA figures.  

Pinelands

She says in Pinelands it is still possible to buy a “solid” well-built home of the type found in Lynfrae, possibly 30 to 40 years old, with four or five bedrooms, for a price of R2.5 million.  Average stand sizes in Pinelands are 800 to 1 000sqm and, again, there is a relatively small gap (7.4%) between the list and achieved prices. The average selling time in 2011 was 98 days. 

“Pinelands’ big attractions are that it is only 12km from the city and on a major suburban line and it is largely self-contained, with its own schools, shopping centres and sports clubs – and it has a great community spirit,” she says. 

Hout Bay

Steward says here there is such a diversity of property values in all price ranges that it is not possible to talk of a typical home for this region – but the valley can still offer excellent value in its Beach and Scott estates. 

She says last year the average selling price in Beach Estate for a three bedroom home on a 450sqm stand was R1.9 million (12.9% below the asking price), while in Scott Estate three and four bedroom homes can still sell for under R3 million. Sales here, on average, take 71 days.  

Those looking for a Hout Bay home in a security estate, with excellent protection round the clock, says Steward, should visit Avignon/Berg en Dal and other Hout Bay gated estates. Here excellent homes are available at ±R 4 million, often half of what is paid for similar security estate properties in Constantia. 

Sea Point/Green Point

Steward in early 2011 identified this as an area on the up and now, she says, everything she predicted for freestanding homes in this area is becoming a reality. “Many parts of this precinct are catching on, especially those on the mountain slopes with sea views”. Green Point in particular appeals to the upwardly mobile, “with it” set who seek a cosmopolitan, boulevarding lifestyle, she says. 

“Average home prices here are R1.7 million for a two bedroom house – on a 300sqm stand and typically they will sell in 43 days at 6.7% below the asking price.” 

Prospective home buyers should be patient and do their homework carefully. A good way to determine value is to get an online property valuation, which will allow buyers to establish what other similar homes in that street, complex or suburb have recently sold for.