The market for residential property in Constantia Valley, Cape Town, continues to improve steadily – and has been doing so for over a year now.
A four bedroom, three bathroom double storey slate roof ‘mansion’ in Willowbrooke Lane on sale for R13.8 million - click here to view.
This is according to Sandy Dicey, of the Rawson Properties Constantia and Wynberg franchise who says their franchise has had a good 2011 and is now having an even better 2012.
She says they are getting feedback from other agencies indicating that they too are experiencing steady growth. "Prices are not rising yet, but they have definitely stabilised at the lower level that they hit in 2011. Sales, on the other hand, are now steadily improving.”
Dicey says in the last 16 months, 96 properties were sold in Upper Constantia alone and these had a total value of R456 816 000.
The average price for Upper Constantia sales in the R4 million to R10 million bracket, (excluding those sold at the higher price levels where sales were fairly slow), was R5.5 million and the time typically taken to find a buyer was six months.
A two homes in one opportunity in Strawberry Lane with an asking price of R 5.995 million.
"These figures are all a big improvement on the situation 24 months ago and they indicate pretty clearly that if your aim is to buy in Constantia, now is the time to make a move," says Gerald Romanovsky,
He says it is highly unlikely that today’s reasonable prices will ever be seen again.
Dicey, Romanovsky and Pienaar who owns the franchise focus on the Upper Constantia market, including Constantia Rural.
Sales have been satisfactory and their report shows that the really big demand has been in Lower Constantia, especially for homes selling at R2 million to R4 million, where buyers are often found within the first two months of a home being listed.
A seven bedroom home in Brommersvlei Road on sale for R 6.250 million – approximately 25% off what a home would have achieved before the 2009 slump in residential prices.
Dicey says owners traditionally stay only four to eight years before moving on to Upper Constantia.
Now that money is tight they tend to stay for longer periods and spend whatever spare cash they do have on improving their homes.
She says in Upper Constantia steady sales have been achieved in the R4 million to R6 million bracket.
In most cases these, however, took place at an average discount of 16% on the original asking price, explains Dicey.
She says in the higher brackets, i.e. above R10 million, sales have been very slow. "On at least one occasion a show house in this bracket priced at R15 million, attracted no more than one visitor on the day.”
This situation, however, says Dicey, will change by the middle of 2013 because the value on offer is ‘superb’.
Asked to identify four good buys in Upper Constantia, Dicey pointed to a two homes in one opportunity on a 2 000 sqm erf in Strawberry Lane.
Here the asking price is ‘a very reasonable’ R5 995 000, she says, and this is already a 10% reduction on the price originally proposed by the seller.
Both homes on this property are double storey and have large reception rooms. They also have two bedrooms each that are en suite.
Both have been designed in a style reminiscent of a French Provencal mas. The larger home has two garages, a swimming pool and is air-conditioned.
Another home on sale is a luxurious double storey slate roof ‘mansion’ in a tranquil garden with old oak trees in Willowbrook Lane.
Again the erf size is 2 000 sqm. The house is priced at R13.8 million and has four bedrooms, three bathrooms, a swimming pool, two garages, a borehole, and an automatic irrigation system, air-conditioning throughout, under floor heating and very opulent finishes.
There’s a home for R3 995 000 in Ladies Mile Extension that is very close to the main retail centre, Constantia Village.
This L-shaped, low profile, single storey, ranch style home has four bedrooms, two bathrooms, and dining, living and study areas.
It also has a large pool and a massive palm tree in the centre of the garden. Capital appreciation on a home at this level, says Dicey, is inevitable which makes it a good buy.
A home in Brommersvlei Road is slate roofed and has seven bedrooms, two of which are en suite, three reception rooms, a north-facing enclosed all-weather entertainment area and a pool with a beautifully cared for garden.
The asking price is R6 250 000 which, says Dicey, is probably some 25% off what such a home would have achieved before the 2009 slump in residential prices. Again, she says, the capital appreciation potential here is tremendous.
Summing up what is on offer in Constantia, Dicey says in each case the homes have maintained their rural feel and atmosphere and the designs, although often traditional, are very attractive.
