28 Nov 2012
Whether you’re a first-time buyer, upgrading or downscaling, buying a house in a good location, in a suburb that shows healthy growth has always been the ideal.
But in current economic times, location and growth potential should be non-negotiable in the decision making process, says André Brink, land owner and developer of Graanendal Residential Estate in Durbanville.
A Financial Mail Survey published at the end of October 2012 (FM’s annual top suburbs survey in partnership with Lightstone) rated Graanendal not only first in Cape Town, but first in the country with 16.7 percent growth in house prices over one year.
The survey singled out the top five suburbs in South Africa’s four biggest cities – Johannesburg, Pretoria, Cape Town and Durban – over one, three and five years and in three different price categories.
The 16.7 percent growth recorded by Graanendal is substantially higher than the 1.3 percent average growth for the year to date as quoted by Absa. The rural setting of the Estate is believed to play a big role in this growth with consumers who are continuously looking for ways to increase their quality of life.
According to Brink, there are various other factors that collectively contributed to the growth. These include, among others, the long-term commitment of the developer, the building quality of plot & and plan units and the developer’s continued involvement with the Home Owners’ Association.
Brink says they don’t believe in a hit-and-run strategy as is the norm with many property developers today. He says they have also invested in building a retail shopping centre at the entrance to the Estate to further inflate the value for the buyers. “Together with strong architectural guidelines and the location of the Estate, these positive attributes all contributed to the growth.”
Graanendal’s phase one was completed in 2003. This phase comprises of 88 plots as well as five group housing developments totalling approximately 58 units. The retirement village, Villa Cortona, also forms part of phase one, with 184 plots and flats.
The proposed second phase of the Estate will be launched in 2013 and will incorporate approximately 190 group housing units as well as 94 plots sized 750 square metres to 800 square metres.
Graanendal will service various market segments with prices ranging between R1.5 million and more than R3 million, says Brink. “There is a continuous demand for secure developments that are close to schools and with the second phase we are able to release close to 300 opportunities into the market."
He says the negotiations are underway with various role players which could result in more than one school being built in close proximity to the Estate.
The second phase will be launched to developers early in 2013 and will, in addition to open spaces also incorporate landscaped focus areas that can be used by residents for sport and leisure.
Brink notes what was mentioned in the FM survey – that short-term movements in house prices is an important indicator of which suburbs to keep an eye on as the up-and-coming areas and that the past year’s growth in Graanendal bodes well for future investments in the development.
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