14 Feb 2013
This is according to Seeff Stellenbosch agent, Droeks Malan, who says, last year, around 81 homes were sold in the area to the total value of almost R130 million, 42 percent more than the 57 units sold in 2011. The average price is also up by about 4.8 percent to R1.6 million from R1.53 million in 2011.
Malan says this is also higher than the national average nominal house price growth of 3.9 percent as reported by bond originator, ooba. The average gap between the asking and selling price has also narrowed to 3.7 percent.
According to Malan younger buyers, especially first-timers continue to flock to the estate that offers a mix of homes in a modern Cape Vernacular design with trendy interiors.
Regarded as one of the most secure neighbourhoods in the country, residents enjoy stunning views of the surrounding mountains and vineyards. Communal facilities include parks and play areas, walking trails and dams and new shopping facilities within walking distance.
An affordable and secure lifestyle has been the key driver of demand, says Malan. Within Stellenbosch there is little on offer at the R1 million to R3 million mark. Within the estate however, buyers have found excellent value over the past year.
The strongest demand remains at the entry level below R1.5 million with the buyer profile comprising a mix of first-time home buyers and parents investing in accommodation for their student children, but there have also been a few buy-to-let investors, he says.
Sales by Malan include vacant plots that have sold for between R450 000 for a 144 square metre stand to R660 000 for a 227 square metre, corner plot. Two bedroom cottages have sold for between R1.1 million for an older home needing a bit of work to R1.53 million for a spacious cottage with a carport and loft on a slightly larger stand.
A three bedroom cottage with a small garden in the older part of the estate has also sold for R1.175 million. A three bedroom lock-up-and-go unit has also been sold for between
R1.395 million and R1.45 million. Newer three bedroom homes have sold for between
R1.9 million and R2.4 million for a spacious home with under-floor heating, a double garage and stunning views.
The demand for top-end homes has notably increased, primarily on the back of demand from family buyers, mostly new relocations into the area from upcountry, adds Malan.
In 2011 for example, only three homes sold above the R2 million price band in 2011 with R2.45 million being the highest price. This improved to nine units sold in the last year with R2.85 million being the highest price paid, a record improvement of 16.3 percent in the maximum price for the estate. This price was achieved for a newly built, top-end home that offers 240 square metres under roof on a plot of 324 square metres in one of the green areas with beautiful views.
A mild improvement in mortgage finance approval rates has also helped sales in the estate according to Malan, but securing finance remains a challenge for many would-be buyers. While a few full bonds have been granted, Malan says, a deposit of at least 10 percent is a prerequisite.
Working with a bond originator such as ooba has also greatly benefited their buyers this year as their multi-bank application approach has improved access to finance and has often secured a better interest rate, especially for first-time buyers.
The diverse range of property options on offer means that there is something to suit every buyer need and budget, he says. Mid-market buyers can expect to pay around R1.45 million for a three bedroom lock-up-and-go home.
At the top-end, a three bedroom home with modern finishes and extras such as a wine cellar and storeroom, an outdoor entertainment terrace with braai facilities and a garage, is on offer for R1.87 million. The home is situated on a corner plot next to a green area.
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