Buyers looking to get a foothold in the prestigious Cape Town Southern Suburbs’ property market are still "packing for Plumstead" and surrounding areas such as Meadowridge and Diep River.
Situated in Diep River, this home offers three bedrooms, one bathroom, open-plan living spaces, a lounge with fireplace, garden and garage. It is on the market for R2.45 million – click here to view.Property prices in Plumstead
This is according to Seeff agents, Peter Thornton and Peter Marais, who say this year sales in Plumstead alone already amount to some 79 transactions worth over R151 million at an average sales price of almost R2 million.
According to Propstats data, that is up from just R1.3 million four years ago, and some 54% more in four years, they say. This year’s average price is also about 25% higher than last year’s average selling price of R1.6 million.
Almost 70% of all sales in Plumstead since the start of 2015 to early August 2016 were freehold houses. Thornton and Marais say just over one third of all sales fell above the R2 million price band as buyers are prepared to pay ever-higher prices, provided they find good value.
“We have, for example, already seen ten sales priced upwards of R3 million, with sales this year ranging from R3.2 million in Meyrick Avenue to as much as R5.45 million in Denbigh Road. These were large houses though, with four and five bedrooms respectively.”
What you’ll pay for Meadowridge property
Located on the border of Plumstead and Constantia, this spacious family home has five bedrooms, plenty of living space, garden and swimming pool. It is currently selling for R3.95 million through Seeff.In neighbouring Meadowridge, which is famed for its status as one of the Garden Cities of the metro, the average sales price for this year is now standing at just over R3 million, up by over R1 million from 2012 when it was about R2 million. Thus, some 50% higher.
Three bedroom houses have been the most popular this year in Meadowridge and have achieved prices of up to R3.95 million in Newton Drive. Larger, five bedroom houses have sold for upwards of R3.725 million in Darwin Way to R4.925 million in Newton Drive.
What property costs in Diep River
Diep River, yet another sought-after neighbour of Plumstead, now has an average selling price of just short of R1.5 million, up from R1.1 million four years ago. That it offers excellent value is clearly demonstrated by the average price and activity in the suburb.
Recorded sales for the suburb include smaller semi-detached houses that have sold for upwards of just R1.175 million (Rambler Road) to R1.53 million and R1.6 million, both in Hamilton Road. Freehold houses, meanwhile, have reached prices of R2.8 million in Avon Road (three bedrooms) and R4.6 million in Rambler Road (six bedrooms), the latter being the highest price achieved so far for this year according to the data from Propstats.
Thornton says they are finding the market on this side of the mountain still quite active. He says conditions are still quite favourable for sellers, and good quality stock is in short supply. There is still plenty of demand, but buyers are now looking for value and resisting high asking prices.
Southern Suburbs lifestyle
The desirable lifestyle offered by the Southern Suburbs combined with the excellent value on offer and access to top schools are a powerful combination that drives a strong appetite to live and invest in the area, say the agents.
Young people, especially young families, are drawn to the areas for their good value and access to good schools, the latter adding value to property in the areas.
Older houses, especially in Plumstead, are being snapped up for their location and value on offer, and then upgraded and renovated to suite the buyer’s needs. The area is especially popular for its solidly built old homes that are often renovated to make use of the large dimensions and high ceilings of old to good effect.
Even top-end homes still offer exceptional value, often with three or more bedrooms such as a five bedroom home with a nice-sized garden and swimming pool, located practically on the border of Constantia that is up for grabs at just R3.95 million.
This is simply unbeatable value in the Southern Suburbs and a clear demonstration of just why the area is now so popular and values are rising accordingly.
