Author: Adrian Goslett
Regional Director and CEO of RE/MAX
29 March 2021
What R1.5m buys you in Western Cape
Selecting a location that suits a buyers’ needs is a crucial component of the house hunting journey. Considering that desirable locations come at a cost, buyers will need to decide whether the location of the home will trump other factors, such as the size of the home and the features it offers.
When considering where to purchase, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett mentions that the Western Cape has a wide array of options.
In 2020, more than 53 000 properties were sold in the Western Cape according to Property24 Trends Data, with the average sale price for the area being R1.25 million. The average sale price per erf for 2020 in the Western Cape is R1.32 million, while Section Scheme Units average sale price for the same period is R1.1 million.
The trend over the past five years with an average of over 85 000 properties sold per year (2015 to 2019), indicates a marked drop in registered sales for 2020. Hard lockdown took effect within the second quarter of the year, impacting the South African economy, and specifically the property industry’s ability to do business. As a result, pent-up demand due to the Covid-19 pandemic and restrictive lockdown measures will continue to impact trends, with average sales per year only expected to recover towards the end of 2021.
The latest property listings on Property24 show that two- and three bedroom homes are most widely available. Some 36% of buyers interested in making Western Cape their home are below the age of 49-years. While sellers in the area fall within the 50-64 years (31%) and 65-year and older (28%) age group.
“As within any major metropole, suburbs closer to the CBD tend to offer less square meterage for your money than suburbs further removed from the city centre,” explains Goslett.
For example, buyers will struggle to find anything other than one bedroom studio apartments for under R1.5 million if they are searching in areas such as Sea Point and Bantry Bay. Currently, Hadi Ertinger, sales associate at RE/MAX Living, has a one bedroom Hotel Suite listed for R1.15 million in Bantry Bay. Other than these rare gems, properties in these areas start from around R2 million for one- or two-bedroom apartments.
For those willing to venture further, the Northern Suburbs provide a variety of excellent schools and there are many major shopping centres close by.
“Though slightly removed from the city, it is easy to jump onto the highway to head in any direction. These suburbs are a mere 20-minute drive to the beach and the City of Cape Town (during off-peak traffic hours) and are also close to the airport. Many commercial nodes, offices and companies have made the Northern Suburbs the home of their operations, which is attracting more working professionals. Although these are mainly family areas, these suburbs also suit retirees,” says Caron Leslie, Broker/Owner of RE/MAX Property Associates.
She explains that in Protea Heights, property prices start at around R1.2 million to R1.5 million. Within this price bracket, buyers can find two-bedroom apartments and townhouses with a floor size of around 75sqm. In Durbanville, buyers can find two- or even three-bedroom homes with a floor size totalling around 65sqm within the same price bracket.
In Brackenfell buyers will mostly find apartments with a few freestanding properties. With prices ranging from R 1.2 million to R 1.3 million in this area, buyers can find two- to three-bedroom homes with a floor size from 60sqm to 100sqm.
For those hoping to move slightly closer to the CBD, Woodstock offers some good investment opportunities for those on a limited budget. “If you had a budget of R1.5 million, we would introduce you to trendy Woodstock. This up-and-coming suburb has beautiful residential properties, some of the top restaurants and cafes, the Old Biscuit Mill, and an amazing mixture of people. It’s a short distance from the famous Groote Schuur Hospital and medical university, as well as UCT. Only 10-minutes from town and easy access to all major roads, and the airport is just a mere 15-minute drive away,” explains John and Veronica Rafferty of RE/MAX Living.
The pair currently has a one-bedroom, one-bathroom listing on the market for R1.295 million. The property is 53 square metres with a small balcony, one undercover parking bay, 24-hour security access to a pool and braai area, plus a gym. Rates are R650 per month and levies are R1 450, making it the perfect starter apartment for young professionals.
Milnerton also offers affordable options to buyers who want to be closer to the CBD. Carol Whitehead of RE/MAX Living explains that a Studio Apartment with views overlooking the sea, lagoon, and Table Mountain will cost under R1.5 million.
“While these long-established buildings don’t offer the same amenities of new developments such as indoor gyms, or laundromats, their excellent location makes them highly sought-after,” she says.
Wherever buyers choose to invest, Goslett offers a reminder that real estate is a long-term investment. “To ensure that buyers make good returns on their investment, I would recommend that they purchase a home in a location that will suit their lifestyle for at least the next five to ten years,” he says.
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