So, you’re looking for a nice suburban home in Cape Town, but find yourself in the middle-income segment, somewhere in the R20,000-R60,000/month range. Flat salary growth over the last year of around 4,9% on average according to the latest Statistics SA Quarterly Employment Bulletin have left many middle-income buyers concerned about property affordability.
This may well be further compounded by the growing affordability gap of Cape property compared to the rest of the country, but Seeff’s agents say that buyers need not despair. You can still find a good deal under R2m, you just need to know where to look.
What’s more, it is a good time to get into the market, say the agents. After a five-year growth spurt, price growth has slowed notably to at best around 4%-7% on average. A further upside of buying now, is that you can find many motivated sellers. The favourable buying conditions are further underscored by the flat interest rate and positive mortgage lending landscape.
Seeff highlights a few areas where you can find a decent home under R2 million:
Strand (False Bay) – R450,000 to R1,6m
With the Helderberg and Hottentots Holland Mountains as a backdrop and fronted by a 5-km white sandy beach, Strand offers a desirable coastal lifestyle combined with excellent facilities and good schools.
It offers excellent affordability for first time buyers and families. You can find an apartment from around R425,000 and can still buy on the beachfront from R1,5m, says Alten Vermaak, Seeff licensee. Houses range from R580,000 for two bedrooms and R675,000 for three bedrooms while you can find a nice family house from in the R1,35m-R2,4m range.
Parow (Central Suburbs) – R600,000 to R1,8m
Parow is a large residential area, offering centrality and excellent facilities, says Johan Jacobs, Seeff licensee. The affordability is outstanding, and the area attracts a lot of younger buyers with about 40% under 35-years.
Flats start at R400,000 to R600,000 for two bedrooms. A small house is around R950,000 to R1,8m for a nice sized family home with garages and a swimming pool.
Goodwood (Central Suburbs) – R650,000 to R1,8m
Goodwood is one of the most popular areas for affordability according to Johann Groenewald, Seeff licensee. It comprises of several suburbs and a bustling commercial centre with a wide range of services and facilities and excellent schools. You can find two-bed apartments from around R650,000 and three-bed apartments (although scarcer) from around R900,000. Townhouses start at R1.3m and a basic three-bedroom house from R1.450m.
Thornton (Southern Suburbs) – R700,000 to R1,7m
Thornton offers excellent centrality with close proximity to the northern and southern suburbs combined with good value and lots of potential according to Pauline Hareb, sales manager for Seeff Pinelands and Thornton. Buyers tend to come from surrounding suburbs like Rylands, Crawford, Athlone and Maitland, wanting to upgrade into the area.
Sectional title properties start at R700,000 and in the complexes at R1,1m. Full title houses often require some renovation, but you get a nice sized erf and lots of potential which makes these a good investment. Price range from R1,7m.
Parklands (Blouberg, Western Seaboard) – R700,000 to R1,7m
Close proximity to the Blouberg beaches, a quality lifestyle, excellent schools and modern, yet affordable properties are all reasons to invest in Parklands according to Luyanda Hoboshe, an intern agent from Seeff Blouberg. The area excellent facilities and good transport with easy access to main arterials, and bus, taxi and the MyCiti Bus services.
Parklands offers excellent value for first-time buyers and start-up families, he says. Modern two-bedroomed apartments start at R750,000. Houses with two to three bedrooms range from R1,3m while you can find a top end modern home with 3-4 bedrooms an entertainment area, double garage, swimming pool and lots of space for kids to play from R1.8m.
Brackenfell/Kuils River (Northern Suburbs) – R800,000 to R1,6m
Located in the far northern region of the city, with access to main arterials and excellent transport including train, taxi and bus services, these suburbs also offer easy access to Somerset West and Stellenbosch. There are excellent facilities and schools according to Lita Hartman, a Seeff agent.
Affordability makes the suburbs popular with younger buyers who comprise about 40% of all buying activity. In Brackenfell, you can buy a three-bedroomed house with two bathrooms and a double garage in a gated village for R1,68m. In Kuils River, you can find a two-bedroomed house with a garage for R800,000.
Sonstraal Heights, Durbanville (Northern Suburbs) – R925,000 to R1,8m
Beatie Kritzinger, an agent with Seeff Durbanville says that the suburb is ideal for middle-income earners. It offers a very suburban feel suited to first-time buyers and families, and she says you are close to good access roads, schools and all the attractions of Durbanville including the Wine Valley, Tygervalley Shopping Precinct and the Tygervalley Waterfront area.
The suburb offers predominantly sectional title security complexes and freehold townhouses in gated complexes, and about half of all buyers are under 35-years. Sectional title apartments are priced from R1,05m and freehold townhouses in gated complexes from around R1,4m.
Tijgerhof (Central Suburbs) – R1,2m to R1,8m
Situated directly across from Century City, Tijgerhof offers many of the same benefits as Century City, but without the price tag, says Adrian Louw, sales manager for Seeff. The suburb offers a mix of freestanding homes and apartments and has been increasingly popular with younger buyers who comprise over 40% of recent sales.
A two-bedroomed flat ranges from R1,2m, a small three-bedroomed house from R1,3m and a nice sized family house from R1,8m.