Has Kyalami’s Property Market Bubble Popped?

Private Property South Africa

Property market activity has decreased significantly in the affluent suburb of Kyalami. That’s the news from local My Style Properties real estate agent and Beaulieu resident Simone Crookes who reckons the local property market is definitely experiencing something of a downturn. A number of factors are contributing to this scenario she says. General financial liquidity is down, the banks are tightening their belts once more and global economic jitters are causing genuine buyers to think twice before parting with their hard earned money.

“2010 was a particularly good year for us but this buoyancy has all but disappeared,” notes Crookes. “Apart from the general lack of activity, a few trends have manifested which reflect the times.

“The first is that residents who might previously have put their homes on the market are opting to stay put and renovate or add on to their existing properties instead.

“The second trend is that the in-laws and extended family of established Kyalami residents have taken to moving in with them in an effort to pool resources and saving money.”

But it’s not all bad news. Crookes says that sales are still occurring when properties are priced correctly. Properties in the area currently range in price from R2, 5 million to just over R10 million. The latest Lightstone report on the area cites the most activity as occurring within the R2, 5 million to R5 million bracket. The rental market is also reportedly robust with homes leasing for R15 000pm on average.

Kyalami has also received a commercial shot in the arm. A large portion of land bordering Helderfontein Estate was recently sold to a commercial entity which plans to develop the area into an upmarket, mixed use sports academy and light residential node. In addition to these factors, the inherent bucolic nature of the area still appeals greatly to a number of well-to-do buyers seeking an upmarket address says Crookes.

Kyalami is characterised, in the main, by one hectare smallholdings complete with large, luxurious family homes . Property styles vary from the old and refurbished to designer contemporary homes.

Given the equestrian orientation of the area, many properties feature stables and various ancillary equestrian facilities such as arenas, paddocks and staff accommodation. To say that Kyalami is horse orientated is something of an understatement. The suburb is home to one of the largest horse populations in the world and is riddled with outride paths and exercise tracks. A number of well maintained show grounds such as Kyalami Equestrian Park and Ascot also feature.

Despite its nature, Kyalami is anything but a far flung country node though. It lies within close proximity of a number of upmarket retail centres including Crowthorne Shopping Centre, Pineslopes, Carslwald Centre, Woodmead and Monte Casino. A number of quality private schools and medical facilities are also easily accessible.

“Kyalami residents enjoy the best of both worlds,” notes Crookes. “They live a country-orientated lifestyle but with all the perks of modern suburban living.”

Happily, Kyalami looks set to retain its character for many years to come thanks to the fact that the area’s spatial development plan prohibits any heavy density construction. To date, sectional title townhouses and the like have yet to make an appearance, which is just the way residents want to keep it concludes Crookes.

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