THINKING OF BUYING? CONSIDER THE SOMERSET WEST AREA
Category Property News
Many regions of the Western Cape are experiencing a "buyers’ market right now and Somerset West is no exception. There is a large selection of homes on the market, whether a buyer is looking for homes in estates or sectional title complexes, to freehold property. This market has possibly also been advanced by the many developments that have recently come on stream, say Werner Klein and Jeremy Maycock, the SAProperty.com agents in this area.
With the variety of properties on the market at present, those looking to buy now will stand a high chance of finding exactly what they want in Somerset West – whether average or upper bracket homes.
In addition to Somerset West’s ideal location – not far away from airport and Cape Town and close to the beautiful beaches of Strand at False Bay and right at the "gates of the Winelands" – it also offers many higher-priced properties on the slopes of the Helderberg, ideal for guest house or bed & breakfast businesses as these have breath-taking views of the entire False Bay (from the Cape to Hangklip).
Areas such as Boskloof or Spanish Farm undoubtedly belong to the most expensive locations in SA, says Klein. House prices of over R25 million are quite common here. Other attractions in this area are the world famous wine farms such as Vergelegen, Lourensford or Waterkloof, as well as the Helderberg Nature Reserve and, last but not least, the Erinvale golf course (one of the best courses in SA).
A recent Lightstone report corroborates what Klein is saying regarding average property prices though, and lists the average home in estates’ house price at R3 283 000, with the average sectional title apartment price being R1 453 000. The freehold home average price is slightly lower than that of a home in an estate, at R2 959 000.
In the majority of cases, where the property is in good condition and well-priced, there has been no problem in selling homes under R3 million (for 3 bedrooms and two bathrooms) or apartments up to R1.5 million (two bedrooms), as properties such as these are in demand and do not stay on the market for long, says Maycock.
There is, however, the age-old problem of sellers’ expectations regarding the prices of their properties. Many aim too high, which makes a quick sale difficult. Although the median value of freehold property has increased steadily over the last ten years, with the median price in 2017 listed at R2 600 000, almost doubling since 2007, this does not mean that the growth will continue at the same pace, and sellers need to bear this in mind when pricing their home for sale, says Klein.
There are four main trends SAProperty.com agents are seeing in the property market in the Somerset West area, some of which are typical of other areas but it is interesting to note that there is an additional phenomenon here, that of emigration: many foreign owners (“swallows”) bought their homes in the 90s and now for many reasons - age, long flights, no interest of the children, etc. – are choosing to sell up and go back to their country of origin. There is another factor, too, which is a serious one, and could affect property in Cape Town for a good few years to come, says Klein, and that is the water crisis.
The usual reasons for selling or buying would be: downscaling with life stage (retirement); change in family structure; relocation within SA (families from the north with children are looking especially in Somerset West because of good and extensive offer of schools); and/or upgrading (when the first-time buyers are moving into a bigger home). These patterns will always be prevalent in many areas, but buyers have a particularly strong position now, and it would be a wise move to seriously consider this area when looking for a home, says Maycock.
For further information contact Werner Klein on 079 567 10 85 or Jeremy Maycock on 083 779 1972.
Author: SAPROPERTY.COM
