Demand for homes in rondebosch pushing prices up

03 June 2013

 Knight Frank Anne Porter estate agent, Zanny Muller, reported last week that in the last four months certain categories of homes are seeing increased interest and sales, particularly in the area in which they work in Rondebosch, where they have sold 18 homes close to R45 million in value since the beginning of this year.

In addition to this, she said, Knight Frank Anne Porter has increased its market share in this area to over 20%.
The demand for homes can be attributed, she said, to the ever-increasing need to be in the catchment area for the excellent schools here. This list includes Rondebosch Boys' Schools, Bishops, Rustenberg Girls' School, Westerford and St Georges Grammar, Oakhurst, Micklefield, Forres and St Josephs.
The homes sold over the last few months have varied in price from R1,6 million to R7 million, she said, and the people who have bought and who are looking are predominantly from the Constantia area and some are South Africans who have been living overseas who are now returning to Cape Town.
“Many who move from Constantia to Rondebosch say it is mostly because of the traffic jams in peak hours that prompts the move to stay within walking or cycling distance of the school their children attend. The other factor is that the Rondebosch schools have reduced their catchment area because they have a limited number of openings for students each year. They are, at present, receiving 750 applications for 100 positions,” said Muller.
The traditional family homes of Rondebosch are often being bought and completely renovated to suit the new family’s needs, she said.
Asked to give an example, Muller mentioned a four bedroom Victorian home which was completely renovated, close to Rondebosch Boys, which was sold recently at a price of R5 250 000 after listing it at R5 550 000 which was sold within a few days of it being put on the market.
Another, next door to the above, was sold for R7 million, without ever being formally put on the market. This home, however, is in need of renovation but it does have ample accommodation for a big family, she said. (It has five bedrooms and four bathrooms.)
“Many say that the one thing to be careful of is overcapitalising in a home,” she said, “but in Rondebosch it seems this principle doesn’t apply. There is high demand for all of the types of homes we have had on our books and some have bought at what seems the top end and then still spending vast sums of money on revamping the property.”
Figures from PropStats, the Institute of Estate Agents, Western Cape’s, property data service, show that year on year prices have increased from an average of R3 163 565 to R3 438 000, with the highest price listed at R9 750 000 (only on the market for seven days).
The average difference between asking and selling prices in Rondebosch in 2012 was 10,1% whereas this year it is at 7% at present, said Muller.
Asked to give examples of some of the properties on their books right now, Muller mentioned an unusual-for-this-area Bauhaus design, which has four bedrooms and two bathrooms, and is priced at R5 000 000 and a traditional home with five bedrooms and two bathrooms which is being marketed at a price of R5 250 000.
“I see the homes we have on our books selling fairly quickly. Ranging in price from R1,8 million to R7,2 million, there is something here to suit just about any family’s needs and budget,” she said.
For further information contact Zanny Muller on 072 805 4669 or Jeanne Cowan on 083 443 8108.