Bargain property in Cape Towns Northern Suburbs

While the national average house price now tops R1 million, according to a recent FNB Property Barometer, younger buyers, the so-called Millennials, aged under 35 years, who are often first-time home buyers, are still bagging plenty of bargains under this price level in a number of neighbourhoods across Cape Town’s Northern Suburbs.

This five bedroom house in Kraaifonteinoffers a TV room, braai area and an alarm system. It is priced at R950 000 - click here to view.

This is according to Seeff’s branches in Kuils River, Kraaifontein, Brackenfell, Bothasig and Goodwood, who say first time buyers have headed to the suburbs in greater numbers over the last year. The latest Lightstone data shows that this has been a good boost to both sales volumes and prices.

Pierre Germishuys, Seeff’s licensee for Kuils River, says although a relatively small and outer-lying suburb, the area has seen the best sales year ever. This on the back of increased buying by Millennials, generally first-timers.

Sales for the suburb for the last year amounted to about 35 units, sold to the combined value of just under R28.5 million; 50% higher in volume terms and 30% more in value compared to the preceding year.

Although most of the sales were below the R1.2 million price mark, the average price is up by about 23% from around R955 000 in 2013, and now stands at about R1.177 million.

Germishuys says regardless of the price increase, buyers are still finding excellent value in the suburb, with two bedroom apartments selling for around R400 000, two bedroom houses for around R650 000, and upwards of R800 000 for three bedrooms.

This home in Brackenfell has two bedrooms and an open-plan living area. It is on the market for R865 000 - click here to view.

The suburb’s close proximity to Stellenbosch is an attraction for those who work in the winelands, and even in the Helderberg. Good rail, bus and taxi services provide access to other business and industrial nodes. The R300 and N1 motorways are also easily accessible.

Other attractions include a primary and high school, as well as the Zevenwacht Mall and a golf club.

Germishuys says another popular neighbourhood for Millennials, especially first-time buyers, is Kraaifontein.

It straddles the N1, and while it is also one of the outer-lying suburbs, it boasts good transport facilities, including rail, bus and taxi for an easy commute to commercial nodes, and even into the CBD.

Almost all of the buyers over the last year have been in the Millennial demographic, with the majority being first-timers. The increase in activity by this buyer demographic has boosted the average price for the suburb to around R1 million, 18% more than the prior year’s average of R850 000, says Germishuys.

Kraaifontein, though, remains one of the most affordable areas, he says. For example, freehold houses still sell for upwards of R600 000 for two bedrooms, and from about R750 000 for three bedrooms. Two bedroom flats sell for as little as R350 000 to R400 000.

This three bedroom house in Ruyterwacht, Goodwood is priced at R895 000 - click here to view.

Germishuys says Brackenfell, too, has seen its sales activity boosted considerably by Millennial buyers, who comprised about 50% of recent buying activity. The increased activity has seen the suburb’s average price increase by almost 40% since 2013, when it was around R884 000, to just over R1.2 million.

Here, the affordability is well illustrated by the fact that the bulk of sales still fall under the R1.2 million price mark. Apartments in the suburb have this year sold at an average price of under R450 000, again demonstrating the affordability and value on offer, says Germishuys.

Freehold houses are still selling in the R900 000 to R1.2 million price range.

Brackenfell is popular for its excellent infrastructure and plentiful schools and facilities, including quick access to a number of large shopping malls, such as the N1 City and TygervalleyMalls, and shopping precincts such as Voortrekker Road, which runs from town right through the area.

It also boasts excellent access to the N1 and a number of major arterials that serve the area and provides access to major commercial nodes for work purposes.

Johann Groenewald, Seeff’s licensee for the area that stretches from Goodwood along the N7 toBurgundy Estate, says closer to the city, they are seeing younger, often first-time buyers, boosting demand and average prices.

This property in Kraaifontein has two bedrooms, an open-plan kitchen and TV room. It is on sale for R780 000 - click here to view.

One such suburb is Bothasig, which lies next to the N7 near Milnerton and Montague Gardens.

Here, Millennials comprise over 40% of recent buyers, and although the 2013 to 2014 sales volumes for the suburb has remained fairly flat, largely due to a shortage of stock, the average freehold house price is up to around R1.1 million from R1 million last year.

Groenewald says most of the sales still fall under the R1.2 million price mark, and many homes still sell within the R900 000 to R1 million price range.

“Closer to the CBD area, we find Goodwood Estate, yet another suburb where younger, generally first-time home buyers comprise over 40% of recent activity. This boosted the market to just over 100 transactions worth almost R96 million for the last year, some of the best activity in years. This was also up on the previous year by about 10%,” he says.

“While one of the most affordable and central areas, Goodwood also boasts excellent facilities, including schools; a mix that is very attractive for younger buyers.”

Groenewald says while Goodwood has seen its average prices and values strengthen, it remains one of the more affordable areas. For example, apartments still sell for upwards of R450 000 for a two bedroom unit, while houses start from about R900 000 for a small three bedroom home.

“In almost every one of the more affordable areas of the Northern Suburbs, we are experiencing a shortage of good stock, yet favourable selling conditions,” says Groenewald.

“The excellent price growth that we have seen over the last year should be a good incentive for those looking to sell, especially as we expect the demand to pick up into the approaching summer months.”