Buyers Snatching Up W Cape Estate Homes From R1.5m

The demand for property in the greater Cape Town area has continued to climb steadily over the past few years.

Kelderhof Country Village in Somerset West is a secure country village-style estate just 30 minutes from Cape Town. Homes here are priced from R1.415 million to R2.95 million - click here to view.

This is according to Steve Caradoc-Davies, Harcourts PlatinumPrincipal, who says in the Helderberg Mountains area, which comprises Somerset West, Gordon’s Bay and Strand, nearly one-third of their purchasers originate from Gauteng orKwaZulu-Natal.

He says demand from upcountry buyers has been especially strong for properties in gated estates. The result of this strong demand has been a very healthy increase in these property values.

For example, Kelderhof Country Village in Somerset West has seen escalation in property values in excess of 34% over the past two years. 

Property values in the Blue Crane and Silver Fox estates in Sir Lowrys Pass have experienced similar growth.

“All three developments cater for the market segment from R1.5 million to R3 million, which is where buyer demand is strongest,” says Caradoc-Davies.

Demand for property in the suburbs is also strong, but not at the same levels as the demand for properties in gated estates. In general, he says property values in Somerset West priced below R3 million have escalated between 10% and 12%, which is still a very healthy return on investment.

The Blue Crane and Silver Fox estates in Sir Lowry Pass in Somerset West offer homes priced from R1 604 700 to R1.955 million - click here to view.

“The reason why gated estate properties have escalated at rates close to three times the market average is purely because of increasing demand,” says Caradoc-Davies.

Many purchasers opt to purchase in gated estates where security levels are higher. Increasing crime, a problem experienced in most of South Africa, is the main driver of the move to estates - but it’s not the only reason for the move.

He says developers have seen that there is an opportunity to add more value by offering lifestyle benefits that attract buyers.

“We’ve seen how purchasers are drawn to offerings such as tennis courts, a gym, communal pools and a lifestyle function centre, thus adding tangible benefits that residents have exclusive access to that they otherwise may not have been able to afford - and all in a secure environment,” says Caradoc-Davies.

Indications are that demand for property in the Western Cape will continue to grow, and so will the returns experienced on property, but especially those located in secure estates.