The interest rate drops and housing bonds of up to 100%-plus have boosted sales activity in the Cape metro’s first-time buyer sector to R1.5 million according to Seeff’s agents.
Well over R3.3 billion of Cape Town’s transactions over the last year falls below this price band, split 60/40 between sectional title and freehold. 20% to 30% of this sector comprises of first-time buyers, generally in the 25 to 35-year age bracket.
They tend to buy in the R450 000 to R1.2 million range for apartments and upwards of R800 000 to R1.5m for houses. Upwardly mobile professionals and families will spend upwards of R1.5m to R2.5m on average.
Seeff looks at some of the popular first-time buyer areas in the Cape metro.
The lifestyle, excellent schools and access to amenities are among the attractions. Young professionals usually cluster around the high-density apartment areas such as the CDB, Sea Point and Kenilworth and Claremont and surrounds for the access to amenities including coffee shops, bars, gyms and the like. Families tend to prefer suburbs which offer family-friendly facilities.
Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl says that there is still some accessibility for first-time buyers with apartments upwards of R1.5m in the CBD, Green Point, Sea Point and Three Anchor Bay.
Young professionals tend to be the largest demographic of first-time buyers and prefer the convenience of apartment living and easy access to coffee shops, bars, gyms, the Waterfront and Atlantic Seaboard Beaches.
In the Southern Suburbs, apartments are a popular choice for professionals, especially in suburbs such as Kenilworth and Claremont while Wynberg, Plumstead and Diep River are popular for family buyers under R2.5m.
Pinelands and Thornton also offer excellent value under R3m according to Julie Meyer, an agent with Seeff who says centrality and excellent schools are key motivators for buyers in the area.
Other central areas which attract first-time buyers include Goodwood where Johann Groenewald, Seeff Licensee says apartments still sell from R550 000 and houses from R1.2m in Ruyterwacht and from R1.6m in Tygerdal and Richmond.
Parow, renowned for its schools, also still offers affordable apartments from R700 000 and houses from R800 000, says Johan Jacobs, Seeff Licensee. Bothasig is popular for houses from R1.5m as is Burgundy Estate for its leisure facilities and choice of modern apartments, townhouses and houses.
Some of the best value for first-time buyers is in the Brackenfell, Kuils River and Kraaifontein areas but requires buyers to commute. Albert Weyers, a Seeff agent says popular areas include Protea Village (from just R1.15m), Blue Downs (from R550 000) and Jagtershof (from R1.2m).
Anéne Botha, a sectional title agent with Seeff Welgedacht and Durbanville says that parents now often assist younger buyers to get a foot on the property ladder. Sectional title property below R1m is in high demand, especially in Loevenstein, O'Kennedyville and at The Tyger Waterfront.
For beach lovers and surfers, Parklands and Tableview remain an excellent option for the value on offer, says Clinton Martle, Seeff Blouberg Licensee. Apartments still sell from R750 000 and small townhouses for starter families from R1.5m. The MyCiti bus and taxi transport, amenities, schools and the beaches are all drawcards for the area.
In the Stellenbosch area, Welgevonden Estate remains a popular choice for entry level buyers according to Droeks Malan, a Seeff agent. It attracts a mix of young professionals and families, but stock shortages in the lower price bands are often a challenge. Prices range from R1.7m. Devon Park offers a lower entry price from R1.5m.
Photograph enclosed: Apartments in suburbs such as Sea Point and Three Anchor Bay on the Atlantic Seaboard still offers excellent value for first-time buyers
Author: Gina Meintjes, 30 March 2020, Hotspots