Cape Town City Bowl now short of residential stock
serious shortage of residential stock is now being experienced by most estate
agents in the City Bowl area, says Lynne Wylde of Anne Porter Knight Frank's
City Bowl office.
"A great deal," said Wylde, "has been written and said about the unwillingness of former commuters to continue to waste time in traffic jams travelling in and out of Cape Town. Nevertheless many who have not experienced this problem simply do not realise how time consuming and frustrating commuting has become for all except the fortunate few who can arrive at work after 9am or are energetic enough to leave home (in places like Tableview) before 6:30am.
"It is this, above all other factors, that has led to the new popularity of City Bowl living - and the stock shortages."
The rise in the area's status, added Wylde, has enabled it to be far less affected by the downturn in prices from which SA is only now emerging.
"Not only were our prices far less hit by the recession, they are now also starting to rise at a faster rate than most," said Wylde.
Also keeping prices steady, said Wylde, is the fact that this precinct has seen far less forced sales and repossessions than most.
Nevertheless, she said, prices are still "reasonable" here - from a bottom rung of R750 000 to R2 million for apartments and from R2,5 million to R20 million for homes on their own plot.
"There are now many fantastic, avant garde beautifully designed homes in Higgovale and Oranjezicht, but the good news is that the majority of our sales are in the R3,5 to R4 million bracket and these homes, I believe, are some of the most sensible investments any property watcher is Cape Town can make. They have the potential to achieve a capital growth in excess of 8 to 10% per annum from 2010 onwards."
Lanice Steward, MD of Anne Porter Knight Frank, said that the rise in demand for central city residential premises in Cape Town follows a similar trend experienced in every city in the world but most notably in London, Paris, Brussels, New York, Los Angeles and San Francisco.
"As here, but on a far higher scale, CBD residences withstood the
financial crash better than suburban areas and are once again regarded
as prime investments. Our associates, Knight Frank, have reported an upturn
in major London CBD apartments for three months now."
Article by: www.anneporter.co.za