In the area 1 – Stellenbosch

Property owners in the Western Cape town of Stellenbosch should be as pleased as punch with the way local prices are holding up in contrast with tumbling values elsewhere in the country.

So says Elmarie van Huyssteen, principal of the local Chas Everitt International franchise who notes that a shortage of property in the town that has persisted since the boom years is helping to prop up prices. “And most owners and investors here can afford to sit out the property storm, so there has been no panic selling and no sudden rush of auctions or foreclosures.

“In fact, although we constantly receive enquiries from buyers looking for ‘bargain’ homes in Stellenbosch, there really aren’t any to be had.”

An affluent town, Stellenbosch offers full title homes ranging in price from around R1m to R12m. The majority of activity currently is occurring in the R3m to R4m bracket, and many sales are being conducted on a cash basis, she says.

Situated in the heart of the Cape Winelands, the town is picturesque and its residents enjoy a sophisticated lifestyle complete with a variety of nearby attractions and excellent restaurants.

The University of Stellenbosch also creates a steady influx of students that underpins the local rental market – and buy-to-let investor interest. Accommodation types for students range from communal houses to upmarket bachelor flats with rentals ranging from R2000pm to R3000pm on average.

Meanwhile, says Van Huyssteen, a sizeable retiree contingent has also gravitated to the town. A third retirement village is currently being constructed to cater to this demand, with prices for the accommodation on offer ranging from R1,8m to R2,5m.

Outside of this project, however, there is very little new development going on, and that also bodes well for a continued strong showing by existing property, as long as demand holds up or perhaps even increases as interest rates fall further,” she says.

Article by: www.chaseveritt.com