Emerging middle class will boost prices in traditional Cape suburbs, says Steward

Estate agents are frequently asked to tip investors on the prospects of areas – but in nine cases out of ten the answers to their questions are there for all to research and understand, says Lanice Steward, MD of Anne Porter Knight Frank, the Cape Peninsula estate agency that has grown exponentially in the last 18 months.

“Anyone buying for investment purposes in the Cape Peninsula right now will be onto a sound investment no matter which suburb he chooses,” said Steward. “The reason is clear: with a mountain and a nature reserve taking up 65% of the available land, property in the traditional Cape suburbs will increasingly be in short supply – and it is in these traditional suburbs that the emerging middle class aspire to live.”

This does not mean, said Steward, that Cape Flats suburbs like Grassy Park, Mitchells Plain and Ottery will not gain in value - she predicts they will – but areas like Lower Wynberg, Rondebosch East, Diep River, Retreat, Goodwood and Sea Point, which are still low priced are, she believes, set to take off.

At the other end of the scale, said Steward, the V & A Waterfront continues to appreciate in value faster and more consistently than any other Cape precinct.

“Even in Monte Carlo a price of R10,5 million for a one bedroom apartment might be considered a little high – but the V & A prices show no sign of easing off.”

The best long term prospect, and the one she would tip to any person looking for a lifestyle as well as a sound investment, said Steward, is Simons Town.

“With commuting problems hitting the outlying areas, the convenience of a comfortable 53 minute train ride to the city is increasingly appreciated. Add to that a charming Southampton -type main street, good restaurants, a flourishing yacht club, a challenging golf course (currently in near-perfect condition), a lively cultural life and wonderful mountain walks and minimal crime, and it is quite clear that a decade from now Simons Town will be the place to live.”

This fact, said Steward, is already recognised by buyers who can expect to pay anything from R2,5 to R4 million for a standard three bedroom house but who are still able to find bachelor pads below R1 million while at the upper end of the price range there are many homes priced in the R10 to R20 million bracket.

Article by: www.anneporter.co.za