In the area 2 - Stellenbosch

Stellenbosch student flats fill up for next year

Rental accommodation in Stellenbosch is being snapped up fast ahead of the next academic year.

All 200 units currently in rental portfolio of the local Aida office have already been let, says principal Renette Crous, “and by all accounts, units still available at other rental agencies are also going fast”.

She adds that the stock of units for sale is relatively small. “There is strong demand among buyers and investors, especially for units right on campus. Prices have risen steadily on the back of demand and units on campus now sell at between R22 000 and R26 000/sqm. This means a 30sqm bachelor flat sells for around R900 000.”

Stock is more readily available further away from the campus and prices flatten in tandem with distance. Crous says there is a wider choice in this category and prices range between R11 000 and R18 000/sqm.

“There is also a demand for commune space, and this translates into opportunities for financially able investors who have children attending the university. The local council has instituted strict regulations regarding student communes, one of which stipulates that a home may only be used as a commune if an owner’s child resides there.

“Furthermore, the council has demarcated certain areas where communes may operate, mainly close to campus.”

Prices of large homes suitable for use as communes are typically in the R11 000/sqm bracket. Crous mentions the example of a property currently on her books that qualifies in terms of municipal regulations that is on the market for R3,6m.

“The home can accommodate seven students. Typical rentals of R2000 per room would mean rental income of R14 000, while a bond on the property would be in the region of R50 000 a month. But while this would be rather steep for most parents, it would represent a solid investment since the student accommodation market in Stellenbosch is particularly robust.”

Article by: www.aida.co.za