Rondebosch demand and price update

Posted On Wednesday, 20 April 2016 12:11 Published by
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When Zanny Muller, one of the Knight Frank agents specialising in property sales in the Rondebosch area (working with Jeanne Cowan), first started working in this suburb, she was surprised by the demand for property here, no matter how high the price seemed to be at the time.

Rondebosch_Property

This was around the year 2010, when the majority of buyers were looking for family homes priced in the R4,5 million bracket that were in close proximity to good schools and UCT.

Things are much the same now, says Muller, except that the prices are well up and so is the demand. Potential buyers here now look in the R7,5 to R8 million bracket (which is more or less the price for a family home on the “Golden Mile” on a plot of ±1 000m2).

The average price in 2010 in Rondebosch, according to CMA Info was R2 627 543, and the current average is now R 4 871 428. By comparison, the City of Cape Town average property price for 2015 was R 1 765 381. It is interesting to note that, while there were dips in the average growth per year in 2010 and again in 2012, the sales figures show steady and well above average year on year increases in values in Rondebosch for 2011 (15,02%), 2013 (16,26%), and 2015 (13,28%).  

Buyers don’t mind spending higher sums of money in Rondebosch, says Muller, and popularity now far exceeds that of many other previously well-known southern suburbs. In previous years, many strove to live in Constantia on large properties and commute to schools or university, but the trend now seems to be for families to want to live on smaller grounds and literally within minutes of their destination. Many also do not seem to be overly concerned about whether a home needs renovation to make their perfect home, she says, as it is quite difficult to overcapitalise here.

There have recently been many buyers from Constantia, Atlantic Seaboard and those relocating from Johannesburg (who are moving to the Cape in vast numbers). Those who have moved from Constantia or the Atlantic Seaboard have done so predominantly because their children have reached school going age and need to be closer to the schools, as well as parents wanting to minimise having to drive in peak traffic for hours each day.

There is a spread of property values in Rondebosch, the low range average for 2015 was R 2 360 814, the middle range R3 967 778 and the high range home average R15 300 000. PropStats (the Institute of Estate Agents Western Cape property data service) figures indicate that the current average sales price is R7 168 600 with homes selling at a 5% difference between the asking and selling price.

A neo-Tudor home with lead pane windows and traditional trim that Muller and Cowan are currently marketing is sure to sell quickly, they say, mainly because of it being in the school catchment area. This is a four bedroom home with the main bedroom en suite and family bathroom upstairs. There is a downstairs guest suite with its own en suite bathroom and staff accommodation. In addition, it has an extra large garage and off street parking.

All the entertainment areas are north-west facing and open onto a large entertainment patio in a well maintained garden. The home is approximately 330m2 on a 991m2 plot and is priced at R7,8 million.

“This solidly built traditional home will sell quickly,” says Cowan, “as many buyers are fast realising what a good investment a Rondebosch home is.”

Last modified on Wednesday, 20 April 2016 12:37
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