Claremont residential units increasingly in demand
"Whichever data bank you consult," said Birkett, "it will become clear that since 2011 there has been a continuous rise in Claremont property values, both for sectional title units and for freehold units. In four years freehold units have risen from an average price of R1,995,000 to a current average of around R3,400,000, while sectional title units have risen from an average of just over R1 million to a current price of around R1,5 million. Property value rises in many of the high demand areas of South Africa have, as we all know, been phenomenal in the last three years, but very few, I suspect, have seen quite so steep a rise - and we do not see this ending in the near future."
Birkett and de Villiers, whose franchise now operates from 100 square metre offices on the ground floor of The Beaumont in Brooke Street, a recently completed Rawson Developers' apartment development, said that his team is currently achieving 14 sales per month (freehold and sectional title units) and he foresees the total figure for 2015 being 42% up on that of 2014.
"Almost frenetic" activity
November, December, January and February, said Birkett, saw "almost frenetic" activity on his rental franchise's side, with a total of 180 new leases signed and with the franchise's managed properties portfolio having now increased to 234 units in all.
The rises in the rental prices asked and achieved, said Birkett, have also been impressive - particularly in Claremont's neighbour, Rondebosch.
"A typical two bedroom in The Rondebosch, which in 2013 would probably have been able to achieve a rent of R9,500 per month, is now renting at up to R13,500 per month. Even in such lower profile developments as River Song and River's Edge, also in Rondebosch, the average rise in rentals year-on-year is now ± 28%."
Claremont's popularity, said Birkett, reflects the worldwide trend towards urban living and the growing numbers of young people now tackling university and technical college education.
"Today's ambitious, upwardly mobile future manager," said Birkett, "refuses to waste time in congested traffic queues. He will, therefore, ensure that he lives within 35 minutes' travel time of the CBD - or wherever his work place is - and who will be prepared to give up such luxuries as a garden and leafy surroundings provided that he can make daily use of urban facilities like gyms and coffee shops to meet his friends and business colleagues."
Similarly, said Birkett, today's tertiary education student will insist on being close to university and probably close to a public transport route and, unlike some of his predecessors, he will also demand clean, neat living and working space, even if this is very compact by traditional 20th century standards.
The popularity of Claremont and its neighbouring suburbs, said Birkett, also reflects the burning ambition in many South African parents today to have their children well educated at the better schools.
"With 12 of the best primary and secondary schools in South Africa all in or close to Claremont, this area, I believe, takes first place in the country as an educational hub," said Birkett, "and I might add that the people with which we deal, coming mainly from KZN and Gauteng, are wonderful tenants and buyers that make quick decisions about property."
