The higher the number of transactions, the higher the possibility that prices will climb to match the demand. Owing to the escalation of prices in suburbs such as the Atlantic Seaboard and CBD, it seems the more affordable and newly developing suburbs somewhat further removed from the centre of town are growing in popularity in the Western Cape.
According to Lightstone data, sales in Table View peaked in 2015 and have been gradually slowing in consequent years. However, prices in this suburb have shown steady growth over the same period, climbing from R980,000 for a sectional title; R1,400,000 for a freehold property; and R528,000 for vacant land in 2015 to R1,350,000 for a sectional title and R1,800,000 for both a freehold property and vacant land in 2018. This growth can be attributed to the ongoing development in the area, from the addition of the MyCiti bus route and the new Table Bay Mall, as well as the multitude of sectional title developments that have popped up over the years, all of which has seen demand grow in this suburb – a trend that I predict will continue well into 2019 and beyond.
Similarly, Somerset West has seen a comparable growth curve, peaking in number of registrations in 2014 and showing a gradual decline in number of sales in consequent years. Prices have also shown steady growth over the years, climbing from R915,000 for a sectional title; R1,695,000 for a freehold property; and R550,000 for vacant land in 2014 to R1,300,000 for a sectional title; R2,600,000 for a freehold property; and R1,282,000 for vacant land in 2018. This area has also seen lots of positive development over the years which explains its increased and steadily growing popularity.
The number of transactions in Mitchells Plain has seen a slight surge in 2017 and 2018, jumping to an average of 2,223 registrations over this period from an average of 1,850 over the 2014-2015 period. However, prices have not mirrored this spike, dropping to an average of R217,500 for a freehold property over the 2017-2018 period from an average of R291,667 for a freehold property over the 2014-2015 period.
Both Gardens and Claremont are established, high-demand suburbs that offer secure investment value for buyers in 2019. Though the number of transactions in Gardens has been on the decline since 2015, prices have shown steady year-on-year growth over this period, climbing to a median price of R5,975,000 for a freehold property in 2018 up from R4,552,000 in 2015. Similarly, no significant hikes or drops have occurred in the number of transactions in Claremont, but house prices have also shown steady year-on-year growth, climbing to a median price of R3,200,000 for a freehold property in 2018 up from R2,500,000 in 2015.
Wherever you choose to invest, speak to a professional real estate advisor who will be able to provide you with up-to-date information regarding the suburb in question. Purchasing property is a long-term investment decision that ought not be taken lightly. It is always better to involve an experienced professional who can guide you through the complicated realities of these purchases.
