A serious shortage of residential stock is now being experienced by most estate agents in the City Bowl area, says Lynne Wylde of Anne Porter Knight Frank.
“A great deal has been written and said about the unwillingness of former commuters to continue to waste time in traffic jams travelling in and out of Cape Town. Nevertheless, many who have not experienced this problem simply do not realise how time consuming and frustrating commuting has become for all except the fortunate few who can arrive at work after 9am or are energetic enough to leave home (in places like Table view) before 6:30am.
“It is this, above all other factors, that has led to the new popularity of City Bowl living – and the stock shortages,” says Wylde.
“The rise in the area’s status means it is far less affected by the downturn in prices from which SA is only now emerging. Not only were our prices far less affected by the recession, they are now also starting to rise at a faster rate than most,” says Wylde.
“Also keeping prices steady is the fact that this precinct has experienced far fewer forced sales and repossessions than most.
Prices range from R750 000 to R2 million for apartments and from R2.5 million to R20 million for freestanding homes.
“There are now many well-designed homes in Higgovale and Oranjezicht, but most of our sales are in the R3.5 to R4 million bracket which are some of the most sensible investments Cape Town property watchers can make. They have the potential for capital growth of 8 to 10% a year from 2010 onwards.”
Lanice Steward, MD of Anne Porter Knight Frank, says the rise in demand for central city residential premises in Cape Town follows a similar trend experienced in every city in the world but most notably in London, Paris, Brussels, New York, Los Angeles and San Francisco.
“As here, but on a far higher scale, CBD residences in those cities withstood the financial crash better than suburban areas and are once again regarded as prime investments. Our associates, Knight Frank, have reported an upturn in major London CBD apartments for three months now.”
