Analysis of Cape Town’s City Bowl areas show that average property prices have increased by 11% to 17% over the past three to five years.
According to Seeff’s statistics division, growth rates in average house price for the different city bowl suburbs from 2005 to 2009 were: Zonnebloem – 15.5%; Bo Kaap – 14.5%; Vredehoek – 11.8%; Gardens – 10.8%; and Tamboerskloof and Oranjezicht both 9.5%.
The three-year average growth for the entire area was 11.8%. When looking at the picture over five years, it gets even rosier, with an average of 17%. Top of the ranks again is Zonnebloem (25.9%), followed by Bo Kaap (17.1%), Oranjezicht (16.3%), Gardens (15.5%), Vredehoek (14.1%) and Tamboerskloof (13.6%), says Seeff agent, Susan Litten.
“In the first quarter of 2010 there was quite a bit of movement at all price bands in the City Bowl, with 38 properties worth R165,902 million sold and registered. The average price for a house in the City Bowl area is now R4 365 842.
“For the individual price bands, the figures are: 14 sales between R500 000 to R2.5m, at an average price of R2 058 357. In the price band R2.5-10m there were 21 sales (55.26% of all the transactions), at an average price of R3 908 810 (highest priced sale R8.5m). At R10-R30m there were three sales at an average price of R18 333 333 (highest price of one unit R21 million).
“The three highest priced houses that were sold were two in Higgovale at R16m and R21m, and one in Oranjezicht at R18m. The most active area in the City Bowl was Oranjezicht with 12 transactions at R62,575 million. For the first quarter of 2010 average house prices were: Devils Peak - R 2,89 million; Gardens - R1,770 million; Higgovale - R18,5 million (top end) and R5,2 million (middle and lower); Oranjezicht - R4,1 million; Tamboerskloof - R3,1 million; and Vredehoek R2,43 million.”
Litten says as the traffic into the city gets worse, the appeal of areas that may have been overlooked previously increases.
“Bo Kaap has beautiful Victorian- and Edwardian-based architecture, cobbled streets, Signal Hill as a backdrop and the CBD a mere stroll away. The views of the city, Table Mountain and sea are often spectacular. Homes here are still more affordable than in other parts of the City Bowl, and buyers have included visitors from Europe, Durban and Johannesburg looking for a base in Cape Town. Now this profile is changing to first-time buyers, who recognise the value these properties offer.
“There are few homes in Zonnebloem, but the remaining Victorian cottages there have great character, with wooden floors and doors and harbour views. Zonnebloem is between the CBD and Woodstock, and clients are beginning to realise the value of a cottage so close the CBD. This area also appeals to first-time buyers, often moving from city apartments.”
Litten sold some of the highest-priced city bowl homes in the past 12 months: the highest price in the Bo Kaap at R 5,9m, in Devils Peak at R5.3m and in High Cape, a secure village in Vredehoek, at R 4,4m.
“The excellent security at High Cape along with the young age of the development, with modern architecture and stunning views, has great appeal to young buyers. The slope is north-west facing, so homes are always light and bright. I sold the unit in question to a young client who loved the views and the large spaces these modern homes offer.”
Litten is marketing a similar High Cape four-bedroom home at R5.95m, with three bathrooms, an open-plan living room, a double garage, and two patios with protected city and sea views.
Seeff’s other agents Michael Hauser, Anke Menelaou and Doris Ricketts, have compared city bowl sales for June 2009 against June 2010, and found that homes were listed for an average of 143 days last year and the difference between listed price and sales price was 15%. This year the average listing duration is down to 95 days with an average drop in price of 10%. For April/May 2009 compared to April/May 2010, listing duration was down from 125 days to 70 days.
Menelaou says: “Tamboerskloof is well known for the community involvement in a very successful neighbourhood watch and proximity to the Deutsche Internationale Schule Kapstadt. This makes it the first choice for German-speaking clients. The area is surrounded by Lions Head and Signal Hill, and the roads closest to Lions Head are as sheltered from the wind as in Higgovale.
“Oranjezicht is a leafy suburb with the most popular streets referred to as The Avenues, above the Molteno Reservoir. The views across the City Bowl and harbour are spectacular. Traditional Victorian and Edwardian homes remain popular with buyers, but more and more modern homes are starting to take the place of older houses that are being demolished. These areas are still less pricey than Camp Bay, Clifton and Fresnaye, so in the last two years there has been a lot of interest from buyers who would not previously have considered these areas. Nearby schools include St Cyprians Private School for girls, and Jan Van Riebeeck.
Ian Slot, MD of Seeff Atlantic Seaboard, V&A Waterfront, City Bowl and CBD, says the City Bowl is close to Cape Town’s CBD and the Atlantic Seaboard, with mountain views and rich architectural building styles and excellent schools nearby. It is understandably very popular. The demand for homes here also reflects in the return on investment, with the growth rate for the City Bowl for the past five years a solid 15% for an average house price of R4,365 million.”
