Milnerton poised for property price surge

Milnerton, on the West Coast just 11km north of Cape Towns’ CBD, boasts beaches, lagoons, nature reserves, golf courses, schools, shopping centres and some of the best seafood on the coastline. Its properties tend towards large, old-style homes with four bedrooms, two bathrooms, staff quarters, swimming pools and double garages, and their prices start at around R2.8 million.

“Milnerton is definitely one of those neighbourhoods that’s flown under the radar,” says Dave Zieve, sales partner at the Rawson Property Group’s Milnerton franchise. “Prices have seen little upward or downward movement over the last two years, creating a pocket of exceptional value that is ripe for a resurgence in the near future.”

This relatively rare situation, Zieve says, offers some remarkable opportunities for astute investors and buyers looking for family homes with excellent long-term appreciation potential.

“A lot of the properties in the area have been in the same hands for the last 30 or 40 years,” he says. “As those owners move on or downscale to our popular Milnerton security communities, they’re leaving behind homes in relatively good condition, but in need of a modern touch. Young families are leaping at the chance to snap these up at bargain prices and are renovating a little bit at a time as finances allow. This enables them to create their dream homes at very affordable prices and enjoy the kind of space and lifestyle that has become impossible to find in other parts of Cape Town.”

Those looking for more modern, ready-to-move in properties in Milnerton, will head for secure neighbourhoods like Royal Ascot and Century City offering plenty of stylish homes and lock-up-and-go options. Proximity to the beach as well as the thriving Century City CBD makes these popular choices with young professionals as well as older buyers and families.

House flippers are also finding opportunities in Milnerton, doing minor renovations on serious bargains to sell for a profit. With prices currently static, however, Zieve warns that overcapitalisation is a real risk, and inexperienced bargain-hunters may find themselves spending more than they can recoup in the short term.

Of course, few property investments ever achieve their full potential in the short term. When it comes to a medium-term outlook, however, Zieve paints an exceptionally positive picture for Milnerton.

“We’ve already had an uptick in enquiries and viewing activity since the elections, and we’re expecting that momentum to keep building as we enter the spring/summer season,” he says. “With prices as exceptional as they are right now, particularly in comparison to similar neighbourhoods around Cape Town, it’s only a matter of time before high demand reignites appreciation.”

In the meantime, however, Zieve urges sellers not to pre-empt the market with overambitious pricing.

“It’s vital to price for the market conditions that you’re in, and not the market conditions that may be approaching,” he says. “At the moment, we’re selling accurately priced homes in as little as two to three weeks, but overpriced properties are lingering far longer than the average three months on the market. If you need to achieve a certain figure when you sell, it’s better to wait until the market can support that value. Overpriced listings almost invariably disappoint on final sale.”