A good year for Constantia Valley property, more of the same expected

The economic climate notwithstanding, the 2015-year was a good one for the Constantia Valley property market - includes Constantia, Bergvliet, Tokai, Plumstead, Diep River, Kirstenhof and Meadowridge - with more of the same expected for this year. That is the word from James Lewis, Seeff licensee for the Southern Suburbs, Hout Bay and Llandudno who says that he expects good buyer demand this year, especially below the R15 million price mark. The two key drivers of the demand for homes in the area remain the location and lifestyle that is almost without compare, save perhaps for the winelands towns. The mountains, the beautiful fynbos and vineyard landscapes, Oak-tree lined lanes all make for the quintessential country lifestyle, yet within the bounds of arguably the best managed metropolis in the country, says Lewis. To top all of this, property here is an excellent investment. There has been no compromise in terms of growth with prices now considerably higher than what they were five years ago. In 2013 for example, the average sales price for the area according to Propstats data was R3 million. By 2014, this had increased by 23% to R3.7 million and last year, it increased further by 15% to R4.26 million. This, against an average CPI rate of 6.1% and 4.6% for 2014 and 2015 respectively. The Constantia Valley still offers excellent diversity in terms of property. Most of the properties are freehold and, there is something for every budget. While homes can now cost well into the upper millions, there is still a good selection of houses in the R4 million to R8 million range and even below that in Plumstead for example. For top end luxury buyers, there are spacious homes, often with up for four bedrooms and more on large plots with extras such as a swimming pool and tennis court. Some are on massive plots of up to 8000sqm, such as in the Zwaanswyk and Constantia Upper areas. Many of these enjoy fabulous views as far as the False Bay coastline. In terms of the market performance for the 2015-year, some 579 sales worth almost R2.47bn were concluded across the area at an average sales price of R4.26 million. That amounts to almost two property transactions concluded here every working day, says Lewis. Although prices tend to vary considerably depending on the area, sellers achieved on average within about 8% of their asking price. The days on the market also averaged from about a week at the lower end of the price scale to about 48 days on average, although some properties were on the market for much longer than this. Provided sellers remain realistic, we expect much the same for the remainder of this year, he adds. Freehold property changed hands at an average price of R4.9 million while sectional title property sales averaged at about R1.4 million per transaction. The latter though, achieved on average within 3.8% of the asking price and only spent about 23 days on the market on average. The suburb of Constantia picked up the bulk of the activity with just over 190 property transactions worth close to R1.5bn. Almost 80% of all sales were below the R10 million price band. Activity includes about 80 sales in the Constantia Upper area where about 40% of all sales were above the R10 million price mark. Top end sales in the suburb as a whole ranged to about R24 million in Oak Avenue to R33 million in Klein Constantia Road, the latter sold by the Seeff Constantia Upper team. There were two top end sales in sought-after Southern Cross Drive priced at R19.5 million and R51.5 million for a large 8000sqm estate with a luxury home, guest cottages, a tennis court and small vineyard. According to the Constantia Upper team of Marie Durr, Janine Stevenson, Liza Snijman and Priscilla Young, the suburb will continue to draw luxury buyers for its fabulous lifestyle and mix of beautiful homes, generally offering expansive accommodation and added extras such as a swimming pool, tennis court and sprawling gardens. The surrounding historic wine farms such as Groot Constantia, Klein Constantia and Buitenverwachting amongst others are a big draw card and add considerable prestige to the area, say the agents. Constantia Village and High Constantia are another added plus factor and great meeting places where locals and tourists can be seen enjoying a meal, coffee or some retail therapy just about any time of the day. The Tokai area with the beautiful Tokai Forest that stretches up the mountain slopes as its most defining feature, is home to a number of exclusive estates as well as the sought-after Zwaanswyk area, popular for its top class equestrian properties and large plots of up to 8000sqm. Just over 80 property sales to the total value of just over R364 million were concluded last year at an average price of R4.4 million, about 16% up on the 2014 average price of R3.8 million. According to agent, Heather Willis, the suburb offers a sought-after rural lifestyle, yet with excellent facilities on hand such as good schools and the Blue Route Mall. The views are quite lovely and certainly a big draw card, as are the nice sized houses and plots, says the agent. The security estates have seen some good activity over the last year. Silvertree picked up a few sales at prices ranging from around the R5 million to R8 million range. In Stonehurst, a number of sales were recorded ranging to the R9 million and R10.2 million range. Nieuwe Steenberg and Steenberg also achieved sales ranging to R6.5 million and R11.45 million respectively. Sales in the Zwaanswyk area included a few transactions above R10 million ranging to R21.5 million for a five bedroomed home on just over 4000sqm of land. Bergvliet is yet another of the popular suburbs with predominantly freehold homes that have sold for around R3.2million on average. Agent, Sharyn Dabbs says that the neighbourhood offers a lovely mix of family homes, often with up to four bedrooms and nice yard space with a swimming pool in the R2.5 million to R4.5 million price range. Bergvliet is flanked by Constantia and Tokai and there is a high school and a primary school in the suburb, ideal for family buyers. Plumstead is still a very good value-for-money suburb according to agents, Peter Marais and Peter Thornton. The market was quite active last year with about 146 sales, mostly freehold houses that sold under the R2 million price mark. There are also still plenty of sectional title properties in the suburb that are well priced under the R1.2 million mark, save for Citadel, an upmarket complex with a swimming pool where units have sold for up to R2.725 million for a three-bedroomed apartment. Lewis says that the Constantia Valley offers an undeniable charm. Here, you can still indulge in an outdoor lifestyle and enjoy walks or cycling in the neighbourhood or at one of the wine estates or enjoy a little horse riding. There are excellent schools in the area and residents have quick access to several tertiary educational institutions including the universities of Cape Town and Stellenbosch. You have the M3-motorway on the doorstep for quick access to the city and Atlantic Seaboard as well other major arterials such as the N2 and N1. Lewis says that the Constantia Valley is one of the strongest property markets and the demand for homes just keeps its good pace. While the top end of market is likely to slow down further this year, he expects the sub-R15 million to remain active. Contact Seeff Constantia on 021 794 5252 or visit www.seeff.com.
09 Mar 2016
Author Seeff