Franschhoek property values on an upward trend
The bullish outlook for the Western Cape’s Franschhoek has property grown and gained momentum over the last year.
This four bedroom, three bathroom home for sale in Franschhoek is situated in the equestrian estate, Deltacrest. The house has a study and heated swimming pool. It is on the market for R8.9 million - click here to view.
This is according to Johan Hugo, the RawsonProperty Group’s franchisee for Stellenbosch and Franschhoek, who says in 2014, Lightstone figures taken from the Deeds Office revealed that the average price of a Franschhoek home sold was R2.5 million, while the average price for sectional title property was R1.66 million.
Today, Hugo says they are hard-pressed to find homes to sell below R3.5 million, and the majority of sales now taking place are priced above R4 million, while plots on average are now selling at around R2.5 million.
For that sort of outlay, he says the buyer can expect to get a four bedroom home in one of the main gated estates, namely Domaine, Des Anges, Petite Provence and Fransche Hoek, or a well-maintained, possibly Victorian, six bedroom freehold home within 800m of the town centre.
Despite what appears to be almost phenomenal price rises, the number of buyers at Franschhoek is increasing year-on-year, says Hugo.
“Bearing in mind that there are, according to Lightstone, only 2 470 registered properties, excluding farms and smallholdings, in Franschhoek, the figures show that from 2010 to 2012 only 3.5% of this total were sold each year,” he says.
“In 2013 the total rise was 4.9%, and in 2014 it went as high as 5.8%, meaning 140 properties were sold. It looks very much as if its upward trend is continuing.”
This two bedroom, two bathroom flat selling in Franschhoek is part of L’Ermitage. The apartment can be for the owner’s exclusive use, or be added to the hotel rental pool. The flat is on sale for R2.6 million - click here to view.
Hugo says these encouraging figures are complemented by two other revealing facts: the average age of recent buyers appears to be coming down, and the number of South Africanbuyers is rising.
“At one stage, almost one in three buyers here was from overseas. Foreign buyers are still much in evidence, but the big upswing has come from Cape, Gauteng and other upcountry buyers.”
This change in the buyers’ profile is at least in part due to the ability of so many people today to run businesses from their home, working either part or full-time from the place where they live, he says. It is also, he believes, spurred on by Franschhoek’s very low incidences of serious crime.
“All the drawcards traditionally recognised as making Franschhoek attractive; its wonderful climate, its delightful, relaxed atmosphere, its splendid mountain scenery, its vineyards and its internationally recognised restaurants, as well as its good private school, Bridge House, and the steady expansion of its commercial centre have been further popularised by good marketing.”
To take just one example, Hugo says the wine train and tram, which takes people to local vineyards, was fully booked throughout last summer, and local restaurants have reported high levels of attendance and great enthusiasm for the Franschhoek culinary experience.
At this stage, Hugo says there can be no better property buys for those looking for capital growth and a pleasant lifestyle than a Franschhoek property.