Hot Property and Trendy Lifestyle in Capes City Bowl
Long considered to be the home of hipsters and trendy youngsters, Cape Town’s City Bowl has undergone an image transformation in recent years and is now one of the most desirable residential areas in Cape Town, attracting a broad spectrum of buyers and offering solid returns on investment.
This studio apartment in Gardens, Cape Town, is on sale for R850 000 - click here to view.
This is according to Ryan Greeff, area specialist for Lew Geffen Sotheby’s International Realty, who says data from Propstats clearly demonstrates the changing face of the City Bowl property market.
“In 2005, the average sale price of a freestanding home inVredehoek or Gardens was between R1.6 million and R1.8 million, with areas like Tamboerskloof realising slightly higher median prices of around R2.6 million,” says Greeff.
“In 2015 to date, the average freestanding home in Vredehoek costs R4.8 million and the average family home in Tamboerskloof will realise a sale price of just over R9 million.”
However, he says while demand for homes in the City Bowl will always remain high because of its proximity to the CBD, the slowing of the national economy and the move out of a seller’s market has affected this area just as much as the rest of the country.
Marthinus Botha, area specialist for Lew Geffen Sotheby’s International Realty, says they are also seeing a lot of renovation in the City Bowl at the moment, which is giving the area as a whole a refreshing facelift.
“Many investors are buying older properties within their budgets and then renovating over time, and we are also seeing existing owners sprucing up their older houses to increase the value of their properties.”
Situated in Vredehoek, this apartment was recently sold and was on the market for R1.65 million.
Botha says although the entry-level segment of the market is still the most active with an increasing number of investors keen to get their foot in the investment door, there has been a notable increase in demand for properties in the R4 million to R6 million price band.
“Gardens and Vredehoek currently offer the best value for money at the entry level, with apartments starting at around R850 000 for a bachelor’s flat and R1.8 million for a two bedroom apartment, if one happens to come onto the market,” he says.
“Older houses that need a little TLC can be found for between R3.8 million and R4.2 million.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says there are several key factors, which prompted the turnaround of the property market in the City Bowl.
“Cape Town’s population has grown massively over the past decade and the resultant traffic congestion and ever-increasing commuter time from the suburbs has prompted people across the demographic spectrum to reconsider their priorities and lifestyle values,” he says.
“The change in perception was also spurred by the fact that the City Bowl offers investors a wide range of options, from starter bachelor pads through to opulent modern homes, which makes the City Bowl accessible and attractive to most investors, from first-time buyers to established professionals.”
Geffen says the City Bowl is set to become increasingly popular as there is no more available land for development, while rapid development in the CBD is significantly increasing the daily working population in the downtown area.
This three bedroom house in Vredehoek, Cape Town, offers open-plan living areas, fireplace, wooden floors and high ceilings. It is on the market for R4.95 million - click here to view.
“The city centre is benefiting greatly from investments running into billions of rands, with massive projects like the recently completed 32 floor commercial Portside building, the doubling in capacity of the Cape Town International Convention Centre and the construction of the new Christian Barnard Hospital.”
Botha says a spin-off of the increased business activity in the city is that more corporate investors are snapping up City Bowl properties as an investment or for their commuting executives.
“It also bodes well for the rental market which is currently active, with agents experiencing a shortage of stock in certain areas and market segments,” he says.
“Although correctly priced rental properties are almost always snapped up as soon as they hit the market, the monthly rentals that can be achieved vary substantially depending on a number of factors including size, location, condition, views and security.”
Greeff says the current political uncertainty in the country doesn’t seem to have had much impact on foreign investment as particularly South Africans living abroad remain keen to take advantage of a weaker rand and invest in property in Cape Town.
“They are attracted to the City Bowl for its conveniently central location, which offers easy access to the inner city and its vibrant nightlife and is also a stone’s throw from some of the best beaches in the world and popular attractions like Table Mountain and the Waterfront.
“In addition, residents love the fact that they can stroll down the road to a wide array of excellent restaurants, cosy cafés and myriad retail offerings. There are also more and more regular events in the revitalised CBD such as First Thursdays, Moonlight Mass cycle ride and a number of markets.”