Cape Town’s City Bowl is today one of the most desirable residential areas in Cape Town, attracting a broad spectrum of buyers and offering solid returns on investment.
This is according to Ryan Greeff, area specialist for Lew Geffen Sotheby’s International Realty, who says that data on Propstats clearly demonstrates the changing face of the City Bowl property market.
“In 2005, the average sale price of a freestanding home in Vredehoek or Gardens was between R1,6m and R1,8m, with areas like Tamboerskloof realising slightly higher median prices of around R2,6m.
“In 2015 to date, the average freestanding home in Vredehoek costs R4,8m and the average family home in Tamboerskloof will realise a sale price of just over R9m,” said Greeff.
Marthinus Botha, area specialist for Lew Geffen Sotheby’s International Realty notes that 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 face lift.
“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.”
Although the entry-level segment is still the most active with an increasing number of investors keen to get their foot in the investment door, Botha says that there has been a notable increase in demand for properties in the R4m to R6m 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 and R1,8m for a two-bedroom apartment. Older houses which need a little TLC can be found for between R3,8m and R4,2m.”
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, said several key factors have contributed to the turn-around of 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 said. “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.”