Demand for affordable accommodation in Cape Town by first time buyers and young families is such that when reasonably priced homes come on the market, the response is immediate. One area being tipped that falls into this bracket is Kuilsriver, equidistant from the Cape Town CBD, Stellebosch and the northern suburbs.
“With prices in certain areas of Cape Town beyond the reach of the average young buyer who perhaps earns between R15,000 (on his own) to R30,000 (as a joint income with his partner or wife), Kuilsriver homes are a good option if you’re looking for a decent starter home,” says agent Brit Europa of IHPC.
“The City of Cape Town’s average price at present is roughly R1,3m, whereas the average price of property, according to a Lightstone report for the last year, in Kuilsriver is R1,2m for freehold property and R968,000 for sectional title. This report indicates that the majority of the market stock is freehold property.
“Averages, however, are not the only figures that should be taken into account,” says Europa, “as there are still properties that are priced below R1m in Kuilsriver. In Bardale Village, for example, there are units selling from R550,000 to R850,000 and in other parts of Kuilsriver, properties from R600,000 (for a two bedroom home with one bathroom) to R850,000 for a three bedroom home with two bathrooms and a garage.”
Current demand is high for the more “complete” family home that has three bedrooms, two bathrooms and a garage with good security, Europa adds. “Security in general has become a big factor to a home being sought after.”
In cases where there is a combined salary of around R37,000 (the higher amount listed in the demographic range in the Lightstone report) with perhaps R20,000 in cash to spare in the household, the family would qualify for a bond in the region of R1,130,757 (a monthly repayment of R11,100 at the current interest rate of 10,25% over 20 years).
Stable owners in the Kuilsriver area, are mostly 50 to 64 years old (46%). There has been an increase in the last year to 54% of recent buyers being between 36 and 49 years of age and 25% of recent buyers between 18 and 35 years of age. Most first time home buyers, says Europa, are generally in their mid-30s.
The amenities offered here are also a plus, particularly for families as there are both primary and high schools, major shopping centres and easy access to public transport.
(Photograph: The living and kitchen areas of a Bardale Village home with three bedrooms and two bathrooms, recently sold by IHPC for R789,000. The asking price was originally R810,000.)