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Cape Winelands property markets blooming
While just over 45 minutes' drive out of the Cape metropolis, the Cape Winelands region, made up of the towns of Franschhoek, Tulbagh, Worcester, Paarl, Wellington, Ceres and Stellenbosch offers a real respite from the hustle and bustle of the city. The scenic beauty is almost unmatched as fertile green valleys are dotted with vineyards and orchards against the backdrop of scenic mountains. Not surprising then that the region ranks amongst the most sought-after in the country, not only for local and foreign visitors, but as a residential, retirement, holiday and weekend escape, said Seeff's MD for the region, Pierre Germishuys.
As we head towards the Summer months when the vineyards of the region come into bloom, Germishuys reported that the property markets here are performing exceptionally well. This year, we have already almost doubled our turnover in the areas of Franschhoek, Tulbagh and Worcester with a total of 75 properties already sold to the total value of almost R127 million compared to just under R66 million during the corresponding period last year.
At a time when many in the industry are cutting back, Germishuys said that Seeff has increased its licence footprint in the region to include Paarl, Ceres and Stellenbosch and now boasts seven offices with 34 agents. On the back of strong demand, plans are afoot to bolster agent numbers further to 41 by year end. While operating conditions remain challenging, Germishuys believes that patience and perseverance has been a vital element in the success in the market this year.
A notable uptick in demand
"Our focus has been on working with and counselling serious sellers to ensure that their price expectations are in line with what buyers are prepared to pay. On the buying front, there has been a notable uptick in demand, both from residential and second-home buyers, largely from within the South African market. Buyers are realising that the value on offer across the Winelands is unbeatable and that prices are probably just about as low as they are likely to go. Consequently, now is indeed the time to buy and those that have made their move this year will look back and realise that it was a smart move," he said.
In the Franschhoek Valley, for example, we have already sold 26 properties to the value of almost R92 million compared to nine properties during the same period last year. This includes nine properties above the R5 million price band ranging up to R7 million and R9.9 million. This buoyancy is mirrored by the market as a whole with a total of about 49 properties already sold this year compared to 66 for the whole of last year, he said.
In Tulbagh, where the average house price falls below R800 000, Germishuys said that of the 20 properties already sold here, five sales have been above this price band with prices ranging up to R2.16 million. In Worcester, where the average house price falls below R500 000, 17 out of the 29 sales already made by Seeff here fall above this price band with prices that range up to R1.26 million, he added.
In terms of the Winelands property market as a whole, there has been a steady, year-on-year improvement in demand over the last three years, said Germishuys. In 2009, for example, 1748 properties to the total value of R1.77 billion sold in these towns. Activity has since improved by about 40% with around 2441 property sales to the value of R2.53 billion in the last year.
