PROPERTY: Cape Town's City Bowl Resilient
Recent Western Cape Business News
Cape Town’s City Bowl continues to show resilience in the face of a somewhat slow property market, with estate agents reporting sustained demand for houses in this sought-after section of the city. The “Bowl” is formed by Table Mountain at its back, Lion’s Head and Signal Hill to the side, and the harbour in the front – all making it geographically impossible for the area to expand any further in size.
The result, says Pam Golding Properties, is that there is a perennial shortage of stock in suburbs such as Vredehoek, Higgovale, Tamboerskloof, Oranjezicht and Gardens. PGP’s agents in these suburbs say they are still experiencing a healthy flow of enquiries and sales, across a variety of price brackets.
The biggest demand at present is coming from families seeking homes where they can raise their children in a spacious environment close to top schools. “The area’s schools are one of its biggest draw-cards,” he says, “from the private St Cyprian’s, Herzlia and the Deutsche Schule, to the popular government schools such as Jan van Riebeeck Primary and High.
It is also a very easy commute to the leading schools of Rondebosch, just 10 minutes’ drive from the City Bowl. Parents are eager to live within the catchment areas of these schools, and to find good-sized homes with sufficient spacious bedrooms and large gardens where children can play in safety. As a result, we are seeing continued demand for homes that fit these criteria, particularly in the price range from R4 million to R7 million.
The entry-level house market, which in the City Bowl encompasses properties priced from R2.5 million to R3 million, has been more affected by the difficulty in obtaining mortgage finance. But Moraitis says there is nevertheless a steady flow of potential buyers in this category, who aspire to live in the City Bowl. “Many buyers in this category are interested in purchasing older homes which are in need of some renovation,” he says, “as this allows them to get a foot into the market at a reasonable price. They can then renovate over time as their budget allows and their lifestyle needs change, and can thereby ensure excellent return on their investment.”
Moraitis adds that a high percentage of buyers over the first quarter of 2011 have been for cash, with purchasers not requiring any bond finance at all.
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