Prices in Kraaifontein attractive to younger buyers. Could this herald a regeneration?
Category News
Sensitivity to market trends, says Rowan Alexander, Director of Alexander Swart Property, is a great asset in an estate agent. There are many who never develop it, usually to their own detriment.
Right now, Alexander is seeing the first tentative signs - the very first signs - of a possible regeneration in the Kraaifontein residential market. If his early perceptions are valid, he is of the opinion that now is the time, for shrewd property investors to be looking at Kraaifontein.
"In my view, Kraaifontein is ten years behind its neighbour Brackenfell, and five years behind its other neighbour, Durbanville. Brackenfell is now a mature market, one that has been through a surprising and very successful transition period. As I see it, the town Durbanville, is in the middle of a regeneration which is set to add considerable value to most properties. In Kraaifontein, we could now just be witnessing the start of a new, more exciting and profitable era."
On what evidence does Alexander base this opinion?
"You have to look at the overall picture," he says. "Kraaifontein has 22,027 registered residential properties and an adult population of 81,568. Half the current owners have been there more than 11 years. For a long time the area has seen almost no real pick-up in growth, or in sale registrations. In 2018 there were only 552 sales and prior to this, the total for nearly ten years was never above 900."
In his experience, says Alexander, when an area's prices flat-line in this way for a longish period, the scene is set for younger people; often buying for the first time; to move in. They are attracted by the lower prices (in Kraaifontien nearly 50% of all the homes are in the R800,000 to R1,5 million bracket and in this range, the average price is R1,189,000). Such buyers are usually willing to take the time, find the capital and make the effort to upgrade theirhomes, thereby initiating a transition phase.
The chances are, says Alexander, that many younger people will find what they can afford if they look at Kraaifonteinnow. According to Lightstone, last year eight out of ten buyers here, were young adults (18 to 35 years old), This means, he says, that there is a a healthy mix of young buyers, middle aged (36 to 49) and older generation residents, who together will usher in Kraaifontein's regeneration.
"I shall not be surprised," he says, "if in the next five years, Kraaifontein undergoes a mini-boom. This could be similar, though not as widespread, as that which transformed Brackenfell."
This regeneration , he adds, is likely to be spurred on by the major bond issuing banks, who now look on Kraaifontein favourably. The 2018 figures show that Standard Bank led the way with R180 million worth of bond loans to Kraaifontein. ABSA and Nedbank loaned R140 million in the area, FNB R120 million and S.A. Home Loans R35 million.
Alexander says that these figures indicate that it may well be easier to get bank finance in Kraaifontein, than in many other Cape town suburbs.
For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.
Author: Independent Authour
