Property trends at Cape Town: redevelopment and densification are now the accepted policies
Category News
One of the most useful and rewarding services that an estate agent can provide his clients and colleagues, particularly those that are property developers, is to identify accurately trends in the property market, says Rowan Alexander, Director of Alexander Swart Property – and, he adds, in Cape Town over the next 24 months or longer it is now evident that most of the development action will be seen in suburban areas, with densification and redevelopment becoming the accepted norms on a large scale.
The new trends, says Alexander, will take two forms: firstly, the development of new schemes in the few remaining Brownfield sites in the established areas and, secondly, the redevelopment of existing properties in these established areas.
The redevelopment trend, says Alexander, will involve either the upgrading of existing properties (as, for example, is now seen along the Sea Point to Llandudno Atlantic coastline) or the demolition of older buildings to provide townhouses and apartments, almost always in far greater numbers than the single or double storey homes previously on the sites.
The densification process, says Alexander, is now very definitely the policy of the City of Cape Town and is particularly encouraged when the sites are near public transport routes.
“The densification/redevelopment trend is essential now because many of Cape Town’s outlying areas lack the services and road infrastructure needed for further development. Developing in such areas calls for a long term commitment by the developers despite the very real uncertainties they may have about market conditions two or three years from now when the services become available.
“It is, therefore, not surprising that many developers prefer the quicker, less risky projects in areas where the infrastructure is already established – even though the price of such sites may be far more expensive than those in outlying areas.”
In today’s market, says Alexander, the swing to houses and apartments will continue and probably speed up but the size and price of these will on many projects be kept as low as possible: 55 m2 for a two bedroom apartment is today acceptable in many middle class areas and as many young couples do not want to have to take care of a garden of any kind the space allocated to such “extras” can be minimized.
“Today’s buyers below the age of 40,” he says, “are less housebound and far more ‘on the go’ than their parents. They tend to travel often and are regularly away for weekends – so they favour lock – up- and- go townhouses and apartments which are not expensive to buy, require very little maintenance and can be left empty for short or long periods. Developments such as Brick n Board’s Fountain Views here in Brackenfell, where 60m2 apartments are available for close to R1 million are what today’s market wants.”
For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za
Author: Independent Author
