Western Cape sectional title apartment values continue to be the best in South Africa
Category News
Western Cape sectional title apartment values continue to be the best in South Africa - and this sector of the property market is an excellent investment destination-Alexander Swart director.
A recent report by the respected property analysts and data providers, Lightstone, has confirmed everything he has been saying for almost two years about the popularity of sectional title properties in the Western Cape, especially those in the R1,2 million to R1,6 million price bracket, and in certain of the Cape Town Northern Suburbs, notably Bellville, Brackenfell, Durbanville and Milnerton, says Rowan Alexander, Director of The Cape Town Estate Agency, Alexander Swart Property. The report also shows that Western Cape Sectional Title prices are on average some 20% higher than those of other SA provinces.
Lightstone, says Alexander, has summarised the reasons for ST properties' popularity exceptionally well, explaining that they offer increased security, affordability, and a communal lifestyle and are therefore especially suited to the tighter budgets of today's buyers, the higher densities of today's cities and the growing demand for homes close to business districts. These advantages, they say, account for the fact that despite a slow decrease in the buying of freehold property year on year since 2003, ST sales have been consistent over the same period.
The Lightstone Report, says Alexander, also confirms at least two of his more recent press statements in which he cited the fact that two bedroom apartments are far and away the most popular and experience the most demand: 59,45% of all Western Cape sectional title sales are now two bedroomed. (One bedroom apartments account for only 21% of the sales and three bedroom apartments for only 19%.)
Furthermore, said Alexander, 26% of additional ( i.e. not primary home) properties in South Africa are bought in the Western Cape, which also has the highest percentage (88%) of buyers buying in their own province. In fact, one in every four additional properties is bought in the Western Cape.
"These and other figures which I have quoted recently," says Alexander, "show that the property investor in Cape Town can have complete confidence in sectional title properties, particularly those priced between R1 and R1,6 million, and sited in the city's Northern Suburbs. By our estimate, these will continue to see rental increases of 7 to 10 % and capital increases of 8 to 10 % per annum and will continue to rival other potential investment channels."
Author: Independent Author
