05 Jun Densification likely to add value
“Densification is not necessarily something to be feared, particularly when one views the way the trend has already been unfolding in the central Southern Suburbs, such as Claremont, Rondebosch, Wynberg and Kenilworth, where a number of properties on which single residences previously existed, are now home to desirable, upmarket, secure sectional title apartment blocks,” says Mike Greeff, CEO of Greeff Christies International Real Estate. “Due to stock shortages and a desire for lock-and-go real estate, this sector is becoming one of the most valuable in the province, with an increase in the average selling prices of around 12% to 14% per annum,” adds Greeff. To this end, such properties have actually raised the value of neighbouring real estate, and they bring much needed income to local business, he says.
In Constantia Upper, there are a number of very upmarket developments offering enclaves or clusters of luxury homes with top-end finishes in a gated and secure small estate. “With the demand for homes in security estates at an all-time high, this level of “densification” is seen as a positive. Greeff is currently marketing Wycombe, comprising six luxury, sectional-title, homes and 26 on Brommaert , comprising ten luxury, sectional-title homes in the heart of Constantia Upper, while in Constantia, a development on Old Kendal Road is offering four luxury family homes.
“These products are perfectly timed, particularly as they are located in such sought-after areas. It’s a winning formula in that it’s all the joy and style of Constantia in a much more convenient and easy-to-maintain package than the traditional Constantia homestead,” adds Greeff.
“Furthermore, as water restrictions bite and rates inevitably rise, there is an increased appetitite for these properties. The large garden with a pool is not appealing to all buyers and talk of imminent densification in Suburbs like Constantia has got a number of property owners considering the possibilities of subdivision, which means capitalising on their land. Some may consider selling off a section of an erf, but remaining in their home with a smaller garden, for example,” explains Greeff. “If anything in the Southern Suburbs, densification as we are seeing it currently, is likely to boost the growth of property prices, provide more stock in a stock-short market and offer more appropriate lifestyle options to a number of new buyers.