A bustling market - 1,343 Brackenfell homes sold in the last 12 months
Brackenfell, thought by many property trend watchers to be the precinct that now offers the best value for money and the best capital growth prospects in Cape Town for residential property, has over the last five years seen more development than most other Cape Town suburbs, says Rowan Alexander, Director of Alexander Swart Property.
When development peaked in Brackenfell two years ago, he says, the total value of property transferred here exceeded R2,5 billion in one year.
“Regrettably,” he adds, “this boom has come to an end because a dire lack of sewerage infrastructure makes it impossible for most new projects to be undertaken.”
The total market value of transferred properties for the last 12 months has, therefore, dropped to R1,864 billion, but, while this may seem discouraging, says Alexander, the size and scale of projects over the last five years has generated a repeat sale market that is now stronger than ever: in the last 12 months 1,343 Brackenfell properties changed hands – and there are no signs of the sales tempo slowing down.
The average selling price of a freehold home in Brackenfell, says Alexander, is now R1,459,000, but the most sought after and popular freehold properties are those in the R1,5 million to R3 million bracket. In this bracket, he says, 260 homes were sold in the last 12 months at an average price of R2,060,000.
Almost as popular now says Alexander, have been freehold estate properties in the R800,000 to R1,5 million bracket. Here 181 sales took place in the last 12 months at an average price of R 1,248,000.
Brackenfell’s sectional title market has also flourished, with the most action seen in two clearly defined categories: the R100,000 to R800,000 sector where 159 properties were sold at an average price of R670,000 and the R800,000 to R1,5 million bracket where 146 sales took place at an average price of R1,044,000.
“These sales figures,” says Alexander, “show that Brackenfell’s resale homes market is alive and well, with five out of every 100 homes changing hands in the past 12 months. Nearly one-third of recent sellers had owned their properties for 11 years or more, but, conversely, one-third of the buyers are now young, i.e. 18 to 35 years old. The average age of Brackenfell residents is therefore steadily becoming lower and this gives a new flavour to the whole precinct.”
Alexander says that, as he sees it, Brackenfell has now experienced the first phase of the typical 40 year property cycle which affects most suburban residential precincts – the stage in which, after a lull period, large scale growth and new developments take place. These are then followed by extensive renovation of existing buildings as land runs out and older buildings are demolished to make way for new buildings – as is already happening at Vygeboom and Kenridge.
29 May 2018
Author Independent Author