Although Bellville residential sales volumes have fallen by some 30% this year - and prices by up to 10% - Bellville remains a highly sought after area for many northern suburbs home buyers, says Morn Veer, Rawson Properties' Bellville franchise principal.
"Those who now complain that the price levels have become too high," says Veer, "should bear in mind that until quite recently for a solid four years we saw average price increases of around 15 to 25 % year-on-year. In some years and areas, in fact, they were well over 30%."
Boston properties which sold in 2003/2004 for R350,000, he says, can now be bought for R900,000 '“ or more.
Veer's sales territory covers Boston, Oakdale, De La Haye, La Rochelle, Blommendal, Vredenberg, Oakglen and related areas. Many of these homes, he says, are characterised by the large, spacious homes of the 1950s and 1960s. These homes often have solid wood floors, columns (internally and externally), stained glass windows, gables, fireplaces and other traditional features that can do so much to enhance the value and character of a home.
"This type of home has a timeless appeal for many buyers, particularly those with young children," says Veer. "Despite the economic conditions we are experiencing at present, we are still contacted daily by buyers trying to get a foothold here and, even with the very tight credit restrictions, we are still selling up to half a dozen homes per month."
To illustrate just how difficult it is for buyers to maintain standards in the present market, Veer points out that the sort of buyer who could previously afford a bond of R650,000 will now, with the higher interest rates, find that he can only afford a home of R470,000 and there are very few homes in this price range that would be acceptable to him. The result is that many people are opting temporarily to rent, although, he adds, the market is adjusting to a limited extent to the current more difficult conditions. For those who have access to resources or have no difficulty in obtaining large bonds, says Veer, now is very definitely the time to buy.
'If you buy now (say in the next three to five months) I am convinced that you will be getting in at the right time in the market. If you delay buying now, I think it is likely that you will find yourself disappointed because, as I see it, price rises will resume from about the second quarter of 2009."
