Many residential areas have seen a marked upswing in property prices since the 2008/2009 downturn (when some values fell by over 25%), but, says Gerald Romanovsky, a senior agent at the Rawson Property Group’s Constantia franchise, very few areas have recovered as fully and completely as Tokai.
“This year,” said Romanovsky, “we have already seen 32 homes sold at Tokai at the very satisfactory average price of R2,6 million. What is more, this is one area in which not only have prices risen but there has also been a noticeable increase in unit sales.”
In 2010, he said, only 27 homes were sold in Tokai at an average price of R2,2 million. Since 2012 both prices and sales have risen at ± 23% and seem set to continue to do so.
“Almost all Tokai homes are now priced between R2,5 million and R4 million and will probably find a buyer in less than a fortnight – but it has to be admitted that getting stock here is now extremely difficult. People who live in Tokai are reluctant to move elsewhere and to keep our stock list up, we are having to double the number of hours that we normally put in to valuations and canvassing.”
A sellers’ market, said Romanovsky, is now also evident in two of the precincts bordering Tokai – the Steenberg Golf Estate and the Zwaanswyk area, which is particularly well known for its equestrian facilities.
At Steenberg Golf Estate 22 homes were sold in 2013 at an average price of R8 million. This year in the Steenberg Golf Estate four homes have been sold at an average price of very close to R11 million and, said Romanovsky, it is quite possible that further price rises will be seen by 2015.
At Zwaanswyk remarkably little stock has come onto the market and there has, in fact, been only four sales at an average of R6 million.
As so often happens, says Romanovsky, the upgrading of the area’s two major retails centres, Blue Route Mall (at a cost of R750 million) and a small regional centre on the borders of Tokai forest and the Steenberg Golf Estate have given the whole area a further improved image. All this, he said, has tended to make property in the area more sought after.
Asked if he foresees the recent price rises continuing, Romanovsky said that they were almost certain to continue but probably at a slightly slower pace.
“Inflation alone,” he said, “will keep prices rising at above 6% but in view of the unremitting strong demand for homes here, the prices are likely to be well in excess of the inflation figure.”
