The outlying Cape Town northern suburb of Kraaifontein, which within its boundaries contains some 28,000 homes in eight or nine different precincts including Uitzicht and Pinehurst, is taking on a new image and rapidly shaking off its ultra-affordable lower price bracket label, says Antoine Tredoux, the manager of the Rawson Property Group’s Kraaifontein franchise.
“Kraaifontein is still very inexpensive by Cape standards,” said Tredoux, “but a shortage of stock coupled with rapidly increasing demand for homes here are ensuring that prices rise year on year by 10% or more – in some cases by as much as 15% – and I am totally confident that this trend will continue for the foreseeable future.”
Right now, said Tredoux, it is still possible to find a home in certain parts of Kraaifontein, for example Scottsdene or Windsor Park, for as little as R400,000, but at that the other end of the price scale homes are selling at close to R2 million and the average price in the area is now around R1 million. This average, calculated on his recent sales, he said, is 10% higher than some recent official estimates, but these have not kept pace with price rises.
Despite the serious stock shortages, said Tredoux, his team of 15 agents have at most times 18 to 22 homes for sale – a record figure for Kraaifontein – and the reason for this is that they are among the most active canvassers in the area.
“On almost any day of the week certain of our agents will be out there knocking on doors. This is one of the basics of a good property operation and we do not neglect it.”
This practice, said Tredoux, has enabled him to maintain sales levels of 7 to 10 homes per month and despite the effort required, this too will be maintained.
Asked what, apart from affordable prices and the convenient central position well supplied by public transport, attracts buyers to Kraaifontein, Tredoux said that it has well-established schools in which discipline is good and results are satisfactory. It also has churches and retail centres and is within five to ten minutes’ drive of one of the Cape’s most popular retail complexes, Cape Gate. In addition, he said, the vast bulk of the houses in the area are on their own stands and, although they can be as small as 65 m2, are usually in good condition.
A fairly high percentage of those wanting to live in Kraaifontein, said Tredoux, opt to rent and this is often because they have not yet assembled the necessary cash to buy or have a poor credit record. The demand, he said, has pushed rentals for a two bedroom home to between R6,000 and R7,000 per month and for a three bedroom home to R7,000 to R9,500 per month. These figures have risen some 40% in the last three years.
Those hoping to buy in Kraaifontein, said Tredoux, today probably have household incomes (i.e. husband and wife) of at least R20,000 per month and, he added, his team have become adept at advising buyers on what they can afford. Working through the Rawson Property Group’s bond origination division, Rawson Finance, 80 to 85% of Rawson Kraaifontein clients are qualifying for bonds. Those who are rejected, as indicated, said Tredoux, frequently have sufficient income to buy but have incurred large higher purchase and other debts which have to be eliminated before they qualify for a bond.
For further information call Antoine Tredoux on 021 987 2472
