Constantia, Gerald Romanovsky, says that an evaluation of the trends in this area’s residential property show several interesting changes.
Lightstone’s figures for Constantia as a whole, said Romanovsky, show that roughly 75% of current owners are aged above 40 years and that around 50% of buyers are above 50 years old. The area, unlike many other Cape Peninsula suburbs, has virtually no buyers under 35 years old.
The Lightstone figures also reveal that this is an exceptionally stable property precinct in which people are always reluctant to sell: 50% of owners have been there for 11 years or more.
The Lightstone figures, added Romanovsky, also make it clear that the perception of Upper Constantia being an exceptionally affluent area is valid: the average income for the area is over R75,000 per month and the average price of houses achieved in 2013 was R10,721,000. The 2013 Absa figure of R8,4 million as the average valuation price is more or less in line the figure he has compiled.
“According to my database,” said Romanovsky, “the average achieved price in the R4 million to R6 million bracket in 2012/2013 was R5,8 million. Sixty nine houses were sold in this bracket during this period and the average discount on the asking price was 14%.”
“In the R7 million to R9 million price bracket the average achieved price was R7,7 million and, on average, prices were 21% below the listed price. Seventeen houses were sold in this price category in the period mentioned.”
“The average achieved price in the R9 million to R13 million bracket,” said Romanovsky,” was R10,6 million, a 20% discount. Twenty houses were sold in 2012/2013 in this price bracket.”
“In the R13 million to R15 million bracket, the average listed price was close to R15 million but the average actually achieved was 17% lower at R12,9 million. Interestingly in this price category, five of the 13 homes sold were in gated security estates.”
What conclusions can be drawn from the figures compiled?
“One of the first factors that becomes clear,” said Romanovsky, “is that since the low point of 2012, sales have almost doubled and are continuing to increase. It also seems clear now that the massive 30% cost price drops of 2010 and 2011 have eased off and that the achieved prices are getting closer to their asking prices, although they still have some way to catch up.”
It is also quite clear now that in the R4 million to R6 million price category demand will, in the not too distant future, exceed supply. This is where many people can afford and want to buy and homes here and I predict, will sell within 10% of their asking prices this year.”
“What is also clear,” added Romanovsky,” is that there are few better investments than small cottages in Constantia gardens because dual living in this suburb is now very much “in”. Young families today, he said, are inclined to welcome having grandparents on their site, provided that they live in separate quarters with their own entrances and sometimes even their own boundary fences. This arrangement, he added, gives the grandparents the chance to babysit and interact with the grandchildren — which sociologists are increasingly recommending to young couples, particularly those leading busy, stressful lives.
Sales and prices in Constantia are now improving noticeably..http://t.co/hpHf0ecwBZ #CapeTown #affluent #dual #living pic.twitter.com/dtpyqhNytf— RawsonPropertyGroup (@RawsonGroup)
Another factor which becomes clear, said Romanovsky, is that some 40% of sellers are in the 55 to 65 year age group, indicating that today’s older couples are often keen to make arrangements for their retirement well before they become unhealthy or frail. Many such couples in Constantia, he said, tend to move to the more upmarket retirement villages rather than the less expensive old age homes, but even here it has to be recognized that frail care facilities can be very expensive. For this reason the dual living arrangement is very often preferable to a retirement village solution.
