Repeated statements by estate agents over the last two or three years recommending Muizenberg as a good value place to buy a home appear to have had an effect, says Errol King, the Rawson Property Group’s franchisee for Muizenberg.
“Estate agents throughout Muizenberg,” he said, “are finding that on many homes they are now getting two, three or even more offers - and in at least two cases we have had buyers offering above the list price. This is a situation which was simply unheard of 12 to 18 months ago.”
A case in point, said King, is a 165 m2 (floor area) Marina da Gama home on a 604 m2 site in Battle Ridge Road. Priced and sold at R1,395,000, this home has two bedrooms, one en suite, and beautiful views across the water to which it has direct access. Although it does need some renovation, he said, the home is well priced in relation to others in Battle Ridge Road, many of which are significantly more expensive. Of particular interest to people who viewed this home was the interesting wooden architecture in the main section of the house with many exposed beams, allowing for an inexpensive renovation to increase the home’s size. This property protrudes into the canal, like a peninsula, which is a unique feature, and it gives occupants a clear view down the canal to the mountains.
“Preparation is critical in marketing,” said King, “so we spent time researching and evaluating a price that would make the house appealing to potential buyers. Once launched in the media, the advertising created a great deal of attention, which led to a cash offer on the first day. Through skillful negotiation, and with many other buyers waiting in the wings, we were able to conclude a full asking price cash sale on the third day.”
Despite these successes, said King, the majority of sales in Muizenberg are still in the R500,000 to R1 million bracket.
With the focus still being on the more affordable houses, said King, it is, however, becoming clear, at last, that homes even above R1,75 million are once again attracting interest.
Asked to select just one such home now for sale to illustrate his view which he would regard as exceptionally good value in today’s market, King mentioned a double storey, three bedroom home in the Capricorn Park security estate. Priced at R1,260,000 — the home has a walled-in garden and an outdoor entertainment area, a state-of-the-art kitchen, flooring with large porcelain tiles, wood (in the living room and study) and a double garage. The living room also has a fireplace.
The rent such a home can achieve, said King, would be between R7,000 and R7,500 per month, giving an initial return of close on 7% to the purchaser putting down a 10% deposit.
The high demand for homes in Muizenberg, said King, has definitely pushed up rents and his franchise now manages a portfolio of around 160 properties.
Stock shortages loom as demand for homes in Muizenberg grows stronger...http://t.co/ifZBJKKhgQ #CapeTown #Muizenberg #MarinaDaGama #property
— RawsonPropertyGroup (@RawsonGroup) November 8, 2013
Muizenberg, added King, is one of the only places in South Africa where you can rent homes that are within five minutes of all amenities, including one of the most popular beaches in the country, from only R3,000 for a bachelor flat and from R12,000 for a luxury mountainside home.
