Northern Suburbs are getting younger
Category Property news
Northern Suburbs are getting younger! 🔴
In less than 20 years, the Northern Suburbs succeeded in expanding and continue to evolve into a world-renowned precinct of Cape Town.
Its pursuit of innovative approaches to urbanism and commitment to environmental sustainability ensures that the node has continued to attract high-end occupiers and investors alike. The Northern Suburbs have development rights in excess of 1.25 million square meters, of which approximately 250,000 square meters remain to be developed.
Northern Suburbs residential property's largest target market is between 36 and 49 years olds.
Over the past decade, Northern Suburbs have been growing into a CDB of its own, which is perhaps one of the reasons why we've been seeing a vast influx of buyers who are young professionals, mainly between the ages of 18-35 years old.
With that being said, over the past year, the Cape Town real estate market has overall overcome the 2020 price downward trend and the Northern Suburbs sectional title properties have even far outperformed the 2018 price increase. According to Property24, the average sale price of apartments increased by about 13.5% -- from R850,000 in 2020 to R965,000 in 2021. With a younger population migrating to the Northern Suburbs, one must consider their difficult affordability of property in this area. The increase in average sales prices in 2021 can be partly attributed to the financial constraints of sellers caused by the economic crisis of 2020 and thus justifies the slow increase in the number of sales.
It is interesting to note that according to Property24 there are currently over one hundred more properties being marketed for sale this year than the same time last year. This phenomenon goes on to suggest that the Northern Suburbs property investors are finding greater returns elsewhere as they are placing their properties on the market to sell, rather than competing in the rental market for pedestrian yields.
Since the 2019 elections, we have seen buyer interest in the Northern Suburbs precinct showed a decent improvement, however, prices remain under pressure.
The good news for savvy investors is that the current market presents an exciting opportunity to achieve a good return while there still is a healthy appetite for second-hand Northern Suburb apartments, before the release of new development stock onto the market in the coming months.
Recently Sold properties in your area:
🔴 La Gratitude, Durbanville for ZAR 3 400 000
🔴 Waterfront Cascades, Tygervalley Waterfront for ZAR 2 130 000
🔴 Tyger Quays, Tygervalley Waterfront for ZAR 1 890 000
🔴 Tygerfalls 2, Tygervalley Waterfront for ZAR 1 240 000
🔴 Villiera, Durbanville for ZAR 1 230 000
🔴 Portofino Panorama for ZAR 1 220 000
🔴 Vrede Palms, Durbanville for ZAR 1 150 000
🔴 Portofino, Panorama for ZAR 1 100 000
🔴 Trichardt Court, Parow for ZAR 650 000
🔴 Shayna-Hof, Parow for ZAR 550 000
Are you interested to know what your property could be worth in these interesting times? Please click here for a complimentary appraisal from our area specialists broker.
Author: Greeff Christies International Real Estate
