Location is key when it comes to investing in property, and sectional title developments that are well-placed and offer top-notch lock-up-and-go living are in high demand. A new development in Kenilworth Upper, called 297 on Main, is within convenient walking distance of the restaurants, night spots and public transport in this busy part of the Southern Suburbs, and Cape Town’s city centre is easily accessible.
“Not only is this an opportunity to own a brand new home in an area where available land for development is scarce, but the block also offers safe, off-street parking – a rare commodity in this established suburb,” says Samantha Nel, Pam Golding Properties sales manager for the Southern Suburbs. Kenilworth Upper has much to offer in the way of shops and amenities – with Cavendish Square nearby. It is also considered a “feeder” suburb for many of the top schools in the Western Cape.
The starting price for an apartment in 297 on Main is R1.595 million and Pam Golding Properties is marketing 11 of the 21 units in this unique, existing development that are still available. Each apartment comes with a parking bay, or bays, and all of the units have balconies. Residents also have access to a private rooftop entertainment area, with a pool and braai facilities.
“Property trends show that sectional title living is on the rise, especially as increased fuel and living costs make lock-up-and-go-living more appealing,” says Nel. According to Lightstone statistics, sectional title properties account for a growing percentage of total residential sales in South Africa – rising from around 21% in 2010 to an average of 25.8% during the first half of 2018 and averaging at 26.5% during the third quarter of 2018.
Referring to the Pam Golding Residential Property Index, the company’s senior research analyst Sandra Gordon points out that although house price inflation for sectional title properties is not outperforming freehold overall, smaller two-bedroom sectional title properties are marginally outperforming large, three-bedroom freehold properties.” In January (2019), two-bedroom sectional title properties were experiencing house price growth of 3.99% while three-bedroom freehold properties saw prices increase by 3.12% from year-earlier levels.
Adds Gordon: “Consumers’ appetite for more compact, lock-up-and-go, hassle-free living is further driving the demand for sectional title homes across all sectors of the market.” Sectional title properties make up almost 63% of the properties in Kenilworth, and the average sales price is currently R1.67 million. “The demand for accommodation in the Southern Suburbs, close to public transport and access to the M3 and M5 highways, as well as tertiary institutions in the area, will also make developments such as 297 on Main a sound buy-to-let option,” she adds.
Dexter Leite, Pam Golding Properties Rental Manager: Cape agrees. “There is a strong demand in Kenilworth Upper for apartments and townhouses. Rental prices for a fairly new two-bedroom apartment vary depending on size, availability of parking, security and location.” Leite adds that with the launching of a number of new developments in the area, market-aligned pricing is important to ensure rental uptake. “We find that tenants in this area tend to be younger professionals or couples,” says Leite.
Rising utility costs mean that properties with green features are increasingly sought after. The developers of 297 on Main, who have considerable experience with similar projects in the area, have responded well to this trend. The development boasts energy-efficient design elements, including a pay-as-you-go hot water system which does away with the need for a geyser in each apartment.