Eerste River Property Market - 2018 Property Sales Report

Introduction

The Eerste River property market is closely linked to the Kuils River, Macassar and Blue Downs property markets – as the 4 suburbs offer one of the biggest variety of own title property (or free standing homes) choices in the price range between R500 000 and R1 million in Cape Town.

There has been an 21,3% increase in sales of homes (own title) at a median price of R570 000 in Eerste River between 2017 and 2018 - confirming that the local property market is driven by a healthy price related demand for properties priced below R600 000.

During the last 12 months the growing issue of affordability for first time homebuyers in especially the neighbouring Kuils River, has created a surge in buyers in the lower age brackets in Eerste River. While only 47% of stable owners are younger than 50 years, 83% of recent buyers fall in that age bracket. The majority (81%) of the stable owners are aged 36 to 64. Only 9% of the “stable owners” are between 18 to 35 years old – whilst more than a 3^rd (or 38%) of the recent buyers and also 39% of the recent sellers fall into this age group bracket.

Eerste River is part of the Northern Suburbs of Cape Town and has 8 549 freehold properties (of which 319 is in estates) and 219 sectional title properties (of which 20 is in estates). The suburb’s demographics include a population of 32 216 adults with an average household income ranging between R9 000 to R17 000.

Property Sales Analysis

Eerste River offers a big choice of more affordable housing for first time buyers or younger families in the Northern Suburbs – with median freehold (home) prices of R580 000 which is less than half of close by suburbs such as Kuils River (R1,2 million), Brackenfell (R1,3 million), Parow (R1,35 million) and Bellville R1,75 million. Another similarly priced neighbouring suburb is Macassar (with a median valuation of R540 000).

Eerste River has seen a gradual growth in property sale volumes during the period 2015 to 2018 – achieving 29% more sales per month during 2018 than in 2015 and rising from about 30 properties sold per month (360 during 2015) to 38,7 properties sold monthly in 2018.

Sales volumes dropped by 3,85% per month during 2018 relative to 2017’s 40,25 properties sold per month (resulting in 349 property sales in Eerste River for the year up to end of September 2018).

A price range analysis of Eerste River property sales reveals that the majority of the freehold homes sales (including those build in estates and excluding vacant erven), took place in the price range of R400 000 to R800 000 – 196 transactions during the last 12 months (October 2017 – September 2018). The 2^nd most active market segment was between R800 000 to R1,5 million with 31 sales whilst there was only 15 sales in the price range between R1,5 million and R3 million (of which only 1 property was outside of an estate).

In the top end of the property market, i.e. prices greater than R3 million, there were 10 sales at an average of R3,802 million in estates and 1 property for R4,76 million outside of the estates.

In the sectional title market 12 units (apartments) got sold in the last 12 months between R400 000 and R800 000 – which is 60% of the total apartment market sales. The other sales volumes achieved during the last 12 months were 8 units (R800 000 – R1,5 million). There were no sectional title sales in the price brackets below R400 000 and above R1,5 million.

97 Residential vacant land (erven) sold in the last 12 months – of which none were inside an estate. 78 Pieces of vacant land sold for less than R400 000 and at an average price R182 000, whilst 19 erven sold for more than R400 000 at an average price of R509 000 per plot.

Capital Growth

Despite the 2018 contraction of the Western Cape property market sale volumes, capital growth, measured by the rise in median prices achieved, has seen exceptional growth in the sectional title (apartments) market in Eerste River – rising by 62% from R490 000 in 2017 to R785 000 in 2018. Median prices for freehold properties increased from R550 000 (2017) to R580 000 (2018) – i.e. capital growth of 5,45%.

Capital growth achieved for freehold properties (homes) between 2008 and 2018 was 93,33% or 9,33% per year – rising from R300 000 to R580 000. Sectional title property rose from R520 000 to R785 000 in the same period – i.e. an increase of 59,96% or 5,1% per year.

Vacant land (erven) has between 2008 (R150 000) and 2018 (R185 000) only grown with 23,33% - i.e. 2,33% per year.

Another noteworthy fact is that sectional title apartments forms a very small part of the Eerste River property market – with only 210 sales taking place during the last 10 years of which 20 erven sold during 2017 and only 14 in this year up to September 2018.

A very positive development during the last 5 years is the steady drop of sales in execution which created between 2000 and 2004 as well as in 2009/10 a very negative price growth pattern with executions rising in 2001 to more than 200, 2003 (175), 2004 (152) and peaking again in 2009 (120) and 2010 (87). This pattern has been dramatically reversed during the last 5 years – dropping to only 6 sales in execution during 2018.

Eerste River Suburbs – Pricing Overview

There are 17 suburbs in Eerste River which one can categorize in terms of average prices obtained for own title properties (houses) during 2018. The price per sq.m. is determined by the purchase price divided by the erf size (not the buildings). The suburbs below are those in which sales took place.

Between R2 000 000 and R3 000 000

• Penhill (3 sales at an average price of R2 174 667 @ R782/sq.m. – highest price R2 400 000 and lowest R2 024 000)

Between R1 500 000 and R2 000 000:

• none

Between R1 000 000 and R1 500 000:

• none

Between R500 000 and R1 000 000

• Stratford Green (19 sales at an average price of R762 842 @R2 376/sq.m. - highest price R865 000 and lowest R207 000)
• Forest Glade (4 sales at an average price of R722 500 @R1 747/sq.m. - highest price R1 200 000 and lowest R200 000)
• Devon Park (6 sales at an average price of R711 667 @R1 435/sq.m. - highest price R920 000 and lowest R420 000)
• Eersterivier (Clairewood & Gill Cape) (42 sales at an average price of R598 571 @R1 971/sq.m. - highest price R950 000 and lowest R170 000)
• Russel’s Rest (3 sales at an average price of R583 333 @R1 302/sq.m. - highest price R800 000 and lowest R450 000)
• Houghton Place (3 sales at an average price of R576 666 @R12 628/sq.m. - highest price R599 999 and lowest R529 999)
• Heather Park (13 sales at an average price of R551 153 @ +-R2 000/sq.m. - highest price R665 000 and lowest R350 000)
• The Wines (25 sales at average price of R517 984 @ +- R4 000/sq.m. – highest price R697 800 and lowest R454 950)
• Forest Village (7 sales at average price of R515 000 @ +- R1 418/sq.m. – highest price R760 000 and lowest R185 000)

Below R500 000

• Electric City (44 sales at an average price of R478 451 @ R3 238/sq.m. – highest price R800 000 and lowest R300 000)
• High Places (4 sales at an average price of R455 000 @R1 178/sq.m. - highest price R580 000 and lowest R310 000)
• Beverley Park (4 sales at an average price of R432 000 @ R1 122/sq.m. – highest price R690 000 and lowest R190 000)
• Sillwood Heights (1 sale for R430 000 @ R1 138/sq.m.)
• Rosedale – Kleinvlei (Perm Gardens) (47 sales at an average price of R211 527 @ R922/sq.m. – highest price R850 000 and lowest R17 250)

No Sales Registered in last 12 months:

• Station Township
• Eerste River South

If you are looking to buy or sell a property in Eerste River, please contact one of our local residential estate agents to assist you, or phone (021 903 3217) or visit our CCH Kuils River shop on the corner of 74C Van Riebeek Road & Station Street (directly opposite the municipality offices and McDonalds).