“There are several other areas that lie outside Cape Town that offer more affordable investment opportunities for those who are looking to enter the Western Cape property market,” says Adrian Goslett, director and chief executive of Re/Max of Southern Africa.
And the small town of Riebeek Kasteel is one of them.
Lightstone Property data shows the median asking price of a freehold property in the area is R1.95 million for this year, which reflects “some sturdy growth” for the year thus far compared to the R1.5m for last year.
Sales in this area have also recovered well after a sluggish few months prior to the elections, says Anne Ketel, broker and owner of Re/Max Valley Properties.
“At the moment, it is still a buyer’s market but I feel this will change in the near future.
“There is a definite trend to rent before buying in this area, which attracts investors towards the entry-level properties that offer potential rental returns,” she says.
“We have already noticed that the lower (below R2m) and upper ends (R3m-plus) of the market are moving quicker than properties in the mid-range price bracket.”
Typically, properties which are priced between R2m and R3m are family-sized homes, which explains why this segment of the market in this area would be quieter.
“There are not many younger buyers because there is a lack of high schools in the immediate area, although there are a few primary schools scattered around town.
“Most of our purchasers are middle-aged, or what is referred to as a ‘mature’ profile, with plenty of pensioners settling here to live out their retirement,” Ketel explains.
Goslett adds: “Younger buyers could consider purchasing property here and renting it out until they are ready to retire.
“When they reach retirement age, they can then either move into a home that has been paid off, or sell the property and pocket a substantial profit.”