CAPE TOWN - First time buyers often struggle to find a property that offers affordability and security and the recent VAT increase will place a heavy burden on buyer's pockets. However, property expert, Toni Enderli says that the property market does cater for entry buyers need.
Cape Town suburb, Parklands has seen a recent spike in popularity and opportunity for buyers.
Developers, International Housing Solutions (IHS) in partnership with Group Five builders, launched a development, The Courtyard which sold out within 24 hours.
The Courtyard was built by prioritising affordability and security with two bedroom apartments selling from R729 000.
IHS is now planning to launch a new development which will also offer units for less than R1 million with a five-year structural guarantee.
“This kind of value is unique to Parklands which is exploding in popularity due to affordability, its location, the MyCiti bus route, world-class shopping malls, hospitals, schools and its lifestyle attractions - not least beautiful beaches nearby, some of which are among the world’s best kite surfing destinations,” said Enderli.
Enderli says that Parklands is especially popular for first-time buyers as they can access 100% bond and only put down a deposit of R10 000 to secure a unit.
In addition to its affordability, Parklands is also situated close to the city and beach as well as shopping malls and schools.
“The winning combination of location, affordability, and amenities make this an extremely popular suburb”, says Enderli.
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On future growth and potential for Parklands, Enderli said that there is still “enormous potential for Parklands”.
“It’s one of the few suburbs in Cape Town where there is room for expansion. So, I see this suburb growing in size and popularity. This should also impact positively on property prices in the area as its popularity increases. It’s a unique suburb for all the reasons I have stated and developers would do well to try to replicate this model elsewhere as Parklands could become a benchmark for communities seeking integration, affordability and a good quality of life”.
Parklands' estimated property market increase is about 12% year-on-year, compared to the average of other areas which is 10%, said Enderli.
Enderli adds that other areas on the rise which should be watched are Durbanville and Stellenbosch.
On the feasibility of apartments compared to homes, Enderli says that both are good investments but for the entry level, apartments are more affordable.