Consistent development is the foundation of continuing growth and demand in the Upper Highway area
Category News
Michele Wilson, co-Director of the Seeff Hillcrest, Kloof & Waterfall office, says that the Upper Highway is fortunate that as a result of ongoing multi-faceted development, the sales tempo has not decreased. “Newly launched developments such as the 508-unit Emberton Estate have captured a large segment of the market and now moves into phases two and three with the launch of freehold townhouses with an average price of around R2.7m, off the back of over 160 sales of apartments with an average price of around R1.5m.
“The recently launched Cotswold Downs Fenns offers 65 apartment-type units. It is exciting to hear that the Stoneford Equestrian Estate is relaunching as Stoneford Country Estate, and phase two will see one-acre plots reduced to half an acre, with a more affordable yet upmarket package of around R4m per unit including land. Phase three will offer freestanding sectional title units set in clusters, with a projected price range of R1.6m to R1.9m for two or three bedrooms.
“The Shongweni area north of Kassier Road, which is owned by Tongaat Hulett, is earmarked for mixed development including commercial, logistics, light industrial, business park and low-density offices. The development site is approximately 182 hectares and is currently agricultural. However, all rezonings have been approved as this development has been 10 years in the planning. Its projected launch in 2019 will see the beginning of a 15- year roll-out process, which once again underpins strong economic activity in the area. It is this economic activity that feeds the property market.”
Fellow co-Director of Seeff Hillcrest, Kloof & Waterfall, Gregg Wilson, adds that there has also been a dramatic increase in stock levels in the area. “This means that buyers have more choice – and this creates an opportunity for some aggressive purchasing to take place. So sellers really need to take care in pricing their property correctly in a market which is over-stocked in some categories. During 2017 items for sale moved upward by 50% to 696, and the current stockholding for 2018 has increased further to 1095 items for sale. In short this means that although our area is still popular, it has become a market that favours buyers because of the large choice available.
“The current pattern in 2018 sees a projected sales outcome for the year of 1052, which is close to the norm for this area. The Upper Highway area continues to sell a consistent amount of residential properties per annum – between 1100 and 1300 of them. Property sales are often driven on sentiment, and there is a cautiously positive outlook founded on the development in the area outlined here.”
The Wilsons list the ‘big 6’ most popular selling suburbs in the Upper Highway as follows: 1. Gillitts at approximately 280 units per annum; 2. Kloof at approximately 250 units per annum; 3. Assagay and outlying with 230 units per annum; 4. Hillcrest at approximately 186 units per annum; 5. Waterfall at approximately 58 units per annum; and 6. Forest Hills at approximately 48 units per annum.
The top four price segments with regard to sales are: townhouses priced between R1m and R1.5m at 21 per month; houses priced between R2m and R3m at 10 per month; townhouses of between R1.5m and R2m at 9 per month; and houses between R1.5m and R2m at 8.5 per month. The slowest selling price segments in the area are land priced between R800,000 and R1m at 1 per month; houses over R4m at 2 per month; houses over R3m at 2 per month; and townhouses between R3m and R4m, selling at 3 per month.
Adds Gregg Wilson: “There is a strong indication here that with high building costs and the availability of already made stock will slow the sale of land; in addition, properties priced over R3 million – both houses and townhouses – have slowed dramatically.
“Each area has its own economic and property environment; for example, some areas have no room for development, and with the slowdown of sales they also have no stock. The Upper Highway area is an environment where there has been consistent development since 2002. This consistent and quite dramatic growth fuels the local economy as there is an increasing trend to live and work here. This explains the consistent demand over the last 5 years.”
Contact Seeff Hillcrest, Kloof & Waterfall Directors Michele Wilson 083 415 3970, email michelewilson@seeff.com; Gregg Wilson 083 321 8500, email greggwilson@seeff.com; office 031 765 5326.
Author: Leverne Gething
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