Kuils River Property Market - 2018 Property Sales Report
Introduction
The Kuils River own title (homes) property market has seen strong capital growth (measured by the rise in median prices achieved) – rising by 23,1% from R975 000 in 2017 to R1,2 million in 2018.
The contracting South African economy has not affected the Kuils River property market sales volumes – especially relative to the record sale volumes achieved during 2017. The 3,85% drop in home (own title) sales stands in stark contrast to the 40% drop which has been experienced during 2018 in the luxury property market along the Cape Town Atlantic Seaboard.
Kuils River forms part of the Northern Suburbs of Cape Town and has 15 501 freehold properties (of which 2 064 is in estates) and 1 444 sectional title properties (of which 319 is in estates). The town’s demographics include a population of 52 736 adults with an average household income ranging between R35 000 to R45 000.
During the last 12 months there has been a surge in buyers in the lower age brackets – while only 46% of stable owners are younger than 50 years, 74% of recent buyers falls in that age bracket. The majority (75%) of the stable owners are aged 36 to 64. Only 8% of the “stable owners” are between 18 to 35 years old – whilst more than a 3rd (or 38%) of the recent buyers and only 12% of the recent sellers fall into this age group bracket.
Property Sales Analysis
Kuils River offers a big choice of more affordable housing for first time buyers or younger families in the Northern Suburbs – with median prices of R1,2 million in comparison with Brackenfell (R1,3 million), Parow R1,35 million and Bellville R1,75 million.
Kuils River has seen a remarkable growth in property sales volumes during the period 2009 to 2017 – achieving 94% more sales per year in the 8 year period, rising from about 45,6 properties sold per month (548 per year) during the national property market slump of 2009 to 88,6 properties sold monthly (1 063 p.a.) during 2017. Sales volumes dropped by 3,85% per month during 2018 to 79,3 properties sold per month (i.e. 714 property sales in Kuils River up to end of September 2018).
A price range analysis of Kuils 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 R800 000 to R1,5 million – 281 transactions during the last 12 months (October 2017 – September 2018). The 2nd most active market segment was between R1,5 million to R3 million with 181 sales whilst there was only 9 sales in the price range of more than R3 million at an average of R3,888 million in estates and R3,517 million outside of estates.
In the sectional title market 49 units got sold in the last 12 months between R400 000 and R800 000 – which is 53% of the total apartment market sales. The other sales volumes achieved during the last 12 months were respectively 24 units (R0 – R400 000) and 20 units (R800 000 – R1,5 million). There were no sectional title sales in the price brackets above R1,5 million.
48 Residential vacant land (erven) sold in the last 12 months – of which 10 were inside an estate and sold for an average of R2 215 000. The other 38 pieces of vacant land (erven outside of estates) sold for an average price of R503 000.
Capital Growth
Despite the 2018 contraction of the Western Cape property market sale volumes and in some areas even fairly substantial drops in sales prices achieved, capital growth, measured by the rise in median prices achieved, has seen strong growth in the own title (homes) market in Kuils River – rising by 23,1% from R975 000 in 2017 to R1,2 million in 2018.
Capital growth achieved for freehold properties (homes) between 2008 and 2018 was 160,9% or 16,1% per year – rising from R460 000 to R1,2 million.
Sectional title property’s in Kuils River has however seen a decrease in median prices from R674 000 (2017) to R590 000 (2018) whilst vacant land (erven) has remained on the same median price level of R505 000 during 2017/8.
Another noteworthy fact is that the oversupply of sectional title apartments, after the bubble-like surge in developments between especially 2007 and 2008, has been absorbed during the last 9 years. Sale volumes of sectional title units has been gradually increasing since 2012 – up from about 4 units per month in 2012 to 14,5 p.m. during 2017. Median prices has also increased from R362 000 (2011) to R590 000 (2018) which is an increase of 63% (9% per year) – a vast improvement in comparison to the negative capital growth pattern, due to the oversupply, which affected the property market negatively between 2009 and 2011 – resulting in median prices dropping from R503 000 to R362 000.
During this period the surge in sales in execution created a negative price growth pattern with executions rising from 39 units in 2005 to respectively 180 and 177 units per year in 2009 and 2010. This pattern has been dramatically reversed during the last 4 years – dropping to only 11 sales in execution during 2018.
Kuils River has shown during the last year a capacity to withstand negative external market forces. The exceptional capital growth of 23% in Kuils River has been largely due to the strong demand in the price range between R800 000 and R1,5 million – which accounted for 44% of all own title sales (excluding plot or vacant erven sales).
Kuils River Suburbs – Pricing Overview
There are 37 suburbs in Kuils 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.
More than R3 000 000
- Klein Zevenwacht Estate (1 sale at R3 575 000 @ R846/sq.m)
Between R2 000 000 and R3 000 000
- Haasendal (5 sales at an average price of R2 478 000 @ R2 718/sq.m. – highest price R3 550 000 and lowest R1 490 000)
- Zevenzicht Wine Estate (6 sales at an average price of R2 370 000 @ R5 080/sq.m – highest price R3 300 000 and lowest R1 750 000)
Between R1 500 000 and R2 000 000:
- Amandelrug (12 sales at an average price of R1 922 917 @ R1 922/sq.m. – highest price R2 350 000 and lowest R875 000);
- Bosonia (1 sale for R1 800 000 @ R1 816/sq.m.);
- Rouxville (14 sales at an average price of R1 788 273 @ R2 803/sq.m. – highest price R2 800 000 and lowest R616 817);
- Klipdam (3 sales (2017/8) at an average price of R1 773 333 @ R1 769/sq.m. – highest price R2 200 000 and lowest R1350 00)
- Brandwag (2 sales at an average price of R1 722 500 @ R1 750/sq.m. – highest price R1 995 000 and lowest R1 450 000);
- Zevendal (6 sales at an average price of R1 623 317 @ R3 075/sq.m. – highest price R3 165 000 and lowest R1 000 000)
- Elim (12 sales at an average price of R1 616 750 @ R2 421/sq.m. – highest price R2 300 000 and lowest R1 200 000);
- Annandale (4 sales at an average price of R1 611 250 @ R3 635/sq.m. – highest price R2 300 000 and lowest R1 280 000 );
- Mabille Park (3 sales at an average price of R1 610 000 @ R2 743/sq.m – highest price R1 980 000 and lowest R1 350 000);
- Silveroaks (7 sales at an average price of R1 540 000 @ R2 251/sq.m. – highest price R2 050 000 and lowest R770 000)
Between R1 000 000 and R1 500 000:
- Jacarandas (19 sales in 2018 at an average price of R1 418 711 @ R3 133/sq.m.- highest price R1 950 000 and lowest R505 000);
- Brantwood (4 sales at an average price of R1 367 500 @ R2 549/sq.m. – highest price R1 565 000 and lowest R1 240 000)
- St Dumas (11 sales at an average price of R1 361 818 @ R2 217/sq.m. – highest price R2 500 000 and lowest R840 000)
- Mikropark (6 sales at an average price of R1 316 667 @ R3 714/sq.m.- highest price R1 900 000 and lowest R930 000);
- Oakdene (0 sales in 2018 / 6 sales at an average price of R1 296 667 @ R1 347/sq.m. – highest price R1 500 000 and lowest R1 200 000);
- Vredelust (9 sales at an average price of R1 249 333 @ R3 412/sq.m. – highest price R1 595 000 and lowest R400 000)
- Hunters Retreat (4 sales at an average price of R1 157 500 @R2 862 – highest price R1 370 000 and lowest R575 000)
- Loucharmante (2 sales at an average price of R1 115 000 @ R4 114 - highest price R1 380 000 and lowest R850 000)
- Voelvlei (5 sales at an average of R1 199 000 @R2 326/sq.m. – highest price R1 375 000 and lowest R940 000)
- De Kuilen (10 sales at an average price of R1 151 000 @ R2 968/sq.m. – highest price R1 545 000 and lowest R850 000);
- Lilydale (2 sales (2017/8) at an average price of R1 064 500 @ R4 598/sq.m. – highest price R1 250 000 and lowest R879 000);
- Des Hampden (2 sales at an average price of R1 025 000 @ R1 551/sq.m. – highest price R1 100 000 and lowest R950 000);
Between R500 000 and R1 000 000
- Highbury (54 sales at an average price of R885 870 @R3 192/sq.m. - highest price R1 650 000 and lowest R530 000
- Gersham (1 sale in the last 12 months for R850 000 @R2 815/sq.m.)
- Sarepta (13 sales at average price of R515 252 @ R1 496/sq.m. – highest price R780 000 and lowest R145 000)
- Danarand (1 sale of R500 000 @ R1 577/sq.m.)
Below R500 000
- Kalkfontein 1 (1 sale for R220 000 @ R1 375/sq.m.)
- Kalkfontein 2 (6 sales at an average price of R200 000 @ R902/sq.m – highest price R315 000 and lowest R120 000)
If you are looking to buy or sell a property in Kuils 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).