MILNERTON A THRIVING PROPERTY HUB
Category Property News
The greater Milnerton area, which includes suburbs such as Woodbridge Island, Edgemead, Bothasig, Lagoon Beach and the very popular Century City to name a few, has a fair mix of property investment opportunities, whether it be freehold, estate or sectional title properties, says Michael Bauer, managing director of IHPC estate agency, and it is interesting to analyse (according to Lightstone’s property data over the last year) what trends seem to be and what sort of market is represented here.
The bulk (53,3%) of Milnerton’s property is freehold, with 30% in sectional title schemes and the balance in estates. Of the property owners here, the majority of owners have had their homes for less than five years. This corroborates the theory that people tend to move (either to downscale or upgrade) every few years, which is presenting a problem in the current market as there is a dire lack of stock, he said.
“We could sell 100 units at present with the list of buyers we have, but the problem we have is still that there is little stock available,” said Bauer. “Homes we do get sell fairly quickly when they are priced correctly. We recently had a listing in Edgemead for a home selling at R2 million, where four offers were put in within two days of it being listed.”
The majority of homeowners are in the mature age group (from 50 years to 64 years of age) with those in the 36 to 49 year old group second percentage-wise.
The average property prices in Milnerton are attainable for most middle income groups, as freehold properties are selling for an average price of R1 362 000, sectional title for R1 252 000 and homes in estates for an average of R1 517 000.
What does buck the trend of many of the traditional suburbs in Milnerton, says Bauer, is Century City, in that there has been no freehold property listed as sold in the last year, with the bulk sold being sectional title. The average sales price of sectional title property in Century City is listed as R1 849 000 and in estates R2 162 000. The average income group here is listed as high (LSM 10) and the majority of property owners are in the mature age group.
Century City is one of the few areas where there have been very few sales in execution over the past few years (only two in 2013 and three in 2014), and numbers have come down dramatically since the high of 2010, where there was a total of 16 properties sold at auction, said Bauer.
“An apartment here was recently sold within a few days of being listed at R1,8 million in cash to a Russian buyer,” said Bauer, “and we see the foreign buyer market increasing steadily.”
Buyers, while being more astute and aware of what the market is doing, are serious when they make a decision and most sellers would be able to get the market related price for their property more readily than in the past, said Bauer.