Astute investors who want to be close to but not right in the middle of the downtown buzz, are opting for property in leafy Oranjezicht.
Set high up enough against Table Mountain to offer a feeling of suburban tranquillity, the area also offers phenomenal return on investment, says Tina Katz of Lew Geffen Sotheby’s International Realty.
“Oranjezicht’s increasing desirability is clearly demonstrated by the growth of average sale prices in the past six years. Measured between 2010 and 2015, average house prices experienced a nominal year-on-year growth of 8 percent, increasing from R5.2 million to R5.7m during this period.
“However, when measured from 2013 to 2015 property values spiked, with average house prices increasing from R3.9m to R5.7m, translating to an impressive nominal year-on-year growth of 15 percent.”
However, what is notable is that the most active price band since 2010 has increasingly been houses in the R10m to R20m bracket.
Says Katz: “In 2010, only nine homes were sold in this price band, increasing by 100 percent to 18 sales in 2015, with total rand values for the same period growing by a whopping 188 percent from R125m to R361m – and this just over a period of five years.
“Comparatively, the price band below R10m improved by 35 percent in total rand value, from R618m in 2010 to R836m in 2015 and by 19 percent in the number of sales which rose from 177 to 223.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says apartments in Oranjezicht also fared well, with average sale prices increasing by a nominal 7 percent year-on-year between 2010 and 2015 when prices rose from an average of R1.162m to R1.646m.
“During this period, the most popular and accessible price band for apartments was below R2.5m with 356 apartments sold for a combined value of R364m. The second highest active price band was R2.5m to R5m which achieved 25 sales to the combined value of R74m during the same period.”
Grant Bailey, partner to Katz, says the suburb’s excellent return on investment is a strong appeal factor for prospective investors.
“Oranjezicht achieved the highest average nominal percentage returns on investment for houses in the City Bowl with a nominal year-on-year increase of 21 percent measured over the past six years. The average percent ROI for City Bowl houses is 17 percent measured over seven years.
“Apartments also rewarded property owners, achieving an inflation-beating nominal average ROI of 15 percent a year over eight years, with Oranjezicht in joint first place with Tamboerskloof.”
Katz says that buyers are also attracted by the broad selection of properties options available, from quaint two-bedroom cottages and restored Victorian homes to cosy apartments and well-appointed multi-storey mansions.
“Equally appealing are the amenities and facilities which are virtually on the doorstep for Oranjezicht residents, or just a short stroll away. Families are especially drawn by the choice of excellent schools, including St Cyprians, Herzlia, the German International School, Cape Town French School and Montessori.
“Top class retail offerings like Gardens Centre and Lifestyle Centre on Kloof are only a five-minute drive away and residents are spoilt for choice by the eclectic restaurants and boutiques in the area. Kloof Street, where the Lifestyle Centre is located, is considered to be one of the top foodie locations in South Africa.”
Oranjezicht also has numerous green spaces and parks which are very popular with residents and usually alive with activity on weekends and warm evenings, and the suburb is well serviced by the MyCiTi rapid transit bus network.