THORNTON PROPERTY PRICES SOAR
Category News
The affordable Cape Town suburb of Thornton has seen sale prices soar over the last year. “Buyers who are keen on this market must be careful not to miss the boat,” says Linette Smith of Jawitz Properties Pinelands. “At this time last year, entry level homes were priced between R850 000 and R950 000, but now this price point has increased to R1.1 million, while homes that sold for R1.1 million last year are now priced at R1.3 million.”
A recent sale shows that in just one year, R200 000 can be added on to the price tag of a property. “We sold a home exactly a year ago for R1 050 000 and we’ve just sold that same property for R1 250 000. Values are seriously increasing, and very quickly,” Smith says.
She adds that properties that come on the market barely make it to being advertised on the web. “Buyers who are on the books are snapping up stock as soon as it becomes available, even competing against each other, which contributes to the prices increasing.”
Thornton has always been an affordable suburb and is almost seen as a gateway into the Southern Suburbs of Cape Town such as Pinelands. “Buyers don’t always live here for the long-term and it’s remarkable to see, with prices increasing so quickly, the returns on investment they’re achieving.”
A town house is one of the best investments yet as they attract the most interest from tenants. “Rentals for a two-bedroom townhouse can be between R5500 and R6800 per month.”
Smith says that some of the properties in Thornton are in need of renovation and while there are buyers in the market for fixer-uppers, these homes don’t command prices in the high millions as the ceiling of the market is around the R1.5 million mark, and buyers should be wary to over capitalise. “If buyers do upgrade their homes a fair amount, they will need to wait at least five years to make it worthwhile financially to sell.”
Sellers in Thornton do best if their properties are well-maintained, but they don’t have to have every modern convenience. “These properties are 65 years old, most of them have been re-done over the years, and buyers here are generally looking to move straight in without having to do repair work.”
Thornton offers value for money where the average plot is 600m2 creating a feeling of space for its residents, and it is so conveniently situated, enjoying close proximity to the artery roads that provide quick access to the CBD and the airport. It has its own small train station and recently, the face of Thornton has been improved. “There has been some upgrading, the area looks good and the average prices are demonstrating that Thornton is the place to invest,” Smith concludes.
Author: Jawitz Website
