The hottest area for apartment investments right now is the City Bowl suburb of Woodstock. The neighbourhood is not only acclaimed locally, but enjoys international recognition with a recent UK Guardian article for example naming it “Cape Town’s coolest neighbourhood”.
Which investment opportunities are available?
You simply cannot go wrong by investing in Cape Town property right now, especially close to the central City area. Chad Belcher, an intern agent from Seeff Southern Suburbs, says Woodstock offers the ideal investment mix for residential apartment buyers.
It is now the latest regeneration success story as the focus shifted from the Cape Town CBD outwards to Woodstock and surrounding areas due to lower price points and a choice of trendy new apartments. Apartment developments are meeting the demand for an international get up and go lifestyle with minimal maintenance and management.
Belcher further says that for those looking for the trendy Cape Town inner city lifestyle with close proximity to the Atlantic Seaboard, but at a more affordable price, Woodstock offers the ideal alternative. The convenience factor is huge. It is under ten minutes from UCT, the CBD, Waterfront and Atlantic Seaboard.
Woodstock is fast becoming SA’s trendiest urban hub. Along with landmarks such as the Old Biscuit Mill, Neighbourgoods Market, you have immediate access to a plethora of creative industries, art galleries, restaurants, breweries and co-working spaces.
The modern apartments are attracting a mix of own-use and rental investment buyers. The agent says they generally offer significantly lower price points compared to the neighbouring CBD, and higher investment yields depending on the property and price paid.
It makes excellent financial sense to invest here now. He says after a period of high price escalations up to around 2018/9, the onset of the two-year Covid-pandemic period put a dampener on the market which means the value on offer is tremendous.
You can for example find studio, one and two bedroomed apartments priced from just R915,000 to R1.15 million with all the mod cons, secure parking and high-speed fibre connectivity in “The Hub”, one of the trendiest complexes in Woodstock. The units are also pet and bicycle friendly and close to the MyCiti bus network, and the complex offers a rooftop gym with a running track with fabulous panoramic views of the Mother City.
These apartments require no investment upfront with no deposit required, and 100% approved home loans available for qualifying buyers. All costs are included and there is no transfer duty or bond costs. They are ready to transfer in under three months and bond repayments only commence once the property is transferred.
These units offer an existing rental revenue stream with pre-vetted tenants, lease agreements and a net yield of around 7%.
Belcher says the neighbourhood is attracting young buyers with about 42% of recent sectional title buyers under 35-years old. Although sectional title property only makes up 32% of all property stock, it accounted for 44% of all sales in 2022 and a whopping 60% in 2021 based on Propstats data.
It is a great time to invest given that demand for Cape Town property looks set to continue rising over the next few years as people look to semigrate and move their businesses to this market for more reliable service delivery.
“We have also not seen runaway prices in Woodstock. After peaking in about 2018/9, prices have remained fairly flat since the onset of the two-year Covid Pandemic which means values are poised to rise. You can get in low right now, and reap the rewards of excellent rental returns and capital value growth’’, concluded Chad Belcher.
Writer: Gina Meintjes
