Claremont’s booming CBD boosts property prices in most sectors

ALTHOUGH some may fear that commercialisation of suburban neighbourhoods could diminish residential property values, in the case of Claremont, it seems the exact opposite may be true.

“Claremont is one of Cape Town’s oldest residential neighbourhoods,” says Matthew Schrire, a sales agent for the Rawson Property Group’s Claremont franchise.

“It’s always been a favourite for its wide range of properties, great schools and proximity to UCT, as well as its central location that makes it a short drive to almost anywhere in the city.”

According to Schrire, it’s these exact factors that have attracted the now significant commercial component to Claremont as well.

“It’s a very convenient location in which to do business,” he says, “especially if you live in the area too. People are definitely catching on to that fact, and we have existing residents moving their businesses here, as well as employees looking for homes in the neighbourhood to be closer to work. The whole situation has created exceptionally strong demand for properties of all types, and we’ve seen huge capital appreciation and rental growth over the last few years.”

In addition to the excellent growth, Claremont’s commercial hub also appears to have brought residential property investors and developers to the area in droves.

“With the ongoing, strong demand for property and the diversity of our residents – who include students, young professionals, established families and even retired people – Claremont has become prime territory for smart developers and investors,” says Schrire.

“We constantly get approached by developers looking for old houses and vacant land on which to build, and we have a steady stream of buyers looking for Claremont properties to add to their rental portfolios.

“It’s not only investors that are active in the Claremont market, however. We have buyers of all ages and income levels,” says Schrire.

In the more expensive parts of Claremont freehold properties tend to have erven of around 900m2 and prices start at about R5 million,” says Schrire.

“Houses in complexes sell for similar prices, and townhouses can be found for R3m and up. Prices for luxury flats range from R1.5m to R6m.”

In the more affordable area freehold house prices start at about R2.5m, and erven sizes average around 600m ,” says Schrire. “There are complexes selling houses from R2.7m, and townhouses available for R1.8m or more. Flat prices range from R600 000 to R1.7m depending on size and location.”

“It certainly seems that Claremont’s property market has suffered no ill effects from its growing commercial sector.”