Real Estate Investor Magazine South Africa July 2015 | Page 23

REI RESIDENTIAL

HOUGHTON EXPERIENCES RAPID
RESIDENTIAL EXPANSION

WESTERN CAPE THE PLACE TO
INVEST IN PROPERTY

Mike Deacon
Director of Developers
Equity Estates Cape

H

oughton is currently experiencing vast and rapid re-development and expansion,
especially in Lower Houghton. Property in Houghton Estate consists of around
54.24% freehold homes, 40.29% sectional title units and 5.48% estates. From 2004
to 2006 property prices in the area saw a steady but marginal increase, however, from
2007 until 2009 prices rose by much greater increments.
According to Lightstone data, the largest percentage of recent buyers in Houghton have
been consumers between the ages of 36 and 49 years old, followed by those ranging
between the ages of 18 and 35 years old. The age groups represent 40% and 32% of recent
buyers respectively. Consumers between the ages of 36 and 49 years old represent the
highest percentage of current owners in the area (38%). This age category, along with
consumers aged between 50 and 64 years old also make up the highest percentage of
recent sellers, with each age group accounting for 32% of recent sellers.
About 36.99% of properties sold in Houghton between June 2014 and May 2015 were
priced above R3 million. Around 23.29% of properties sold were those priced between
R1.5 million and R3 million, while 17.12% were priced between R400 000 and R800 000.
Properties that fell within the R800 000 and R1.5 million category represented 16.44%
of the area’s sales, while properties priced below R400 000 accounted for just 6.16% of
property sales.
In 2014 freehold home prices saw a massive jump, with the average price at around
R5.142 million.
Phil Hammill
Area Principal
Richards Bay, KwaZulu-Natal

Royal Creek, a new suburb near Richards Bay,
compri