FINDING
Student Developments
New Generation Digs Now On The Rise
BY SAMANTHA BARTLETT
Students are increasingly being squeezed out of decent, safe and affordable private accommodation in Cape Town as semigration pressure on the market forces rental prices to skyrocket out of the reach of most cash-strapped families. Compounding the challenge for parents is the fact that one of the best-performing markets in recent years has been the Southern Suburbs, including the stretch known as the“ academic belt” because of its proximity to the University of Cape Town( UCT).
Tina Malyon, Area Specialist for Lew Geffen Sotheby’ s International Realty, says these suburbs were traditionally dominated by freehold properties, but sectional title developments have mushroomed in
recent years in response to the burgeoning demand for student accommodation.
“ Despite the new developments, though, we are experiencing stock shortages in this sector with accessibly priced sectional title units selling almost immediately when they do become available and property values and rentals are now at a premium.”
FNB’ s House Price Index revealed a 7.4 % yearon-year national growth rate for the month of June, which was slightly higher than the 7.2 % rate recorded for May. In contrast, the Western Cape enjoyed a second quarter year-on-year house price growth rate of 12.1 %, which was up from the 12 % recorded during the first quarter of 2016.
36 FEBRUARY 2017 SA Real Estate Investor www. reimag. co. za