Jan 18 2018
Island House Price Growth
Posted in Woodbridge Island News
Woodbridge Island, since inception, has maintained an average 8.55% growth in house price values.
Those Woodbridge Island homeowners that bought when the properties came on the market in 1987 and still hold them today will have enjoyed a massive 2614% growth on their investment and witnessed an average annual *8.55% inflation of the value of our islands homes.
Bought off plan in 1987 at R149 000, a Avenhoorn 2 bedroom home of 101sqm has now sold at around R3 474 000; while a 3 bedroom 105sqm home of R107 000 bought in Avenhoorn now sold at R3 200 000.
That is a respective growth in equity (property value) of 2330% and 2990%!!
Average prices for homes on the island in 1987 were R128 000, and today are R3 475 000; which is an average increase of 2614% in Woodbridge Island home prices.
Research, conducted by John Loos (FNB Household and Property Sector Strategist), using Deeds Office data across various sub-regions in the Cape metro showed that in the last quarter of 2016 overall price inflation in the Cape metro was almost exactly double the national House Price Index published monthly by the bank over the five year period.
More interestingly was that house price inflation for Cape Town was pegged at little over 8%.
Again following the 2nd quarter of 2017 commenting on the Western Seaboard‚ he said it was “a relatively affordable region for middle-to higher-income households looking for the next best thing from a lifestyle and commuter location”.
With rentals on the Island currently averaging R22 000, new landlords are getting a return on investment (ROI) in the region of 7.6%. Again those of us who held our investment properties on Woodbridge Island are enjoying a ROI of some 206% and an average net rental return of nearly 90% after paying rates and levies.
Not a bad return, all considered!!
(*Compound growth over 30 years using average.)