New Burgundy development raises values across the board

New Burgundy development raises values across the board

Towards the end of 2012 Andre Swart, franchise principal for the Rawson Property Group’s Brackenfell Roslyn franchise, and his second-in-command, Rowan Alexander, predicted that probably no residential area in South Africa would experience such phenomenal development and price appreciation as Brackenfell.

Bracken-FAIL? Quite the contrary

This confident statement was based on two facts. The first was that this franchise, which has regularly been a top performer amongst all of the franchises in the Rawson Property Group on several occasions, was generating record sales (about 25 per month) in the existing second-hand home market. Secondly, when this statement was made, they had just secured the sole marketing and sales mandate for a consortium of six property developers led by the company Brick and Board, which had been given the go-ahead by the City Council on the new Burgundy development sited within five minutes of the centre of Brackenfell’s centre. Units here are being marketed on a plot and plan basis in a fairly wide price range, but the biggest demand is in the R1 650 000 to R1 700 000 bracket.

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An artist’s impression of the front view of a single residential unit.

Burgundy a sales success

In the five months since the launch, the Rawson Property Group’s sales team has sold 122 units in the Burgundy development, and is continuing to sell at a rate of around 20 units per month. They are usually able to promise delivery within 15 weeks of the sales document being signed. Altogether, therefore, this franchise is now signing up around 40 new homeowners per month – a remarkable achievement.

Swart and Alexander said this week, spurred on by the growing problem of stock shortages in the second-hand market, that values continue to increase by some 10% year-on-year. At the Burgundy development, they added, prices are now rising by 18% on an annualised basis, therefore even faster than the second-hand market.

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A single residential unit. The buyer of one of these units will also have a wonderful variety of fixtures and fittings to choose from.

“The Brackenfell residential market,” says Swart, “is ideally suited to anyone looking for a three- or four-bedroom home on its own plot (150m2 to 200m2) in the R1.3-million to R2-million bracket.”

Locals weighing up options

Buyers at the Burgundy development have a wide range of choices – there are approximately 10 styles, each of which has a big range of sizes and configurations. What is more, this development, says Alexander, has raised prices throughout Brackenfell – all homes here have increased in value recently. Not surprisingly, a fair percentage of Burgundy’s buyers are, in fact, local Brackenfell people who, seeing the quality of the new homes now being offered, want to upgrade to them. They can very often achieve this by selling their own homes and moving to the new homes without significantly increasing their outlay – perhaps spending only R250 000 more than they get for their existing home.

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An artist’s impression of the rear view of one of the many home styles that are available in the ± 300 single residential units.

Alexander and Swart both agree that they are confident that the demand for Burgundy properties will remain strong, even if interest rates increase by as much as 2% or 3%.

 

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