High demand, easier lending conditions, and transfer duty relief is driving the entry-level housing market in Cape Town with developers unable to keep up, according to property expert, Toni Enderli.
Current buoyancy in the lower end of the property market will continue, he added, particularly in light of Finance Minister Tito Mboweni’s increase of transfer duty exemption to R1-million.
Some banks have responded to the demand by offering 100% finance “because they see the entry-level sector as an incubator for growth,” Enderli added.
He said the demand in this sector was behind the launch of Ihlathi, the ninth entry-level gated community by International Housing Solutions (IHS), a global private equity fund focussed on affordable housing and offering one-bedroom apartments from R689 999 to penthouse units at R1.2-million — including transfer costs.
Ihlathi (forest or greenbelt), is located in Parklands, which Enderli says is one of the country’s most popular, integrated, well-positioned and affordable suburbs.
Situated around a park and bordering a nature reserve, Ihlathi offers environmentally-friendly technologies that use 20% less electricity and water, excellent security and up to 10 percent annual capital growth.
IHS’s SA MD, Rob Wesselo, predicts the affordable housing market will continue to soar in popularity, particularly in Parklands which is less than 20km from the CBD and which offers easy access to schools, shops, work opportunities and some of the country’s most beautiful beaches.
Enderli, who heads up Realtor of Excellence, said Ihlathi had launched the first phase (102 of a total 384 units), available for occupation early 2021.