EDITED BY THE EDITORIAL TEAM :: PHOTOS: SUPPLIED
The high demand for student housing in Stellenbosch sees many new developments rise and some older buildings being repurposed.
The robust demand for student housing in the university town of Stellenbosch in the Cape Winelands, has led to a trend of investors and parents acquiring properties within sectional title developments tailored to meet the needs of this thriving market.
According to Louise Varga, the area manager for Stellenbosch, Somerset West, Gordon’s Bay, and Strand at Pam Golding Properties, the intensified demand for student accommodation has pushed up sectional title property prices close to Stellenbosch University’s campus.
“This demand translates into meaningful capital returns on investment for astute buyers, particularly those who acquire units on or soon after launch,” says Varga. “For example, a buyer who purchased an apartment for R2.4m in in Beau Vie sold it for R2.8m a year later, achieving a 17% capital return in just one year.”
Top security and amenities
Student housing is a rapidly expanding global property sector, and South Africa is no exception, seeing a growing disparity between supply and demand in this asset class. The World Bank’s International Finance Corporation estimates a shortfall of 780,000 student beds in South Africa by 2025. This underscores the attractiveness of investing in accommodations near universities and educational institutions for people seeing strong net yields and substantial capital growth.
The Alxndr
Says Varga: “Over the years the student accommodation market has evolved with more amenities and security a priority. A new two-bedroom unit now includes two bathrooms and two parking bays, while developments are starting to cater for load-shedding.
At My Space – consisting of modern apartments in three different venues; My Space@Drostdy, My Space@Dorpstreet and My Space@Paradys – WiFi is available in all communal areas during load-shedding, while these blocks also include a number of social spaces, game rooms, gyms, private courtyards, special study spaces, a zoom room, deli, laundry and braai.
Student specific
“Taking into account the growing need for student accommodation, the local council has adopted the densification process, with new developments being renovations or rebuilds of older buildings,” says Varga. “To illustrate, My Space@Drostdy was formerly the Drostdy retail space, Stellenbosch Lodge is now an apartment block called My Space@Paradys, and in developing The Niche, three adjacent houses were acquired, the erven consolidated and an apartment block constructed on the site.”
Pam Golding Properties is currently marketing units in 14 residential developments in Stellenbosch – comprising eight sectional title apartment blocks, all of which cater for students or young professionals – and five general residential developments.
Sectional title blocks catering for students only are: Da Vinci, Archimedes and Deo Gloria, while sectional title blocks for young professionals or student accommodation are: The Niche, My Space@Paradys, My Space@Drostdy, My Space@Dorpstreet and The Alxandr. Prices at these developments range from R1.75m to R5.45m for a loft or one-, two-, three- or four-bedroom apartments.
Newinbosch
Across the board
Other residential developments marketed by Pam Golding Properties in Stellenbosch include Welgegund Domaine Prive, Newinbosch, Longlands Estate, Oakview Estate and Vini Fera at Anura, at a broad cross-section of prices ranging from R875,000 to about R13.69m, depending on the development and whether you buy vacant land or a house.
“In Newinbosch, located on 48ha at the northern entrance to Stellenbosch, and only 3km from the Stellenbosch CBD, the university, college, schools, hospitals, Technopark and other business parks, buyers have access to a diverse variety of options across all price ranges,” says Varga. “A total of 1,320 units across apartments, simplexes, townhouses, courtyard homes and homesteads are complemented by a host of amenities including a retail centre, crèche, primary and high schools, church, clubhouse, eatery, gym, tennis courts, dog park, skateboard park, amphitheatre, urban farm, 25m swimming pool, children’s pool, cycling and running routes, cricket nets and children’s play areas among others.” Newinbosch has sold over R200m in residential property in just five months.
Varga says about 47% of buyers are locals in Stellenbosch, 24% from Gauteng and KwaZulu-Natal, 21% from surrounding towns and the remaining 8% are purchasers from other provinces and international buyers. Upcountry buyers tend to rent for a year before they buy, which accounts for the high proportion of Stellenbosch buyers.
