Stellenbosch - town of Oaks and Property Investment

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Stellenbosch, the 2nd oldest town in South Africa is renowned for its Cape Dutch buildings, excellent university and wine culture.  It is also well-known that it is one of the most sought after areas for property investors in South Africa.

Stellenbosch is primarily a farming and academic community.  The popular University of Stellenbosch is growing annually and provides a growing demand for rental properties as hostels can’t keep up with the rising demand to house students.  Although the initial capital investment in sectional title units are relatively higher than when compared to other similar sized towns, it is the strong and continued capital growth that keeps pulling in property investors.  Available statistics on Stellenbosch properties prove that, in selected areas, the price of property has consistently doubled every five years since 1940.

Furthermore the town provides a lot of new job opportunities through large businesses, leading to a constant demand for affordable housing and rental properties under the young and mobile workforce.

One such area which provides exceptional return on investment is Welgevonden Estate, which is situated on the northern fringe of Stellenbosch. This estate is over a decade in the making, and consists out of +/- 1000 full title homes and an additional 300 sectional title properties.  It is arguably the safest area to live in Stellenbosch, with 24-hour access controlled security.  Property values in this area has continued to do well over the past years despite the general economic slowdown, with the average house price rising from +/- R1 415 000 in 2010, to +/- R1 610 000 up until July 2011 – a very solid 13.87% nominal year on year growth!

The recent addition of the Stone Square shopping centre to the Welgevonden neighbourhood has also brought the comfort of convenience shopping to the area, and will continue to add value to the estate for a foreseeable time.

Should you be interested in making an investment in the Stellenbosch area, keep the following in mind:                          

Position! Position! Position!

Security is getting more and more important to buyers all over our country, and Stellenbosch is no exception to this rule.  Security estates like Welgevonden Estate is therefore providing a much needed service to its residents. 

Safe parking

Management and financial status of the sectional title block or the home owners association

For more information call Meridian Realty on 021-8899769 or email us at   To view a list of all the properties we currently have for sale in Stellenbosch, click here.

Author: Antonie Goosen

Submitted 10 Oct 11 / Views 4287