How to find an old neighbourhood on the cusp of becoming a hotspot


The recent drop in interest rates has many South Africans looking out for property bargains as they plan to purchase their first home, or for some, a buy-to-rent home. 

One effective strategy for prospective buyers is to identify an area that’s currently competitively priced and on the verge of becoming the next big thing – but how do you identify a suburb that’s on the cusp of huge popularity?

In this article we take a look at some of the tell-tale signs of a neighbourhood that’s soon to be on the up and up. Take Parklands for example, a suburb that forms part of the popular Blouberg area at the start of the West Coast, is one of Cape Town’s fastest growing areas on the coast. Just 20 minutes from Cape Town CBD or 15 minutes to Canal Walk, a Parklands home is quickly becoming a sought after yet still affordably buy.

An uptick in construction activity

If a normally quiet suburb suddenly becomes a flurry of cranes and building sites it could be a sign that homeowners and property investors are taking a special interest in the area.

  • Suburbs with lower than average home prices are often popular with developers and prospective buyers looking for excellent deals. 

  • As time goes by these residential areas tend to see their average home price appreciate as the overall quality of homes improves and their desirability among trend-conscious buyers and tenants increases.

New public transportation links

A train or bus route can increase accessibility in a suburb that was previously only attractive to residents with cars - and the trend towards green living means there are more buyers like this than ever before. 

  • A Cape Town home near the MyCiti bus route can be seriously attractive to a prospective homeowner who either doesn’t have a car or plans to cut down on their driving time. 

  • The arrival of a bus or train station in a once quiet area usually results in increased commercial activity and could lay the foundation for the suburb to rise in popularity in the coming years. 

Rising home values 

If you’ve noticed that houses in a certain suburb are selling for more than they were a year or three ago, chances are good that residential property in the area is gaining in popularity. 

The benefits of buying before a suburb becomes wildly popular include a boost in your home’s value and the opportunity to get more house (and garden) for your money before prices start to rise. 

To explore some of the homes in our portfolio with excellent future price potential, contact the Cape Realty team today. 

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