Rentals at the Stonehurst Mountain Estate — a 40 hectare security development overlooking Constantia Valley — are buoyant and performing better than expected says Mark Steyn, CEO of Stonehurst Properties, a sales agency for the project.

"In one week this month we signed up five tenants whose leases have a capitalised value of just on R1-million," said Steyn.

Investors in Stonehurst townhouses are now getting between R11 000 and R19 000 per month while those who are letting out houses can expect rentals from R25 000 per month with the latest rental being concluded at R30 000 per month.

Rental yields averaging up to 6.5 percent

These figures equate to an average return on the investment of 5.5 to 6.5 percent. Townhouses are now selling from R2.3-million and freestanding homes from just on R6-million.

"Stonehurst," said Steyn, "has rapidly gained an upmarket image, largely because good architectural guidelines have ensured that no one house detracts from the universally high standard and there is a pleasing degree of conformity among all those homes that have been built."

Right now close to half of the estate has approved plans from the SMEOA Design Review Committee and around 30 percent is complete or under construction.

Price growth of 15 percent per year

According to Steyn, significant price increases on all resales are still being achieved largely, in his opinion, because of the security and lifestyle that Stonehurst offers. He has just sold a townhouse for R3.5-million, realising a gross capital return of 15 percent for the owners who held the property for just one year.

Recent house sales have all been at close to R6-million and buyers are paying R2-million for a typical plot of 900m² (i.e. about R2200 per m²) with pricing of entry level vacant stands at R1.3-million.

One of the top erven in the estate is now on the market at R4.9-million. At 2500m² it has a slightly lower per m² price due to its size.

Steyn repeated that for a majority of buyers Stonehurst’s big draw card is its security.

Electrified fencing, guarded entrance, patrols and CCTV

"We get people walking in here who tell us that in one or other of the Southern Suburbs they have been robbed or held-up — and sometimes this has happened more than once. Stonehurst, with its electrified fencing, guarded entrance, patrols and CCTV gives them a chance to lead a new way of life."

Also very attractive to buyers, said Steyn, is the R15-million Lifestyle Centre brought on stream right at the outset by the developers, Mvelaprop.

"The daily personal training, Pilates, Yoga and Spinning sessions as well as the big screen viewing of sport events and other functions have made Stonehurst a friendly place with a great communal spirit," said Steyn.