It’s a weekday morning, and Victoria Street in the historic town of Stellenbosch is teeming with students walking or cycling to class. There’s not an empty parking bay in sight, which is probably why most of the students move around campus and its surrounds on foot or bicycle. Much may have changed on this campus over the past 100 years or so since Victoria College became the independent University of Stellenbosch, but there are aspects of student life here that have remained constant.
For one, it’s still far easier to walk than drive around this bustling university town. Another constant, if one looks at the early university records, is that there has always been a great need for accommodation as the student population burgeoned. In 1916 when Stellenbosch University was established there were 558 registered students and 40 lecturing staff. By 1925, this number had almost doubled to 960. Now, just over a century later, there are more than 30 000 students and at least 3 000 staff members spread over five campuses.
Historically, residential properties in student towns around the world achieve a higher capital growth compared to the national average. “This is partly due to impact the influx of students has on the population, which in turn fuels the sustained rental demand,” says Louise Varga, Pam Golding Properties area manager for Stellenbosch. “Furthermore, it is not just students who need accommodation. The academics, lecturers and other staff involved with the university will also need somewhere to live.” Students need entertainment, retail and other amenities, and this too creates job opportunities for a workforce who then need accommodation.
Student towns are therefore big business for the property market, as the dearth of accommodation available in official university residences ensures that there is always a demand for apartments close to campus. One of the new student developments in Stellenbosch that presents an appealing investment opportunity is The Niche, a 51-unit development with bachelor, one, two and three bedroom units from R1.5 million including VAT.
Contemporary in design, The Niche offers premium apartments with quality finishes and fittings, ideal for a student’s needs. Perimeter CCTV and an electric fence provide comprehensive security, and there is off-street parking with remote control access.
Maryke Geldenhuys, Pam Golding Properties agent for Stellenbosch, says that Dennesig, where The Niche is located, is an emerging area that has been earmarked for further development. “The Niche offers an opportunity to invest in an area that looks set to be a hub for students and young professionals within the next five years.” Adds Varga:
“Off-plan developments such as The Niche offer a considerable return on investment, as the buyer benefits from capital growth even before the project is completed,” says Varga
Given the high rental demand for accommodation close to campus, The Niche provides a sound investment opportunity for investors and parents looking for secure accommodation for their children.
For more information about The Niche, contact Pam Golding Properties agent Maryke Geldenhuys: 076 276 6445
