New R2.4 billion development is bringing affordable housing to Stellenbosch, With houses starting at R850,000

A new complex is set to open in Stellenbosch, with the goal of offering affordable housing to a region that is famously pricey.

The Newinbosch area intends to bring cheap, secure living to the mostly privileged Stellenbosch residential market after over six years of meticulous planning, lengthy pandemic delays, and a demanding development clearance procedure.

This new-generation “green” neighbourhood is located near the northern entrance of Stellenbosch, about three kilometres from the town’s centre.

Newinbosch is an R2.4 billion mixed-use residential development led by development partners Similan, a Stellenbosch-based residential property development business, and Raubex, a JSE-listed construction company.

According to the developers, the neighbourhood is the largest development currently under construction inside the municipal borders of Stellenbosch.

The Newinbosch property portfolio eventually includes 1,320 apartments spanning five distinct typologies.

According to the organisation, once completed, the neighbourhood would give a new address for 5,000 to 6,000 individuals.

“The selection of homes stretches the entire property ladder, with unit prices ranging between R850,000 and around R1.3 million for sectional title simplex homes and apartments, and R1.8 million and R4.3 million for full title homes,” it said.

“Considering its location, affordable price range and ease of access to the Stellenbosch CBD, the Stellenbosch university and all other major employers in the area, the Newinbosch neighbourhood is well positioned to address the high demand for reasonably priced, secure living in closer proximity to Stellenbosch and surrounding Boland towns.”

Similan’s managing director, Harold Spies, stated that the Newinbosch development addresses a significant demand for accessible and safe living in well-located residential neighbourhoods in and around Stellenbosch.

He attributed the growing demand for accessible and suitable homes in the Stellenbosch area to two main factors: the increasing daily commuter and freight traffic into and through town, which causes severe road congestion in and around Stellenbosch; and the prevailing semigration trend, with the Western Cape Winelands positioned as the preferred destination for relocating families, professionals, entrepreneurs, and retirees from upcountry.

“This is exacerbated by the perpetual need for suitable alternative properties in the wider Boland area, specifically within the middle to higher income sector,” Spies said.

“Interestingly, we’ve already received significant interest from within the Stellenbosch fold, particularly from graduates and young professionals who are keen to establish here, but are unable to afford suitable living options.”

According to Spies, the new neighbourhood addresses the economic barrier that has kept developing middle-income families and young professionals from enjoying the safe and secure lifestyle that has usually been associated with traditional gated communities and security estates.

“Our vision for Newinbosch is that it will set the benchmark for sustainable residential developments to provide greater access to affordable quality and secure and inclusive living to a new generation of South African homeowners.”

The development places a special emphasis on green and sustainable living. Load shedding is also a priority, with conversations with the Stellenbosch council and other stakeholders beginning to investigate the possibility of independently controlled, micro-generation systems.

“This will reduce pressure on the Stellenbosch municipal grid while allowing the neighbourhood to ‘sell back’ excess power to the grid during periods of high demand,” the group said.

The developers are also pursuing green certification for the neighborhood’s homes and structures, which will allow potential residents to get favourable interest rates on home loans.

According to Louise Varga, area manager of Pam Golding Houses in Stellenbosch, who has been designated as the sole marketing and sales agency for Newinbosch, because these properties will cost less to run, purchasers will be better positioned to fulfil their home loan commitments.

“For this reason, and in line with international green financing trends, two of South Africa’s major banks, FNB and Nedbank, now extend preferential terms on personal home loans by offering lower interest rates of between 0.25% and up to 0.5% on green certified home loans,” she said.

The project will also contain a 3,000 sqm urban farm, a pre-school, proposals for a primary and secondary school, and a 7,500 sqm retail centre.

The Newinbosch development will be implemented in stages over the following four to six years.

The first phase’s services began construction in August 2022, with the first phase ready for occupancy in the fourth quarter of 2023. The shopping centre is scheduled to open in 2025.