PROPERTY: W Coast Plots Selling Again
Recent Western Cape Business News
The West Coast property market is starting to move again on the back of positive economic and tourism sentiment says Seeff West Coast licensee, Pierre Germishuys. Although sales volumes in the area are nowhere near their peak levels, around 1,500 properties have sold annually for the past two years; an indication of some stability returning to the market, he adds. Buyers have also been prepared to pay close to the asking prices, largely due to more conservative pricing on the part of sellers. While there have been sporadic high value sales in the region, about 90 percent of properties have sold below the R1,5 million price mark.
The market here is dual in nature in that we have both a residential and secondary home market mostly for holiday and retirement homes, he advises. In addition to a rise in residential sales, there has also been renewed interest in holiday homes and commercial property while the holiday rental market growth is good news for potential investors, he adds.
According to the latest provincial economic indicators, the region is one of the fastest growing geographic areas and the second largest contributor to the provincial GGP (gross geographic product), after the City of Cape Town itself. Development and diversification of the local economy is set to further boost this, continues Germishuys. Growth of the oil and gas sector and the establishment of an Industrial Development Zone (IDZ) will not only further boost demand for homes and rental properties, but also for commercial property from entrepreneurs looking to provide support services for the growing industry and population. The extension of the Bus Rapid Transport (BRT) System to the area is also welcome news for the tourism sector and commuter buyers.
The enviable coastal lifestyle and relative affordability along with the growth of the area is the main draw card for buyers and investors. Saldanha agent, Elma Steyn, says this is well illustrated by the fact that the majority of sales this year has been in the price band below R1,375 million; six of which sold below R400,000. Sea view plots here are priced from as low as R215,000 to R550k,000 for between 700sqm and 800sqm while three bedroomed family homes and retirement cottages start at about R650,000. Holiday homes range from R1,09 million to R1,8 million for a seaside plot of 1,300sqm with a three bedroomed cottage and great development potential, says the agent. An industrial property recently sold here for R10 million, a clear indication of the growing value of industrial land, she adds.
Vredenburg residential buyers are currently paying from around R230,000 for a 500sqm vacant plot while three bedroomed homes are priced from about R645,000 says agent, Lizette Wiseman.
The quaint village of Paternoster has also seen renewed buyer activity, not only from local buyers, but also foreign buyers says agent, Marina Enslin. Paternoster remains a gem on the West Coast where the return on investment has almost always exceeded expectation, she adds. The fact that the biggest seller over the past year has been vacant plots priced between R230,000 and R800,000 is testimony to this, she adds. Holiday cottages have sold for between R1,24 million and R2,85 million although a few have sold above R3 million. Properties priced below R1 million remain the most in demand in the village. The announcement by the major banks that they are now again prepared to take rental income into consideration for bond applications on hospitality properties is welcome news for investors here as the town offers stunning guest houses and self-catering establishments, she adds.
Although Capetonians and the rest of the province remain the strongest buying demographic in Langebaan, agents Jaco Coetzee and Louise du Plessis says that interest from upcountry buyers and even foreign buyers has picked up over the past year. Over the past year, vacant plots have sold for between R650,000 and R1,9 million for around 500sqm while sales of holiday cottages have ranged from R880,000 to R1,7 million. We have even had a few sales above this mark, they add. The village offers a diverse selection of holiday properties, ranging from apartments and townhouses to lovely golf course and seaside homes. Apartments and cottages start at around R795,000 while holiday homes range upwards of R1,1 million. There are still exceptionally good value vacant plots on offer, priced from R275,000 for a golf estate plot with sea views. As seaside plot that overlooks the lagoon and offers the opportunity to build a home that literally hangs over the rocks is priced at R1,575 million says agent, Jaco Coetzee.
Holiday home owners and buy-to-let investors would be interested to know that there is a high demand for pet friendly properties in Langebaan and the other coastal villages. Our clients are mostly looking for at two to three bedrooms at monthly rentals of between R3,000 and R6,000 says rental agent, Clarice Pisano. Most tenants want unfurnished units and landlords are advised to remove their furniture as there is little to no demand for furnished units. While there is good demand for rental accommodation especially for the upcoming Flower Season between late July and October, property owners need to understand that pricing remains conservative, she concludes.
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