False Bay’s small town of Muizenberg is getting noticed.
Some idea of how the False Bay coastal suburb of Muizenberg — and especially its central village homes, some of which date back to the 1930s or even 1920s — has gained in popularity can be realised from the simple fact that when he first opened an office here in 2002, the average price of a home sold in Muizenberg Village was R120,000. Today it is ten times that figure — R1,2 million, with many homes in the old village going at close to R2 million.
This was said last week by Errol King, franchisee for the Rawson Property Group’s Muizenberg franchise.
“In recent months”, added King, “home owners in Muizenberg village have found themselves in a seller’s market where demand exceeds supply. Although prices in the old village are still approximately half those of the more popular suburbs up the line, they have been rising at 8 to 10% per annum. Three years ago a certain three bedroom home was bought for R400,000. Today, says King, it could easily be sold for R1,5 million (although it has not been put on the market because the owner is satisfied with the rental income of R9,000 per month which it provides).”
“Perhaps more than any other False Bay coastal precinct,” says King, “Muizenberg offers a really attractive lifestyle. Any morning of the week at 7 a.m. you will see surfers and paddle skiers on the water and possibly a group setting off to cycle or climb the mountain. This is an area in which people do make the most of their environment. Furthermore, much of Muizenberg, but particularly the old village, has the great advantage of being within walking distance of a suburban railway line and of being within 15 minutes’ drive from Cape Town’s CBD.”
“In recent years”, says King, “much of the interest at Muizenberg, particularly from investors, has been focused on apartments. Here units which less than six years ago rented at R1,200 to R2,400 per month are now renting at R4,500 per month” and his franchise manages just over 160 units and are seeing rentals rise at 10 to 12% per annum.
King has predicted that his rental portfolio will grow by a further 20% this year.
Price increases also, says King, are being shown in the homes at Muizenberg East. In the last decade some nine or ten new developments have mushroomed, the majority of which provide “affordable units” which today still offer exceptionally good value. As an example, he says, his franchise has is a two bedroom home in Soralia Village for sale at R700,000.
“In general,” says King, “it is now more appreciated by investors that Muizenberg really does offer good value, but that is still not fully grasped by the majority of Capetonians who are inclined to see Muizenberg as “rather far away”, when it is in fact conveniently positioned for most of the Cape Peninsula and for Cape Town. The situation is changing and we are seeing a steady migration southwards from people who are finding the prices in such traditional areas as Rosebank, Plumstead, Kenilworth and Wynberg a little too high for their liking.”