Areas and Places

Top prices being achieved as home buyers find value in Southern Peninsula residential property

A Scenic view of Kalk Bay on the South Peninsula.

Steadily growing demand among home buyers is seeing the Western Cape’s South Peninsula region rapidly emerge as a highly sought after residential destination commanding record prices which are increasingly edging past the R8 million and R10 million ceiling and above, reports Pam Golding Properties area manager, Sandi Gildenhuys.

Incorporating appealing, village-like coastal towns such as Simon’s Town, Fish Hoek, St James, Kalk Bay and Clovelly, the South Peninsula is popular among local, upcountry and international buyers for its laid-back outdoor lifestyle and value for money homes.

Says Laurie Wener, MD for Pam Golding Properties in the Western Cape Metro Region: “Offering sea and beaches and a host of leisure activities and attractions, pockets of the South Peninsula such as Kalk Bay and St James have in recent years become fashionable and trendy residential destinations of choice, competing with other prime coastal locations in the Western Cape and further afield.”

While the region offers a broad range of residential accommodation to suit virtually every requirement and budget, over the past year Pam Golding Properties (PGP) has recorded a number of record prices for homes and vacant land sold in these areas.

In quaint St James, world-renowned for its colourful Victorian bathing huts which line the beachfront, a record price of R15 million has been achieved by PGP for an opulent seaside mansion in Main Road. The previous highest price for a property in the St James area was R10.3 million for a luxury home sold approximately five years ago. Main Road, with its spectacular views and sheltered position between sea and mountain, fetches some of the highest property prices along this part of the False Bay coastline.

In Simon’s Town, home to the South African Navy and well-known Boulders Beach, with its large colony of African penguins, a 656sqm plot situated right on the waterfront in one of the most prime locations in the village sold through Pam Golding Properties for R5.75 million. Prior to this sale no other plots have been sold in this price bracket. Among other top end sales in the town, PGP sold a gentleman’s residence on an acre plot for R10.25 million.

Considerably eclipsing the previous highest house price of R3.75 million in Clovelly in 2014, more recently PGP has set a new record price for the area with the sale of a home situated above the golf course for R5.25 million. Similarly, the highest house price achieved in Marina da Gama is R3.6 million for a sale by PGP, exceeding the previous top price in the area of R3.5 million. And in a vacant land transaction, PGP sold a 25ha tract of vacant land in Sunnydale, some 2.5km from Noordhoek, for a record price of R6 million.

Tranquil Fish Hoek is another South Peninsula town increasingly in demand and achieving higher prices. Although not all-time high prices, PGP has achieved top prices for properties including a house on Jaggers Walk on the waterfront that was sold for R10 million, a mountainside house which fetched R5.8 million, an apartment which was purchased for R1.825 million and a 2000sqm plot of vacant land which was acquired for R1.696 million – the latter seemingly a top price for the area.

In Kalk Bay PGP sold a modern, luxurious home set on the mountainside with expansive sea, harbour and mountain views for R8.9 million. Kalk Bay, together with St James, occupies one of the most dramatic settings on the South Peninsula, in an elevated position right on the side of the mountain and with sweeping ocean views from many properties. In an area known for its restaurants and cafe culture, quaint shops, bookstores and art galleries all within walking distance, a cliff-side home in Kalk Bay with panoramic views and luxury finishes can fetch up to R10 million.

In sought after Noordhoek, PGP has sold a home for the second highest price for the suburb of Belvedere – a property which was purchased for R7.8 million.

“During the past several years we have noticed a marked increase in families opting to live in the South Peninsula over and above other coastal locations due to a number of factors,” says Gildenhuys. “These include a preferred lifestyle choice, value for money properties on offer and relatively low crime. The more rural area of Noordhoek sees numerous family buyers who want to enjoy the relaxed lifestyle in this tranquil, close-knit community while having easy access to schools in the Southern Suburbs. Largely due to affordability – and with close proximity to three primary and two high schools, a lot of young family buyers also purchase in the Fish Hoek valley, mainly in the price range up to R2 million-R2.2 million, while the mountainside locations attract a mix of buyers, including more mature purchasers, investors and overseas buyers.”

Due to the higher price bracket, Kalk Bay and St James also attract the more established buyer, with units in the Majestic residential development in Kalk Bay in demand, selling from R6 million upwards. Simon’s Town draws buyers across the board including primary and leisure buyers, expatriates returning home and Gauteng purchasers seeking a holiday or retirement home.

Adds Gildenhuys: “We’ve experienced a flurry of activity from September last year (2014), with the lower price bands around R1.2 million to R1.5 million tapering off this year due to a lack of available stock. Possibly with buyers being motivated to look at more expensive properties as a result of this stock shortage, activity in the middle to higher price brackets from around R2 million to R4 million has increased dramatically. As reported, the top end of the market is trading well.”