“A trend has emerged in the Western Cape’s South Peninsula”, reports Harold Kolnik, Principal of Jawitz Properties South Peninsula, where a significant number of sales have been concluded for the purpose of offering self-catering or guesthouse accommodation.
“Buyers, both local and foreign, have realised that the many global tourists who come to the area, are also drawn to it as the coast is not as crowded as other similar destinations, and it’s not as costly as central Cape Town,” he says.
Areas like Kommetjie, Misty Cliffs, Scarborough, Muizenberg and Noordhoek are now on the global map as Meccas for windsurfing, kite surfing, surfing and diving, and offer reasonably priced and comfortable accommodation in picturesque settings.
“Astute buyers and investors have discovered the incredible value on offer and the potential growth that self-catering homes and bed & breakfasts enjoy,” he adds. Occupancy and tourism growth has seen healthy profit, putting the South Peninsula decidedly on the map as an excellent investment destination. “What has also emerged is businesses offering to service and manage these properties for buyers who may not live close by, or for those who would prefer not to run accommodation themselves.”
Recent sales concluded in the Scarborough and Misty Cliffs areas in particular, include three prime beachfront homes that are to be listed on popular sites AirBnb and SafariNow, among other holiday rental portals.
“Many buyers are looking for suitable properties to list on these types of sites – the trend of using this technology has transformed holiday letting from being able to watch 360 degree virtual tours, to getting to see a variety of photographs and reviews, just a few clicks away,” Kolnik says.
The desirability to earn some rental income is certainly appealing and investors have observed that the current weak Rand may mean that investing in a property that can earn an income and capital growth is a good way to hedge against these difficult economic times.
“The variety of homes that could qualify cover the full spectrum of price ranges from a modest apartment to a grand home on the beach,” Kolnilk says. “And most of the areas in the South Peninsula are closely located to the beach and other outdoor attractions in any case, be they just a short walk or short drive away,” Kolnik concludes.