Until fairly recently, Fish Hoek and its neighbouring Southern Peninsula suburbs like Clovelly were largely the domain of retirement-aged residents and seasonal holidaymakers. Over the last ten years, however, this demographic has slowly, but surely, been evolving, and recent trends indicate that it’s not just young Capetonians jumping on the remarkably affordable mountain and seaside property bandwagon.
“We’ve been seeing a lot of upcountry buyers looking for property in Fish Hoek lately,” says Leon Bosman, the Rawson Property Group’s local franchisee. “There seems to be a lot of dissatisfaction with service delivery in other provinces, and Cape Town has a reputation for running more smoothly than some other parts of the country at present.”
“Fish Hoek and Clovelly have become particularly popular not only because they remain more affordable than many of Cape Town’s other suburbs, but because they offer such a dramatic contrast to most city lifestyles,” he continues. “We have comparatively low crime rates, beautiful beaches and surf spots nearby, great mountains and wetlands, good schools, good restaurants and shops, and a really amazing community vibe. Clovelly also has one of the best golf courses in the country, which has driven a number of avid golfers to buy in that part of town.”
Of course, lifestyle and entertainment is important, but when it comes to work many might assume that Fish Hoek’s distance from Cape Town’s CBD would deter professionals. According to Bosman, however, this has proved surprising untrue.
“Capetonians are unusually averse to commuting, as a general rule, but to a lot of our upcountry buyers the morning and afternoon drive – or train trip – is comparatively short,” he says. “That aside, we’re also seeing a huge number of work-from-home professionals in the area, who have easy access to the CBD when necessary, but can enjoy the Fish Hoek lifestyle twenty-four hours a day.”
Buyers aren’t the only people flocking to Fish Hoek and Clovelly, however; the rental market is also extremely strong.“Buy-to-let is an excellent opportunity in the area, since demand outstrips supply dramatically and there are always tenants looking for good rental prospects to call home.”
Price-wise, freestanding Fish Hoek properties range from R1 million – R1.5 million on the low end, all the way up to R10 million for premier luxury homes. Apartments are available from as little as R650 000, although blocks are limited to certain suburbs and aren’t on offer in areas like Clovelly.
“At the moment, we have a five-bedroom house in Clovelly on the edge of the wetlands sanctuary with gorgeous nature reserve and ocean views on sale for R2.75 million,” says Bosman. “That’s extraordinary value when compared to similar properties in other parts of Cape Town, and really goes to show why this area is becoming so popular with buyers from around the country.”
Increasing demand does, however, mean supply shortages and increasing prices, and Bosman has noted at least 10 – 15% price growth since last year. While continued appreciation does depend on prevailing political and economic stability, he believes signs are positive for the area’s future.
“Buyers can be confident that Fish Hoek and Clovelly property is still a good long-term investment, but they need to be prepared for interest rate increases and potential municipal rates increases in the near future,” he says. “My best advice would be to talk to a bond originator like Rawson Finance, who can give you an accurate idea of what to expect financially, and can prequalify you for a smooth and hassle-free purchase process.”