The scenic laid back suburbs along Cape Town’s South Peninsula coastline were once all dominated by character period freestanding homes, but this is changing as ongoing sectional title and estate development remodels the property landscape, particularly in Muizenberg and Fish Hoek which have seen the most development in recent years.
This is according to Steve Thomas, Franchise Manager for Lew Geffen Sotheby’s International Realty in False Bay and Noordhoek, who says: “One of the main driving forces behind the ongoing development is growing demand for property as these areas continue to offer exceptional value and accessible prices in a city where property values in many areas have spiraled beyond the reach of first time buyers.”
Muizenberg now comprises 35.5% houses, 35.11% sectional title units and almost 30% estate homes.
“Rand values and sales volumes have surged in Muizenberg where the total annual value of apartment sales grew by 117% from R84m in 2013 to R183m by the end of 2015 with an acceleration of 86% in unit sales which increased from 123 to 229 during this period”.
“As a result, the median apartment price showed a nominal 8% year-on-year increase from R680 000 in 2013 to R800 000 by the end of 2015.”
Citing Lightstone data, Lew Geffen International Realty Southern Suburbs Co-Principal Arnold Maritz notes that during the past 12 months between August 2015 and July this year, 200 sectional title homes changed hands in Muizenberg with more than half (108) being in the entry level price band of R400 000 to R800 000 at an average sale price of R594 000.
“The second most active bracket was the R800 000 to R1.5m bracket which saw 68 sectional title properties sold at an average price of R1.04m. A further 12 units were sold for less than R400 000, the R1.5m to R3m price band saw nine sales and only three apartments sold for more than R3m”.
“However, of the 35 apartment sales recorded during the past three months between May and July, the R800 000 to R1.5m price band was the most active with 16 sales at an average sale price of R1.03m, while 13 apartment sales in the R400 000 to R800 000 bracket realised an average price of R602 000.”
Thomas says although development has been more recent in Fish Hoek with only 25% of the properties being sectional title, 40% of all property sales in the past year were sectional title homes with the most active price band being the R800 000 to R1.5m, where 36 of the 88 apartments sold at an average of R1.09m.
“In the entry R400 000 to R800 000 bracket, 34 units were sold at an average sale price of R606 000, while 17 sales were in the R1.5m to R3m price band with only one flat selling for under R400 000.”
He adds that even the traditional seaside village of Kommetjie which is known for its quaint freestanding homes is seeing the emergence of sectionalised property sales, with two recent developments in the suburb and another on the cards.
According to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, there has also been a spike in the demand for short and long-term rental property, with correspondingly rising rentals creating an excellent market for investment buyers who now account for 40% of all transactions.
“The market is also being buoyed by the continued influx of upcountry buyers and as well as a growing number of young investors under the age of 35″.
“We are now also fielding more enquiries from international ‘swallows’ who are discovering that False Bay and the South Peninsula in general offer a more laid-back lifestyle than the city and Atlantic Seaboard with access to a unique array of attractions and amenities”.
“The South Peninsula is currently a very affordable high growth, lower risk market that is showing good activity which looks set to continue.”
In addition to the holiday lifestyle the area offers, residents enjoy close proximity to an array of amenities, including excellent schools and medical services, several good shopping centres, top class golf courses and myriad outdoor and sports facilities, including scenic walking trails and beautiful beaches.