Its broad appeal to property buyers from across the price spectrum is sustaining steady returns on Cape Town’s Western Seaboard.
“When it comes to development, the 25km stretch of prime property that extends along Cape Town’s West Coast from Milnerton to Melkbosstrand is the fastest growing area in the whole of the Western Cape,” says Hercules van der Walt, owner of the Chas Everitt International Western Seaboard franchise.
“And, because the area represents a well-balanced spread of all segments of the market, it is also one of the most inclusive, offering buyers a choice of properties, from affordable starter homes to top-tier estate homes priced at R10m and more.”
He says that areas like Table View and Parklands, once considered retirement zones, have benefited from considerable urban rejuvenation and that first-time buyers are now snatching up homes here for as little as R700 000. Meanwhile beachfront properties in Melkbosstrand, Big Bay, Flamingo Vlei, Sunset Beach and West Beach rival the best on the Atlantic Seaboard – and are increasingly catching the eye of blue-chip investors.
However, while there is interest aplenty in big-ticket homes – especially given their increased exposure through Chas Everitt International’s affiliation to Leading Real Estate Companies of the World© and its luxury real estate programme Luxury Portfolio International© – the middle of the market is the most dynamic, says Van der Walt. “The Western Seaboard is one of the few areas left in Cape Town that is still able to accommodate the country’s rapidly expanding middle class.”
In this respect, value for money is a key driver, he explains. “For many years, the area was under priced and undersold. But, with the influx of upcountry buyers and even Capetonians who feel that the Atlantic Seaboard and Cape Town southern suburbs have reached a price ceiling, this is changing fast. Total monthly sales for the Western Seaboard now average between R250m to R300m”.
“When it comes to optimal return on investment, prospective buyers shouldn’t dither either,” he says. “We’re predicting that properties currently selling for R700 000 will be worth over R1,5m in five years. Price escalations in the area are forecast to significantly outperform the national market”.
“That said, there is no shortage of development earmarked for the Western Seaboard, which is also one of the few areas left in Cape Town that still has tracts of open development land. Some 5000 new residential units are scheduled to be built in the Parklands North region in the next four to five years. They will be part of a massive new integrated development that will comprise both entry-level and high-end homes as well as green areas, schools and medical facilities”.
“And, at 65 000sqm (and designed to grow to over 90 000sqm), the new Table Bay Mall, which is being built on a 20ha site on the corner of the R27 (West Coast Road) and Berkshire Boulevard and is due to open in September 2017, is pegged to be the second biggest shopping centre in the Western Cape.”
New development aside, the Western Seaboard’s assets – which include its proximity to the CBD (just 25 minutes on the MyCiti bus), its good private and state- owned schools (such as Parklands College, CBC St John’s and Elkanah House) and its laidback beach lifestyle – are an easy sell, says Van der Walt.
“Where else will you find such a range of homes, still affordably priced, on one of the most beautiful coastlines in the world?”