The Hout Bay and Llandudno property market has topped a record high R1.2bn in turnover for the last year. This follows the previous high of R1bn for the 2015 year.
According to Stephan Cross, Sales Manager for Seeff Hout Bay, this year is also already off to an excellent start with better than expected sales and rentals activity. “The early part of the year tends to be quite busy for the rental market as newcomers to the area start looking for accommodation”, he says.
“Over the last two years, we have seen a major influx of people into the area, providing an added boost for sales and rentals. At the same time, the much improved tourism figures, both domestic and international, has been a boon for short-term rentals. Cape Town Tourism for example reported a 28% increase in foreign visitors for October to December and the airports authorities reported a record year of arrivals to Cape Town recently”.
“From a sales perspective, the market is showing good signs with January and February activity very much on par with last year, says Cross. The average time that a property spends on the market though has dropped from 75 days last year to 61 days”.
“At the same time, the average difference between the asking and selling prices also dropped from 9% in 2016 to 4.9% for the first period of 2017”.
“Well-priced property though can sell for well within a month, especially at the sub-R4m price band where there is always a shortage of stock. Many of these properties also achieve just about or full asking price”.
Cross says that stock shortages continue to hamper the market and there is still plenty of demand despite the overall weaker economic outlook.
“Hout Bay and Llandudno offer such a fabulous lifestyle, whether you like the beach, the street café vibe or nature, there is something here for everyone. Top that with excellent facilities and amenities and great schools and you can see why the area continuesto see an influx of buyers and tenants”, says Cross.
“The high demand has also boosted the average selling price since last year”, he adds. “The average for full title property now stands at around R4.9m, up from R4.3m during the same period last year. For sectional title property, it now stands at R1.9m, also up compared to the same period last year when it was at around R1.8m”.
“We have also seen some vacant land sales this year, ranging to about R1.8m for 495sqm and R2.8m for 1390sqm. This is always an indication that there is good confidence in an area”, he says.
He adds that the data shows that the property market here is on a solid foundation for this year. “Our agents foresee good opportunities across the board, whether you want to buy, sell or just invest in a second property”.
“That said, there are many nuances and variations in the market and in prices and this is where the role of a skilled and experienced agent is to guide you to the best conclusion, whether you want to sell, buy or invest”.
What is certain though, adds Cross, is that the areas benefit from a superb location, exceptional scenery and natural beauty and a stunning coastline with views as far as the eye can see.
“You are also quite close to the Southern Suburbs and winelands on the one side and the Atlantic Seaboard, Waterfront and City Bowl on the other side. Either way, you get to drive along one of the most beautiful routes in the world, either via the winding coastal route on Victoria Road or Chapman’s Peak on the other side”.