Crime is not a serious deterrent to Hout Bay property sales, say local agents
spokespeople for several Cape estate agencies have recently tipped Hout
Bay as an area in which, now that prices are bottoming out, faster-than-average
appreciation can be expected in 2010.
Matt Mercer, who recently sold his agency to Anne Porter Knight Frank, said that the reasons he is confident of a residential upswing hitting Hout Bay are straightforward.
The first good reason, he said, is that the perceived crime situation is not as serious as many think. People see, perhaps, that there have been four burglaries in a week. What they forget is that the number of homes has increased exponentially. Counting the sectional title units, we have nearly 15 000 homes (and 40 000 people) in this valley. Our crime statistics per capita therefore are no worse than those of Claremont or Wynberg.
The second reason for confidence is that Hout Bay offers great value. Our prices are half (or less) what people are paying for similar properties in Camps Bay or Rondebosch. A three bedroom two bathroom home in Bergendal at R5 million would cost at least R10 million in Upper Camps Bay.
This year, he said, the average achieved sales price has been R3 million but in his view the figure has been slighted inflated by a shortage of stock, which could end soon as the upswing takes a grip.
It is, he pointed out, possible in Beach Estate to get homes at under R2 million and sectional title units are available at R800 000.
Lanice Steward, MD of APKF, said that she supports the view that Hout Bay is now one of the most promising places to invest in.
Like many other Cape Peninsula areas, it can only benefit from the fact that the space for future development is limited and the upgrading of existing homes is ongoing.
Article by: www.mmre.co.za