Western Cape market promising for seasonal buyers
Holidaymakers are expected to give added impetus to sections of the property market in the Western Cape.
And a survey among Chas Everitt International offices in the region reveals that there are still good opportunities in the market for homebuyers and investors alike.
Fanie Lategan, principal of the Chas Everitt Western Seaboard, says properties along the Atlantic seaboard have been selling at a premium compared to the western seaboard for quite some time now.
Areas such as Blouberg and surrounds along the western seaboard are offering quality properties for homebuyers, investors, tenants, as well as holidaymakers at more affordable prices. We do expect softer demand for holiday accommodation due to fuel price increases and rising interest rates that are starting to bite. These factors, coupled to the effects of the National Credit Act, are also expected to dampen speculation in the market.
But, high-income investors seem unaffected and good quality property in prime locations will continue to sell at a premium.
The new rules on coastal development, he says, will reduce the supply of seaside development and place an even greater premium on quality beachfront stock. Astute investors know this and will continue to seize opportunities at the first sign of weakness in the market.
Meanwhile fractional title has come to the rescue of investors who are not that flush but still want to own property at the sea. This trend will be a main driver in future sales of holiday accommodation.
Lategan adds that fewer projects have come on to the market lately and that demand is building up, especially from the growing number of high-income black investors. This could unleash a new spate of buying once interest rates come down.
Pat McLoughlin, principal of the Chas Everitt Hermanus office, says the town has retained its popularity as a preferred holiday and retirement destination. In fact, indications are that its popularity is growing and we once again expect the holiday influx to stimulate the local property market.
Present conditions favour buyers and create great opportunities for astute investors. We expect buyers will take advantage of this and scout for suitable investments during the holiday season.
The Gansbaai coastal strip stretching from De Kelders to Pearly Beach offers a wide variety of properties at more affordable prices and we expect strong buying activity over the Christmas season.
Looking to the future, the coastline between Hermanus and Pearly Beach is expected to develop dramatically over the next few years, which will create fresh opportunities for investment.
Louis Harding, principal of the Chas Everitt offices in Strand and Gordons Bay says the property markets in these towns cater for all tastes.
Driving down Beach Road one gets the distinct impression that these towns are dabbling their feet in the water. On the one side skyscrapers rub shoulders while the other side reminds one of Soho, Melville and other bohemian places.
Property prices in these towns start at R395 000 for a beginner-home with two bedrooms and rocket to more than R10m for top of the range properties. But at whatever level investors buy, they will invest in a steady market that has shown phenomenal growth over the past three years and will continue to bring rich rewards for those who invest wisely.
Article by: www.chaseveritt.com