More than R1 billion worth of property sold in Hout Bay

This luxury three-bedroom home was recently sold for R10 million.

Annual property sales in Hout Bay have just surpassed the magic R1 billion mark, according to James Lewis, Seeff’s managing director for the area.

“Based on the latest data recorded on Propstats by agencies operating in the area, sales for the 12 months from August 2014 to end of July 2015 amount to just over R1.01bn. This is a major milestone and it’s the first time this level has been achieved since the economic down-turn of 2007/8. It also reflects the growth in the local property market,” says Lewis.

“This value is about 70 percent up on the R594 million of three years ago and just over 40 percent better than the R705m of 2013.

“The average sales price for this year now stands at about R3.4m, 20 percent higher than last year’s average of R3.04m and almost R1m more than what it was in 2012/3.”

Lewis says the growth of the market and strong demand for homes in the suburb is further demonstrated by the activity in the R5m-plus sector. In 2012, there were only about 20 sales recorded above this price band. This increased slightly to 27 transactions in 2013.

By last year, this had doubled to about 53 sales worth just over R400m at an average price of R7.68m. Most of these high priced sales were in the sought-after security estates such as Kenrock, Ruyterplaats, Avignon, Berg-en-Dal and Baviaanskloof Private Estate as well as in the Scotts Estate and Baviaanskloof neighbourhoods.

Lewis says top prices are also edging closer to the R10m mark with about 12 sales so far for the year priced from just under this level to almost R20m.

“Although most buyers are Capetonians, the suburb has experienced an increase in demand from buyers moving from other provinces, especially Gauteng, but even from the Eastern Cape. More than half of all sales over the last year have been cash deals,” says Lewis.

Agent Ingred Blicher Hansen attributes the uptick in activity to a combination of location and lifestyle, and she says buyers are prepared to pay ever higher prices for homes here. That notwithstanding, there is variety, from well-priced apartments and townhouses around R1.5m to luxury homes that can easily sell for R10m and more.

“Many buyers also believe the suburb offers more value compared to what they can buy elsewhere on the Atlantic seaboard and even in the southern suburbs,” says Hansen.

While it’s still a very laid back neighbourhood, the upgrades taking place in Hout Bay have been a definite boost for the property market, according to agent Nolan Wood.

“The International School is the first high school in the suburb, and the level of education on offer is highly prized by parents,” says Wood.

“Although popular with older buyers, especially retired people, Hout Bay is now relatively young with a vibrant energy. According to the latest data from Lightstone for example, more than 80 percent of recent buyers are under 50,” says Lewis.

“We have not seen any drastic downturn in the demand. Stock levels are still very low to meet the buyer demand, so it is still a good time to sell.”

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