select
|

Hermanus residential market makes a strong comeback

The residential market in Hermanus has made a strong recovery from its low base three years ago, and looks to be on the brink of its first boom since 2007.



John Quincy, managing director of Lew Geffen Sotheby’s International Realty in Hermanus says: “The market is very active at the moment and, although Hermanus has always been very seasonal, we have experienced good sales figures through the winter over the past two years.

“Sandbaai, Onrus, Vermont and Westcliff have been especially active in the lower to mid-market sectors as they still offer good value for money, and at the upper end of the market we have seen a lot of activity at Fernkloof Golf Estate and Voelklip which are both very sought-after at the mid to top-end segment of the market.

“We recently experienced stock shortages in these areas, which is a very different scenario to six years ago when an abundance of second homes flooded the market whereas demand dwindled considerably in comparison.

“It was definitely a buyers’ market for a few years after the 2008 credit crunch, but we are now seeing a promising turn-around with certain areas stabilising well enough to swing the tide into a seller’s market again.”

According to Quincy, the long-term rental market has also picked up considerably in Hermanus over the past two years and the exponential increase in demand has resulted in a notable stock shortage as well as a spike in average monthly rentals.

“What has remained fairly consistent is the holiday rental market which has always been extremely popular and continued to offer good returns for owners over the season periods.”

Almost 80 percent of the properties in this well-established seaside town are still freehold but this is slowly changing in the wake of the market recovery.

Quincy says: “Although the lower to middle freehold segment of the market has produced the most sales over the last year, there are a couple of new sectional title developments due for release later this year and we have seen a revival of older developments that were launched during the crash in 2008.

“There are also a few parcels of land that have been earmarked for development, which I see being launched over the next three years.”

According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, the demographic in Hermanus is also changing as an increasing number of investors are now looking to buy properties to live in rather than as second homes or for holiday rentals.

“Hermanus has always been a popular retirement destination for retired people from upcountry and surrounding bigger cities, but we are now experiencing growing interest from families looking to move to Hermanus because of the safety and quality of life it offers as well as its proximity to Cape Town.

“The local schools are known to offer a high standard of education and sporting facilities and, with the addition of a Curro private school, Hermanus is becoming increasingly popular as a great town to raise a family.

In fact, after the Atlantic seaboard in Cape Town, Hermanus is the next most popular choice among investors from upcountry who want to move to the Cape.

Recent research by Lightstone revealed that the Hermanus suburb of Eastcliff is fourth on the list of the top five most expensive addresses in the Western Cape – with the other four streets all being on the exclusive Atlantic seaboard.

“Eastcliff is a very popular area with older, more established residents and non-residents who know the area. It is a very central leafy suburb which is close to the schools, town and famous whale watching cliff paths,” says Quincy.

Although Hermanus is best known as a holiday town, it is also home to two busy industrial areas, one of which is more of a business park that borders the site of a new shopping mall which is due to break ground in 2017.

It also offers excellent amenities and all the major grocery retailers have a footprint in and around the town. Hermanus provides many activities for families and outdoor enthusiasts, including whale-watching, deep sea diving, golfing, mountain biking and hang gliding.

Quincy says: “Ultimately, efficient management over the years has resulted in a town that is popular with visitors and locals because of its natural beauty, and has also won prestigious awards and accolades which include Blue Flag beach status, the Blue Drop award for water quality, Most Productive Municipality and the Greenest Town.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK