Blouberg property values surge with trophy homes in the suburb

Although Blouberg still offers investors excellent value for money and very accessible entry level options, the area’s growing popularity is nudging its prime suburbs into exclusive trophy home status as a recent listing by Lew Geffen Sotheby’s International Realty indicates.

Lydia Johnstone of Lew Geffen Sotheby’s International Realty on the Western Seaboard says: “We have just received the sole mandate for a four-bedroom beachfront house in Bloubergstrand priced at R19.5 million, which joins only a handful of homes now listed in this price range. So far the highest sale price achieved in the area was R22.5m in February this year.”

According to Deeds Office records Bloubergstrand and Bloubergrant are proving to be two of the top selling suburbs with combined record sales achieved in 2014 when 182 units were sold to the value of R335.24m.

Johnstone says: “It’s very likely that these two areas will achieve back-to-back record years as sales for 2015 to date already stand at 162 units to the combined value of R334.6m. In 2010 only 118 properties changed hands in these suburbs to the total value of just over R200m which equates to an increase of 67 percent in value and 37 percent in the number of units sold.”

Since the beginning of 2014 to date, only Big Bay achieved a higher rand value, with 205 transactions realising almost R480m, followed by Bloubergrant at R442m with significantly more sales at 279.

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says that Bloubergrant and Bloubergstrand have both shown excellent returns on investment over the last six years with very solid and consistent growth in property values.

“In 2010 the average price for an apartment in Bloubergrant was R1.27m, increasing by 8.25 percent to R1.38m in 2015, with house prices increasing by almost 48 percent from R1.67m to nearly R2.5m.

“However, the best performing market segment by far is Bloubergstrand apartments which have increased in median value by an impressive 135 percent from R1.1m in 2010 to R2.57m 2015. House prices have also increased steadily, with average sale prices increasing by 12 percent, from just over R3.8m to R4.32m during the same period.”

Although well-established, Bloubergstrand has always attracted the lion’s share of investors because of its proximity to the sea and many conveniences. The newer developing suburb of Bloubergrant has quickly gained in popularity and now has sought-after modern luxury oceanfront condos, many of which have direct access to the beaches.

According to Minnaar, the rental market is also very active in the area and correctly priced properties are usually snapped up as soon as they are available.

“Investors with access to finance can still find a number of first-rate opportunities to build their rental property portfolio and achieve an excellent return on investment.”

Geffen says: “Aside from the obvious attraction of a seaside lifestyle at affordable prices, the Blouberg area offers many other desirable drawcards, including an excellent infrastructure with numerous convenience centres, shopping malls and shops, as well as two modern hospitals and several good schools.”

The area is also a sport enthusiast’s paradise with excellent water sport conditions and two international standard golf courses, both within 6 km of the centre of Blaauwberg. There are also tennis and squash courts and excellent cycling, hiking and running facilities.

The introduction of the MyCiTi bus route has also significantly increased the appeal of the area as many prospective buyers were put off by the long, slow commute to the city during peak hours.

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