Boom time for Hout Bay Property market

The property market in Hout Bay is currently booming, with rentals and sales both experiencing a surge in demand and price across all market segments.

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However, unlike most other suburbs in Cape Town, the biggest growth has been at the upper end of the market where record rentals are now being achieved.

This is according to Terri Steyn, Area Specialist for Lew Geffen Sotheby’s International Realty, who says that this is largely due to the increased demand for secure lifestyle properties and a spike in interest from investors from other areas in South Africa who now make up around 50% of all buyers.

“We are fielding an increasing number of inquiries for homes in the R7m plus bracket and recently sold a property in Kenrock, an exclusive estate, for more than R13m.”

Citing Propstats figures, Steyn says that average sale prices have skyrocketed in the past five years.

“In 2011 the average house price was R2.81 million and sectional title properties sold for an average of R1.2m.

“By 2015 the average house price had almost doubled to just under R4.1m and the sectional title median price had increased by 41% to just over R1.7m.”

Steyn says that there has also been a marked drop in the length of time properties remain on the market.

“In 2011 the average length of time across the board was 159 days, with several properties remaining on the market for more than 400 days and some even for longer than 500 days.

“In 2015 the average time spent on the market had dropped by 21% to 126 days with very few properties remaining on the market for longer than 200 days, but desirable properties in secure estates sell much faster.”

She adds that the biggest drop in sale time was for sectional titles properties which took an average of 75 days to sell in 2015 compared to 172 in 2011.

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty attributes Hout Bay’s increasing popularity to multiple strong appeal factors.

“In the face of the emergent trend to move away from the city to avoid the growing peak hour traffic congestion and enjoy a more sedate lifestyle, Hout Bay offers the ideal solution as residents enjoy a laid back seaside village lifestyle as well as a quick, congestion-free commute to the CBD.”

Geffen adds that Hout Bay now has a wide range of convenient amenities as well as top class schools has added significantly to its appeal.

“Over and above the quaint and eclectic boutique stores for which Hout Bay is known, residents now have a choice of national chains, including Woolworths, Quick Spar, Pick ‘n Pay and Checkers.

“And, where parents in most other areas have a limited choice of schools and face long waiting lists, Hout Bay is home to four pre-primary schools, five primary schools and three high schools, with the Hout Bay International School catering to all levels of education.”

Ursula Heppner, partner Area Specialist for Lew Geffen Sotheby’s International Realty in Hout Bay, says that another significant drawcard is that Hout Bay offers investors a wide and diverse range of properties, from modern lock-up-and-go units and secure lifestyle properties to quaint old cottages and sprawling mansions on large grounds. The area also boasts a number of equestrian estates.

“There are also many unique properties in the area and we recently listed a state-of-the-art designer home which was built entirely from stone sourced from the Barrydale region.”

She adds that the home also has multiple eco-friendly, money-saving features, including heat pumps for the geysers, double-glazing throughout house and cottage to preserve heat in the house in winter and a fully automated irrigation system that feeds of a 60m borehole with 3 x 10,000 litres storage tank.

Heppner concludes: “Residents also enjoy the sense of community which still prevails in the suburb and as well as its convenience and idyllic location.

“Situated almost midway between Cape Town and Cape Point with quick access to the Southern Suburbs and CBD, Hout Bay is also surrounded by spectacular nature with mountains to the north, east and west with the Southern Atlantic Ocean to the South.”

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