South Peninsula’s holiday rentals renovate the market

A trend has emerged in the Western Cape’s South Peninsula, reports Harold Kolnik, Principal of Jawitz Properties South Peninsula, where a significant number of sales have been concluded for the purpose of offering self-catering or guesthouse accommodation.  “Buyers, both local and foreign, have realised that the many global tourists who come to the area, are also drawn to it as the coast is not as crowded as other similar destinations, and it’s not as costly as central Cape Town,” he says.

A beachfront home which was recently sold in Misty Cliffs

Areas like Kommetjie, Misty Cliffs, Scarborough, Muizenberg and Noordhoek are now on the global map as Meccas for windsurfing, kitesurfing, surfing and diving, and offer reasonably priced and comfortable accommodation in picturesque settings.

“Astute buyers and investors have discovered the incredible value on offer and the potential growth that self-catering homes and bed & breakfasts enjoy,” he adds.  Occupancy and tourism growth has seen healthy profit, putting the South Peninsula decidedly on the map as an excellent investment destination. “What has also emerged is businesses offering to service and manage these properties for buyers who may not live close by, or for those who would prefer not to run accommodation themselves.”

Recent sales concluded in the Scarborough and Misty Cliffs areas in particular, include three prime beachfront homes that are to be listed on popular sites AirBnb and SafariNow, among other holiday rental portals.

“Many buyers are looking for suitable properties to list on these types of sites – the trend of using this technology has transformed holiday letting from being able to watch 360 degree virtual tours, to getting to see a variety of photographs and reviews, just a few clicks away,” Kolnik says.

The desirability to earn some rental income is certainly appealing and investors have observed that the current weak Rand may mean that investing in a property that can earn an income and capital growth is a good way to hedge against these difficult economic times.

“The variety of homes that could qualify cover the full spectrum of price ranges from a modest apartment to a grand home on the beach,” Kolnilk says. “And most of the areas in the South Peninsula are closely located to the beach and other outdoor attractions in any case, be they just a short walk or short drive away,” Kolnik concludes.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us