Strand market on the up and up

With Cape Town’s strident residential property market creating double-digit average annual inflation there are few accessible options remaining for first-time buyers and young families, but investors seeking value as well as lifestyle still have a window of opportunity to find their dream homes in Strand.

A beautifully renovated four bedroom family home that offers lifestyle and convenience can be purchased in the Strand area for around R2.15 million. This property boasts the additional features of an enclosed braai room, a large family kitchen with a separate scullery and secure parking for four cars.

This is according to Chris Cilliers, CEO and Principal for Lew Geffen Sotheby’s International Realty in the Winelands, who says Strand was always the sleepy seaside village overshadowed by neighbouring Somerset West and bypassed on the way to Sir Lowry’s Pass, “but this is no longer the case and the coastal town is now attracting considerable investor interest”.

“Strand is one of the few places where it is still possible to invest in a family home or beachfront apartment at a fraction of the cost of most comparable areas in Cape Town, enabling young families, aspiring professionals and retirees to realise the dream of a relaxed ocean-side lifestyle in a city where that usually comes at a premium price.” 

Retirees looking to maximise their inflation-eroded pensions can buy a modern one bedroom apartment from around R400 000 or a secure two bedroom townhouse from R600 000, and for aspiring young professionals who seek the prestige of beachfront living,  apartments with sweeping sea views  start at around R1.7 million.

At the upper end of the sectional title market, contemporary designer apartments with panoramic vistas and luxury finishes are now nudging the R4m mark.

Cilliers says there are also several options for young families looking to get a foot in the market with cosy two bedroom starter houses priced between R1m and R1.4m, while the entry level for three and four-bedroom houses is between R1.3m and R1.5m.

“The most sought-after freestanding homes at the top end of the market are in Greenways Golf Estate, where prices range between R5m and R9m depending on size and position,” says Cilliers.

Analysis of Propstats data reveals that property values have increased substantially over the past two years.

Between 2014 and 2015 the average sale price of apartments in Strand rose by 8.9% from R570 000 to R621 000, jumping by 50% to R935 000 by the end of September this year.

Houses fared equally well, with the average sale price of R842 000 in 2014 increasing by almost 25% to R1.05m in 2015, followed by an increase of just under 24% to raise the average house price to R1.3m at the end of the third quarter of 2016.

Cilliers says that while most property purchases in Strand are still “buy to live”, there has been a notable increase in the number of investment buyers.

“This is always a good indication of a strengthening market in which investors are confident of achieving solid returns.”

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, believes that the town’s growing popularity with investors and the market’s upward trajectory will be further bolstered by the city’s beachfront upgrades that recently commenced,

“Transport for Cape Town, the City of Cape Town’s transport authority, has allocated a budget of around R103m for the first phase to upgrade the kilometre stretch between the Strand Pavilion and Da Gama Street.

“Work has also begun on the much-anticipated rehabilitation of the sea wall to protect Beach Road along the Strand beachfront from being windblown and regularly covered in sand, as well as to prevent the road’s frequent flooding during leap tides and storms.

“This will significantly bolster trade along the beachfront, where businesses are currently regularly sand-blasted and faced with reduced turnover when the sea laps at their doorsteps.”

Included in the 12-year plan is the construction of a brand new pier that will stretch some 200m into the sea, the installation of new street lights and street furniture as well as the modernisation of Strand’s CBD to create a world-class coastal resort.

Geffen believes that the upgrades will have a significant influence on the broader Helderberg economy as well as further stimulate the residential property market.

Traditionally home to the 50+ age group, the Strand area is becoming increasingly popular to a broad spectrum of buyers, with the number of investors under the age of 35 doubling during the past year.

Cilliers says: “Strand is an attractive option for young families seeking a quieter life as excellent schools, hospitals, sporting facilities and top class retail and entertainment amenities are all no further than a 15-minute drive.”

Residents are also only a 50-minute drive from Cape Town, 25 minutes from Cape Town International Airport and in close proximity to a multitude of attractions including the Winelands, the Whale Route and the world-renowned Kogelberg Biosphere.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us