MyProperty: Onrus housing supply under pressure

Onrus housing supply under pressure

2010/02/08 10:39:35 AM

A sharp increase in demand for residential units in Onrus near Hermanus is leading to shortages of homes for sale.

Deon Esterhuyse, owner of the local Aida estate agency, reports that sales started improving in September last year and that the trend has been sustained, making it increasingly difficult to source stock.

Retirees and people nearing retirement make up a large percentage of buyers, he says. “Buyers come from various parts of the country, with the majority from the Cape, Gauteng and the Free State, and they say they are attracted to the relatively safe environment of Onrus, as well as the relaxed atmosphere of a holiday destination.

“Another draw card is the way that the local municipality functions. Service delivery is excellent and residents have no cause for complaint on the whole.”

Esterhuyse says the Onrus property market also benefits from an overflow of buyers from Hermanus 5km away. “This whole stretch of coast is a preferred destination. However, local property offers more value for money when compared to property in nearby Hermanus.”

Demand for holiday homes has also increased since the last quarter of 2009 and Esterhuyse says holiday buyers mainly target the same price ranges as residential buyers. “This arguably accounts for stock shortages in the R1m to R1,5m price range, although residential buyers are also active in the price range up to R2,6m, while demand for holiday homes on the beachfront is climbing. Top properties in this category fetch prices of up to R5m.”

Esterhuyse adds that low interest rates probably stimulated the market. “Although our local economy is somewhat unique and not closely related to trends in the wider economy, many buyers from other parts of the country had been waiting to sell their own property elsewhere in order to buy homes here. This would indicate that property markets elsewhere are also showing signs of increased activity.”

Issued by Aida National Franchises