Why it’s time to invest in coastal property

Property prices in many coastal areas have stabilised and in some instances are even starting to rise again, mostly on the back of increased investor interest.
“And this, it seems, is not confined to fashionable coastal resorts but also focused on picturesque small towns where free-standing seafront homes can often be had for less than a quarter of the price of similar properties in Umhlanga, Hermanus or Plett,” says Berry Everitt, MD of the Chas Everitt International property group.
Writing in the Property Signposts newsletter, he says that one of the reasons for this increased interest is the fact that much higher property prices in Gauteng, Cape Town and other big cities make it much more difficult for the investor seeking a retirement income to accumulate a portfolio of rental properties.
“However, a more powerful reason is that improved properties in smaller coastal towns currently offer really excellent value for money – and the real prospect of sturdy growth over the next 10 years.”
Everitt says new legislation recently drafted by the City of Cape Town provides a clear indication of how and why this will come about. “The legislation, currently under consideration, proposes the creation of a “zone” around the Cape peninsula's 300km coastline in which no further development will be allowed.
“This buffer zone will vary from 100m from the high water mark in some areas to as much as a kilometre in others, particularly on the West Coast, and its purpose of this will be to put paid to any more developments built ‘too close’ to the coast.”
He says that Gregg Oelofse, head of Cape Town’s environmental policy and strategy, made it perfectly clear what the council has in mind when he was quoted in the Cape Times recently. “He said the new legislation tied up with the national government's Integrated Coastal Management Act, but took it further by creating a coastal protection zone in which there would be no more land use changes, no more housing or private developments, no more developments like Big Bay, and that all that would be allowed in this zone would be the development of services like new stormwater outlets.
“Oelofse also noted that the coast was one of the Cape’s most important assets, economically, aesthetically and as a place which all the public could enjoy, and that the council believed it needed to move decisively to save what is left of it.
 “And we believe that if this legislation gets the expected public support, many other local authorities will introduce similar measures over the next few years - or at least much stricter coastal land use control measures in terms of the national Act.”
The obvious result of this, he says, will be that the amount of land available for new coastal development will quickly become very limited and that the prices of existing homes will rise as demand increasingly exceeds supply.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us