select
|

Franschhoek remains a popular destination

Originally settled in 1685 by French Huguenots who fled their homeland, Franschhoek was originally named Elephant’s Corner after the vast herds of elephants that roamed there. But soon after the French settled, the area changed its name to Franschhoek (French Corner). The heritage of these first settlers lives on today through the Huguenot monument situated at the top of the village.

While Franschhoek is not generally considered as a holiday destination by South Africans, it remains popular with overseas guests especially those from the UK, Netherlands and Germany.

This is according to Peter Hager, Broker/Owner of RE/MAX Prestige Country Properties, which services Franschhoek. He notes that Franschhoek has, and always will be, a sought after and desirable location for both local and foreign property investors.

“In the past, investment in Franschhoek was divided equally between local and foreign buyers. However, that demographic has changed and we now have more local investment entering our market than foreign. A large number of buyers in the area are parents whose children are going to Stellenbosch University as they want to be close to the university but don’t want to reside in Stellenbosch,” says Hager.

Speaking particularly of the leisure property market in Franschhoek, Hager says that it has performed well as far as demand is concerned; however, property appreciation and selling prices have dropped due to the global downturn.

Adrian Goslett, CEO of RE/MAX of Southern Africa, notes that since the South African property market has resumed to normal conditions, it is anticipated that demand for leisure properties will slowly increase. “However,” he says, “it should be remembered that the leisure property market always lags behind the property cycle by about a year to 18 months. Therefore, while noteworthy recovery is not expected in this sector for some time to come, there are great leisure investment opportunities available to buyers.”

The most popular leisure properties that Hager currently has available are two-bedroom cottages with swimming pools, or apartments in secure complexes with pools which are priced between  R1,5 million and R4 million.

He says that overseas investors often place their holiday homes in a letting pool. For example, Hager is currently marketing a two-bedroom, two-bathroom cottage with a country kitchen and lock up garage for R2,5 million. This home has, in the past, provided its owners with R250 000 per year in rental income from holiday lets. “This home would usually sell for R3,5 million, which would be the price we would expect to achieve as the market improves.”

Full title properties, which account for close on 60% of the area’s total properties, according to Lightstone, a property data provider, are in higher demand among leisure buyers as the sectional title levies and increased care costs often put leisure investors off.

“While not a typical seaside holiday spot, Franschhoek holds the lure of culture and history, exceptional cuisine, a solid property investment market, along with excellent wine tasting and wine farm visits. The appeal lies in the fact that it is away from the crowded mass of beach holiday makers but close enough to go to the beach and Cape Town for all the tourist attractions should one so wish,” Hager concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    • 12 Jan 2018
      After an exceptionally good 2016 during which the Winelands residential market outperformed the national average by a considerable margin, 2017 was marked by a difficult winter which saw a notable slump in sales and demand.
    • 12 Jan 2018
      Small spaces can make a big impact. Irrespective of size, an aesthetically pleasing outdoor space can be a major selling point for prospective buyers. “Even if the outdoor area is small and only enough to sit and have a cup of coffee, it might just be the feature that makes the stand out from others in the neighbourhood,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 12 Jan 2018
      The boom of the digital age has opened up many doors to the way we buy and sell property. In the past we used to pop out and pick up the latest copy of the property magazines available, today we switch on the PC or grab our smart phones as online property portals & Facebook has become the new ‘go-to’ for anything, including shopping for your new home from the comfort of your couch.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK