Hermanus market back in the swim

Once renowned as an elite holiday destination – and relatively undeveloped fishing village - the Overberg town of Hermanus has a very different face today.

The view from a two-bedroom seafront apartment in Hermanus that features many luxury fittings and finishes and is on the market through Chas Everitt Hermanus for R6,6m

Now recognised as the world’s foremost land-based whale watching destination, it has a burgeoning tourism sector and has also experienced an influx of permanent residents over the past few years. This has given rise to the development of more retail facilities, for example, as well several upmarket estates, new schools and even a new hospital.
“In short, it has become the busy hub of the Overberg area,” says long-time Chas Everitt International Onrus franchisee Dean Meijer, who has just opened a new office in Hermanus. “And the increase in the number of professional and business people who work in Hermanus has definitely boosted home buying activity in this region over the past year, especially in the R800 000 to R1,5m price bracket.
“At the same time, we have seen a really significant increase in the demand for long-term rentals.”
Apart from the lifestyle on offer, a key attraction for the buyers - and investors -currently moving into this area, he says, is that prices have not really begun to come off their three-year lows yet,although this is on the cards as the market continues to improve and the existing stock is absorbed.
“Like most coastal towns, Hermanus and the nearby areas of Onrus, Vermont and Sandbaai were all negatively affected by the downturn in discretionary spending following the 2009 recession, with consumers definitely thinking twice before buying or building a property just for holiday or weekend usage.
“This resulted in a stock oversupply and drop in prices that has not yet been fully overcome. Consequently, it is still possible now to acquire a stand in this region for as little as R300 000, or a sectional title flat away from the beach for around R500 000. And prices for freehold homes in the outlying areas start at around R700 000, although they are of course much higher in the secure estates and in Hermanus itself can reach as much as R25m for a seafront property on Millionaire’s Mile.”
The current buying activity is also being fuelled, says Meijer,by the fact that home loans are being granted relatively easily for properties in Hermanus. “The banks are finding good value here and although they are still applying strict affordability criteria, a 10% deposit together with a sound credit record will usually secure the loan.”
As for buy-to-let purchases, he says, rentals are also set to rise, because almost all residential development in the area came to a standstill after 2009 and it is going to take several years for supply to catch up with the current demand, especially for long-term rentals.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us