Building slowdown boosts Melkbos prices

Development constraints are giving a lift to home prices in and around beautiful Melkbosstrand on the Cape's western seaboard.

Willie Steinmann, principal of the new Chas Everitt International franchise in the village, says that while the area offers an enviable lifestyle and has great appeal, very few new homes are being built here, a fact that strongly underpins the value of existing homes.

"On top of this, there is rising demand from buyers keen to escape city life but still live within easy commuting distance of Cape Town's CBD. Melkbosstrand is just 25km from Cape Town, yet has retained its village-like ambience. At the same time it offers a number of excellent schools, shops and restaurants, and its infrastructure is in good condition.

"Our beaches are also particularly popular with those who like to surf, and we often find that potential buyers are those who grew up here and are looking to return with their own families."

The lack of new development, he explains, is largely due to the town's proximity to the Koeberg nuclear power plant. The bulk of the town was originally built outside the metropolitan area but suburban sprawl has eroded the gap in recent years and the plant has now enforced regulations setting down the maximum housing density in nearby residential areas.

"These preclude the construction of high-rise buildings and allow for very little new development of freehold homes in Melkbosstrand. Indeed, the only new residential development that has taken place locally in recent years is the Atlantic Beach Golf Estate and Melkbosch Village."

Steinmann says the upshot is that local property values have continued to increase steadily, if not with the rapidity of the boom years, and that available properties don't stay on the market for long.

Entry-level homes in Duynefontein are selling at around R1m on average, he says, and those in the Atlantic Beach Golf Estate from R1,5m upwards. Cash buyers predominate at present.



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