Hout Bay property market surpasses the magic R1 billion mark
Annual property sales in the village of Hout Bay has just surpassed the magic R1 billion mark. Based on the latest data recorded on Propstats by agencies operating in the area, sales for the twelve-month period covering August 2014 to end of July 2015 amounts to just over R1.01 billion. According to James Lewis, Seeff's managing director for the area, this is a major milestone and it is the first time that this level of value has been achieved since the economic down-turn of 2007/8. It is also reflective of the growth in the local property market. This value is about 70% up on the R594 million of three years ago and just over 40% better than the R705 million of 2013, says Lewis. The average sales price for this year now stands at about R3.4 million, 20% higher than last year's average of R3.04 million and almost R1 million more than what is was in 2012/3. The growth of the market and strong demand for homes in the village can be further gleaned from the activity in the R5 million-plus sector, says Lewis. In 2012, there were only about twenty sales recorded above this price band. This increased slightly to twenty seven transactions in 2013. By last year, this had doubled to about 53 sales worth just over R400 million at an average price of R7.68 million. Most of these top end sales were in the sought-after security estates such as Kenrock, Ruyterplaats, Avignon, Berg-en-Dal and Baviaanskloof Private Estate as well as in the suburbs of Scotts Estate and Baviaanskloof. Top end prices are also edging closer to the R10 million mark with about twelve sales so far for the year priced from just under this price level to almost R20 million at the top end. While the majority of buyers are local Capetonians, the village has seen an increase in demand from buyers relocating from other provinces, especially Gauteng, but even from the Eastern Cape. More than half of all sales over the last year have been cash deals, says Lewis. Agent, Ingred Blicher Hansen attributes the uptick in activity to a combination of location and lifestyle and buyers are prepared to pay ever higher prices for a home here. That notwithstanding, there is variety, from well-priced apartments and townhouses around the R1.5 million mark to luxury homes that can easily sell for R10 million and more. Many buyers are also seeing the village as offering more value when compared to what they can buy on the Atlantic Seaboard and even in the Southern Suburbs. While still very laid back, the upgrades taking place in the village has been a definite boost for the property market according to agent Nolan Wood. The addition of the International School for example is not only the first high school for the village, but the Baccalaureate-level education on offer is highly prized by parents. Although popular with older buyers, especially retirees, the village is now relatively young with a vibrant energy. According to the latest data from Lightstone for example, more than 80% of recent buyers are under 50 years old, says Lewis. We also have not seen any drastic down-turn in the demand and with stock levels still very short to meet the buyer demand, it is still a good time to sell. For more information, contact Seeff Hout Bay on 021 790 1032, email email@example.com or visit www.seeff.com.