Price ceiling lifts as Covid boosts migration to Cape country and coastal hotspots
Category Property Markets
For the first time in years property demand along the Southern Cape Coast is lifting the price ceiling with properties in the R5m to R8.5m range attracting interest according to Richard Pratt, manager for Seeff in Struisbaai, Agulhas and Suiderstrand.
The small Klein Karoo town of Van Wyksdorp has also seen average house prices appreciate by 10%-15% year-on-year as a result of increasing demand.
Interestingly, says Ian Badenhorst, managing director for Seeff Country and Karoo, the Covid pandemic has had a positive impact on many small country and coastal towns. These have mostly been relatively unaffected by the virus while at the same time seeing a pickup in buyers looking to escape to a place where they can enjoy their life in relative safety and freedom.
He says further that there has been a steady pace of migration to the coast and country villages as people increasingly look to escape the stress and rising crime in the cities. It is also not just buyers from Gauteng and inland provinces, but we are also seeing people from Cape Town who are finding the city too busy for their liking, says Mr Badenhorst.
Location, a top factor which drives demand, is something that most of the small towns and villages of the Cape have plenty of. Mr Pratt says the Southern Cape Coast offers excellent infrastructure and internet access which means you can easily work from here. The low interest rate has been just the boost that the market needed.
Buyers are generally younger, largely in the 30-50 year age group. Properties under R2.5 million have been flying off the shelf, so much so that there is now a shortage of stock. Pratt says further that this is quite a departure from two years ago when the market was overstocked. Higher priced properties in the R5 million to R8.5 million price range are also seeing interest.
Affordable properties are becoming scarce which shows that the earlier you get into the market, the better the benefits you reap in the long run. There is still some vacant land available priced from just R250 000, but you can expect to pay into the millions depending on location and views. That said, when it comes to the country and coastal area, any location is good as the area is a visual and lifestyle paradise, whether you enjoy nature or the sea, he adds.
Another popular option is Van Wyksdorp, a little off the beaten path but which is gaining traction for its location in the heart of the Klein Karoo and choice of getaway houses and lifestyle farms, says Gerhardt Oosthuizen, Seeff’s agent for Vanwyksdorp and Still Bay.
The town is just over four hours from Cape Town via either the N1 or N2 scenic routes, thus very accessible for second homes, he says. Land prices are still cheap compared to other Klein Karoo towns. The most popular range is 40ha to 200ha with an average price of R900 000 to R1.5 million and you can build your own dream house, perhaps with guest cottages.
In the town, houses benefit from water from a fountain in the Rooiberg Mountain. House prices range from around R800 000 to R2 million and these have seen price growth of 10%-15% year on year, significantly more than anything you might see in the big cities, he says.
Swellendam with its spectacular setting against the backdrop of the Langeberg Mountains is the quintessential country town, say Val Anderton and Marinda Roux, Seeff’s area specialists for Swellendam. If a country lifestyle with horses and dogs, fresh air and a top quality lifestyle is what you are yearning for, then Swellendam is the obvious choice.
It is close to Cape Town. Popular for retirement and second homes. Stunning landscape popular with people who want to escape to the country for weekends or holiday breaks.
Buyers are flooding to the country as working from home is the new norm and they no longer need to be faced with traffic and crime, says the agent. Swellendam has good infrastructure making it appealing to younger people as well as retirees. Property is in great demand with some selling within weeks of coming onto the market.
Retirement villages, security villages as well as free standing homes are popular and enquiries range between R1.5 million to R3 million. It is a good time to invest in property with low interest rates and 'buy to rent' is also a good option.
Willie Janse Van Rensburg, Seeff’s agent for Seeff Riversdal also reports high demand from semigration buyers and says, if well priced, properties are selling quite fast with high demand for lifestyle farms priced to R5 million. The area is still well stocked.
The beautiful country village of Bredasdorp is about half an hour from the ocean making it the best of coast and country for buyers, says Elaine Beyers, manager for Seeff Bredasdorp. Here too, the market has been very active, especially freehold homes in the R1 million to R1.3 million price band. Property values are holding firmly and it is a great incentive for buyers to invest in property right now, but there is very little on the market below R1.3 million, she concludes.
Property photograph/s
1) Agulhas – R4.695m, located in Aghulhas, literally on the most southerly point and overlooks a nature reserve, cannot find a better location, excellent value for money
https://www.seeff.com/results/residential/for-sale/agulhas/agulhas/house/96634/129-gentoo/
2) Van Wyksdorp – R1.995m for a heritage farmhouse on 8565sqm of land with magnificent views over vineyards and Langeberg in the little hamlet of Vanwyksdorp offer plenty of living space, garaging and outbuildings as well as two dams and irrigation to the garden, vineyard and orchard.
https://www.seeff.com/results/residential/for-sale/ladismith/van-wyksdorp/house/111980/
3) Swellendam - R1.495m for a 2-bed townhouse with modern finishes in the new Soteria Estate which will comprise of 18 free standing homes and is a dependable investment for both first-time home-buyers or for retirement. No transfer duty payable.
4) Riversdal – R8.875m for a 37ha farm in Still Bay West with 120m sea front. This area is a fishing paradise. The farm includes scarce Kaapse Grysbok and other small game and indigenous Fynbos.
https://www.seeff.com/results/residential/for-sale/stilbaai/stilbaai-wes/farm/111194/
5) Bredasdorp – R1.15m for a two-bed duplex in De Oude Arena, a new secure complex with some history, located on the site of the first 1901 horse race when it was the agricultural showgrounds. There is a choice of plot and plan options ranging from a two-bed duplex to a five-bed double story home. Features include a cobbled street, abundant trees and lush green lawn which provide a safe recreation area where children can play at leisure.
Author: Gina Meintjes
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