Semigration and tourism an enormous boost for Hout Bay property

Semigration and tourism an enormous boost for Hout Bay property

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Trends such as semigration and tourism have been an enormous boost to the Hout Bay property market. After two years of Covid-chaos, the opening of borders and resumption of travel has already seen an influx of local and international visitors to our beautiful coastal neighbourhood.

As we approach the busy summer season, we are delighted that life is finally returning to normal. The restaurants and beaches are packed, and outdoor events can be attended again. With the international borders open, people can travel again, and we look forward to welcoming even more international guests and buyers over the summer.

Semigration and tourism are good for the property market, both rentals and sales. This trend gained even more momentum with the Covid lockdowns which led to an exodus of people from the busy cities to coastal hotspots such as Hout Bay.

A Lightstone study for example showed that the Cape enjoys the highest influx of buyers moving from elsewhere, especially Gauteng and more recently KZN as well. Lightstone also reported that coastal property consequently enjoyed better average price growth compared to the rest of the country.

The tremendous boost propelled the Hout Bay property market to a record sales turnover of over R1 billion last year at an average selling price of R3,5 million (Propstats data which reflects sales by agencies). This is more than double compared to 2020 and almost 40% up on the 2019 pre-pandemic annual averages including those of the last mini boom in the 2014-2017 period.

The momentum continues. This year we are already standing on over R875 million which is ahead of the same period last year, despite the economic challenges. The average selling price is also up to R4,3 million. This reflects the strong confidence in Hout Bay property and that buyer are prepared to invest more.

The greater Cape Town Metro also continues to grow in stature locally and globally. It ranks as one of the most beautiful Cities in the world. Those who live and visit Hout Bay will wholeheartedly agree that our neighbourhood ranks among the most scenic in the country.

The City continues to garner global accolades including the Telegraph Newspaper in the UK naming it one of the best cities to visit. Further good news is that British Airways recently announced that it will have 24 London flights into Cape Town per week during the summer despite cutting its air traffic.

Delta and United Airlines will also be offering direct flights from the USA to Cape Town. Besides the benefits for the tourism economy, an increase in visitors will boost demand for property, rentals as well as sales.

The Hout Bay and Llandudno area is now one of the most in-demand in the country attracting buyers and tenants from all over. If you are still thinking about whether to invest or make the move, you should not wait too long because the longer you wait, the more you are likely to pay.

Home is our Story and property our passion. Seeff Hout Bay and Llandudno is recognised as a market leader with a proven track record of success for clients. If you would like to chat about your next property move, pop into our office or give us a call today!

Yours in Property,

Stephan Cross
Sales Manager - Seeff Hout Bay & Llandudno

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