Two areas in the Western Cape property market has been identified as showing growth for individuals wanting to buy properties in those areas, with increasing property values, Cape {town} Etc reports.
Recent sales in Hout Bay have shown that the average selling price for property in the area is R5.1 million, as the property value has increased by 37% since 2019, according to Propstats.
Also read: Ratepayers appeal court’s approval of Camps Bay hotel construction
This means that an annual growth of approximately 6.7% per year, which is above the consumer price index (CPI) rate for all urban areas, which is currently at 4.6%, according to Statistics South Africa’s (Stats SA) CPI statistical release for August 2024.
Meanwhile, Noordhoek’s average house price increased by 68%, from R5.3 million in 2021 to R8.65 million by August this year.
Research from Propstats has indicated that homes on the property market in Noordhoek spent an average of 157 days on the market in 2021 and by 2024, homes in the area spent ‘an average of 66 days on the market’, according to IOL.
The average home price growth across the country is currently below 1%, according to the latest data from the First National Bank House Price Index.
A major factor that has contributed to Hout Bay’s surge in investors can be attributed to ‘swallow investors, semigration, the rise in remote work and a shortage of rental stock influencing the market dynamics’, according to Lifestyle & Tech.
Cape Town’s Central Business District (CBD) and surrounding areas’ rental stock shortage has also contributed to an increase of interest of in Hout Bay.
The total sales in Hout Bay in 2024 has been ‘over R833 million’, and could ‘potentially again top the R1 billion sales mark’, especially when taking expected interest rate cuts into consideration, according to Seeff Properties.
‘The Hout Bay area has morphed into both an owner-occupier and investor-based area, with returns consistently appreciating at over 9% year-on-year,’ said Emmanuel Germanis, CEO of Revo Property.
‘And with expected interest rate cuts this year, we anticipate total sales for 2024 to potentially top the R1 billion sales by the end of the year,’ Germanis added.
Also read:
Cape Town’s luxury property market thrives with ultra-wealthy buyers
Picture: Misha Jordaan / Gallo Images
CapeTown ETC
www.capetownetc.com