The real estate market in the Overberg is following the national trend
with a buyer’s market slowing down sales as well as producing static or very slow-growing prices in most areas. However, local property experts predict that this could be the start of new growth in the Overberg as clever investors snap up local bargains in anticipation of an upturn in the country’s economy.
The recent drought conditions which inched Cape Town close to Day Zero also had an effect on the Overberg with a rise in the demand for decent rental housing as Capetonians looked at ways to escape the stringent water restrictions at home. Entrants to the property market in Cape Town are also looking at nearby coastal and inland towns for more affordable property deals, which places the Overberg in a very favourable position for further growth.
By the end of 2018,
the median asking price in the Overberg region for a 3-bedroom residential property stood at a steady R1, 56 million. The majority of the residential offerings are houses, with a very small offering (about 4 % of the total residential market) of units in complexes as well as apartments. The average house price currently is R1, 72 million, while apartments sell for an average of R640 000 and properties in complexes at R980 000. (Statistics as on 1 November 2018 provided by Private Property.) The warmer spring weather usually brings increased buyer activity after the more quiet winter months for the Overberg’s coastal villages such as L’Agulhas, Struisbaai, Arniston, Stanford and Gansbaai. Most estate agents start listing new properties in these areas from September onwards, increasing the number of properties on offer during the busy holiday season. The inland market remained fairly stable throughout the year with a steady supply of residential properties on the market.
Hermanus is still one of the most sought-after coastal areas in the country
and continues to see a strong demand in property and a steady rise in prices despite the recent uncertainty caused by service delivery protests and unrest. Buyers and investors are still investing in luxury top-end properties, many of whom are easily breaching the R10 million to R20 million mark, although the market for homes com-manding prices between R30 million and R40 million has slowed down. All of the Overberg’s coastal towns and villages report a maturing residential property market where buyers are no longer seeking to buy holiday properties only. In particular, there has been an influx of buyers wishing to relocate to the Overberg permanently (often young buyers in the age group 18 to 35 with growing families who want to live in a safer country environment) or when they retire in five to 10 years’ time (mostly buyers in the 50 to 60 years age bracket from Cape Town, the Garden Route, Gauteng and KZN.)
Another interesting trend for coastal properties
is that the majority of sellers currently in the market are in the over 65 age bracket who are down-scaling or moving to gated communities, retirement villages and assisted living options. The property market in Struisbaai, L’Agulhas and Suiderstrand has shown robust growth in both sales and increasing prices over the past 18 months as a result, although prices started evening off from June 2018 onwards. Property experts also predict a building boom in these coastal towns with vacant plots being a fast seller and the local council approving some 160 new building plans in recent months. In Hermanus there has been robust sales of homes in the mid-range of R1, 5 million as well as in gated estates, where homes easily sell for over R3 million.
Residential stands have become a rare commodity in this bustling coastal town
and is triggering new development in the neighbouring communities of Onrus, Sand-baai and Vermont as well as Stanford and Gansbaai. Property experts in Stanford and Gansbaai report robust sales of lower-end residential properties as well as vacant land as more people settle there permanently while commuting to Hermanus. Further inland, the towns of Villiersdorp, Swellendam and Bredasdorp have seen an uptick in the sale of vacant land and low-end properties as young families and pros-pective retirees relocate to a safer rural environment close to schools and medical facilities. The villages of Napier, Greyton, Barrydale and Riviersonderend is becoming more popular amongst those able to work remotely as well as among prospective retirees. This has resulted in steady sales of low-end properties as well as residential stands with property experts predicting a building boom over the next 2 to 5 years.
The real estate market in the Overberg
is following the national trend with a buyer’s market slowing down sales as well as producing static or very slow-growing prices in most areas. However, local property experts predict that this could be the start of new growth in the Overberg as clever investors snap up local bargains in anticipation of an upturn in the country’s economy.
INTERESTING TRENDS IN THE MARKET
Arniston /Waenhuiskrans: A slowdown in the number of residential properties available with a sharp year-on-year increase in average price. A large number of 4 and 5 bedroomed houses are available, with little or no 3-bedroomed houses on the market at present. Average listing price for a 4-bedroomed house: R3, 45 million.
Barrydale: Increasingly popular amongst buyers in the 50 to 60 years age group with mostly 3 to 4 bedroom houses on the property market. Average listing price for a 3-bedroomed house: R2, 05 million
Bettys Bay: Decrease in sales of residen-tial properties although there has been a steady increase in house prices compared to last year. Average listing price for a 3-bedroomed house: R2, 53 million
Botriver: A good supply of vacant land / plots for sale. Average price of properties: R1, 48 million.
Bredasdorp: A popular choice amongst young people, with most of the recent buyers in the age groups 18 to 35 and 36 to 49. The town has also seen an increase in the number of apartments sold. Average listing price for a 3-bedroomed house is R1, 56 million.
Caledon: The property market here was characterised by a slight drop in sales and slower increase in house prices. Most recent buyers are under 50 years old. Average listing price for a 3-bedroomed house: R2, 86 million.
Gansbaai: Popular amongst both older and younger buyers, Gansbaai’s property market has seen a slight drop in house sales this year although house prices have increased steadily. The robust sale of vacant land has sustained the property market. Average listing price for a 3-bedroomed house: R2, 04 million.
Grabouw & Elgin: Interestingly enough, these are the only Overberg towns that have seen an increase in sales but a drop in price. It remains a popular choice for the 50 to 64 age group. Average listing price for a 3-bedroomed house: R1, 21 million
Greyton: A slight drop in both house sales and sales prices have slowed the Greyton property market somewhat. However, it remains a popular choice for empty nesters and retirees in the over 50 age group. The average listing price for a 3-bedroomed house stands at R4, 04 million.
Hermanus: House sales have been steady although there is a drop in sales prices. The average listing price for a 3 bedroomed house: R3, 03 million.
Kleinmond: Both house sales and sales prices have slowed down in this charming coastal town. The average listing price for a 3-bedroomed house: R2, 33 million.
L’Agulhas: The most southern tip of Africa offers some great investment opportunities with large numbers of vacant residential plots on offer. Average listing price for a 3-bedroomed house: R2, 95 million.
Napier: After a healthy increase in sales prices as well as residential property sales last year, 2018 has seen a levelling out of sales prices and a drop in sales in Napier. However, it remains a popular choice for empty nesters and retirees. Average listing price for a 3-bedroomed house: R1, 87 million.
Pringle Bay: House prices here have plateaued around the R1, 5 million mark and there has been a significant drop in sales during 2018. Average listing price for a 3-bedroomed house: R3, 08 million.
Riviersonderend: House prices and sales have dropped in the last year with the average listing price for a 3-bedroomed house standing at R932 840. Cheaper vacant land is being snapped up by prospective residents.
Malgas: A variety of top-end properties have come on the market in the past year, providing good value for money for clever investors, mainly from Gauteng. The average listing price for a 3-bedroomed house stands at R3, 6 million.
Stanford: Property prices have seen a drop in the past year, leading to a healthy increase in sales as the local property market stabilized after slightly inflated prices over the past 3 years. The average listing price for a 3 bedroomed house is R2, 85 million.
Struisbaai: This coastal town had house prices even out in the past year as local sellers adjusted to the current buyer’s market. Although slower than last year, house sales have remained steady as mainly younger buyers start investing in Struisbaai. The average listing price for a 3-bedroomed house is R2, 23 million.
Suurbraak: This quaint village near Swellendam could be the next big thing for property investors in the Overberg, with plenty of land available although it has a limited residential property offering.
Swellendam: The historic Overberg town has seen a drop in house sales over the past two years, while house prices evened out around the R1, 4 million mark. However, interest from investors in prime property and from ex-pats from the UK and Australia show that there could be an uptick in this local market. The average listing price for a 3-bedroomed house is R2, 43 million.
Villiersdorp: Although house sales have slumped in 2018, this Overberg town is still showing a steady increase in house prices. The majority of recent buyers are in the age group 18 to 49, which could point to a revitalization of the local property market. The average price listing for a 3-bedroomed house stands at R1, 78 million.
Witsand: This quaint seaside village is waiting for a second property boom. The average price listing for a 3-bedroomed house here stands at R 2,05 million.