Home prices in the Overberg town of Caledon have increased by up to 25 percent since the middle of last year, thanks to younger buyers increasingly targeting the town and taking up available stock.
This three bedroom house in Caledon is on the market for R1.599 million - click here to view.Riaan Smuts, owner of the RealNet Overberg franchise, says the influx of younger buyers is changing the demographics of the town as well as bringing new vigour to the residential real estate market. "School enrolments are up and day care centres for young children are proliferating."
The rising demand for residential units has also prompted new development and the town’s first large security estate is currently under construction on the mountainside near the schools. The development will thus perfectly fit the bill for younger buyers with school-going children, says Smuts.
Entry-level properties in the town are currently selling at prices from around R400 000 for flats and around R550 000 for small basic homes. The highest demand currently is for homes in the R1 million to R1.2 million category, while top-end homes are now achieving prices of up to R1.6 million.
Rental demand is also high and rentals are escalating fast as a result.
This four bedroom house in Caledon has wooden floors and a braai room. It is priced at R1.45 million - click here to view.Smuts says rental stock is low but there are a few opportunities for investors in the buy-to-let market. "One example, is two semi-detached homes on the market for R850 000 and with expected rental income of R8 400 per month."
Meanwhile, commercial development is keeping pace and a new shopping venue, The Victoria Mall, opened last year, bringing a variety of national brands to town. "And this is just one indication that the fortunes of Caledon are on the up. Another development currently underway is a petrol station and shopping centre on the N2 highway," he says.
The town currently offers excellent value and returns for commercial investors. “A couple of older buildings are now on the market, and one priced at R1.4 million for instance, earns monthly rentals of about R17 000.”
Infrastructure in and around the town is also being upgraded. The biggest project is a new tarmac surface for the Hemel-en-Aarde road, which will allow residents a quick 30-minute drive on tar to nearby Hermanus.
This four bedroom house in Caledon offers two reception rooms. It is selling for R1.35 million - click here to view.Smuts says but in spite of all the development, Caledon retains its attractive rural atmosphere, which is one of the biggest drawcards for buyers escaping the bustle of city life. "However, amenities in the larger neighbouring towns are within easy reach – and we are just 45 minutes away from the Somerset Mall."
For buyers who want even more seclusion, the tiny farming community of nearby Tesselaarsdal is a magnet. Buyers in the area are mostly people who want to leave the rat race behind and yearn for peace and tranquillity.
"Properties in the village, as well as the surrounding smallholdings, are in high demand at the moment as word spreads about the peaceful lifestyle to be had in the area. Our portfolio of available properties is being depleted rapidly but undeveloped tracts of land of about 4 hectares are still available at prices as low as R500 000," he says.
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