The 'Capetonian dream' is to live near the ocean with the iconic mountain making an appearance somewhere on the horizon, but this comes with a hefty price tag that many simply cannot afford.
"However, should you venture some kilometres out of the city centre entirely new realms of beachside bliss await you, for example Strand." This is according to Beatrix Joubert, Broker/Manager of RE/MAX Helderberg (Strand), who gives a breakdown of the Strand property market.
The lay of the land
Strand is a down-to-earth seaside suburb that is roughly 45 minutes’ drive away from Cape Town CBD. Best known for its 5km stretch of pristine, white sandy beaches, the suburb is an idyllic holiday home destination filled with all sorts of activities, including a Waterworld with a super tube, putt-putt course, safe tidal pool and nearby golf courses.
With a population of around 50 000, the suburb also has a number of great schools (primary and high school, private and public) and top medical facilities, as well as a regional shopping centre with 191 stores.
Resident profile
“Strand is a predominantly Afrikaans speaking community and has been a popular holiday destination for many years for the inland provinces. Most of the properties on the market are holiday or second homes that people are selling or transferring into the names of the children,” says Joubert.
“Strand has always been perceived as a very safe suburb with hardly any crime, which makes it an excellent place to retire, especially for those who want to retire near the sea.”
Her insights are backed up by data reported by Lightstone data. 43% of stable owners are over the age of 65, and 42% of recent buyers are between the ages of 50 and 64. Proof that a portion of owners are transferring their properties to their children, 25% of recent buyers are between the ages of 36 and 49, and 43% of recent sellers are over 65. The remaining increase from 15% stable ownership to 25% recent buyers might be explained by the fact that the suburb has recently spiked in popularity.
“The recent trend is to buy the older and ’cheaper’ houses and to restore their old-world charm and sell for a much higher price. Homes with true Victorian features - real Oregon wood floors and pressed ceilings, for example - are currently highly sought after,” says Joubert.
Price points
According to Joubert, entry-level homes start from around R1.1 million, with high-end homes at around R5 million. This can be higher for homes in the popular Greenways Golf Estate.
The average selling price for sectional title homes is currently at R1.238 million, and at R2.085 for freehold property, according to RE/MAX figures.
Investment potential
According to Lightstone data, there has been a significant price surge in the last two years, with the average price of freehold titles growing by 59% since 2016. This could possibly be explained by various ongoing upgrade projects in the area, such as the Sea Wall project and the Beachside Pavilion project, both of which started around 2016.
“This area is currently booming. There seem to be quite a number of younger buyers investing in property in the area recently. Because property prices in adjacent towns such as Stellenbosch are very high, people tend to prefer to commute to work and stay in Strand,” Joubert explains.
“This area is a true local gem with great investment potential for buyers who want to enter the market before the upgrades finish and prices slowly swell to similar levels as the City Bowl and surrounds,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
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