Tucked between mountain ranges, in a lush river valley – with access to not one, but three pristine, white, sandy beaches – lies one of Cape Town’s oldest seaside suburbs: Hout Bay. More central than its False Bay counterparts to the south and east, and less congested than its northern neighbours along the Atlantic Seaboard, this sprawling old logging and fishing village is now home to a surprisingly large and diverse population.
Eco living and beautiful sea and mountain views in Hout Bay for R23 million
“Estimates suggest Hout Bay is home to anywhere between 40,000 and 70,000 people,” says local property expert and top-performing Rawson real estate agent, Julian Wannell.
Indeed, Hout Bay is as well-known for its fishing community - Hangberg, and lower-income communities such as Mandela Park/Imizamo Yethu, as it is for its ultra-luxury residences (which include two actual castles). As Wannell discovered first-hand when relocating to Hout Bay with his family in 2016, this juxtaposition of affluent and low-income parts of the suburb sometimes raises the eyebrows of those new to the area. Having now lived and worked in Hout Bay for several years, however, he can confidently say that fears over security are largely unfounded.
“The atmosphere in Hout Bay really is unique,” he says, “ Everyone just seems to get along. It’s calm and it’s happy. It feels like a holiday village with its harbour, beaches, forested mountains, restaurants, hotels, market, craft brewery and craft gin distillery.”
In reality, Hout Bay is much more than just a quaint seaside village with an active fishing community. It also houses some of the best schools and equestrian facilities in the city, as well as a thriving art and artisan community. Add to this its central location – a scenic and traffic-free 25 minutes from the CBD, and 35 minutes from the airport – and it’s little wonder demand for its properties has been steadily increasing.
“In terms of property, there’s a little bit of everything in Hout Bay,” says Wannell, who has spent the last seven years learning the nuances of the area and its many homes. “You can find modest apartments starting from R950,000, all the way up to eccentric, sprawling mansions on huge acreages listed for sale at R80+ million.”
At the moment, Wannell says the sweet spot for sales is just under R4 million. For that, buyers can expect a basic 3-bedroom home on 400 to 600 square metres in central Hout Bay; a larger home with sea views up in Hout Bay Heights; or a modern luxury 2-bedroom penthouse apartment.
Charming townhouse in Hout Bay for R3.450 million
“Stock is in relatively short supply across the board,” says Wannell, “and demand shows no sign of slowing, thanks to a steady influx of buyers from Gauteng and KZN. Average time on the market is around 6 to 10 weeks, but well-priced homes in popular categories – like family homes with good views – can easily sell within a week.”
Vacant land, while scarce, has also become popular – particularly with upcountry buyers reluctant to renovate one of Hout Bay’s many 80s and 90s family homes.
“Large portions of Hout Bay’s undeveloped land are currently held by wealthy residents, the old landowners and investors, including South Africa’s presidential family,” says Wannell. “Over time, this land may find its way onto the market. For now, the few vacant plots coming available tend to be subdivisions of one of the many two or three-acre properties lining the Disa River Valley and surrounding mountains.”
As for property prices, Wannell says interest rates have had little impact on momentum, with most Hout Bay properties experiencing positive growth since 2021. While wider economic uncertainty makes accurate long-term predictions difficult, strong demand – paired with potential investment and refurbishment plans for Hout Bay’s harbour precinct – suggests growth will continue for some time to come.
Despite high demand and an optimistic outlook, however, Wannell cautions Hout Bay sellers against overambitious pricing.
“Accurate pricing is still essential in this market” he says. “Anything more than a hair over market value – just enough to give you some room to negotiate with buyers – is almost guaranteed to backfire. As a rule of thumb, if your property isn’t selling, adjust quickly and definitively. You don’t want to sit chipping away at your asking price, bit by bit.”
Pinpointing the right price point is best done with the help of an experienced local agent – something Wannell strongly recommends buyers consider as well.
Sectional title property boom in Gauteng as buyers find good value
There has been a notable shift in the urban property markets in Gauteng with sectional title property currently being a sweet spot for buyers. This is largely due to affordability, but also security according to the Seeff Property Group.
Aside from the lower price points, sectional title property offers key benefits including reduced maintenance, generally better security and often shared amenities such as a swimming pool, gardens and play areas for children and so on. New developments may also offer a gymnasium.
According to Deeds Office data sectional title property transactions comprised some 31% of all transfers over the last year with more than half of those (52%) in Gauteng. The highest volumes were prevalent in the urban areas around Johannesburg, Randburg, Sandton, Midrand and Centurion.
In the greater Randburg area for example, sectional title sales account for 51% of all transactions over the last year despite only making up about 44% of all property stock, clearly demonstrating the shift.
Detmar Nuttal, sales manager for Seeff Randburg says the area is renowned for its affordability and choice of security complexes. These are often sought by first-time buyers, but also young families and those looking to downscale. Security and affordability are two key drivers of the market.
Sectional title prices range from around R650,000 on average in areas such as Weltevredenpark, Wilgeheuwel and Allens Nek, but there are many options at different price points.
Lovely modern upstairs apartment with views in Wilgeheuwel for R655 000
Apartments and townhouses are also popular rental investments. It is usually not too difficult to find a tenant to fill a unit, but obviously any potential investor must first check whether there is a need for more stock in the particular area.
In the Sandton, some 60% of all sales concluded were sectional titles although it only makes up about 55% of all property stock. It has been one of the fastest growing sectors of the market in terms of new developments.
The highest volume of sectional title property tends to be in areas such as Bryanston, Morningside, Lonehill, Sunninghill, Paulshof, Douglasdale and Sandown, but there are also many other areas including Buccleuch and Edenberg.
A key benefit of sectional title is that it offers more accessible pricing for those looking to live in a Sandton suburb, says Charles Vining, MD for Seeff Sandton. While a very popular property choice, there has not been any notable spike in prices which is largely in keeping with the generally weak price growth experienced over the last few years. Buyers can therefore find really good value in sectional titles, he adds.
That said, there is growing demand for luxury sectional title properties including penthouses which are selling for well into the upper millions, around R4 million to R6 million on average, with luxury units priced upwards of this.
Vining says Midrand is another very popular area for sectional title property buyers with some 66% of all sales transactions worth about R2.2 billion concluded over the last year although it only comprises 35% of all property stock.
The affordability is well illustrated considering that more than half of all sales were between R400,000 and R1.5 million, with average prices ranging from around R650,000 to R1.5 million.
Other popular sectional title areas include Bedfordview (about 74% of all property stock) and Edenvale (35% of all stock).
Timelessly elegant family home in Bedfordview for R5.999 million
Tiaan Pretorius, manager for Seeff Centurion says here too, sectional title sales dominate, making up about 56% of all sales transactions over the last year while comprising just under half (46%) of all property stock. He expects the trend to continue.
Given how big the sectional title market is, he says some challenges for the sector include how bodies corporate will adapt to alternative power needs from residents, and to what extent complexes will look to become self-sufficient in this regard.
Almost all areas in Centurion are popular when it comes to sectional title properties. About half of all sales tend to take place in the R800,000 to R1.5 million price band. The highest prices achieved over the last year include R3.7 million and R3.5 million for units at The Paddocks in Southdowns, R3 million at The Lofts (Southdowns), R2.8 million at The Gables (Southdowns), R2.75 million in Ascend to Midstream, and R2.7 million in Squirrels Leap (Heritage Hill).
Lock up and go in Heritage Hill, Centurion for R2.990 million
While Pretoria East is still dominated by freehold property sales, Gerhard van der Linde, MD for Seeff Pretoria East says there is a continued shift towards sectional title property for reasons such as affordability and convenience. The highest demand is around the R2 million price range.
He says newcomers see sectional title as a first stepping stone into the property market due to the affordable pricing. The concept of lock up and go is also attractive for this market, and costs of maintenance and insurance of the buildings are shared between the owners who form part of the body corporate.Im
Immaculate three bedroom duplex in Lynnwood for R2.5 million
There are however challenges. Rising building costs and challenges around obtaining approval for new schemes have become major obstacles in the way of the establishment of new schemes. He adds further that location is of high importance. The student market and young professionals favour sectional title schemes that are close to the university and places of work where new business nodes have been established in recent years.
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