More buyer appetite for Langebaan and Yzerfontein property

The residential market on the West Coast is booming, fuelled by a combination of economic growth around the Vredenburg-Saldanha hub and increased buyer appetite.

This is according to Pierre Germishuys, managing director for Seeff’s operations in the area, who says the villages of Langebaan and Yzerfontein in particular have picked up a notable chunk of the growth, with sales and prices up over the past two years.

Germishuys says excellent activity during the first half of this year has also set the pace for a positive 2016.

“Buyers are still looking, and for sellers it is still a good time to be in the market,” he says.

“The demand is coming from a constant stream of people from other provinces, some heading here for economic reasons to take up part-time or permanent employment in the new growth industries, while others are part of the great migration to the Cape.”

Property in Langebaan

Germishuys says there has also been an upsurge in older buyers, with the 50-plus group making up about half of sales over the last year.

“Aside from boosting residential sales, we have seen a rental market explosion, especially around the Vredenburg-Saldanha-Langebaan area,” says Germishuys.

“Langebaan is now a popular commuter town for those working in the Vredenburg-Saldanha hub, and its 7 800 permanent resident population is still growing.”

He says a study of the Lighstone data for the past two years shows that sellers have benefited greatly, with sales turnover and prices up at rates well-above the national averages.

“In 2013 for example, sales in Langebaan amounted to 410 freehold properties sold to the value of R422 million. By 2014, this had picked up by 18% in value terms and 43% in unit terms, and last year by a further 26% in value and 7% in volume,” he says.

“Although Langebaan still boasts an average sales price of about R1.184 million, a significant number of R2 million-plus sales have been concluded, mostly over the last year,” says Jaco Coetzee, a Seeff agent in the town.

Within the town itself, Coetzee says Middedorp has seen seven sales ranging from R2 million to R3.96 million in Oester Street, and recently as much as R5.05 million in Spierdijk Close.

“At Myburgh Park too, at least six sales have topped the R2 million price mark, ranging to R3.6 million in Babiana Street, R4.5 million in Cormorant Close, and recently R5.8 million in the same street.”

Homes in estates are now also fetching prices above the R2 million mark.

“The West Coast is no longer sleepy. It is all happening in this part of the Cape that now boasts excellent shopping malls, and there is even a Curro Private School in the area,” says Merle Nicholls, also a Seeff agent in the area.

“We no longer have to travel all the way to the city, but have almost everything we need right on hand - from clothing and restaurant brands to the two best beach restaurants, Strandloper and Strandkombuis.”

She says there is still high demand almost across the board in the sub-R3 million price range, as well as for more affordable properties around the R1 million range in Kalivas in Club Mykonos and Sunset Heights.

“These are especially popular as buy-to-let investments,” says Nicholls.

“Anything priced to about R1.7 million to R2 million can sell within a month, even the new Blue Lagoon development is practically sold out,” says Coetzee.

“Our outlook remains positive, especially if the reported 5 000 to 6 000 new jobs to be created by the IDZ in Saldanha comes to fruition. And, it is not just sales, but the rental market that is set to continue booming. For investors too, the market offers excellent opportunities, especially in the buy-to-let sector.”

Marelize Huysamen, another Seeff agent, says that there are now very few bargains and hardly any distressed sales in Langebaan.

“While there are plenty of properties on the market, many are overpriced and there is actually a shortage of good sellable stock. The tendency for unscrupulous estate agents to overprice properties so that they get the mandates is a drawback for the market,” she says.

Property in Yzerfontein

Neighbouring Yzerfontein, meanwhile may rank as one of the smallest towns and markets on the West Coast with just 1 300 permanent residents, but it boasts a higher average sales price of R1.43m, says Germishuys.

Activity for the 2013 year amounted to 174 freehold property sales worth R172 million. By last year, the value of sales had risen by 28% and the number of units sold by 13%.

Area specialist, Michelle Livingstone-Louw, says that R2.2 million seems to the ceiling in terms of what buyers are looking for. While there are plenty of overpriced properties on the market, there is a shortage of sellable properties below the R1.8 million price mark, she says.

“We are also seeing a bit of speculative selling. A home sold about four months ago for R1.35 million is, for example, back on the market, but now at a price of R1.9 million,” says Livingstone-Louw.

“The challenge for sellers that are aiming too high is that buyers have access to the internet and understand what is going on the market. They are now too smart to overpay.”

The benefits of buying in Langebaan and Yzerfontein

Both Langebaan and Yzerfontein have seen excellent growth over the last ten years. There has been commercial and infrastructure development, as well as more residential properties developments including excellent estates and beach complexes along with stunning beach villas that can even compare with Clifton and Camps Bay, says Livingstone-Louw.

“The close proximity to Cape Town is a big plus factor. Most buyers cite the good facilities, laidback lifestyle and stunning, largely unspoilt surrounds as key to their buying decision,” she says.