Heading to the coast for the summer holidays and looking to invest in a holiday home or a rental investment? Seeff looks at some of the top hotspots this year.
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With tourism back in full swing and demand for holiday rentals back to pre-pandemic levels, the Seeff Property Group, says that demand for the Western Cape coastal towns has grown enormously over the last two years. Despite a slower sales market, homes in holiday towns have for example still sold for over R10 million up to R33 million (sold by Seeff) in Plettenberg Bay.
Aside from the semigration trend to the coast boosting demand for coastal homes, there is a strong desire to own a second home for those who want to remain in other economic centres such as Gauteng to at least invest here. There has also been growing demand for Eastern Cape coastal hotspots which often offer more accessible pricing compared to that of the Western Cape.
Seeff’s agents highlight their choice of holiday home hotspot, and what can you expect to pay?
Clifton and Camps Bay on Cape Towns’ Atlantic Seaboard
These are the two hottest holiday home hotspots for wealthy buyers, according to Ross Levin, licensee for Seeff Atlantic Seaboard. Based on this year’s sales Clifton boasts an average house price of over R50 million and over R22 million for apartments. Camps Bay boasts the highest volume of sales above R20 million this year.
The fabulous cosmopolitan lifestyle, scenic setting between the mountains and white, sandy, beautiful blue flag beaches, these areas are the top holiday home hotspots attracting wealthy buyers along with visitors, celebrities and Instagrammers. Levin says you are not only investing in a quality lifestyle, but the top real estate belt with some of the best property growth over the last decade, attracting buyers from all over including international buyers, primarily from the UK and Germany.
Plettenberg Bay and Knysna on the Garden Route
Despite a challenging year, Seeff Plettenberg Bay still achieved sales ranging from R17.3 million to R33 million for a Beachy Head home, some of the highest prices paid outside of the Atlantic Seaboard. Alet Ollemans, licensee for Seeff says the fabulous climate and cosmopolitan beach lifestyle is a big drawcard.
You can still find well-priced apartments in Plett from around R1.4 million, but luxury units range to around R6.5m to R12.75 million. Houses range from R2 million to R4 million on average, but luxury homes can go to as much as R60 million. Knysna waterfront properties in Thesen Islands have enjoyed fabulous sales over the last few years as buyers look to get into the market here. Houses range from around R5 million to R15 million. Other popular areas include the Brenton areas, Simola and Pezula Estates as well as nearby Sedgefield which still offers excellent coastal affordability.
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Langebaan and Yzerfontein on the West Coast
The quintessential West Coast lifestyle of seafood and stories and beautiful holiday homes is part of the attraction of the West Coast. The close proximity to Cape Town make them easy weekend getaways and home to many holiday homes. Beach front homes in Langebaan sold this year in Calypso Beach Estate for R8.25m and R8.8m by Jaco and Tracey Coetzee from Seeff, the latter at the full asking price which says something for just how popular it is becoming, say the agents.
Yzerfontein, closer to Cape Town is a real gem with no commercialisation. According to Michelle Livingstone-Louw and Nelia Retief, agents for Seeff, it is becoming increasingly popular with those who want a quieter lifestyle. Seeff achieved prices of up to R6.5 million in Pearl Bay and R6.785 million in nearby Jakkalsfontein Private Nature Reserve this year.
Pringle Bay and Rooi Els in the Overberg/Overstrand Region
Under two hour’s drive from Cape via Clarens Drive, one of the most beautiful coastal drives, these quaint villages are located among the natural fynbos of the Kogelberg Biosphere with mountains as a backdrop. Home to a variety of bird and animal species as well as sea life and a great area for whale spotting, the villages are characterised by a rocky coastline and beautiful white beaches.
Both offer good security with CCTV cameras. Pringle Bay has basic necessities and eateries while nearby Rooi Els is devoid of commercialisation. Pringle Bay property options range from small to large homes, ranging upwards from around R2 million with several sales recorded this year in the R3 million to R5 million range. Rooi Els is a bit more expensive with listing around the R3.6 million range.
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Jeffreys Bay and St Francis Bay, great surfing hotspots in the Eastern Cape
The picturesque resort towns of Jeffreys Bay and St Francis Bay, both areas just over an hour’s drive from Gqeberha, are renowned as surfing hotspots. Jeffreys Bay for example is renowned for one of the best right pointbreaks. The town offers excellent amenities and very accessible property prices according to Seeff.
St Francis Bay offers an excellent selection of holiday properties to rent or to buy with a choice of waterfront and golf estate homes, generally ranging from around R2 million to R8 million.
Big Bay and Bloubergstrand in Blouberg
Blouberg is renowned as one of the top kitesurfing destinations in the world with the Red Bull King of the Air 2023 in full swing this week with three South Africans participating.
There has also been an increase in foreign buyers investing in properties here, including for example those with interests in kite surfing as well as buyers from the UK, Germany and Europe looking to retire here. Both areas are located right on the coast within walking distance of the beaches and amenities including restaurants, shopping centres and more. Big Bay offers a choice of apartments, townhouses and estates, priced from around R2 million to R8 million on average. Bloubergstrand also offers apartments, also from around R2 million and luxury houses, many of which have been removed with the area looking a bit like Clifton these days, prices can range into the upper millions.
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Local Real Estate agents Lara Hamilton Potts and Keith Harrison suggests buyers work with an agent: (read full article here)
“In addition to only using an accountable and experienced Agent/Agency when purchasing a property always consider if you were to resell what are the pros and cons about the potential property. ie. be wary of steep driveways, lots of stairs, and other aspects that may hinder a potential sale further down the road.”
“If you are buying an apartment or sectional title property check the levies and special levies so there are no hidden surprises that will affect you and especially the pet policies," says Hamilton Potts.
Harrison says as this will be the largest purchase you are likely to make, ensure you work with an agent you trust and who listens to you and understands your requirements regarding price and size of property.
"Ensure that the agent will guide you through the purchasing process especially and discuss important aspects such as location, security, schools, access to amenities like hospitals and shopping malls and access to Highways and Airports amongst others," he suggests.
Understand the entire costs of purchasing a property:
"It is important that first time buyers understand the entire costs of purchasing a property particularly that there are bond costs and transfer duty costs which are over and above the actual purchase price," says Richard Anderson of Local Real Estate, Ballito.
“There are differences between purchasing land, an already built property and off plan purchases. The agent should establish the end goal for the buyer to assist with this decision.," he says.
Local Real Estate agent Jake Morgan, says: “Being pre-qualified as a buyer who can afford a certain priced property is a definite advantage. This is a free service so use a trusted originator, as it also saves time on the purchase".
“When buying a ready built home, request the house plans and make sure that they are up to date and approved with an occupational certificate as sometimes renovations have not been approved by the municipality which really complicates the process. This is a vital piece of information.
“If buying for investment purposes, such as a rental property ensure you are purchasing in a popular area and usually less is more, as there is demand for a 2 bed 2-bathroom apartment. Avoid higher priced purchases as this means the rental needs to be higher and it could be a struggle to rent out," says Morgan.
In the meantime Rory Anderson another Local Real Estate agent in Ballito says, many buyers are now leaning towards secure Estates and complexes wanting security and facilities but even within these Estates, location is critical for future growth and resale.
"The properties that see the best returns on investment are those that are not on fence lines, that enjoy lovely outlooks and are also not too far from the entrance gate(s). It is also important for purchasers to think ahead and choose properties that will appeal to a wider market such as a lovely single level property as these will also enjoy faster growth than their counterparts with stairs and no gardens".
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