With the cost of coastal property escalating, and apartments, especially, fast becoming somewhat out of reach of most buyers, it is rare to find an apartment block in sought-after Hermanus where units are still selling for between R350 000 and R550 000.
No longer a small coastal village, Day says Hermanus in the Western Cape offers top retailers such as Woolworths, Pick n Pay, Clicks and more. There are also many adventure activities in the area, from diving to rock climbing and paragliding. Other attractions include nature reserves and birding, as well as a world-class golf course.This is according to Jane Day, Seeff’s sectional title specialist for the area, who says the apartments are located in the Silver Oaks complex, the oldest of three closely situated apartment blocks as you enter the central town of Hermanus. The development is about 800m from the oceanfront.
She says these prices are particularly remarkable if you consider that, according to the latest Deeds Office data from Lightstone, Hermanus now boasts an average sectional title price of just over R1.2 million.
This is also about 30% more than last year’s average price of around R958 000, says Day.
The demand for apartments in Hermanus, not only from local residential buyers, but also for holiday and retirement purposes, has increased significantly in recent years, she says.
Apartments can now cost as much as just over R4.8 million for a three bedroom unit that overlooks the ocean.
The low prices on offer at Silver Oaks are not likely to last for too much longer, as Hermanus is fast shedding its rural town reputation, with the demand for property and prices on the whole trending upwards, says Day.
For now, though, she says buyers are still able to bag a bargain or two, or more, if you are an investor. Silver Oaks offers 68 units in total, comprising a mix of bachelor and one bedroom flats that range in size from around 26sqm to 46sqm, priced from R350 000 to R550 000.
This one bedroom flat for sale in Silver Oaks in Hermanus is located on the ground floor, and is currently earning a rental of R3 100 per month. The apartment is selling for R450 000 - click here to view.There are also 37 lock-up garages and parking bays that can be rented on an annual contract at a current cost of R100 per month.
There is excellent security with access control and monitored CCTV cameras. This, as well as the general management of the complex is taken care of by a very competent caretaker, says Day.
She says the body corporate is also a large, secure company and Silver Oaks has good financials, providing all-round peace of mind for buyers and investors.
Aside from residential, especially first-time and retirement buyers, Day says the flats make for an ideal investment as there is excellent demand for rentals in the complex.
The flats are particularly sought after as rentals for municipal and hospital employees, as well as locals who work in the CBD. There are also many pensioners who also reside here, she says.
Rental incomes currently range from R2 000 to R3 300 for bachelor pads, and R2 800 to R3 600 for one bedroom flats.
The location of the units so close to the beachfront area also contributes to the popularity, says Day.
This bachelor’s flat selling in Silver Oaks in Hermanus is a corner unit, which means more windows and fewer neighbours. It is currently tenanted at R2 300 per month. The apartment is on the market for R389 000 - click here to view.She says there are also excellent amenities in the immediate vicinity, including a tennis club, bowling, schools and day care centres, fuel stations, banks, places of worship, retailers and many restaurants and coffee shops.
No longer a small coastal village, Day says Hermanus offers top retailers such Woolworths, Pick n Pay, Clicks and more. There is excellent medical care on offer, and a new hospital with an oncology centre is also in the pipeline.
It is also the ideal base from which to explore the many attractions of the Cape, from whale watching to wine tasting, she says.
There are also many adventure activities in the area, from diving to rock climbing and paragliding. Other attractions include nature reserves and birding, as well as a world-class golf course.
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