Vibrant village lifestyle in Cape Towns Hout Bay

Annual property sales in Cape Town’s Hout Bay village have just surpassed the R1 billion mark. Based on the latest data recorded on Propstats by agencies operating in the area, sales for the twelve-month period covering August 2014 to end of July 2015, amount to just over R1.01 billion.

This three bedroom house in Hout Bay has an open-plan kitchen, lounge with fireplace, TV room, study, wine cellar, outdoor patio with rim-flow pool and a landscaped garden. It is on sale for R8.3 million - click here to view.

This is according to James Lewis, Seeff’smanaging director for the area, who says this is a major milestone, and it is the first time that this level of value has been achieved since the economic downturn of 2007/8. It is also reflective of the growth in the local property market.

Lewis says this value is about 70% up on the R594 million of three years ago, and just over 40% better than the R705 million of 2013.

The average sales price for this year now stands at about R3.4 million, 20% higher than last year’s average of R3.04 million, and almost R1 million more than what it was in 2012/3.

Lewis says the growth of the market and strong demand for homes in the village can be further gleaned from the activity in the R5 million-plus sector. In 2012, there were only about 20 sales recorded above this price band. This increased slightly to 27 transactions in 2013.

By last year, this had doubled to about 53 sales worth just over R400 million, at an average price of R7.68 million. Most of these top-end sales were in the sought-after security estates such as Kenrock, Ruyterplaats, Avignon, Berg-en-Dal and Baviaanskloof Private Estate, as well as in the suburbs of Scotts Estate and Baviaanskloof.

This thatched home in Hout Bay offers four bedrooms, an open-plan dining room with fireplace, underfloor heating, a study, entertainment room, gym, wine cellar and rim-flow pool. It is priced at R6.5 million - click here to view.

Top-end prices are also edging closer to the R10 million mark, with about 12 sales so far for the year priced from just under this price level to almost R20 million at the top end.

While the majority of buyers are local Capetonians, the village has seen an increase in demand from buyers relocating from other provinces, especiallyGauteng, but even from the Eastern Cape. More than half of all sales over the last year have been cash deals, says Lewis.

Agent Ingred Blicher Hansen attributes the uptick in activity to a combination of location and lifestyle, and says buyers are prepared to pay ever higher prices for a home in this area. Yet, the area offers variety; from well-priced apartments and townhouses around the R1.5 million mark, to luxury homes that can easily sell for R10 million and more.

Many buyers are also seeing the village as offering more value when compared to what they can buy on the Atlantic Seaboard, and even in the Southern Suburbs.

This apartment overlooking the Atlantic Ocean in Hout Bay has four bedrooms. It is selling for R9.995 million - click here to view.

While still laid back, the upgrades taking place in the village have been a definite boost for the property market according to agent Nolan Wood. The addition of the International School, for example, is not only the first high school for the village, but the Baccalaureate-level education on offer is highly valued by parents.

Although popular with older buyers, especially retirees, the village is now relatively young, with a vibrant energy. According to the latest data from Lightstone, more than 80% of recent buyers are under 50 years old, says Lewis.

“We also have not seen any drastic downturn in the demand, and with stock levels still short to meet the buyer demand, it is still a good time to sell.”