Property boom for Hout Bay
Hout Bay's property market is seeing robust growth, according to local estate agents.
Hout Bay is a desirable place to live and do business, says Julian Wannell, from Rawson Properties, and demand for properties in the area is fuelled by lifestyle, remote work trends, a blend of rich and poor neighbourhoods, and increased demand from various buyer demographics.
Ward councillor Roberto Quintas describes Hout Bay as a place that, despite its challenges, remains highly desirable for both residents and businesses.
According to him, the ward boasts prestigious schools, ensuring that families have access to quality education, and the area's extensive amenities are all within easy reach.
“Cape Town is growing and Hout Bay with it. There will always be a place for the town-and-country lifestyle in the heart of the valley. However sustainable, resilient and sensitive densification and development are needed in order to accommodate our residents, including those approaching retirement and younger individuals looking for starter homes close to family,” said Mr Quintas.
Mr Wannell said a surge in Hout Bay property sales, which started in late 2020 and continued into 2022, could be attributed to low interest rates making property purchases more attractive. And buyers had a wide choice that included flats, luxurious estates and vacant land to build on.
The pandemic-induced shift towards remote work had increased the demand for spacious suburban homes aided by Hout Bay's extensive fibre broadband coverage since 2017, he added.
Hout Bay's buyer demographic, he said, included first-time buyers taking advantage of low interest rates, parents relocating to be closer to their children, and multi-generational family purchases. International buyers were also attracted to the area, some seeking permanent residences rather than holiday homes.
Mr Wannell said civil unrest in Gauteng and KwaZulu-Natal had accelerated migration to the Western Cape, benefiting Hout Bay and other Atlantic Seaboard areas.
Estate agent Lola Kramer, who recently sold the historic Kronendal estate, agrees that semigration is helping to fuel the demand for Hout Bay property (“A piece of Hout Bay history sold,” Sentinel, August 18), and she noted that with new stock ebbing off, sellers were sitting pretty.
“Statistics indicate a gradual decline of new properties entering the market since September 2022, thereby making it a seller’s market,” she said.
“The highest number of properties sold is in the three-bedroom category, selling between R3.5 million and R4.5 million as well as sectional title, mainly apartments, between R2 million and R3 million.
“It appears that most buyers in the area are between 36 to 49 years old, followed by ages 50 to 64. Semigration has attracted many buyers to Hout Bay because it offers such great value along the Atlantic Seaboard.
“In my experience, overseas buyers are still interested in investing here, especially in holiday homes, and estate living remains a popular choice. We recently sold three properties in Avignon Estate to overseas buyers, for above R6.8 million, before they came onto the market."
According to Ms Kramer, there is a dire shortage of rental stock, which has resulted in high demand and an increase in prices, often above affordability.
“The shortage of ideal properties has reduced the rental stock, transitioning it into a landlord's market," said Mr Wannell. "Properties priced between R2 million and R4 million sell rapidly, although Cape Town's property prices can be surprising to newcomers."
He said that while long-term predictions remained uncertain, strong demand and potential investment and refurbishment plans for Hout Bay's harbour precinct suggested that growth would continue for the foreseeable future.
Mr Wannell advised sellers to price their properties accurately, cautioning against over-ambitious pricing.
