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Professionals Flocking to Cape Towns Laidback Suburbs
Category Property News
The residential market in Cape Town’s laidback and characterful ocean-side Noordhoek and Kommetjie suburbs is booming, with both areas enjoying an increase in property values and sales volumes in the past three years.
This six bedroom house in Noordhoek offers open-plan living areas, fireplace, study and courtyard pool. It is selling for R8.95 million - click here to view.
This is according to Steve Thomas, franchise manager for Lew Geffen Sotheby’s International Realty in False Bay and Noordhoek, who says property values have increased significantly since the market last peaked in 2007, with sales volumes spiking in both suburbs in 2014.
“During 2014, a total of 30 houses to a total value of R92.235 million were sold in Noordhoek, while in 2015 we saw 25 houses sales achieving R97.38 million,” he says.
“In 2007, the average house price was R1.11 million, increasing to R3.075 million by 2014 and to R3.895 million in 2015. While there were more sales in 2014, in 2015 we saw an upswing at the top end of the market with four transactions achieving more than R7 million, two of which breached the R8 million mark.”
Lightstone figures reveal equally impressive growth for Kommetjie, where the average house sale price increased form R1.91 million in 2007 to R2.845 million in 2014, which translates to a year-on-year compound return on investment of 7% during that period. By 2015 the median price was nudging R3 million.
Thomas says calculated over a period of nine years, Noordhoek has offered an inflation-beating nominal return on investment (%ROI) at 15% per annum, with Kommetjie achieving the same return, but measured over a 10 year period.
This property in Kommetjie has four bedrooms, open-plan kitchen, lounge with fireplace and covered veranda. It is on sale for R3.1 million - click here to view.
This picturesque region is increasingly grabbing the attention of families and retirees wanting to move away from the city, as well as buyers from upcountry looking to move to the Cape or invest in second homes, which has resulted in a notable change in the demographics of buyers and residents.
No longer sleepy villages populated mostly by the laidback creatives and the surfing community, both Noordhoek and Kommetjie are attracting a growing number of affluent professional investors, with the Living Standard Measure (LSM) for both suburbs now being 10.
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says what hasn’t changed is the fact that property owners in both suburbs tend to hang on to their homes for longer than in many other areas.
“A recent survey concluded in January this year revealed that in Noordhoek, 41% of owners have lived in their homes for 11 years or longer, with 15% having stayed for eight to ten years. In Kommetjie the figures are 54% and 12% respectively.”
He says what is also notable is the spike in the percentage of owners who have lived in the area for less than five years, corresponding with the recent market surge and increasing popularity of the suburbs.
Geffen says the Lightstone report also reveals that homeownership is now almost evenly split over all age groups in both Kommetjie and Noordhoek, except for the over-65s, where pensioners only account for 2% and 3%.
“This is especially true in Noordhoek where 32% of homeowners are aged 50 to 64, 36% are in the 36 to 49 age group while 30% are 35 or younger.
“In Kommetjie the 36 to 49 age group dominates with 42% ownership, followed by owners aged between 50 and 64 who make up 30% of homeowners, with 26% being under 35 years of age,” he says.
Thomas says although the increase in sales volumes and property values are largely driven by the emergent trend of families moving away from the city and an increase in upcountry buyers, the growing interest from these buyers is, in turn, due to the unique and exceptionally attractive appeal factors of the area and the suburbs themselves.
“Idyllic locations alongside the ocean, tranquil settings and laidback country lifestyles set these two suburbs apart from most areas in Cape Town, firmly placing them in a class of their own.
“With its quiet leafy lanes, Noordhoek has a serene rural atmosphere, offering residents the epitome of a relaxed village lifestyle. Equally laidback, Kommetjie still enjoys a strong sense of community and is especially appealing to water sport enthusiasts and nature lovers.”
Thomas says Kommetjie is perhaps best known for its excellent surf break, but as part of the fynbos biome, it is also a natural paradise and a premier site for observing sea birds.
Lovers of the great outdoors are spoilt for choice in this scenic region as they can indulge in all manner of activities including hiking, fishing, horse riding, boating and cycling without venturing very far from their front doors
Author: Lew Geffen Sotheby's International Realty
