Demand soars in the South Peninsula

THE SCENIC laid back suburbs along the False Bay coastline and other South Peninsula areas were once all dominated by character period freestanding homes, but this is changing as ongoing sectional title and estate development remodels the property landscape. This is particularly true of Muizenberg and Fish Hoek, which have seen the most development in recent years, says Steve Thomas, franchise manager for Lew Geffen Sotheby’s International Realty in False Bay and Noordhoek. He says: “One of the main driving forces behind the ongoing development is growing demand for property as these areas continue to offer exceptional value and accessible prices in a city where property prices in many areas have spiralled beyond the reach of first time buyers.”

Muizenberg now.comprises 35.5 percent houses, 35.11 percent sectional title units and almost 30 percent estate homes. “Prices and sales volumes have surged in Muizenberg where the total annual value of apartment sales grew by 117 percent from R84 million in 2013 to R183m by the end of 2015 with an acceleration of 86 percent in unit sales which increased from 123 to 229 during this period. “Pis a result, the median apartment price showed a nominal 8 percent yearonyear increase from R680 000 in 2013 to R800 000 by the end of 2015.” Citing Lightstone data, Lew Geffen southern suburbs coprincipal Arnold Maritz says that between August 2015 and July this year, 200 sectional title homes changed hands in Muizenberg with more than half (108) being in the entry level price band of R400 000 to R800 000 at an average sale price of R594 000. “The second most active bracket was the R800 000 to R1.5m bracket with 68 sectional title properties sold at an average price of R1.04m. A further 12 units were sold for less than R400 000, and in the R1.5m to R3m price band there were nine sales and only three apartments sold for more than R3m. “However, of the 35 apartment sales recorded between May and July the R800 000 to R1.5m price band was the most active with 16 sales at an average sale price of R1.03m, while 13 apartment sales in the R400 000 to R800 000 bracket realised an average price of R602 000.” Thomas says although development has been more recent in Fish Hoek with only 25 percent of the properties being sectional title, 40 percent of all property sales in the past year were sectional title homes with the most active price band being the R800 000 to R1.5m, where 36 of the 88 apartments were sold at an average of R1.09m.

“In the entry R400 000 to R800 000 bracket, 34 units were sold at an average sale price of R606 000, while 17 sales were in the R1.5m to R3m price band with only one flat selling for under R400 000.” He says even Kommetj ie, known for its quaint freestanding homes is seeing the emergence of sectional title property sales, with two recent developments in the suburb and another on the cards. According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty there has also been a spike in the demand for short and longterm rental property, with correspondingly rising rentals creating an excellent market for investment buyers who now account for 40 percent of all transactions. “The market is also being buoyed by the continued influx of upcountry buyers and a growing number of young investors under 35. “We are now also fielding more enquiries from international ‘swallows’ who are discovering that False Bay offers a more laidback lifestyle than the city and Atlantic seaboard with access to an array of attractions and amenities. “False Bay is a very affordable high growth, lower risk market that is showing good activity which looks set to continue.” In addition to the holiday lifestyle the area offers, residents enjoy proximity to an array of amenities, including excellent schools and medical services, several shopping centres, golf courses and outdoor and sports facilities, including scenic trails and beaches. Demand soars in the South Peninsula One of very few sectional title properties in Kommetjie, this twobedroom apartment is for sale at R2.195 million.

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