Gordon’s Bay in the Western Cape has seen house values rise healthily in recent years, brought about in part by major demand for anything priced up to R1,5m – a price band in which stock levels are in short supply. This is according to Louise Varga, Pam Golding Properties area manager, who said residential property prices have risen in recent years with the result that there is a significant stock shortfall up to the R3,5m mark and with the demand for all property under the R1,8m threshold outstripping the current supply.
“Enquiries from buyers are brisk and ongoing, despite the fact that the stock shortage is driving prices up higher than at the beginning of the year,” she said, noting that buyers were mainly from Gauteng and KwaZulu-Natal, and more overseas buyers during the past summer season. “We often also find upwardly mobile people working in Europe buying to retire here – acquiring their place in the sun. Other purchasers are local Gordon’s Bay residents or those from Cape Town and the Helderberg scaling up or down due to lifestyle changes.”
Home prices in Gordon’s Bay
‘Old Village’: from R1,5m to R4,5m
Harbour Island: apartments range from R1,3m to R2,5m-plus million in the more upmarket developments. Freestanding full-title houses start at R2,7m
Cayman Beach: two-storey villas are priced from R1,8m to R3,5m
Antilles Beach: beachfront villas are priced from R5,5m
Gordon Heights: from R2m for a “fix-me-upper” to R5m, depending on size, condition and views
Mountainside: R2,3m and upwards, while vacant plots are priced from R750,000 to R1,3m
For buy-to-let or investors, Varga recommends purchasing in the middle class areas and spending about R1m to R1,5m due to rental returns being in the region of R9,500 to R10,000 per month.
“Rentals are in huge demand – with a concomitant stock shortage,” said Varga. “In fact, there is a crucial shortage of all types of rental properties in all price bands, particularly for family homes (with three bedrooms and two bathrooms) and for freestanding units in security complexes.
“At present one can rent a two-bedroom one-bathroom flat with no garage and undercover parking in a beachfront security complex for about R7,500 per month. Rentals of three-bedroom family homes in Gordon’s Bay range from R13,000 to R15,000+ per month, depending on location and the amenities on offer.”
Top photo: Situated in Chapman Drive in Gordon’s Bay, with views of False Bay and Table Mountain, this two-bedroom, three-bathroom home with an additional two-roomed cottage is on the market through Pam Golding Properties for R3,5m