Cape Town’s Strand is attracting considerable investor interest, and is one of the few places where it is still possible to invest in a family home or beachfront apartment at a fraction of the cost of most comparable areas in the city.
This is according to Chris Cilliers, CEO and principal for Lew Geffen Sotheby’s International Realty in the Winelands, who said investors are “always a good indication of a strengthening market in which investors are confident of achieving solid returns”.
Propstats data revealed that property values have increased substantially over the past two years. Between 2014 and 2015 the average sale price of apartments in Strand rose by 8.9% from R570,000 to R621,000, jumping by 50% to R935,000 by the end of September this year.
Houses fared equally well, with the average sale price of R842,000 in 2014 increasing by almost 25% to R1,05m in 2015, followed by an increase of just under 24% to raise the average house price to R1,3m at the end of Q3 2016.
A home for most pockets
Retirees looking to maximise their pensions could buy a modern one-bedroom apartment from around R400,000 or a secure two-bedroom townhouse from R600,000; young professionals who want beachfront living, can purchase apartments with sweeping sea views from R1,7m.
Contemporary designer apartments with panoramic vistas and luxury finishes are now nudging the R4m mark.
Entry-level two-bedroom starter houses are priced between R1m and R1,4m, while three- and four-bedroom houses start at R1,3m to R1,5m.
“The most sought-after freestanding homes at the top end of the market are in Greenways Golf Estate, where prices range between R5m and R9m depending on size and position,” said Cilliers.
Traditionally home to the 50+ age group, the Strand area is becoming increasingly popular to a broad spectrum of buyers, with the number of investors under the age of 35 doubling during the past year.
“Strand is an attractive option for young families seeking a quieter life as excellent schools, hospitals, sporting facilities and top-class retail and entertainment amenities are all no further than a 15-minute drive,” said Cilliers, noting that residents are a 50-minute drive from Cape Town, 25 minutes from Cape Town International Airport and in close proximity to the Winelands, the Whale Route and the world-renowned Kogelberg Biosphere.
Photo: A beautifully renovated four-bedroom family home in the Strand area for R2,15m. It boasts the additional features of an enclosed braai room, a large family kitchen with a separate scullery and secure parking for four cars.