During the 1990s and early 2000s wealthy foreigners flooded into Cape Town, buying second homes in the big 5 holiday hotspots: Fresnaye, Bantry Bay, Llandudno, Clifton and Camps Bay, and pushing prices in these areas up to levels that made them unaffordable even for the wealthiest locals.
Bloubergstrand on the Atlantic Seaboard is emerging as the next possible hotspot and in percentage terms, more millionaires have moved to Bloubergstrand over the past five years than any other Cape Town suburb.
Since the global financial crisis, prices in the “big 5” have begun to come down but they still remain out of touch with other Cape Town suburbs on a price per square metre basis.
As a result, wealthy locals are being forced to look elsewhere for their Cape properties, with many finding better value away from the mountain.
Bloubergstrand on the Atlantic Seaboard is emerging as the next possible hotspot.
WealthInsight research shows that there has been a large movement of millionaires to the area over the past five years.
In fact, in percentage terms, more millionaires have moved to Bloubergstrand over the past five years than any other Cape Town suburb.
This bodes well for future growth as wealth tends to follow wealth.
According to Lew Geffen Sotheby’s International Bloubergstrand sales agent Basil Weinrich, “Blouberg views are fantastic, Canal Walk Shopping Centre is not far away and the newly developed Eden on the Bay, Big Bay and Seaside Village Shopping Centres have made it far more convenient to live in the area.”
Transport links from Bloubergstrand into town have also improved recently, with the development of the Mi -City Bus route which provides fast access to the City of Cape Town for commuters living in West Coast suburbs.
Perhaps more importantly for wealthier residents, this has freed up the road for other vehicles.
According to Weinrich “this should encourage more millionaires who work in the centre of town to move to this area.”
WealthInsight research pin pointed the various estates in the area and the neighborhood between Otto du Plessis Road and the sea, including Sir David Baird Drive and Stadler Road.
“The secure housing and golf estates of Sunset Links, Atlantic Beach, Blouberg Hills, Sandown Estates and Dune Ridge Estates have luxury homes ranging from R3.5 to R20 million,” says Weinrich.
Although these prices may sound high already, on a square metre level, average prices in Bloubergstrand are still four times lower than Camps Bay, which makes it an attractive investment for local investors, particularly if millionaires continue to move into the area.
WealthInsight defines “millionaires” as individuals with net assets of US$1 million or more, excluding their primary residences.
According to WealthInsight, South Africa had just over 48 700 millionaires at the end of 2012.
Johannesburg accounted for 48 percent of these millionaires, Cape Town 19 percent, Durban 6 percent and Pretoria 5 percent. – Andrew Amoils