Cape Peninsula property trend-watchers say Fish Hoek’s average home price is around R1.2 million while its neighbouring precincts, Clovelly and Simonstown, have an average price of around R2 million.
This three bedroom, two bathroom home is situated on the mountainside of Fish Hoek. It offers a garden, swimming pool, views of the mountain and a double garage. It is on the market for R1.595 million - click here to view.
Some commentators predict that Fish Hoek’s home prices are therefore bound to rise in the near future.
The reasons they give for this are that, apart from the area’s glorious mountains and magnificent beach, it has excellent well-established schools and retail centres and will soon see the full benefit of the re-opening of the Kalk Bay Main Road.
Commentators say more and more people are now opting for the one hour train commute to the city, finding it much less stressful than driving.
Leon Bosman, co-franchisee for Rawson Properties in Fish Hoek and Simonstown, says there are signs that this catch-up is already taking place.
Bosman says figures, which are almost identical to those of the latest Lightstone survey, show that prices in Fish Hoek are rising at six to eight percent per annum.
This apartment offers two bedrooms,one bathroom and a single garage. It is priced at R1.1 million - click here to view.
“In addition to this, throughout the area, but especially in the avenues precinct, continuous renovations and upgrades have been evident for a long time. There are now relatively few houses in the avenues, which have not been improved in some way over the last three to four years.”
Bosman says a third reason for confidence in the area’s ability to transform itself is that approximately 30 percent of today’s buyers are between the ages of 20 and 30 and are definitely members of the upwardly mobile, future leaders set.
He says these young people recognise that at today’s prices Fish Hoek offers ‘really great value’. They and others have done their homework before buying and they clearly see that Fish Hoek prices are 30 to 40 percent lower than prices of similar homes up the line, for example in Claremont, Rosebank or Bergvliet.
“Another factor which adds greatly to the value of Fish Hoek homes is that perhaps 30 percent have been reconfigured in one way or another to make them suitable for dual living. There is either a cottage or flat on the grounds, or the property is divided so that two families can each have a measure of privacy and in many cases their own entrances.”
When asked just how affordable Fish Hoek’s prices actually are, Bosman says, although Fish Hoek can offer homes of up to R5 million and higher in value, most of the freehold buying is focused on the R800 000 to R1.5 million price bracket, while in sectional title, where the prices are perhaps 15 percent lower, demand is even stronger. In these brackets any fairly priced unit is bought within two to four weeks.
In Simonstown prices tend to be above those of Fish Hoek. According to Bosman the town’s 150 year history as a British naval base and the ‘very English’ look of its main street, restaurants and shops set it apart and give it a unique appeal.
Europeans who spend several months in Cape Town every year find these factors to be attractive.
On the rental front, Rawson Properties’ Fish Hoek team are struggling to find sufficient stock. Bosman says almost any freehold unit renting at between R6 000 and R10 000 will probably find a taker within a week.
There is also sufficient demand for properties with rental prices of R15 000 to R20 000 per month. In sectional title units, the demand is equally good but the rentals tend to be on average 20 percent lower than those of freehold houses.
Bosman explains that rentals in Fish Hoek are divided between those on short-term leases (the holiday market) and those on long leases. Short-term rentals, which are particularly popular during December and January, average out at R250 per night per person. After the holiday period, many landlords convert their leases from short- to long-term.
“Although it is far too early to talk about exiting from the recession, the simple truth is that the worst is over and from now on we can look forward with a great deal of confidence in steady price rises.”