Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

5 hottest spots for affordable Cape holiday homes

07 Mar 2017

The rand might be rallying, but it is still only the very wealthy who have the luxury of buying a holiday home with nary a care for return on investment.

This two bedroom, two bathroom home in McGregor has an under-vine patio, carport and Wendy house. It is on the market for R1.495 million - click here  to view.

“For the rest of us, that little piece of paradise to which we yearn to escape, be it over the weekend or for the duration of the holiday season, must either be able to achieve some rental income or be positioned in a place where capital growth is a distinct possibility,” says Dean Meijer, principal of Chas Everitt International on the Whale Coast.

Of course, he says for those who can afford it, a holiday home on the Atlantic Seaboard is, undoubtedly, first prize.

“Its proximity to the CBD, not to mention the city’s best beaches, restaurants, shops and nightlife, makes property on this stretch of the coastline the most desirable in the Cape - and the most expensive,” says Meijer.

“But, for many, tourist traffic jams and camera-toting crowds are the very last things wanted on holiday. Even many of those who own leisure properties on the Atlantic Seaboard shun the area over high season, preferring instead to capitalise on the staggering rentals they can achieve at this time.”

Fortunately, he says the Cape offers plenty of idyllic alternatives to Camps Bay, Clifton and Llandudno - country and coastal enclaves where holiday homeowners can get away from it all, but without their investment capital getting away too.

Chas Everitt International shares a roundup of five areas where both happy memories and healthy returns can be made:

1. Kleinmond

This three bedroom, two bathroom home in Montague has an underground cellar, flatlet and covered patio with built-in braai. It is on the market for R2.65 million - click here  to view.

“With the phenomenal growth of its permanent population, Hermanus is now increasingly considered a residential town, but, a mere 30-minute drive away, Kleinmond is still a holidaymakers’ haven,” says Meijer.

“Kleinmond is definitely on the uptick. It has all the services of a larger town, but still retains that laidback holiday feel and properties here are more affordably priced - but only just. It’s where the people who used to buy leisure homes in Hermanus are now looking.”

Meijer says that’s not to say that the small coastal town, which is situated inside a UNESCO-declared biosphere, hasn’t seen its share of growth.

“Kleinmond’s infrastructure is becoming increasingly formalised and now includes the larger convenience stores and major banks and tourism still plays a major role in the town’s economy,” says Meijer.

And indeed, he says for holidaymakers Kleinmond offers diversions aplenty, from hiking and biking in the 100 000ha Kogelberg Nature Reserve to enjoying a round of golf on the 18-hole championship course at nearby Arabella Country Estate. The town also boasts an unspoiled Blue-Flag beach, from which, during the winter months, southern right whales can be easily spotted.

“Property in Kleinmond has experienced year-on-year growth of 25% to 30%, offering investors great potential returns, and the rental market is equally strong, with homeowners getting R2 000 to R3 000 a day for holiday lets in peak season,” says Meijer.

2. McGregor

This farm in Stilbaai has open-plan living area and a water tank. It is on the market for R1.999 million - click here  to view.

“Like Hermanus, this small village in the foothills of the Riviersonderend Mountains is increasingly attracting those seeking permanent relocation, but there is still plenty of scope in the holiday-home market,” says Shaun King, who heads up the local Chas Everitt International franchise.

King says buyers must not to be fooled by McGregor’s quiet country façade.

“From an art route to wine and whisky tasting, there are plenty of things to do in and around the village to make a stay here truly unforgettable. McGregor is bordered by the Krans and Vrolijkheid nature reserves that both offer some of the best hiking in the Cape, and the village itself hosts a Saturday-morning market and weekend film and music events,” says King.

Characterised by whitewashed, thatched cottages, King says this quirky yet cultured village, the best preserved example of a mid-19th century townscape in the Cape, may have been forgotten by time, but it has most certainly not been ignored by investors.

“When I arrived here seven years ago a small two bedroom cottage would have sold for around R700 000. Today, these properties are going for R1.3 million to R1.4 million, and anything under R2 million in a good part of town will sell within a week,” says King.

“Tourism, too, is booming, and a healthy rental income for short-term holiday season lets is pretty much a given. Even McGregor’s guesthouse owners get up to R1 500 per person for a night’s stay.”

3. Montagu

This three bedroom, one bathroom home in Kleinmond has a flatlet, covered patio and braai area. It in on the market for R4.5 million - click here  to view.

Almost entirely encircled by mountains and offering some of the best hiking, abseiling and rock climbing in South Africa, Montagu’s appeal to holidaymakers is not difficult to fathom.

This is according to Nelda Wiese, who operates the local Chas Everitt International franchise, who says the town is also the gateway to Route 62, the world’s longest wine route and a recognised grade-one tourist attraction. Add to this a collection of natural hot-spring pools "- a veritable oasis in the heart of the Klein Karoo - and a bird sanctuary smack bang in the middle of town”, and Montagu continues to lure more and more visitors every year.

“Needless to say, this has had an extremely positive impact on the town’s property market,” says Wiese.

“Our housing stock has been significantly depleted in the last 24 months due to Montagu’s growing popularity. Property values have increased as much as 30%, with the average house now selling for R1.45 million.”

Wiese says new buyers include a significant number of those in the hospitality industry who are taking advantage of the upsurge in tourism.

The town is particularly appealing to visitors because it has a quiet, historic ambience with characterful, genuinely Victorian homes and Karoo cottages,” says Wiese.

“Owners of upmarket holiday homes can expect a daily rental return of around R350 per person for a short-term, self-catering let, but as I see it, the steadily increasing number of enquiries we get must inevitably start causing these prices to rise.”

4. Stilbaai

This two bedroom, two bathroom home in Jacobsbaai has open-plan lounge with fireplace and leads out to a private courtyard. It is on the market for R 1 325 581 – click here to view.

A charming seaside village that forms part of the famous Garden Route, Still Bay is situated along the banks of the Goukou River estuary where it meets the Indian Ocean on the Southern Cape coast.

This is according to says Charles de Kock, principal of Chas Everitt International in the Southern Cape, who says thanks to its shallow bay, its clean, extensive sandy beaches (of which Lappiesbaai has Blue-Flag status during the December-January holiday season), its lagoon and its 15km long navigable river, every kind of water-related activity can be undertaken here. George International Airport is an hour away, and Cape Town three.

“In the past, buyers were Capetonians and Gautengers seeking homes for their annual coastal getaway, but now many are expats who live abroad but want holiday homes in South Africa, as well as those relocating from up north and KwaZulu-Natal,” says De Kock.

“Property prices have escalated accordingly. We’ve experienced a healthy 10% year-on-year increase, and a three bedroom home with a view now costs around R1.5 million. In addition, the price of land here has more than doubled in the past two years - from R30 000 per hectare to an average of R70 000 per hectare, and there has been an enormous interest in smallholdings and lifestyle farms.”

While Stilbaai draws water sport enthusiasts and nature lovers in their droves, De Kock says it’s a predominantly seasonal influx, so, out of season, short-term rentals cannot be relied upon as a steady income stream.

5. Jacobsbaai

This three bedroom, two bathroom home in Kleinmond has an outdoor covered braai area and store room. It is in the market for R1.195 million – click here to view.

“Built around several little coves, this isolated traditional fishing village is undoubtedly one of the prettiest on the West Coast,” says Kobus Potgieter, principal of Chas Everitt International on the West Coast.

“Often referred to as ‘Namaqualand by the sea’, such is the breathtaking beauty of its springtime wildflowers, Jacobsbaai’s coastal fynbos supports a variety of wildlife, making it both a bird lovers’ and a hikers’ paradise,”.

He says strict building restrictions have also preserved its 2km long coastline, and homes are mainly lime-washed cottages set against an azure sea.

“In short, it’s a picture-perfect holiday retreat is a fact that has not escaped the attention of home buyers,” says Potgieter.

“Annual house price growth is at least 20%, with a 250sqm home now costing between R1.5million and R1.8 million, and possibly more if it has a view.”

He says the whole of the coastline’s property market has been significantly bolstered by an influx of permanent residents working in the new industries that have sprung up in the wake of industrial development in nearby Saldanha, Jacobsbaai is still remote enough to retain its holiday ambiance.

Potgieter says holiday-home buyers can expect a good rental return if they’re willing to forego the use of their properties during peak season.

“Daily self-catering rates of R1 000 per person are not uncommon, and because there is a severe shortage of long-term rental stock, monthly rents of R15 000-plus for a two to three bedroom house are easily obtained, with this rate expected to rise by more than 30% annually,” says Potgieter.

Print Print
Top Articles
These estate homes in George in the Western Cape offer comfortable family living in serene settings. With prices under R5m, take a peek…

La Lucia Mall has just undergone a major upgrade to modernise and reimagine its retail space, with new shopping options. Take a peek...

Popular for its blue flag beaches and outdoor lifestyle, KwaZulu-Natal’s Hibiscus Coast offers affordable three-bed rental homes from around R6.5k per month.

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724