The Hout Bay market has rebounded almost double this year compared to last year - with upcountry buyers specifically fuelling the estate market in this Cape Town suburb.
This year saw 66 sectional title properties, 182 freehold homes and 24 vacant stands changing hands by the end of November, compared to 2020 when 30 apartments, 110 houses and 9 plots were sold.
This is according to Terri Steyn, Area Specialist for Lew Geffen Sotheby’s International Realty, who says the charming harbour village has been attracting keen investor interest, with the most popular properties being estate homes.
'Unique, easy lifestyle and proximity to the city'
“Buyers are attracted by Hout Bay’s unique, easy lifestyle and proximity to the city and demand for secure estate living in the area has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for almost a quarter of the property landscape.
“In the face of the emergent trend to move away from the city and live a more easy-going lifestyle, Hout Bay is the perfect location,” says Steyn adding that the ongoing appeal of the area is clearly evidenced by recent sales volumes.
“In 2019, prior to the pandemic, the average house price was R4 519 896, and there were 110 sales at an average of 12.5 below asking price and the average time spent on the market was 128.
“This year, at R4.202 million, the average sale price of freehold homes was lower, but there were exponentially more sales (182) and sale prices achieved were on average only 9% below asking after spending around a month longer on the market.”
Hout Bay has currently *71 new property listings, according to property24 Trends Data, with the average asking price for the area being R3.85 million. The average sale price per erf for 2020 was about R3.3 million, while Section Scheme Units for the same period is about R1.815 million.
And it seems that the pandemic hasn’t placed too much of a damper on this sector which is clearly evidenced by recent sales at the latest development, Acrewood Estate, where 12 of the 20 plots have already been sold and transferred.
Steyn adds that the majority of buyers have been from Gauteng and abroad (Scotland and Dubai).
Opportunity for buyers to sectionalise their freehold erven
With its ideal north-facing position and stunning mountain views, Acrewood offers serviced, ready-to-build plots varying in size from 932sqm to 1 382sqm with the added value of being freehold with sectional title opportunity.
“Buyers who wish to do so, can sectionalise their plots into two erven and build two single or double-storey dwellings with the condition being that they are built simultaneously,” says Steyn.
To harmonise with the natural setting adjacent to the mountain reserve within the Western Cape’s fynbos landscape, the chosen architectural style is Cape Vernacular. With an emphasis on eco-friendliness, all homes will have access to borehole water and will be required to install solar panels and heat pump water heaters or gas-fired heat pumps.
And, with security being a priority, CCTV cameras will be installed throughout and the estate will have controlled access. Acrewood is also 500m from a MyCiti bus stop and its convenient location offers easy access to all arterial routes.
Over and above the assortment of eclectic boutique stores for which Hout Bay is known, residents now also have a choice of national chains, including Woolworths, Quick Spar, Pick ‘n Pay and Checkers.
And, where parents in most other areas have a limited choice of schools and face long waiting lists, Hout Bay is home to four pre-primary schools, five primary schools and three high schools, with the Hout Bay International School catering to all levels of education.
“Residents in this quirky seaside neighbourhood also have a strong sense of community and the crime rate stats are very low as they are all members of the local neighbourhood watch, Watchcon, and have the newly introduced Buzzer app which links them to Watchcon and emergency services,” says Steyn.
She adds that another significant drawcard is that Hout Bay offers investors a wide and diverse range of properties, from modern lock-up-and-go units and secure lifestyle properties to quaint old cottages and sprawling mansions on large grounds and the area also still boasts a number of equestrian estates.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions
