Advice

Coastal: Where to buy residential property

While living, working and playing in the city has appeal, many South Africans and foreigners still invest in dream homes on the coast

TEXT Debbie Hathway, Tracy Ann van Blerk and Kim Maxwell PHOTOGRAPHS Supplied

South Africa is renowned for its magnificent coastline, offering attractive investment opportunities ranging from spectacular clifftop homes and quaint beachfront cottages to secure estates and trendy apartments. Now is the time to buy. In real terms, average house prices have continued to decline, according to FNB, whereas mortgage advances are increasing. Analysts recorded a 4.2% increase year-on-year in May 2019, the highest since July 2016. Meanwhile, low interest rates and keen competition between banks to grant mortgage loans have seen the loan-to-purchase price ratio for homes over the past two years increase to 90.6%. It’s the best result since the boom-time final quarter of 2007.

WESTERN SEABOARD

With its beaches, excellent schools, shopping centres and easy access to public transport, the Western Seaboard is a more affordable alternative to the Atlantic Seaboard, especially for first-time buyers. A recent FNB report highlights an increase in first-time buyer activity since property pricing became more favourable. In addition, 10.6% of total sales have been realised in the buy-to-let category.

  • Fynbos (Balwin) Close to Big Bay Beach, fibre-ready, with solar panels; two-bedroom, two-bathroom apartments from R1.26 million

WESTERN SEABOARD | FYNBOS (BALWIN)

SOMERSET WEST

With a number of top schools in the area, Somerset West appeals to young families. There is a wide choice of properties, from small apartments in secure estates to rural homes. Property values here have shown average growth of 13.1% over the past five years.

SOMERSET WEST | SITARI COUNTRY HOME

WEST COAST

The rocky coastline, fynbos, wildflowers in spring and West Coast National Park are key attractions. Langebaan is an excellent spot for watersports and viewing a wide variety of birds, and Yzerfontein is now attracting a variety of investors.

WEST COAST – SHARK BAY ESTATE

CAPE TOWN ATLANTIC SEABOARD & CBD

Dr Andrew Golding, chief executive of the Pam Golding Property Group, says the surge in first-time buyers entering Cape Town’s property market bodes well for future house price recovery. “Coupled with the 6.6% price growth in July 2019, ahead of national house price inflation of 3.9%, positive news for property investors is that the Western Cape continues to lead the rebound in South Africa’s residential property market.”

CAPE TOWN ATLANTIC SEABOARD & CBD | HARBOUR ARCH

GARDEN ROUTE

Ling Dobson, Pam Golding Properties area principal in Plettenberg Bay and Knysna, says the area offers a wonderful lifestyle for young families and retirees. “The region has good private schools, which serves the interests of families seeking a safer and healthier environment than the city.”

  • Kingswood Golf Estate (Pam Golding Properties) Garden Route golfing hub; 673m2–843m2 stands from R695 000
  • Nautilus Bay (Pam Golding Properties); plots available; four-bedroom home selling at R5.7 million
  • Pezula Private Estate (Pam Golding Properties) On Knysna’s East Head; three stands left; 3 233m2 stand selling at R2,6 million

WHALE COAST

Hermanus has transformed from holiday getaway to vibrant destination to live, work, raise a family and ultimately retire. The area has world-class medical and educational institutions, sports facilities as well as dynamic retail and hospitality sectors. “It offers everything from affordable apartments and sectional title developments to security estates, freestanding homes, upmarket seafront properties and lifestyle farms,” says Nicola Lloyd, Pam Golding Properties area manager.

  • Arabella Country Estate (Pam Golding Properties) Freehold lifestyle properties on a golf estate near Kleinmond; options vary; three-bedroom north-facing home selling at R4.28 million

WHALE COAST | ARABELLA COUNTRY ESTATE

KWAZULUNATAL

The Mercer 2019 Quality of Living Ranking puts Durban at number 88 of 500 global destinations scored for things like recreation, housing, economic environment, public services and transport, schools and education, and medical and health considerations. “On average, Umhlanga has experienced growth of 5% to 8% year-on-year, which is much higher than the national average,” says Carol Reynolds, Pam Golding Properties area principal for Umhlanga, Umdloti and Durban North.

  • Ballito Hills (Balwin) Secure, central and eco-friendly; one-bedroom apartments from R1.05 million
  • Coral Point (Pam Golding Properties) Upmarket apartments in Sibaya Precinct, from R1.6 million
  • Ridge Town Central (Trapezoid) One-bedroom apartments from R1.1 million
  • Zululami Phase 1 stands from R1.5 million

KWAZULU NATAL | BALLITO HILLS

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