The Western Cape property market has long been sought after, but finding an area that is on the cusp of new growth is something most property-seekers look for. Could Hout Bay be this new area?
According to the latest Propstats data for Hout Bay, recent sales in the area show that the overall average selling price in Hout Bay now stands at around R5.1 million.
Moreover, Hout Bay’s property value has increased by 37% since 2019. This represented an annual growth of around 6.7% per annum, well above the average consumer price index (CPI) rate, now at 4.6%.
The average home price growth across the country is now below 1%, according to the latest data from the First National Bank House Price Index. It seems that Hout Bay’s property value is soaring when compared to the rest of the country.
So what is causing this growth?
Hout Bay has picked up investors over the last few years due to semigration and the rise in remote work, according to data from Revo Property.
The shortage of rental stock in Cape Town’s Central Business District (CBD) and surrounding areas has also played a role in Hout Bay’s popularity.
It would take around 30 minutes for commuters to CBD to Hout Bay.
According to data from Seeff Property, the total sales for 2024 in Hout Bay is over R833 million, and could potentially hit R1 billion by the end of the year, especially in view of the expected interest rate cuts.
“The Hout Bay area has morphed into both an owner-occupier and investor-based area, with returns consistently appreciating at over 9% year-on-year,” Emmanuel Germanis, CEO of Revo Property said.
“And with expected interest rate cuts this year, we anticipate total sales for 2024 to potentially top the R1 billion sales by the end of the year,” he added.
Noordhoek is also killing it...
Propstats data has also shown that the suburb or Noordhoek has seen exceptional growth in property value over the last three to four years.
The data noted that the average house price in Noordhoek rose by 68%, from R5.3 million in 2021 to R8.65 million by August 2024.
The Propstats research also found that homes on the market in Noordhoek spent an average of 157 days on the market in 2021, by 2024 homes in the area spent an average of 66 days on the market.
IOL BUSINESS