The number of properties sold in the Helderberg Basin in 2012 by Harcourts Platinum shot up by an astronomical 80 percent compared with 2011.
That’s according to Steve Caradoc-Davies, principal of the top performing Harcourts office, who predicts a similar performance this year.
Attributing the results – all the more impressive on the back of a generally sluggish national market - to a combination of “right” pricing and growing demand for turnkey housing, he says development sales in particular had increased “significantly” for his office over the past 12 months.
“We have encouraged and worked with developers to build completed or “Turnkey” homes, which buyers only pay for and take transfer of once the property is completed,” he explained. “Not only do these homes offer excellent value for money but the banks are more comfortable with financing them than “plot-and-plan” options. Buyers are aware of this and are taking advantage of it, and the developers who listened to the market are enjoying good sales.”
The Helderberg Basin, which comprises the towns of Somerset West, The Strand and Gordon’s Bay, has long been popular with home and holiday buyers as well as local and international investors, he continues. “It’s close to the Winelands, the beaches, the city of Cape Town and Cape Town International Airport and it offers a range of upmarket shopping, schooling and medical facilities, all of which ensure its ongoing popularity as a residential destination even during tough market conditions. In short, there is something for every pocket and every taste.”
Within the Basin, Somerset West has always stood out as the property town, he says. “Purchasers from Gauteng, the UK, Germany, Holland and Namibia all fall for the charms of this historic town, which is home to a large population of resident property owners. There’s a good mix of retired owners and those with families as well as a strong contingent of foreign owners in developments such as Erinvale Golf Estate.”
Buying activity is particularly keen in the newer residential suburbs such as Kelderhof and Somerset Country Estate, he notes further, owing to the value for money available there. Typically, one can expect to pay R1, 5 million for a basic three bedroom, two bathroom house in an average area. The same accommodation in a suburb with better views and nearer to the schools will cost close to the R2 million mark, while a four bedroom house with good views in a popular suburb can cost anywhere from R2, 5 million to R3.5 million, says Caradoc-Davies.
Gordon's Bay is a resort-style town on the north-eastern corner of False Bay. Characterised by its own harbour, vibrant waterfront and Blue Flag beach, it’s a popular holiday destination as well as home to a large number of permanent residents who tend to live variously in the Old Village, the Mountainside, the lower-lying areas such as Dobson or in Harbour Island, he says. “Gordon's Bay offers excellent real estate value, and this, combined with its seaside location and the incredible views offered by many of its properties, is a magnet for local as well as up-country and international buyers.”
Of the three towns, he says it boasts the most affordable entry and mid level properties. Here, prices range from R650 000 to R1,5 million, with a three bedroom house in the lower-lying areas costing about R1 million. A large mountainside home with spectacular views can cost anywhere between R3 million and R8 million.
The Strand, named for its seemingly endless beach, is the setting for a host of stunning high-rise apartment blocks offering views across False Bay. According to Caradoc-Davies, prices here range from around R1, 2 million to R6 million for a beach-fronting apartment and R800 000 to R5 million for a freehold family home. Those looking for more affordability will find it in the form of its inland blocks of flats. House hunters can choose between older, conventional homes in the established suburbs behind Beach Road, which average around R1, 25 million, or smaller, more modern properties in the newer areas.
On track for “slow but steady” value growth of around 5 or 6 percent in 2013, Caradoc-Davies says the driving force in the Helderberg Basin is a value-based one, with steady take-up of correctly priced properties in all categories. Property prices have been stable in his region, he says, “in sharp contrast to falling prices in other parts of the country and indeed the rest of the world”.
