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Post-pandemic rebound sees Hout Bay house prices jump by 62% in 3 years
After hovering around R4.2m for three years, the 2021 average Hout Bay house price of R4.32m, grew by more than 60% during the following three years, to R7.01m by the end of September this year.
Source: Supplied.
Propstats data further reveals that not only have prices skyrocketed, but time spent on the market has plummeted from an average of 156 days to just 64 days and the difference between asking and selling price has dropped from 8.5% to 5.8%.
Additionally, in 2021 only five properties sold for more than R10m while there were 11 sales in this price band in the first nine months of 2024.
According to David Burger and Terri Steyn, partner area specialists for Lew Geffen Sotheby’s International Realty, the market in the scenic enclave has been strong, with a consistent annual turnover ‘around the R1.2bn mark’.
They attribute this to various factors, including the fact that the area offers a variety of property options to suit all budgets: “Apartments start at around R1.4m and, although they are becoming scarce, it’s still possible to find a three or four-bedroom house for between R3m and R3.5m.
“The most active price band, however, is R5m to R6m and estate homes are especially popular with shortages now being seen across the board in secure developments.”
The duo adds that homes on the traditionally larger stands (2 acres and above) are not receiving as much ready interest as before.
“Sizeable homes are still desirable, but most buyers prefer not to have the headache and expense of maintaining oversized vacant space.”
Diverse buyer appeal
Accessible pricing along with a scenic yet convenient location and unique seaside village charm have been attracting a wide buyer demographic, from locals looking for a more tranquil lifestyle to upcountry buyers relocating, and there has also been an increase in foreign investor interest.
“For the most part, they are the ones buying the bigger ticket items as their Forex strength still goes a long way and they are getting great value for money. We’ve most recently dealt with Dutch, German, French and Maltese buyers.”
Hout Bay has also become an excellent location for those looking to diversify their investment portfolios and enter the rental market.
“Much like the Southern Suburbs, rental stock is in short supply and new properties don’t stay on the market for very long so there are always good opportunities for investing, especially if they buy at the ‘right’ price,” say Steyn and Burger.
Growing popularity has been driving development in Hout Bay in recent years and developers are now struggling to keep up with demand, especially for estate homes.
“Two of the more recent Estates, Acrewood and Applegarth, are pretty much sold out as far as vacant erven goes and construction of homes within them would be between 50-75% complete so far.
“The area is also running out of available land for further development although apparently there are still a few large tracts of land in the area held by sellers who do not want to take on the risk of becoming developers, given the high holding costs and long-term horizons.”
The partners note that another factor underpinning growing shortages is the fact that “people from Hout Bay, often prefer to stay in Hout Bay” when scaling up or scaling down.
“We have also noticed an increase in work-from-home requirements, meaning the need for that additional bedroom to convert into comfortable and optimal office space.”
Ideal location benefits
Situated almost midway between Cape Town and Cape Point with quick access to the Southern Suburbs and CBD, Hout Bay is surrounded by spectacular nature with mountains to the north, east and west with the Southern Atlantic Ocean to the South.
And, in addition to its quirky shops and restaurants the suburb also has a wide range of convenient amenities and residents have a choice of national chains, including Woolworths, Quick Spar, Pick ‘n Pay and Checkers.
Another big drawcard is that, unlike most other areas where there is a limited choice of schools and parents 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.
“Ultimately, the harbour town offers an exceptional lifestyle and close sense of community that is rarely found in tandem with convenience and close proximity to urban centres,” conclude Burger and Steyn.
