Semigration boom benefitting Blouberg property big time, say agents

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The market remains buoyant with CMAInfo data showing that property transactions worth about R8.2bn (3,649 transactions) were concluded across the area over the last 12 months.

About 38% (1,394) of these were semigration buyers from elsewhere according to a Lightstone report. The market comprises about a 48/52 split between full-title and sectional-title sales. The average transaction price for full title is around R2.9m, and at R1.566m for sectional titles, but prices are area dependent, he says.

While most semigration buyers are from the Gauteng metros, buyers are coming from all over the country. About 2% of confirmed sales over the last year were to international expats and investors who spent on average around R3.79m.

There is also a significant rental investment market with high demand for residential and holiday rentals, says Ricketts.

Lightstone data shows the market has been rewarding for property owners and investors, in terms of earning a good rental income, and above market average capital growth as a result of the high demand.

Propstats data shows that average prices have generally doubled over the last 10 years, increasing by on average 87% for freehold homes and 90% for sectional titles.

While a popular middle-class area, Ricketts says it is now home to diverse residents and suburbs which offer various price points. There is a growing luxury property sector for homes and apartments, adding further a dimension to the market.

Seeff has for example achieved prices of up to R7.75m and R9.75m in Dune Ridge Estate in Big Bay, and R11m in Bloubergstrand. The Bloubergstrand village where old homes have been rebuilt or remodelled into modern, luxury villas is now popular with luxury buyers.

There is a growing choice of new luxury homes in Parklands North and Sandown which are selling for upwards of R4m to R8m and more for high end homes. Beach houses in Blouberstrand, and Waters Edge in Big Bay can sell for upwards of R10m to R20m.

There are also two stunning golf estates, Sunset Links and Atlantic Beach Estate, selling for around R8m on average.

That said, the area still offers outstanding value for buyers, says Ricketts. About 69% of all sales are still below R3m, and about 42% below R2m. Agents are seeing a lot of enquiries between R800,000 and R2m.

Ricketts says there are opportunities for sellers as stock levels are dropping in certain pockets, some areas even moving to a seller’s market with lots of buyers in the R1.8m to R3m price range, especially in areas like Parklands, Table View, Milnerton, and Sunningdale. Semigration buyers generally look in the R1.5m to R3m range.

Location and value are the big-draw cards. The area is fronted by a long stretch of beaches, with the Blouberg waterfront areas packed almost year-round. It is renowned for kite surfing and paddling, among others.

Ricketts attributes the popularity to the coastal lifestyle, fantastic amenities, and high volume of security estates and complexes. There are about 20 schools in the area including top-performing private schools.

Residents have everything on hand, and you do not have to travel out of the area. The neighbourhoods are family friendly, and great for cycling and hiking. Aside from the beaches, there are a large number of greenbelt areas, and the West Coast and Winelands are only about an hour’s drive away.