New development confirms confidence in the Hout Bay market
Category News
A shortage of sectional-title apartment units is fuelling heavy demand in this sector of the Hout Bay market, say agents working in the popular Atlantic seaboard town.
“Ten to 13 years ago there was a relative glut of such properties on the market but that has all but dried up now,” explains Greg Walton, Principal Agent for Chas Everitt International in Hout Bay. Walton explains how three sectional-title units listed with the agency a month ago were snapped up in record time. “These two-bedroom apartments, ranging in price from R1,75m to R1,85m, were sold within the week of going to market. I had three buyers on my first show house,” he recalls.
Walton says that apartments in The Willowdale, a new 10-unit development planned for the corner of Empire Avenue and Cecil Street in Hout Bay, have attracted serious interest: “We’ve sold two of the two-bedroom, two-bathroom units already and are closing the deal on a third.”
According to the agent, there is a definite trend in Hout Bay toward downscaling: “From a cost, security and maintenance perspective, buyers are increasingly seeking smaller lock-up-and-go style properties,” he says.
The competitive pricing of the units in The Willowdale, which will feature top-drawer finishes like stone quartz countertops, and state-of-the-art appliances, including Geberit and Grohe in the bathrooms and Bosch in the kitchens, undoubtedly adds to their appeal. “The units are a good size – 85 sqm – and priced from R 2,487m to R2,735m a unit. That’s an average of R31 000 per sqm. Compare this to, say, Observatory, where sectional-title properties are going at R35 000 per sqm, the City Bowl at R40 000 per sqm, or Newlands, where they’re fetching prices of R45 000 per sqm.”
For investors, Hout Bay offers excellent returns, says Walton. “Twelve-month rentals of R30 000 to R35 000 a month on three- to four-bedroom homes are the norm, while smaller two- to three-bedroom properties are easily fetching between R20 000 and R22 000 a month, and a small two-bedroom, no-frills apartment will go for R10 000 to R15 000 a month. You’re looking at a rental return of at least 7% on the apartments in The Willowdale,” he says.
In general, the Hout Bay property market is nothing if not robust. “In three years, we’ve seen house prices increase by 60% and apartments by 70%. Our biggest problem right now is lack of stock. Where last year there were some 560 properties on the market in the area, this year we’re looking at around 430,” says Walton. Unsurprisingly, the intensified demand has driven up prices considerably. “The average price for a two-bedroom home in Hout Bay is now R2,9m,” he adds.
Buyers are a mixed bag: “Young professionals are drawn to Hout Bay for its proximity to the city – just 25 minutes in traffic,” says Walton. With a sheltered beach, mountains and even vineyards, the area is also seen as a prime tourist destination and both upcountry buyers and foreigners are scrambling for a piece of the local property pie.
Designed by Stephen J Forster Architects and developed by Pearson Developments, all units in The Willowdale will boast valley, wetland and mountain views. “The apartments are spread over two levels and each will feature a generous 9 sqm tiled balcony, a separate laundry and two underground parking bays. Energy-efficient hot water heat pumps will reduce heating costs by 40% and LED lighting will be used throughout,” says Walton, adding, “The building, which will be fully enclosed by electric fencing, is located walking distance to the beach and a stone’s throw from Victoria Road, Hout Bay’s main city-access road, making it an ideal residence for young professionals and families alike.”
Construction on The Willowdale is scheduled to begin in January 2017. Buyers are required to pay a R20 000 reservation deposit subject to 90% bond approval through BetterLife Home Loans.
For more information, visit www.thewillowdale.co.za or call Greg Walton at Chas Everitt Hout Bay on 021 790 5900 or 083 629 7986
Author: Meg Wilson