The demand for property in the greater Cape Town area has continued to climb steadily over the past few years. In the Helderberg, which consists of Somerset west, Gordon’s Bay and Strand, nearly one-third of our purchasers originate from Gauteng or KZN.
Demand from up-country buyers has been especially strong for properties in gated estates. The result of this strong demand has been a very healthy increase in these property values.
For example, Kelderhof Country Village, marketed by Harcourts Platinum, has seen escalation in property values in excess of 34% over the past two years.
Property values in Silver Fox and Blue Crane estates have experienced similar growth. All three developments cater for the market segment from R1,500,000 to R3,000,000, which is where buyer demand is strongest.
Demand for property in the suburbs is also strong, but not at the same levels as the demand for properties in gated estates. In general property values in Somerset West below R 3 million have escalated between 10 – 12 %, which is still a very healthy return on investment.
The reason why gated estate properties have escalated at rates close to three times the market average is purely because of increasing demand.
Many purchasers opt to purchase in gated estates where security levels are higher. Increasing crime, a problem experienced in most of the country, is the main driver of the move to estates. But it’s not the only reason for the move.
Developers have seen that there is an opportunity to add more value by offering lifestyle benefits that attract buyers. We’ve seen how purchasers are drawn to offerings such as tennis courts, a gym, communal pools and a lifestyle function centre – thus adding tangible benefits that residents have exclusive access to that they otherwise may not have been able to afford – and all in a secure environment.
Indications are that demand for property in the Western Cape will continue to grow, and so will the returns experienced on property, but especially those located in secure estates.
Principal of Harcourts Platinum
Director of Harcourts South Africa