There’s good value down there

Lake­side is no longer the South Penin­sula wall­flower

Weekend Argus (Saturday Edition) - - PROPERTY -

THE UNAS­SUM­ING South Penin­sula sub­urb of Lake­side was for many years dis­missed as an un­fash­ion­able area you passed on the way to Muizen­berg.

How­ever, this has changed dra­mat­i­cally re­cently with the av­er­age house price in­creas­ing by 50 per­cent since the be­gin­ning of 2012.

Dawn Bloch of Lew Gef­fen Sotheby’s In­ter­na­tional Realty, says: “The mar­ket ini­tially peaked dur­ing the 2007 boom when the av­er­age sale price of a house in Lake­side jumped to R1.1 mil­lion which is where it hov­ered.... un­til the re­cov­er­ing mar­ket and surge in de­mand for prop­erty in the Cape nudged it up to R1.3m by the end of 2011.

“As prices in the sur­round­ing suburbs like Tokai, Bergvliet and Mead­owridge be­came in­creas­ingly un­af­ford­able for young fam­i­lies and first- time buy­ers, more and more in­vestors be­gan to no­tice Lake­side’s ap­peal and ex­cel­lent value and by the end of 2015, the av­er­age house price had breached R2m.

“And prop­er­ties with views of Zand­vlei and the False Bay coast­line on the moun­tain­side are now achiev­ing sell­ing prices of up to R6m.”

There are also a lot of older, well- con­structed apart­ment blocks with spa­cious units which can still be bought for un­der R1m.

Al­though al­most 60 per­cent of the cur­rent residents are in the 50-plus age group and have owned their homes for 11 years or longer, this is rapidly chang- ing with Light­stone data re­veal­ing that 40 per­cent of all re­cent buy­ers dur­ing the past year were 35 or younger.

Bloch says: “The sub­urb has been no­tably trans­formed by the buoyed mar­ket and evolv­ing res­i­dent de­mo­graphic.

“There are still a few ar­eas where prop­er­ties are old and in need of ren­o­va­tion, but most new buy­ers up­grade their homes and the stan­dard is fairly high.”

It’s not only lo­cals who are be­ing at­tracted by Lake­side’s charms. Bloch says their of­fice in Tokai is now reg­u­larly re­ceiv­ing en­quiries from for- eign in­vestors, with most be­ing from Switzer­land, Ger­many, Swe­den, the US and UK.

“Our in­ter­na­tional web­site is very ac­tive at the mo­ment with many for­eign buy­ers look­ing for af­ford­able homes as well as lux­ury prop­er­ties in Cape Town.”

How­ever, as Lake­side joins the ranks of Cape Town’s more sought-after suburbs, it is also ex­pe­ri­enc­ing a shift in the sup­ply and de­mand ra­tio.

“De­mand is start­ing to ex­ceed sup­ply and we are now re­ceiv­ing im­me­di­ate re­sponses to new ad­ver­tise­ments as well as an in­creas­ing num­ber of keen buy­ers reg­is­ter­ing to be alerted to new list­ings on web­sites.”

The rental mar­ket has also ex­pe­ri­enced a sig­nif­i­cant up­swing, but there is very lit­tle stock to meet the strong de­mand.

“There has been a marked increase in in­vest­ment buy­ing as the ac­ces­si­ble prices and great de­mand for rental prop­er­ties of­fer buy­ers very at­trac­tive re­turns and around 30 per­cent of prop­erty sales are now in­vest­ment pur­chases. I have just sold a prop­erty for R2.15m to an in­vestor who will place a ten­ant im­me­di­ately.”

Lew Gef­fen, chair­man of Lew Gef­fen Sotheby’s In­ter­na­tional Realty, says that the re­newed mar­ket and spike in de­mand has also spurred re­tail and com­mer­cial de­vel­op­ment in the area.

“Many new shops and restau­rants as well as sev­eral small shop­ping cen­tres have sprung up in the area, but the real mea­sure of growth in a sub­urb is when the ma­jor play­ers increase their foot­print.

“Wool­worths started as a mod­est store in the Old Bak­ery Cen­tre and is now a mod­ern des­ti­na­tion store twice the orig­i­nal size. Or­ganic Zone has also mor­phed into a fully-fledged su­per­mar­ket from its hum­ble be­gin­nings as a small shop sell­ing or­ganic veg­eta­bles.

“How­ever, de­spite Lake­side’s growth, it has main­tained its charm­ing village am­bi­ence,” says Gef­fen.

“Residents en­joy the best of both worlds; the peace­ful sub­ur­ban at­mos­phere of the south­ern suburbs and the out­door life­style of False Bay with easy ac­cess to the Zand­vlei Na­ture Re­serve, sev­eral beaches as well as nu­mer­ous scenic hik­ing and bik­ing trails. The sub­urb is also close to ex­cel­lent sport­ing fa­cil­i­ties, the Im­pe­rial Yacht Club and West­lake Golf Club.”

This three-bed­room house in Lake­side is for sale at R2.55 mil­lion.

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