West­ern Cape still hot for hol­i­day homes

But sales else­where across South Africa gone cold

Weekend Argus (Saturday Edition) - - PROPERTY - BONNY FOURIE

ACROSS the coun­try, mar­kets for hol­i­day homes are feel­ing the pres­sure of slow eco­nomic growth and po­lit­i­cal in­sta­bil­ity as peo­ple aren’t spend­ing amid con­cern for their fi­nan­cial fu­tures. There are ar­eas in the West­ern Cape that re­main mag­nets for hol­i­day home buy­ers, but an­a­lysts and es­tate agents re­port no­table de­clines in these pur­chases.

The re­cent FNB Hol­i­day Town House Price In­dex has seen its growth “start­ing to lose mo­men­tum from a rel­a­tive re­vised high of 6.4% year-on-year in the third quar­ter of 2016 to 4.8% by the sec­ond quar­ter of 2017,” says FNB’s house­hold and prop­erty sec­tor strate­gist John Loos.

Even though this growth re­mains a “rea­son­able rate” in a weak econ­omy, he says this does trans­late into a shift into negative real growth con­sid­er­ing it is now be­low con­sumer price in­fla­tion.

“It is re­al­is­tic to ex­pect slower hol­i­day town mar­kets – pos­si­bly un­der- per­form­ing the more pri­mary res­i­dence-driven ma­jor metro re­gions, given that a tighter econ­omy will prob­a­bly drive the emer­gence of more con­ser­va­tive house­holds. In such an en­vi­ron­ment, non-es­sen­tial home buy­ing such as hol­i­day homes becomes less of a pri­or­ity.”

Across Cape Town in gen­eral, Steve Thomas, fran­chise man­ager for Lew Gef­fen Sotheby’s In­ter­na­tional Re­alty in False Bay and No­ord­hoek, says prop­er­ties are still be­ing pur­chased as hol­i­day homes, but com­pared to the first quar­ter of the year, the vol­umes of these types of sales have “def­i­nitely dropped”.

“An R8 mil­lion sale in Kalk Bay, con­cluded in the last week of March with a Bri­tish buyer look­ing for a hol­i­day home, fell through in April after the cabi­net reshuf­fle. The buyer ex­pressed con­cern re­gard­ing the fu­ture value of his in­vest­ment.”

Where hol­i­day home buy­ing is tak­ing pace, Thomas says the ma­jor­ity of pur­chases are along the coast of Cape Town, with the small­est pro­por­tion of buy­ers Cape Town lo­cals, who tend to buy in the smaller coastal ar­eas like Si­mon’s Town, Fish Hoek and Kom­metjie.

Most come from other parts of South Africa, in­clud­ing Gaut­eng, KwaZulu-Natal and Mpumalanga.

These buy­ers opt for prop­er­ties in any of the hol­i­day des­ti­na­tions, from af­ford­able sec­tional ti­tle units in Muizen­berg to top end homes on the At­lantic se­aboard.

“The bal­ance of hol­i­day home buy­ers is over­seas cit­i­zens. They tend to fo­cus on the top-end of the mar­ket, prob­a­bly be­cause of af­ford­abil­ity, and buy mostly in Hout Bay, Big Bay on the West Coast, the At­lantic se­aboard and the Wa­ter­front,” Thomas says.

De­spite the down­turn in hol­i­day home sales, Bren­dan Miller, Lew Gef­fen Sotheby’s In­ter­na­tional Re­alty At­lantic se­aboard and City Bowl chief ex­ec­u­tive, says the At­lantic se­aboard hotspots for for­eign buy­ers are Clifton, Bantry Bay and Camps Bay. Over­all, Jo­han­nes­burg buy­ers re­main “num­ber one”.

Hol­i­day home buy­ers are still mo­ti­vated by the “spec­tac­u­lar” cap­i­tal growth of­fered by the At­lantic se­aboard, with most prop­er­ties hav­ing dou­bled in value from 2013, says Basil Mo­raitis, Pam Gold­ing Prop­er­ties area man­ager for the At­lantic se­aboard. He says num­bers have gen­er­ally fallen this year.

“Own­ing a hol­i­day home in this sought-after stretch al­lows buy­ers to en­joy the life­style on the At­lantic se­aboard, as op­posed to in­vest­ing in shares which don’t of­fer the added life­style ben­e­fits.”

Hotspots for for­eign Camps Bay

Mo­raitis says many hol­i­day home own­ers se­cure apart­ments as hol­i­day homes and for their chil­dren to use while at univer­sity. Oth­ers, he says, plan to move to the At­lantic se­aboard in the fu­ture.

So pop­u­lar is the At­lantic se­aboard that An­dreas and Gemma Soukop, from Soukop Camps Bay, have not no­ticed a de­crease in hol­i­day home buy­ing.

“There is still a strong buyer pres­ence from Europe and, more re­cently, an increase in buy­ers from Asia. In the mid­dle bracket – Sea Point and Green Point – there has been no slow-down on in­ter­est in prop­er­ties that in­vestors can utilise for Airbnb. In­quiries of this na­ture make up about 30% of our in­quiries,” says An­dreas Soukop.

When it comes to per­sonal hol­i­day use, Gemma Soukop says most homes for this pur­pose are bought in Camps Bay, Cifton, Bantry Bay and Fres­naye. She says there has been a “sig­nif­i­cant increase” over the past year in such buy­ers from Jo­han­nes­burg.

“Buy­ers want­ing to use the homes as a hol­i­day in­come gen­er­a­tors are more preva­lent in Sea Point and Green Point. About 50% are planned to be used for Airbnb, with larger homes in Camps Bay, Clifton, Bantry Bay and Fres­naye used as a mix or just per­sonal hol­i­day use.”

Her­manus is also still see­ing strong de­mand for tra­di­tional hol­i­day homes, says Ni­cola Lloyd, Pam Gold­ing Prop­er­ties agent for Her­manus, On­rus and El­gin.

This de­mand is es­pe­cially seen from Gaut­eng buy­ers for short­term hol­i­day use, and per­ma­nent res­i­dents for longer-term use.

“De­mand for va­cant land has also in­creased. Gaut­eng buy­ers are buy­ing and hold­ing plots for the fu­ture.

“De­mand for per­ma­nent homes has in­creased sub­stan­tially and this re­mains the pri­mary rea­son for buy­ing in the vil­lages.”

Pam Gold­ing Prop­er­ties also reports that Kalk Bay, where prop­erty prices have quadru­pled in the past decade, has become par­tic­u­larly pop­u­lar with “swal­lows” who come to Cape Town for four to six months of the year.

And Blou­berg’s kite- surf­ing op­por­tu­ni­ties make it a pop­u­lar spot.

PIC­TURE: PAM GOLD­ING PROP­ER­TIES

This four-bed­room Mouille Point apart­ment, with great sea views, is ideal as a hol­i­day apart­ment.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.