Weekend Argus (Saturday Edition)
In Scarborough, less is more valuable for residents, buyers
PROPERTY development remains a popular indicator for the value or future value of an area.
However, in some cases, the less development a place has, or lack of potential for development, the better.
This is particularly true for the coastal town of Scarborough on the Cape Peninsula, where its unique position adjacent to the Cape Point Nature Reserve guarantees little further development in the area. This is a big selling point.
“When the last plots have been sold, it will be a matter of patience to acquire property in the area as people who move here tend to stay for many years,” says Elly Abels, resident and area specialist for Lew Geffen Sotheby’s International Realty.
When a property in the area does come on to the market, Harold Kolnik of Jawitz Properties South Peninsula, says the opportunity to buy is not to be missed.
“With its eclectic mix of bespoke homes and its residents’ drive against any further development, added to minimal light pollution at night, Scarborough is magical, magnetic to those seeking peaceful surroundings and a savvy foothold on the property ladder.”
Scarborough’s inimitable lifestyle and attractive investment potential make it an unassuming coastal gem.
Although neighbouring areas like Kommetjie and Noordhoek have attracted more attention from investors and developers, Lew Geffen, chairperson of Lew Geffen Sotheby’s International Realty, says Scarborough’s housing market achieved a 13.67% increase in average property price last year.
Citing Lightstone data, he says in 2016, after years of little growth, the median price spiked by 68% to R2.81 million from R1.67m in 2015.
“Despite the subdued economy, this traditionally slow market continued its upward trajectory with the median price rising to R3.2m in 2017.”
Of the 30 sales during the 12 months ending March 2018, Geffen says 12 were in the R1.5m to R3m price band, at an average sale price of R2.4m. A total of 18 homes sold for more than R3m, with an average selling price of R5.03m.
Abels says Scarborough is also appealing because of the strong sense of community the residents have fostered.
Kolnik says guest houses and property that has potential to serve tourists, are also popular with local buyers.