Weekend Argus (Saturday Edition)
Leisure and investment buyers shop for West Coast property again
AFTER three years of subdued activity, leisure and investment buyers are shopping for good real estate buys on the West Coast, say Seeff agents for the area.
“Property sales in Vredenburg, the area’s commercial centre, improved to 136 in the last year from 103 the year before. Langebaan has seen a steady improvement from 48 sales in 2009 to 78 worth R60.7 million in the past year,” says Marina Enslin.
“In the small fishing village of Paternoster, property sales rose 36 percent to 38 in the past year from 28 the year before.
“More than half the sales in Langebaan and Paternoster have been to holiday and investment buyers, mostly from the Cape metro and winelands.”
Marelize Huysamen says: “Although the Saldanha industrial development zone and international status for the port are expected only in August, development and investment in the area are already translating into in creased demand for rental accommodation in Langebaan.
“Forest Oil’s investment of R30m in the local gas sector has created about 115 permanent jobs and home seekers, and about 230 workers needed rental accommodation during the construction-phase.
“The building of wind turbines between Hopefield and Langebaan by Southwind Solutions is also well under way, adding to the demand.
“This development will boost rental and sales demand over the next three years.”
Huysamen says the demand from developers is mostly for furnished accommodation in Langebaan with rental periods of between three and eight months. Rentals range from R2 800 to R13 500 a month.
“A p a r t me n t s a t C l u b Mykonos are popular for holiday rentals,” says Merle Nicholls. “Buyers can expect to pay R1.86m for a modern furnished three- bedroom unit with a garage and parking bay, balcony and sea views.
“Such units can fetch rentals of R5 500 a week during the peak holiday season. Areas such as Laguna Sands, Longacres and Blue Lagoon in particular are now popular with buyers who work in Vredenburg and Saldanha
“Blue Lagoon is sought after as it is within walking distance of the beach and close to the village centre and Club Mykonos with its casino and restaurants, Laguna Mall and two schools.
“Properties here sell for between R1.4m and R3.2m.”
About 75 percent of sales in Paternoster over the past year have been to investors, who are now letting their properties at between R7 000 and R40 000, says Enslin.
“Activity over the past year was boosted by banks’ willingness to take potential rental income into account when granting bonds.
“The best value on offer is in Die Kom, a beachfront development with fisherman- style homes where a few are still available directly from the developer, priced between R1.85m for two bedrooms and R2.3m for three bedrooms,” says Enslin.
“No transfer duty is payable, which is a bonus for buyers. Cottages bought from the developer generally re-sell for between R2.1m and R3.9m.
“This development is popular with weekend and holiday visitors and daily rates range from R500 for two people to R3 200 for six.”