False Bay property market about to start booming

False Bay property market about to start booming

Category Property News

Outdated infrastructure and a lack of amenities has left the False Bay property market at a low, but upcoming upgrades are set to change this in a big way.

There has been growing awareness of False Bay's unique charm and the excellent lifestyle and value offered on this scenic coastal strip, but outdated infrastructure and a lack of key amenities, especially in areas like Kommetjie and Noordhoek, has often discouraged many prospective buyers.

However, the opening of a new school and significant infrastructural upgrades that are currently underway are poised to spur demand as well as price growth this year.

Steve Thomas, Lew Geffen Sotheby's International Realty Franchise Manager in False Bay and Noordhoek says: "There has been substantial investment in the area, from improved roads and connectivity to shopping malls, galleries, restaurants, retirement homes and residential developments, but the real game-changer is the Generation School which opened in Imhoff on 23 January.

It will eventually accommodate close to a thousand learners from early learning to tertiary entry so, for the first time, residents in the southern peninsula, and particularly the more remote parts of the south western areas toward Scarborough and Cape Point, will have easy access to schooling. It will significantly impact the desirability of the area as an attractive place to live and will drive property growth upwards.

Natalie Cooper and Trish Bichener, Area Specialists for the group in the Kommetjie, Blue water and Imhoff's Gift region agree that the addition of a school along with major road improvements will perceptibly bolster the market which already offers a wide variety of property options across all price bands

"Buyers have their choice of plots, apartments, townhouses, clusters, estates and freestanding homes starting at around R1 million all the way up to R20m, many of which have stunning sea views. However, this node has never had a comprehensive schooling option and families have always faced a considerable daily commute which has discouraged a number of prospective investors.

"We have already had a number of queries from people looking to buy or rent in the area as they have already enrolled their children in Generations or are considering moving their children to the school in the future."

It's therefore unsurprising that December was their best month last year, with sales to a wide demographic, including upcountry buyers.

"It was encouraging to note the increased interest from serious Gauteng investors and the number of Kommetjie residents looking to upscale within the area. However, the watchword was value for moneyand buyers were especially looking for good value at the upper end of the market.

And the properties that sold had one thing in common - serious sellers who understood the current market conditions and were open to negotiation.

They add that although they have seen an increase in the number of sellers who are either emigrating or are already overseas, they are also receiving an encouraging number of queries from foreign buyers who are considering investing in the area.

Thomas says: "Unlike most comparable areas in Cape Town, the False Bay and Noordhoek region still offers first time buyers a very accessible entry into the Cape Town property market, especially in and around Muizenberg and Fish Hoek where one can buy a three-bedroom house from around R1.7 million.

"Currently the highest demand is for properties priced below R2.5m and apartment living is becoming an increasingly popular lifestyle choice and new developments with added security and easy, low-maintenance lifestyles are always in demand."

In addition to the new school, there is also a light mixed-use development with a residential component already on the cards for Kommetjie and the partners say that the demand for commercial space in the area has steadily increased during the past 12 months.

Thomas concludes: "Over and above the value and solid returns to be found the region, it offers an excellent quality of life in characterful, often historic villages and suburbs, most of which have strong sense of community.

"The area is now well-supplied with amenities like shopping centres and medical services as well as key services including a driving test station and municipal offices in Fish Hoek, so with the addition of a school and the vastly improved infrastructure, I expect the False Bay market to continue to hold its own."

Author: Lew Geffen Sotheby's International Realty