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Vredenburg: Growing residential property returns and development
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Vredenburg: Growing residential property returns and development
A latest report released indicate a strong residential property market that serves to increase return on investments. This is compounded by a significant development initiative that will directly benefit Vredenburg, situated on the West Coast of the Western Cape.
Report indicates a healthy residential market
The IPD South Africa Annual Property Index shows that retail property was the highest performing sector in 2015 and this is set to continue. Retail property received healthy returns of 14.3%.
The report, sponsored by Nedbank, collected a sample size of 1,524 properties worth collectively over R292 billion at the end of December 2015. The returns from retail property indicates resilience of the market with key performance areas including, strong rentals, stable occupancy and lower cost to income ratio- which overall increases net income greatly.
Residential Property Values Soar in Vredenburg
Residential property saw values appreciated by 8.3% from 2014 to 2015, this is despite GDP growth remaining low, increasing interest rates and new vehicle sales plummeting.
The Western Cape, which includes Vredenburg, is currently the best performing region and is regarded as a relatively superior residential market, due to its elite lifestyle and growing business and employment opportunities. According to estimates from IHS Global Insight, over a 10-year period from 2005 to 2014, the Western Cape achieved the fastest growth of the nine provinces in South Africa, averaging 3.4% each year, ahead of KZN and Gauteng.
New development promotes growth
Residential properties in Vredenburg are currently averaging R1 465 433 and there are 61 properties for sale in the area from Lew Geffen Sotheby's International Realty. The strong demand for upmarket homes is increasing largely due to the Saldanha Bay Industrial Development Zone (IDZ).
The IDZ is in the process of establishing a central channel for the oil and gas services industry and aims to reduce administrative delays, regulatory hurdles and red tape that investors face in South Africa. This development has prompted new industrial development in Vredenburg and has the potential to create over 12 000 more jobs in the next 10 years.
This has given the residential market a boost in the entire West Coast District with Saldanha-Vredenburg node identified as a potentially high-growth area. Due to the IDZ, land prices close to the area have already risen and it remains a desirable destination for leisure property buyers with prices sustaining growth since 2011 with Lew Geffen Sotheby’s International Realty keeping up with demand.
Our residential properties the area range in price from R69 500 to R3 488 000, and are perfect for big or small families who want to relocate to the economic hub of the West Coast.
IDZ set to promote global integration
The development programme is part of the national government’s strategy to firmly position the country within a global economy. The aim is to stimulate competitiveness and sustainable economic growth via investments in export manufacturing industries in Sadanha Bay and its surrounding areas.
The Industrial Development Zones (IDZ’s) are industrial estates that are associated with an international port or airport specifically designated for new investments by export orientated industries and related services.
The programme was implemented in 2013 and the area stands to benefit from Foreign Direct Investment worth about R9.3 billion over the next 25 years. The Western Cape government is determined to make the area the oil and gas hub on the continent. The Saldanha Bay IDZ is key to an estimated 86 % of the regions gross geographic product and job creation is part of its long-term economic growth that is estimated to provide 12 000 direct, indirect and induced employment opportunities.
At Lew Geffen Sotheby’s International Realty, we provide the most luxurious homes situated in the growing economic hub of Vredenburg. For our comprehensive listings click here.
Author: Lew Geffen Sotheby's International Realty
