Market Picks Up in South Peninsula

Cape Town property market still going strong despite hard times

The property market in the South Peninsula region of the Western Cape metro has slowly begun to pick up. This news came after Cape Town Estate Agency Pam Golding Properties’ South Peninsula branch reported over R95 million worth of property sales in the months from April to August, despite the fact that this area is prone to the mid-winter seasonal slump.

The area stretches south from Ou Kaapse Weg | Muizenberg to Cape Point, and includes numerous seaside towns and hamlets such as Simon’s Town, Kommetjie and Noordhoek. It is popular with retirees and holidaymakers as well as with families who have sought to escape the rat race and raise their children in a quieter environment, closer to nature.

The two shining stars in the area, Simon’s Town and Kommetjie saw great numbers in sales during the period. Simon’s Town saw sales of over R28.4 million and Kommetjie saw sales in excess of R36.4 million.

Another town which saw steady activity during this period was Fish Hoek, where Gildenhuys says the decrease in interest rates has motivated buyers. Most offers came from existing Capetonians wishing to retire here or relocate within the city, as well as one or two up-country buyers.

Gildenhuys notes that the bulk of buyers were local families – either from Cape Town or Gauteng - buying for lifestyle reasons, as well as several returning expatriates. Most of the sales were cash sales, and there remains a shortage of stock available on the market at present.

In Noordhoek, here has been sustained interest from young family buyers, many of them relocating from Gauteng with a high awareness of security. Most sales have been cash sales, but several owners have sought bond finance to either build on vacant plots or carry out extensive renovations on older properties.

PGP’s MD for the Western Cape metro region, Laurie Wener, says the performance of the South Peninsula area has surpassed all expectations over the mid-winter period.

“This area is always sought-after for its outstanding local beauty and relaxed outdoor lifestyle,” she says, “so we are never surprised that it remains in demand. However it is gratifying to see these results being achieved in the midst of very trying times for the property market. It sets the tone for a potentially even more impressive performance as the market begins to turn, which we anticipate is not far off now.”

For updates on Cape Town’s property market and for happenings in and around Cape Town, be sure to subscribe to our free monthly Editor’s Picks Newsletter and follow us on Twitter.