Why younger home buyers are heading for Hermanus
With more people able to work from home, towns such as Hermanus, usually regarded as holiday destinations, are seeing an influx of permanent residents, according to Dr Andrew Golding, chief executive of the Pam Golding Property Group.
He said younger home buyers are looking at areas like Hermanus, because of an increase in economic activity.
Prices along the Whale Coast - which includes Somerset West, Strand and Gordon's Bay - have risen by about 12.8% in 2017.
Hermanus and surrounding areas are also popular with these younger buyers because of the good schools. On top of that the construction of the new Whale Coast Mall is expected to generate hundreds of jobs.
According to Golding, there has been significant investor interest in upmarket estates along the Whale Coast. At the Benguela Cove Lagoon Wine Estate, set on the Bot River lagoon, homes are listed for up to R17m, while a home at the Arabella Country Estate near Kleinmond sold for R8.2m.
Last year was a actually bumper year not just for the Overberg district - of which Hermanus forms part - but the Boland as well. According to Golding, 20% of properties in the Boland and Overberg sell within a month of being on the market.
Most sales have been in the R1m and R3m price range.
Semigration remains a strong trend in the Boland and Overberg property market. This is due to buyers from Gauteng and other parts of the country wanting to relocate to the Cape or to obtain coastal properties for future retirement.
Golding added that research by Lightstone shows that coastal property markets - defined as homes within 500 metres of the coastline - are outperforming inland counterparts.
Paarl, Franschhoek and Stellenbosch are the fastest growing areas for high net worth individuals, according to research by New World Wealth. Between 2006 and 2016 the number of super rich in these Boland towns increased by about 48%.
Golding said lifestyle estates near Paarl, like Val de Vie, Pearl Valley and Boschenmeer, are highly sought after. In his view, this is because both local buyers and those from other provinces are looking for a secure lifestyle in the Winelands.
Source: Fin 24
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