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This article on South African coastal properties it may have been written for Simon’s Town Property owners specifically:
South African coastal property prices remain weaker than the more primary-residence-driven non-coastal properties, new data showed recently.
Lightstone’s Residential Property Index showed that coastal property – homes within 500m from the coast – registered a 12.54% inflation rate in August, which is up from 11.98% in July. By comparison, the non-coastal property inflation in August was 14.25%, which is a slight drop from 14.47% in July.
“Interestingly, if one considers y/y inflation, non-coastal areas have seen a considerable drop of 4.00% from August 2006 when inflation was at 18.00%. Coastal areas have had a much lesser drop-off of 0.76% from August 2006 when inflation was 13.30%,” said Andrew Watt, a business development director at Lightstone Risk Management.
The lower coastal belt inflation rate, compared with the non-coastal inflation rate, is driven by holidaymakers, who are able to hold back in adverse times such as during the interest rate hiking period. - I-Net Bridge
SimonsTownRealty: Sell, Buy A Simon’s Town Property? Phone Today 021-7864028 or 082 870 2004 How Do You Care For Your Second Home When You Are From Out Of Town? Ask The Local Eye To Take Care.
Coastal property prices increased from R315,200 in the first quarter of 2000 to R1,390,000 in the last quarter of 2007. This increase is around 21% per annum. Source ABSA Coastal Properties
This is some of the good news if we consider the facts as individual Simon’s Town property owners. But as you know being a popular coastal area has its consequences:
“As a result of the strong growth in property prices in coastal regions, both housing and vacant land has become markedly less affordable since 2000. These developments have resulted in the erection of higher-density and even high rise housing in various coastal cities and towns in the recent years.”
“……….Fauna and flora, dune systems, wetlands and estuaries, and water resources in most coastal areas are regarded as highly sensitive and are under threat of being severely damaged, polluted or totally wiped out as a result of the pressure from sprawling developments.” ABSA
As Simonstowners we have been spared the high-rises seen in places like Strand.In addition to the ABSA comments we can add the strain on access roads in our area due to development.
Give all these valid consequences, I believe the question we must ask ourselves is not how we stop these forces but rather how we manage our own popularity….we will attract more and more and when done with the right intentions we will have less headaches.
Advice: The ABSA Coastal Properties report has some interesting suggestions for out of town coastal property owners (the pros and cons). What interested me, as well, was the idea to acquire vacant land (or affordable properties) as a way to enter and lock into the escalating coastal property market.
To conclude:
“The demand for coastal properties is expected to continue to outstrip supply, so property prices in these areas are forecasted to rise further in the future, causing coastal property to become even more exclusive and less affordable”.
The time to invest in Simon’s Town property has never been as favourable as today.
Johan Horak
SimonsTownRealty: Sell, Buy A Simon’s Town Property? Phone Today 021-7864028 or 082 870 2004 How Do You Care For Your Second Home When You Are From Out Of Town? Ask The Local Eye To Take Care.
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