Your guide to buying a holiday home
Has your dream of owning a slice of holiday paradise resurfaced?
For many, the idea of having an idyllic coastal or leisure setting that can be enjoyed on a whim and for any length of time is appealing.
And the holiday season is an ideal time for prospective holiday-home investors to scout out the market. But will the budget match expectations?
Areas like the Atlantic Seaboard in Cape Town, the Garden Route, the KwaZulu-Natal (KZN) North Coast, and the Big-Five areas in the northern parts of the country generally see an increase in demand and transactions for luxury and leisure properties over the holiday period, according to RE/MAX Southern Africa.
Western Cape
Cape Town’s Atlantic Seaboard tops the list as the national property hotspot, having generated significant capital growth and rental income growth over the past few years, says Andrew Golding, CEO of the Pam Golding Property Group (PGP).
Luxury apartments on this expensive strip of real estate range from between R65 000/m² to R150 000/m², says PGP. But recently a luxury penthouse here even soared past the R200 000/m² mark.
Average selling prices along the Atlantic Seaboard have tripled over the past 10 years and values over the last five years are up by 67%, reports Seeff Property Group. Home to six of the country’s most expensive suburbs, average prices range between R16m and R23m, Seeff data shows.
“Given the phenomenal price growth on the Atlantic Seaboard, you really cannot go wrong with an investment here,” Samuel Seeff, chairman of Seeff Property Group, tells finweek. Hotspots, he says, include Clifton and Camps Bay, Sea Point, the Waterfront and the new Silo District.
Sea Point remains one of the most reasonably priced Atlantic Seaboard suburbs.
But notable capital value appreciation in recent years means ceiling prices have risen significantly and the entry-level price for a luxury apartment in an older building is now around R6m. New developments are significantly more expensive, like the Elements apartments currently under construction, priced from R8.495m to R15.095m for a to-end unit, says Seeff’s Ross Levin.
Source: fin24.com