Situated in a valley along the Cape Peninsula is the coastal suburb of Hout Bay. Just 20km from Cape Town’s bustling city centre this affluent suburb has managed to maintain its unique combination of fishing harbour and country atmosphere.
Initially a colony established by the Dutch in 1652, the area consisted of two farms that would later be subdivided to make room for the rapid urban expansion. In the development of the colony large quantities of timber from forests in the surrounding areas such as Constantia’s Nek were used for building and other purposes. This gave rise to its name, which can be translated to English as ‘Wood Bay’.
Area property information
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that house prices in Hout Bay have seen remarkable recovery since 2010. “The average price for residential property in Hout Bay grew steadily from 2004 up until 2009, but experienced a dramatic drop in 2010. During 2011 property prices began to climb and in 2012 the average price for a freestanding home hit a record high of R3.951 million.”
Goslett says that freestanding homes have consistently outsold sectional title units in the area by almost ten to one. He notes that this is mostly due to the fact that there are not many sectional title units available in Hout Bay, with freestanding homes making up 67.12% of the market stock, while estates account for 25.63% and sectional title units a mere 7.25%. Over the past nine years, 2006 saw the most property transactions take place in Hout Bay.
According to Lightstone, a property statistics and information provider, currently the largest percentages of homeowners in the area are from the 50 to 64 age demographic and the 36 to 49 year old age group, representing 39.59% and 38.26% of the existing homeowners respectively. Generation X (36-49 years old) consumers are the most active in the area, accounting for 52% of the recent sellers, as well as 46.77% of the recent buyers. Other active consumers in the area are those between 50 and 64 years old, who represent 27.42% of the recent buyers. Although on a smaller scale, the younger generation (18 to 35 years old) have also made their presence felt and account for approximately 15% of recent buying activity.
Property price trends
Demand for property
Goslett says that the most sought-after type of property in Hout Bay is freestanding homes that are priced at R3 million and more. These properties account for more than half the homes sold in the area from January 2012 to December 2012. He notes that around 44% of homes sold between or during the same period were priced between R1.5 million and R3 million and only 4.1% of properties priced between R800 000 and R1.5 million were sold in the same period. During 2012, no homes were sold in Hout Bay for under R800 000.
Article By: www.remax.co.za
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