Hout Bay market buoyed by ongoing development

Hout Bay market buoyed by ongoing development

EXCLUSIVE VILLAGE LIFESTYLE: The Hout Bay suburb of Scott Estate has fared better than many areas this year and enjoys ongoing development. This development of six townhouse-style homes set high against the mountain is for sale off plan from R7.995 million including VAT.

It’s no secret that Cape Town’s residential market is in a price correction cycle exacerbated by a subdued economy, with fewer sales and negative price growth the order of the day, but there are still nodes where property has retained its value and the sales decline has been gentler.

Perched against a mountain backdrop overlooking the Sentinel and the harbour, the Hout Bay suburb of Scott Estate saw growth in both house and sectional title prices and the drop in sales was notably less than the suburb average and many other comparable areas, according to Brendan Miller, chief executive of Lew Geffen Sotheby’s International Realty in the City Bow and Atlantic seaboard.

He says: “In most Cape Town suburbs, including Hout Bay, the housing market felt the deepest impact of the downturn with a significant drop in values and sales, while sectional title markets have generally remained fairly stable.

“However, Scott Estate saw growth in both house and sectional title prices and the drop off in sales volumes was notably less than the suburb average.

“According to Lightstone data, the median house price in this node increased by a solid 7.14% from R4.9 million in 2017 to R5.25m by the end of October this year and median apartment prices rose by 6.23%, from R2.165m to R2.3m, which are very respectable returns in the current market.”

The overall market in Hout Bay has held its own, but there was a 5.12% dip in house prices during the same period, from R3.9m to R3.7m while the price of apartments increased by 8.1% from R1.85m to R2m.

The desirability of Scott Estate is further demonstrated by the fact that that 44% of existing owners have lived there for 11 years or longer while 30% bought their homes within the past five years.

There is also ongoing development in the suburb with the latest project in desirable Union Street due to break ground in March 2019 and currently for sale off-plan.

According to agents Lara Kaplan and Fran Segal, the development comprises six contemporary townhouse-style sectional title units in an idyllic location between Berg-en-Dal Estate and Hanging Meadow estates overlooking the harbour and mountains beyond.

“The new development is close to Chapman’s Peak, the beach, Kronendal Primary School and an array of amenities, so it offers an exceptional family lifestyle in one of the most beautiful parts of the country,” they say.

Marketed by Lew Geffen Sotheby’s International Realty and developed by Two Oceans Development Company (Pty) Ltd, these luxurious units are priced from R7.995m including VAT with no transfer duty payable. Completion is expected at the end of 2020.

“Situated almost midway between Cape Town and Cape Point with quick access to the Southern Suburbs and CBD, Hout Bay is surrounded by nature with mountains to the north, east and west with the Atlantic Ocean to the south.

“And, in addition to its quirky shops and restaurants the suburb now also has a wide range of convenient amenities and residents have a choice of national chains, including Woolworths, Quick Spar, Pick ‘n Pay and Checkers.”

They add that unlike most other areas where there is a limited choice of schools and parents face long waiting lists, Hout Bay is home to four pre-primary schools, five primary schools and three high schools, with the Hout Bay International School catering to all levels of education.