Langebaan House Sales 2023 - Property Market Report

Langebaan House Sales 2023 - Property Market Report

𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐡𝐨𝐮𝐬𝐞 𝐬𝐚𝐥𝐞𝐬 𝐢𝐧 𝐋𝐚𝐧𝐠𝐞𝐛𝐚𝐚𝐧

As a recap, 2021 was the year of unit sales growth, with property sales increasing by an amazing 66.8% when compared to 2020, followed by 2022, a year of significant price inflation, when house prices rose by 33.7% when compared to 2021.

Compared to those two tumultuous years, 2023 at first glance could be viewed as a year of consolidation, however the results are still impressive with unit sales increasing by 6% and property prices increasing by 11.5% when compared to 2022.

To put the house annual inflation of 11.5% into perspective, the national house inflation is 2.5%, with the Western Cape running at around 5.1% and the city of Cape Town at being 3.2%. Even more impressive is that Langebaan property prices have increased by an average of 7.7% per year, over the last ten years, a record that few towns can better.

𝐅𝐚𝐜𝐭𝐨𝐫𝐬 𝐚𝐟𝐟𝐞𝐜𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐨𝐟 𝐡𝐨𝐮𝐬𝐞 𝐬𝐚𝐥𝐞𝐬

When analysing the table of the breakdown of house sales in the various suburbs and estates of Langebaan the following should be taken into cognisance:

• A limited number of sales in an area can dramatically affect the mean price, which may not then be truly representative of the area.
• In terms of sales in the Laguna area, all the sales are grouped together under Greater Laguna. This is mainly because as yet there is inadequate sales history to provide meaningful results, as many of the new estates are not listed separately by the reporting agencies.
• Again, in the Greater Laguna area, some of the sales are recorded in the Deeds Office at only the value of the plot, as many sales in the area are on a Plot and Plan basis, where the plot is first registered in the owner's name and the value of constructing the house falls under a building contract, which value is not added to the sale and therefore not recorded at the Deeds Office. Where identified these sales have been have been included in the unit sales as houses, but excluded from the calculation of house inflation.
• For the record, 62 Plot and Plan sales were identified and included in the number of property sales.
• The table of sales below does not include sectional title dwellings or vacant stands.
• Some smaller estates are not listed separately, but their sales are included in the statistics of the suburb in which they are situated.
• For interest, in the base year for the 10-year growth calculation, namely 2013, Langebaan recorded 108 sales at an average price of R1 439 247. For calculating the 10-year growth percentage for total Langebaan, only data from suburbs with recorded sales in 2013 were included, for the suburbs without 2013 sales, data from the first year that a sale was recorded was used for only calculating the individual suburb's growth.

𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬 𝐨𝐧 𝐭𝐡𝐞 𝟐𝟎𝟐𝟑 𝐡𝐨𝐮𝐬𝐞 𝐬𝐚𝐥𝐞𝐬

• Longacres Estate has by far the largest plot sizes in Langebaan, with the average plot being around two hectares in extent. The results in the land price being a significantly higher proportion of the total price for developed properties.
• In comparison with the other estates of a similar number of houses, Paradise Beach has a much lower number of annual sales. This is most likely caused by the land owners, both of houses and vacant stands, being extremely satisfied with their property ownership, and view it as a long- term investment.
• Though smaller than Paradise Beach, both The Cove and Aegean Heights also have a low turnover of properties, so depending on the position of the property sold, i.e. seafront or non-seafront, the price difference could generate large swings in price comparisons.
• Greater Laguna has surprised with 10-year compound value growth of 14.9%, but this is slightly misleading as this is as a result of the baseline properties sold in 2013, being only a few small, low price units.
• Calypso Beach recorded an impressive increase of mean price from 2022 to 2023 of 91%. This is caused by the disparity in pricing between properties directly on the beach front and all the rest of the properties, even those just a street width away from the beach front. Of the 10 properties sold in 2023, 5 were on the beach front, and these 5 properties contributed more 70% than the other 5 properties to the total value of properties sold, therefore the large increase in the mean house price.