Langebaan Property Market Report 2021

Langebaan Property Market Report 2021

1. Langebaan Town - Introduction

Location

Langebaan is a town in the Western Cape Province of South Africa on the Eastern shore of Langebaan Lagoon and right next to the scenic West Coast National Park. Langebaan is situated 120 km north of Cape Town, just off the R27, about 28km from Vredenburg and 20km from Saldanha Bay.

Lifestyle

Langebaan inhabitants are spoilt for choice when it comes to activities and attractions in the region. Water sport enthusiasts can take advantage of the mild climate and the protected and clear waters of the Langebaan Lagoon, which is perfect for kite surfing, windsurfing, wake boarding, tube riding and jet skiing or alternatively to go kayaking, sailing or even enjoy a relaxing boat cruise and fishing.

Those who enjoy a more peaceful lifestyle, or just being in nature, can go strolling on the shore of the Langebaan lagoon or visit the surrounding West Coast National Park, where you can enjoy hiking trails, picnics, game viewing, bird watching and even whale watching. The Postberg area of the West Coast National Park is well known for its spectacular display of flowers between July through to September.

Infrastructure

To protect its culture as a fishing, holiday and retirement village, the town allows no industries inside the town borders. A relaxed resort town atmosphere is enhanced by excellent infrastructure and the commercial centre of Langebaan boasts a variety of shops - with most of the national food and grocery stores represented - including fitness centres, health clubs, medical and healthcare facilities, plus banks, places of worship and other amenities.

The Laguna Mall shopping centre has a wide range of shopping and leisure options and boasts 60 stores and mainstream tenants.

The popular Club Mykonos is located on the shores of the Langebaan lagoon. This Greek themed resort's onsite facilities include tennis and squash courts, sauna, swimming pool, a games room and several restaurants, as well as a casino.

Types of Real Estate available

Some of the most sought-after seafront properties on the West Coast are found on the Lagoon. The Langebaan property market has been identified by property experts as a real estate market with great investment potential, with over 7500 permanent residential properties to be found across the town.

Various types of property are for sale in Langebaan, such as flats or apartments, town houses, houses, security complexes, golf estate property, vacant land or erfs to develop you own home, guest houses, beach front homes, small holdings and farms, as well as older character homes.

New developments in Langebaan

The proximity to Cape Town makes Langebaan a thriving coastal resort town that has always been a firm favourite with holidaymakers and locals alike, who flock to the area in search of prime Langebaan properties. However over the last few years, there has also been a noticeable influx of people from the Northern provinces, which has strengthened the property market in Langebaan and has led to a massive increase in the number of gated estates now under construction, which will result in a significant increase to the latest available data of 6 898 full-title units and 818 sectional title units.

To the south of the town a recent development is Shark Bay, situated between Langebaan's southernmost suburb, Myburgh Park, and the West Coast Park. However, most of the new development is occurring on the northern side of the town, with the old stone quarry site  being developed, with Nivica Apartments currently under construction and Laguna Sands Estate being extended with the now completed Laguna Hills 1 and 2 extensions and with Laguna Heights scheduled for construction in the near future. Just a stone's throw to the north the vacant portion of Laguna Sands Estate is being developed into new, secure estates such as Da Gama, La Pinta, Laguna Lifestyle Village, Oystercatcher and Sandpiper. In addition, mature lifestyle estates are being developed in Middedorp and in Laguna Sands Estate.

Established Suburbs in Langebaan:

Langebaan property for sale includes real estate in suburbs such as Middedorp (Mid Town), which lies nestled on the sandy beaches of the lagoon; Country Club a well-established suburb in the centre of the town and Langebaan Country Estate providing a secure golf estate lifestyle with a variety of upmarket facilities (tennis court, swimming pool, club house etc.); Myburgh Park with its unobstructed views over the Langebaan lagoon; Calypso Beach and Blue Lagoon, which are ideally situated near the beach; Paradise Beach and Aegean Heights which lie close to the famous Club Mykonos resort as well as Laguna Shopping Centre; as well as Longacres Country Estate consisting of smallholdings, which lie within the municipal boundary, close to both the beach and the mall.

2. Langebaan Town - Owner Profile / Demographics.

The average household income range in Langebaan according to Lightstone is R44 000 to R57 000 which average places the owners in the LSM 9 High Group.

The period or tenure of ownership, which is a measure of ownership stability, shows that the number of existing owners who have owned property for 8 or more years is 52%. This figure is affected by the fact that Langebaan has experienced a period of growth, which is highlighted by the high level of new owners, namely 29% who have owned property for less than 5 years. What is interesting is that the highest percentage of sellers is the less than 5-year ownership grouping.

The age profile of the stable owners in Langebaan shows that the majority of owners, 44%, fall in the mature age group, (50 - 64 years old), followed by the pensioner group (older than 65 years) at 30% and then the middle aged group (36 - 49 years old) at 23%. The percentage of owners in the two older age groups has increased from 71% in 2020 to 74% in 2021.

• Youth/Adult: (18-35 years) - 3%
• Middle Aged: (36-49 years) - 23%
• Mature: (50-64 years) - 44%
• Pensioner: (65 and older) - 30%

However, a comparison of the recent seller's data below versus the recent buyer's data illustrates that the average age of a property owner is still reducing, highlighted by the fact that the pensioner group constitutes just 12% of buyers, while 21% of this group have sold their property. This is supported by the comparison of the middle-aged group, where 14% more have purchased as opposed to sold a property.

3. Langebaan Town - Property Types

Langebaan properties consist of 3091 freehold properties in estates and 3 807 freehold properties in non-estate residential areas.

In terms of sectional title properties, there are 456 units situated in estates and 362 units situated in non-estate residential areas.

4. Langebaan Town - Property Sales

During 2021 a total of 492 freehold houses were sold as opposed to 295 in 2020. This represents an astonishing 66.8% increase in sales, and 32.3% higher that the previous highest year, which was 2017 with 372 sales. Of the 492 sold, 52 were first-time registrations and 440 were repeat sales.

During 2021 a total of 110 sectional title units were sold, which was actually a bigger increase than the freehold houses at 77.4%, up from 62 sales in 2020, and was only 8 units lower than the highest year, which was 2017 with 118 sales. Of the 110 sold, just I was a first-time registration and 109 were repeat sales.

During 2021 a total of 207 freehold vacant plots were sold. While the highest number of annual sales for freehold vacant land occurred in 2016 with a higher figure of 368 registrations, this still signifies the highest increase of the three property types based on 2020 sales, at 95.3% as in 2020 just 106 freehold vacant plots were sold.

The reason for the sharp increase in sales volumes can be attributed to the riots up country, which caused an influx of upcountry buyers to the perceived more safe Western Cape and the influence that Covid had on employers and employees discovering that employees could do a considerable amount of their daily work from home, supported by the fact that most of the estates in Langebaan have access to fibre connectivity.

Average & Top Estate Freehold House Prices

• Average house price: During the 12 months from January 2021 until end December 2021 a total of 261 freehold houses were sold in estates at an average selling price of R2 540 533. These 261 houses were in the following price brackets, 70 were sold for less than R1 500 000, 130 were sold for between R1 500 000 and R3 000 000 and 61 were sold for more than R3 000 000.
• Top house prices: The 3 top prices achieved during this period were 18 Urania Road in Calypso Beach Estate (R8 500 000), 12 Tenos Road in Calypso Beach Estate (R7 400 000) and 6 Schrywershoek Close in Waterfront Estate (R6 900 000).

Average & Top Non-Estate Freehold House Prices

• Average house price: During the 12 months from January 2021 until end December 2021 a total of 231 freehold houses, not situated in estates, were sold at an average selling price of R2 323 325. These 231 houses were sold in the following price brackets, 86 were sold for less than R1 500 000, 120 were sold for between R1 500 000 and R3 000 000 and 25 were sold for more than R3 000 000.
• Top house prices: The 3 top prices achieved during this period were 50 Main Road in Middedorp (R11 000 000), 56 Main Road in Middedorp (R8 000 000) and 14 Lagoon Crescent Middedorp (R7 850 000).

Average & Top Estate Sectional Title Unit Prices

• Average unit price: During the 12 months from January 2021 until end December 2021 a total of 30 sectional title units were sold in estates at an average selling price of R1 376 433. These 30 units were in the following price brackets, 22 were sold for less than R1 500 000 and 7 were sold for between R1 500 000 and R3 000 000 and 1 was sold for more than R3 000 000.
• Top unit prices: The 3 top prices achieved during this period were 20 Marina Village (R 3 600 000), 99 Acropolis (R2 485 000) and 143 Acropolis (R2 450 000) all in Club Mykonos.

There were 42 transfers for low values, which were not included in these statistics, as these could be attributed to a change in shared ownership percentages.

Average & Top Non-Estate Sectional Title Unit Prices

• Average unit price: During the 12 months from January 2021 until end December 2021 a total of 38 sectional title units, not situated in estates, were sold at an average selling price of R1 140 184. These 38 units were sold in the following price brackets, 6 were sold for less than R800 000, 27 were sold for between R800 000 and R1 500 000 and 5 were sold for between R1 500 000 and R3 000 000.
• Top unit prices: The 3 top prices achieved during this period were 3 Sunbird Court, Sunbird Drive, Myburgh Park (R1 560 000), 15 Sporrie Place, Myburgh Park (R1 550 000), and 20 Madriko, Middedorp (R1 550 000).

Average & Top Estate Vacant Land Prices

• Average vacant land price: During the 12 months from January 2021 until end December 2021 a total of 126 vacant plots in estates were sold at an average selling price of R617 413. These 126 plots were sold in the following price brackets, 18 were sold for less than R400 000, 94 were sold for between R400 000 and R800 000, 12 were sold for between R800 000 and R1 500 000 and 2 were sold for between R1 500 000 and R3 000 000.
• Top vacant land prices: The 3 top prices achieved during this period were Erf 10356, Shark Bay (R1 800 000), 8 Lesvos Close in Calypso Beach Estate (R1 550 000) and 25 Artemis Lane, Paradise Beach Estate (R1 060 000).

Average & Top Non-Estate Vacant Land Prices

• Average vacant land price: During the 12 months from January 2021 until end December 2021 a total of 81 freehold vacant plots, not situated in estates, were sold at an average selling price of R584 938. These 81 plots were sold in the following price brackets, 15 were sold for less than R400 000, 56 were sold for between R400 000 and R800 000 and 10 were sold for between R800 000 and R1 500 000.
• Top vacant land prices: The 3 top prices achieved during this period were 22 Melkbos Close, Myburgh Park (R1 335 000), 57 Main Road, Middedorp (R1 075 000) and 19 Bifolia Street, Myburgh Park (R1 070 000).

5. Langebaan Town Capital Growth

Median prices and capital growth for freehold homes achieved:

• Langebaan's median prices for freehold homes has grown from R1 040 00 in 2012 to R2 050 000 in 2021 - i.e. a growth of 97.1% over the period or a compound growth rate of 7.8% per year

Median prices and capital growth for sectional title units achieved:

• Langebaan's median prices for sectional title units has grown from R500 000 in 2012 to R905 000 in 2021 - i.e. a growth of 81.0% over the period or a compound growth rate of 6.8% per year.

Median prices and capital growth for vacant land achieved:

• Langebaan's median prices for vacant land has grown from R230 000 in 2012 to R600 000 in 2021 - i.e. a growth of 160.9% over the period or a compound growth rate of 11.2% per year.

6. Langebaan Town - Property Registration Growth

Growth in freehold homes registrations per year.

•  Langebaan's number of registrations for freehold homes has grown from 217 in 2012 to 492 in 2021 - i.e. a growth of 126.7% over the period or a compound growth rate of 9.5% per year.

Growth in sectional title unit registrations per year.

•  Langebaan's number of registrations for sectional title units has grown from 49 in 2012 to 110 in 2021 - i.e. a growth of124.50% over the period or a compound growth rate of 9.4% per year.

Growth in vacant land registrations per year.

•  Langebaan's number of registrations for vacant land has actually reduced from 247 in 2012 to 207 in 2021 - i.e. a reduction of 16.2% over the period or a compound growth reduction rate of 1.9% per year, which is probably caused by the shortage of available land for sale.