Paradise Beach Estate - Property Market Report 2020

Paradise Beach Estate - Property Market Report 2020

Paradise Beach Estate in Langebaan is a gated estate on the northern side of Langebaan with access being gained through the Mykonos Resort. It is bordered on the southern side by Aegean Heights, a small gated estate, on the northern side by undeveloped land, on the eastern side by undeveloped land and the greater Laguna Sands Estate, while on the western side Paradise Beach enjoys a position directly on Langebaan lagoon with boardwalks down to the beach.

This coupled to its proximity to Laguna Mall, the casino complex, beach side restaurants and schools have made Paradise Beach a popular estate for those buyers seeking convenience coupled with a relaxed and secure lifestyle.

It is a fairly new estate, and being laid out on a side of a hill, many properties have the benefit of lagoon views with Saldanha Bay in the distance. All the plots are privately owned and the estate is managed by a Home Owner's Association.

2. Paradise Beach Estate - Owner Profile / Demographics.

The average household income range in Paradise Beach Estate according to Lightstone is R40 000 to R50 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 largest, existing group of owners are those who have owned property for 11 or more years at 44%, followed by the group who have owned their properties for less than 5 years at 29%.

Unlike other estates it is interesting to note that in terms of ownership, the recent sellers with previous ownershio of less than 5 years stands at just 24%, whereas it is the norm in other estates for this figure to be much higher, probably indicating the recent buyers and purchasing with a long term view.

The age profile of the stable owners in Paradise Beach Estate shows that the majority of owners, 47%, fall in the mature age group, (50 - 64 years old), followed at 26% by the middle-aged group (36 - 49 years old).

• Youth/Adult: (18-35 years) - 3%
• Middle Aged: (36-49 years) - 26%
• Mature: (50-64 years) - 47%
• Pensioner: (65 and older) - 24%

The recent buyers' and recent sellers' age profile shows that the average age of a property owner in Paradise Beach Estate, as is the trend in Langebaan, is moving towards the middle age group. What is unusual is that there were no sellers in the youth/adult group over the year in question.

Comparison of recent buyers and recent sellers:

3. Paradise Beach Estate - Property Types

Paradise Beach Estate has been developed with solely own title or freehold properties.

Paradise Beach Estate consists of 220 full title erven (plots) and it is expected that the estate will be almost completely built up in four to five years.

4. Paradise Beach Estate - Property Sales

During the 12 months from January 2020 until December 2020 a total of 8 freehold houses were sold. These 8 houses were in the following price brackets, 4 were sold for between R1 500 000 and R3 000 000 and the other 4 for more than R3 000 000.

During the same period a total of 9 vacant plots were sold, of which 6 were sold for between R400 000 and R800 000 and 3 were sold for between R800 000 and R1 500 000.

Average & Top Freehold House Prices

• Average house price: The 8 Houses were sold for an average price of R3 072 625. The highest price being realised was R3 800 000 with the lowest price being R1 750 000. The top three prices achieved were 4 Delphi Lane and 8 Zeus Lane both of which sold for R3 800 000, 28 Odysseus Lane for R3 700 000 and 6 Icarus Lane was sold for R3 200 000.

Average & Top Freehold Vacant Land Prices

• Average vacant land price: The 9 vacant plots sold for an average price of R700 556. The highest price being realised was R960 000 with the lowest price being R400 000. The top 3 prices achieved were 1 Asteria Lane for R960 000, 7 Orpheus Avenue for R860 000, and 27 Icarus Lane was sold for R850 000.

5. Paradise Beach Estate - Capital Growth

Median prices and capital growth for freehold homes achieved:

• Paradise Beach Estate's median prices for freehold homes has during the last 10 years grown from R925 000 in 2011 to R3 037 500 in 2020 - i.e. a growth of 228.4% over the period or a compound growth rate of 12.6% per year

Median prices and capital growth for vacant land achieved:

• Paradise Beach Estate's median prices for vacant land has during the last 10 years grown from R300 000 (est) in 2011 to R695 000 in 2020 - i.e. a growth of 131.7% over the period or a compound growth rate of 8.8% per year.

For more information about the available properties within Paradise Beach Estate in Langebaan, please follow the link to our website.