Strand Property Market Report - Nov 2020 to Oct 2021
Introduction
A variety of factors have influenced Strand's property market positively during the last year:
- A first time buyer spree due to the historically low interest rates;
- the CV-19 induced demand surge for work-from-home (WFH) properties in "above average" lifestyle suburbs and towns close to the sea (which has also been shaping the international property market);
- the overall impact of the July riots in Gauteng & Kwazulu-Natal and the hung outcomes of the recent municipal elections. The Western Cape property market will continue to benefit from these 2 unfortunate events as it was unaffected and is perceived as the most stable province within South Africa when it comes to governance. The spin-off of this is that the Cape Town area will continue to be popular for the ongoing semi-gration trend of skilled and affluent South Africans.
- Strand's infrastructure has during the last 4 years also been markedly improved - further bolstering the town's "competitive edge" relative to the rest of Cape Town's seaside suburbs.
- good internet (read fibre) connectivity with 3 fibre infrastructure providers and numerous ISP's are available in the Strand;
- the conclusion of the first phase (of the scheduled 3 phase construction plan) of the Strand beach wall (promenade) which has added a whole new lifestyle offering to the Helderberg residents;
- additional retail offerings of which the Sanctuary shopping centre and the upgraded Strand Square Centre (Dorpsmeent) are the most influential;
- development of the adjacent Paardevlei Precinct opposite the Strand Golf Course, which host a variety of medical facilities - including the Busamed Private Hospital, a Cure Day Hospital and a variety of other medical practitioners;
- the widening of Broadway Boulevard (R44) which has alleviated peak time traffic.
Strand has therefor during 2021 attracted more younger property buyers than in the past. Of all the recent buyers, 66% were younger than 50 years old - with 32% aged between 18 and 36 (vs 28% in 2018). Pensioners (older than 65) forms only 9% of all the buyers.
Property sales has at the end of October 2021 (with 1230 registrations) already surpassed pre-CV-19 sales for the whole of 2019 - which was 1 153 sales for the year.
Strand sectional title property prices varies between entry level one bedroom apartments for R470 000 in the Soteria complex (Onverwacht suburb) to a beachfront penthouses in Cape Sands for R19 000 000.
A fairly big variety of own title houses are available in Strand - priced between three bedroom house in Broadlands Park for R390 000 and sea front houses of up to R13,5 million in Greenways Golf Estate.
The highest priced properties per square meter in the Strand are the 52 apartment blocks located along the 3,6 kilometres long Strand Beach Road.
Beach Road property can be subdivided into 3 areas:
- Golden Mile (Melkbaai or the Strand North suburb's beach area - from the Lourens River to Hibernian Towers);
- Town Central (Van Ryneveld's beach area - from Kusweg 121 to Odeon);
- Platinum Mile (Parks Estate's beach area - from De Mirendol to Peninsula Bay next to Greenways Golf Estate).
Beachfront apartments have during the last year, depending on the age, size and location of the unit, sold for between about R10 000 per sq. to just over R30 000 per square meter.
The lowest priced apartment on Beach Road at present is a 49 sq.m. 1 bedroom unit for R795 000 and the highest priced penthouse is available for R19 000 000.
The existing complexes on Strand Beach Road can be categorized in 3 different price brackets according to "age and finishes" with the average price per square meter:
1. Older than 20 years = R10 000 to about R19 000 per sq/m
2. Between10 - 20 years = R14 500 to about R26 500 per sq/m
3. Between 3 - 10 years = R23 500 to about R31 000 per sq/m
CCH has in the last year sold Kuriaki's penthouse for R10,45 million - a new record price for Strand Beach Road apartments.
For more detailed information about Strand's Beach Road property market sales, please follow this link.
Capital Growth
- Own Title (homes and townhouses)
According to Lightstone's median price growth rates, Strand's own title properties has during the last 5 years (since 2017) achieved a price increase of 99,7% from R700 000 to R1 398 000 - i.e. an average of 19,9% per year capital growth.
The more sought after suburbs in Strand such as Greenways Golf Estate, Goedehoop, Strand North and Die Bos, have experienced capital growth rates between 2011 & 2021 of:
Greenways Golf Estate: 65,2% (6,5% p.a.) - with the median house price in Greenways increasing from R2 300 000 to R3,8 million
Goedehoop: 75,8% (7,6% p.a.) - with the median house price in Goedehoop increasing from R1 365 000 to R2,4 million.
Strand North: 98,7% (9,9% p.a.) - with the median house price in Strand North increasing from R1 082 000 to about R2,15 million.
Die Bos: 101,6% (10,2% p.a.) - with the median house price in Die Bos increasing from R868 000 to about R1,75 million.
Sectional title properties' median prices has for the last 3 years increased from R740 000 to R890 000 or by 20,3% - which relays to an average of 6,8% per year.
However, entry level apartment units in e.g. George Street (in e.g. the Atlanta, Baltimore and Broadway complexes) which sold in 2003 at R90 000 for a 29 sq.m. bachelor bedroom apartment - has during 2019/20 sold for up to R615 000. That is a growth of 583% in 18 years or about 32,4% per year which has made well managed developments like this in the Strand probably one of the best property investments in South Africa.
The spade of distressed sales (auctions) in the property market during the 2009 and 2010 world financial crises (respectively 154 and 168 sales in execution) had a negative influence on capital growth during the period - with sectional property median prices dropping from R575 000 to R420 000 in 2011. The number of executions since 2013 (111) has every year however dropped quite markedly - down to only 7 auctions during 2021. This shows that the oversupply of sectional title property in especially the sub-R1 million market which was created during the 2007/8 property boom has all been "sorted out".
Strand Suburbs - Pricing Overview
There are 26 residential suburban areas within Strand - of which the most sought-after areas (read expensive areas and most conveniently located) are Greenways Golf Estate, Goedehoop (includes areas of Langewacht and The Palms) and Strand North (includes areas of Lusthof and Lochnerhof).
- Greenways Golf Estate : houses priced betweenR3,65 million and R13,5 million;
- Goedehoop : houses priced betweenR2,45 million and R3,6 million;
- Strand North : houses priced betweenR2,25 million and R10,995 million;
Strand South (Van Ryneveld and Parks Estate) offers some of the oldest properties in the more central Strand area whilst Strandvale, Onverwacht, Kleinbos (Rome) and Die Bos are predominantly priced below R2,5 million.
- Strand South (including George Street area) : houses priced betweenR1,09 million and R4,8 million;
- Strandvale : houses priced betweenR1,57 million and R1,995 million;
- Onverwacht (including Twin Palms and Die Bos) : houses priced betweenR960 000 and R2,55 million;
- Kleinbos : houses priced betweenR1,85 million and R2,5 million;
Smaller town houses and apartments are very sought after with investors and first time buyers - especially in Guldenland (14 townhouses at average price of R1 098 857 and 31 apartments at an average price of R587 677 sold during the last 12 months) and in Broadlands Village (39 sales in the last 12 months at an average price of R740 408).
Own title houses rarely comes onto the market in the eastern suburbs of Strand - adjacent to Gordons Bay:
- Rusthof : only 8 sales during the last 12 months at average price of R753 125 with a highest price achieved of R1,35 million;
- Southfork : 4 sales in the last 12 months at an average price R1 212 500 with a highest price achieved of R1,75 million and a lowest price of R400 000;
- Weltevreden : 8 home sales in the last 12 month at an average price of R761 875 with a highest price achieved of R1 150 000;
- Gustrouw : 13 sales in the last 12 months at average price of R1 066 583 with the highest price of R1 698 000 and lowest price of R446 000 achieved;
- Helderberg Park (2 sales at an average price of R1 030 000).
- In Tarentaal Plaas and the adjacent Casablanca no sales took place during the last 12 months.
The following average prices for houses were achieved during the last 12 months in the north-eastern suburbs of Strand:
- Asanda (9 sales at R162 222 average with R250 000 the highest price and R80 000 the lowest ),
- Lwandle (8 sales at an average price of R225 125 - with the highest price achieved R430 000 and the lowest price R170 000),
- Nomzamo (13 sales at an average price of R180 385 - with the highest price achieved R290 000 and the lowest price R90 000)
For more information about market trends or what has been happening in your specific suburb, please visit our website or contact one of our local estate agents.