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Strand Residential Market Soars With R492m In Sales In 1st Semester Of 2023

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Strand Residential Market Soars With R492m In Sales In 1st Semester Of 2023

The Strand, a picturesque coastal town nestled along the southeastern False Bay coastline of Cape Town, has long been a sought-after destination for both residents and investors alike. Its breathtaking beaches, relaxed atmosphere, and strategic location have made it a prime spot for real estate development.

During the first six months of 2023, Strand's real estate market has witnessed an impressive surge in sales despite the national slowdown due to higher interest rates and affordability, with a total of R492 million registrations - reflecting the town's enduring appeal among property buyers, both local and international.

The strong demand for homes in the Strand can be attributed to several factors, including its scenic location, robust infrastructure, and an array of amenities that cater to a comfortable and vibrant lifestyle.

Freestanding Homes: The Preferred Choice

One of the standout trends in the Strand's real estate market is the surging demand for freestanding or own title homes. A total of 155 freestanding homes were sold during the first semester of 2023, an increase of 16% on 2022 monthly sales.

This demand for freestanding homes in the Strand generated capital growth rates of 23% over the last 2 years in sought after suburbs such as Strand North and Strand Central where average prices increased from R1,88 million (2021) to R2,32 million (2023). Homes closer to the beach sold between R3 million and R5 million whilst the average prices achieved in the Goede Hoop suburb close to the Lourens River, were about R3 million.

Buyers included many semi-grating individuals and families who have been seeking lifestyles changes brought about by the global pandemic by taking up the unique blend of modern amenities and proximity to the beach and nature.

Greenways Golf Estate has also seen an increase in average prices to R5,4 million - with homes in the beach fronting St Andrews Drive selling for up to R8,5 million.

Apartments: A Thriving Market Segment

The Strand's real estate market has also witnessed remarkable sales in the sectional title segment. A total of 140 apartments were sold in the 1st semester of 2023, reflecting the town's versatility in catering to different lifestyles and preferences.

Apartments in the Strand offer a convenient and low-maintenance living option, making them an attractive choice for a diverse range of buyers. From young professionals seeking a central location close or at the beach, to retirees looking to downsize without sacrificing comfort and style, apartments in the Strand have something to offer for everyone.

There are 52 apartment blocks located on Strand Beach Road - offering a big variety of choices priced between R12 000 to about R30 000 per square meter (depending on age, sizes, views and finishes).

For buyers looking for more affordable options, Strand also offers a variety of apartment choices further away from the beach in the Onverwacht, Guldenland, Kleinbos (Rome) and Twin Palms suburbs, ranging from about R500 000 to R800 000.

Several factors have contributed to the recent surge in the Strand's real estate market:

1. Coastal Living Appeal: The Strand's location along the stunning False Bay coastline and its 5 kilometers of beaches makes it an idyllic destination for those seeking a coastal lifestyle. Melkbaai Beach is one Cape Town's top surfing and wind-surfing destinations, whilst Blakes Beach is very popular amongst anglers. 
 
2. Infrastructure and Amenities: The town's infrastructure and amenities, including schools, healthcare facilities, shopping centers, and recreational options, have continued to improve over the last decade, enhancing its overall desirability. The construction during 2024 of the second phase of Strand's seawall promenade will be hugely beneficial especially for the lifestyle offering of the Van Ryneveld and Parks Estate suburbs.
 
3. Investment Potential: Investors have recognized the potential for rental income and property appreciation in the Strand which has surpassed even other Western Cape and cape Town suburb's averages during 2023, adding to the appeal of real estate investments in the area.
 
4. Pandemic-Driven Shifts: The global pandemic has prompted a reassessment of living preferences, with many individuals prioritizing spacious, nature-oriented properties over urban living.
 
Whether one prefers the spacious comfort of freestanding homes or the convenience of apartments, the Strand offers a wide range of choices to meet diverse lifestyle needs. As the real estate market in the Strand continues to thrive, it remains a captivating place to call home or invest in.
Author Margaret Kidwell (CCH Property Practitioner)
Published 14 Sep 2023 / Views -
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