BUYING PROPERTY IN COASTAL ESTATES
CAPE WEST COAST
Picturesque Yzerfontein is buzzing with building activity as more families are moving to this village on the West Coast. “With the availability of bus routes to the Curro Langebaan and Darling College independent schools nearby, a growing number of families are choosing to settle in Yzerfontein to take advantage of the coastal lifestyle,” say Sheena Nutter and Ilona du Toit, Pam Golding Properties agents for Yzerfontein and Darling. Ilona says buyers want to live in a community that offers their children the opportunity to experience an alternative lifestyle to city living, without being too far from the amenities in Cape Town.
CAPE WHALE COAST
This stretch of coastline on the Atlantic Ocean runs from Rooiels in the west to Quoin Point in the east. The main towns are Kleinmond, Hermanus, Stanford and Gansbaai, with villages, farms, rivers and coves in-between. Nicola Lloyd, Pam Golding Properties area manager for Hermanus, Elgin and Onrus, says the coastal villages of the Whale Coast provide excellent lifestyle and investment choices for locals and for those seeking to relocate to the Cape but who are stymied by the escalating prices of the Cape Metro and surrounding areas. Estates such as Arabella, Benguela Cove, Fernkloof Golf Estate and a few smaller security estates in the Hermanus and Onrus area are extremely popular. The strongest demand for estate properties along the Whale Coast is at the more affordable level (R2 million to R3 million), a price bracket in which stock is scarce. “There are several large developments planned by the private sector in the Hermanus/Onrus area,” Nicola says. At the higher level, Benguela Cove homes are achieving prices of more than R10 million, with large tracts of waterfront and vineyard vacant land listed for between R2.5 million and R4.4 million. The smaller coastal villages of Pringle Bay and Rooiels are within an hour’s drive of Cape Town International Airport. “These villages operate as virtual security estates,” Nicola says; “they have limited entry points that are monitored with cameras and 24-hour armed response. They offer value for money. Top-end coastal properties are available from R6 million upwards, with vacant land starting at R400 000.”
ATLANTIC SEABOARD, CAPE PENINSULA
The jet set are paying top dollar for high-end properties on the Atlantic Seaboard with a view to making big returns. “There is no doubt that waterfront property attracts the highest demand and capital value growth in the country,” says Samuel Seeff, chairman of the Seeff Property Group. “We see this clearly reflected in the 40% to 60% premium paid for these top-end properties on the Atlantic Seaboard.” Property prices here have risen by more than 100% over the past 5 years and by 600% over 15 years, according to an FNB Property Barometer. Gated waterfront estates such as the V&A Marina have attracted some of the highest property values and prices in the country the past 10 years. “The uniqueness of the Atlantic Seaboard is that there’s ultimately a very limited supply, as it’s positioned between the mountain and the sea, leaving no large tracts of land for expansion,” says David Sedgwick, managing director of Horizon Capital Residential. “This natural limitation to the supply offering is a key factor in ensuring long-term capital growth.” Horizon Capital is currently busy with a new development, The Azure in Camps Bay, which offers four bespoke residences with the convenience of being in walking distance of the beach.
People semigrate to the Garden Route for its unparalleled lifestyle, natural beauty and quality of life. The George area alone is experiencing an influx of 45 families per month, according to George Municipality. New types of lifestyle estates such as wildlife estates are becoming more financially viable and environmentally sustainable than the original golf estate model, which has until now dominated the lifestyle estate sector in South Africa. A key requirement from investors is security, followed by lifestyle and location. The Brink Eco Estate in Herolds Bay offers easy access to George Airport, just 8 minutes’ drive away, and the George city centre only 15 minutes away. “The Brink Eco Estate has invested in state-of-the-art access control systems, cameras, electric fencing, guarding and patrolling,” says Neil Tucker, principal estate agent at Grip Realty. “Many professionals and business owners commute to Gauteng and elsewhere, and when they leave family behind security is their primary consideration.”
Neil says any existing seafront residential property in South Africa will become more valuable because of the Coastal Management Act and its relevant amendments, pieces of legislation that are aimed at regulating the coastal impact of, among others, development. This includes curtailing “ribbon development” along the coast. “Basically, the act will make it very difficult for coastal land to become residential in nature. And scarcity in property will generally result in an increase in price.”
Fynbosstrand is an exclusive private coastal sea farm share block development between Stilbaai and Gourits River Mouth, about 100 km from George Airport. It extends over about 425 ha of coastline. Great emphasis is placed on environmentally conscious practices. Fynbosstrand company chairman Johan Malherbe says it is a holiday destination without the overcrowding of coastal towns during the holidays. Proteas and reeds are harvested on the property for additional income. Johan says shareholders tend to stay once they’ve invested in Fynbosstrand – in the 27 years of its existence, very few houses have changed hands.
Another sought-after residential security estate is Fernwood, on the slopes of Knysna’s eastern Head. Simola Golf and Country Estate and Pezula Golf Estate in Knysna also offer investment opportunities for the more affluent, as does the 100 ha Whale Rock Ridge near Plettenberg Bay.
Inland buyers are looking at KwaZulu-Natal for investment and lifestyle opportunities, especially in the burgeoning North Coast region, where many are acquiring luxury and super-luxury properties at the top end of the market. Zimbali Coastal Resort is one such estate. It features a 3.5 km stretch of rugged coastline. A large percentage of buyers are from Gauteng and others are relocating from Durban to the North Coast. “With luxury homes being in the price range of R10 million and upwards, the last three-and-a-half-year period has yielded sales in excess of R2.4 billion in Zimbali, with nearly 64% of these being cash sales,” says Seeff Dolphin Coast principal Andreas Wassenaar.
“We have a lot of good reasons to stay in South Africa, and one of them is the expanding coastline of KwaZulu-Natal and the development of the Sibaya Precinct and coastal belt between Durban North and Ballito,” says Carol Reynolds, North Durban area principal for Pam Golding. The 1 000 ha Sibaya Coastal Precinct, with its mix of residential, commercial and retail components, has become the most talked-about development on the North Coast. “Clients can invest in apartment blocks, lifestyle estates, upmarket exclusive estates or retirement villages,” Carol says. “We find wonderful security estates in the Sibaya Precinct, new estates in Umhlanga and a number of more established estates in Ballito.” Sibaya has just secured a top private school to meet the ongoing demand as families move
into the area.
“You can build a golf course almost anywhere, but it’s impossible to re-create living at the coast,” says Blythedale Coastal Estate development director Andrew Thompson. “Walking on the beach with the waves crashing on the shore and looking out over the sea is impossible to fabricate.” Blythedale, which comprises six themed residential estates, “is unique in that inclusionary middle-market housing forms a part of the larger estate,” Andrew says. “With land selling from R650 000 up to R5 million, we have a broad range of price points, which gives us access to diverse market segments.”
There will always be a price premium on coastal property,” Andrew says. There’s a limited supply and the unique aspects are virtually impossible to substitute.”
Investing in an estate on the Eastern Cape coastline offers a desirable lifestyle but generally at a more affordable price than on the Western Cape coast. Royalston Wildlife Coastal Estate is a 1 000 ha residential nature reserve with more than 1 000 head of free-roaming wild animals and 25 km of hiking and mountain biking trails. “Residents can enjoy the peaceful and healthy outdoor lifestyle that Royalston offers,” says Jared Watson, chairman of the Homeowners Association, “yet it’s only a 20-minute drive from the airport and all urban amenities.”
Royal Alfred Marina is located in the village of Port Alfred, midway between Port Elizabeth and East London. Comprising five islands in a 45 ha private estate in the Kowie River Estuary, it appeals to holiday home and retirement buyers in particular. It is gated and has topclass security. “Property values have grown year-on-year, and the Marina is certainly seen as a good investment,” say Simon Oliver of Seeff. “Prices range from about R3 million at the lower end to about R5.4 million.
Caption pg 55: EASTERN CAPE This part of the country, including the city of Port Elizabeth, offers great quality of life combined with much more affordable property prices than the Western Cape coast. It is known for its diverse wildlife, beautiful beaches and relaxed lifestyle.
Caption pg 49: “A Growing number of families are choosing to settle in Yzerfontein.”
Caption pg 49: CLOCKWISE FROM INSET OPPOSITE Two private schools in the area are attracting homebuyers to Yzerfontein, about 80 km from Cape Town. | Mile 16 Beach Estate stretches from Yzerfontein’s main beach towards the West Coast National Park. It is one of several secure lifestyle estates along the Cape West Coast. | This four-bedroom house in Yzerfontein with views of the Atlantic is on the market for R6.25 million.
TEXT Lauren Groenewald PHOTOGRAPHS Supplied