Gordon's Bay - 2021 Residential Property Market & Sales Report

Gordon's Bay - 2021 Residential Property Market & Sales Report

The residential property market in Gordon's Bay has during 2021 rebounded strongly with property sales increasing by 54% relative to the CV-19 restricted 2020 sales year - despite a strained South African economy.

Gordon's Bay is the smallest of the three towns within the Helderberg, the most southeastern region of Cape Town. It has 4 727 freehold or own title properties and 1 719 sectional title properties. The town's demographics include a population of 11 604 adults with an average household income ranging between R57 500 to R72 000 (LSM 10 Low).

Recent buyers in Gordon's Bay confirms the fairly big proportion of more mature buyers preferring the town's lifestyle offering - with 42% of them being older than 50 years and 10% older than 65 years. Gordon's Bay offers a much bigger choice than Somerset West and Strand of entry level or more affordable housing for first time buyers in the region. A quarter (or 25%) of the recent buyers fall into the 18 to 35 age group bracket whilst 58% of all buyers are younger than 50 years old.

Capital Growth

Capital growth measured by the rise in median prices during the last 12 months has been positive for both sectional title and vacant land (erven or plots) - but has seen a slight decrease for own title houses.

Sectional title property median prices increased with 3% during 2021 from R670 000 to R690 000, freehold property (houses) dropped by 2,7% from R1,49 million to R1,45 million and vacant land (erven) increased with 16,6% from R600 000 to R700 000.

Capital growth achieved between 2011 and 2021 for:

• freehold properties (homes) was 82,4% or 8,2% per year;
• sectional title properties was 53,3% or 5,3% p.a.;
• vacant land was 180% or 18% p.a.

The exceptional capital growth achieved by vacant erven or plots in Gordon's Bay of 180% during the last 10 years, just confirms the strong demand for well-located freehold property within especially the house market below R3 million. Speculator builders as well as buyers who are opting to buy and build themselves, drove up the erven prices.

Sales Volumes

Residential property sales volumes has during the last 3 months increased to 58 unit sales per month which is the highest monthly sales rate achieved during the last 10 years, surpassing the busiest sales period of 2016/7, when 48 properties sold per month.

Record sale volumes were achieved during 2016/7 when total unit sales were 577 (2016) and 576 (2017) per year - up from the lowest annual sale volumes of 2009 (267 units for the year). Total properties sold in Gordon's Bay by the end of November 2021 have already reached 519 property sales.

Sale volumes of sectional title units has been gradually increasing during the last 7 years - up from 12 units per month in 2014 to 18,3 p.m. during 2021. These sales exclude the big Balwin development called Greenbay (in the Firlands area) where 151 apartments registered in Oct/Nov 2021 alone, priced from R419 900 up to R1 049 900 with sizes between 31 sq.m up to 76 sq.m.

Sales in execution has in 2021 been at the lowest point since 2000 - with only 2 executions taking place during the year, in comparison with 78 units in 2010 (during the international financial crises which resulted in an oversupply of sectional title units in Gordons Bay). This pattern has been dramatically reversed during especially the last 4 years - dropping to less than 10 sales in execution per year.

Price Range Analysis - Properties Sold

The majority of the freehold homes sales (including those build in estates and excluding vacant erven), took place in the price range of R800 000 to R1,5 million - 121 transactions during the last 12 months (December 2020 - November 2021).

The 2^nd most active market segment was between R1,5 million to R3 million with 76 sales whilst there was only 31 sales in the price range of more than R3 million at an average of R4,737 million in estates and R4,112 million outside of estates.

In the sectional title market 93 units got sold in the last 12 months between R400 000 and R800 000 - which is 54% of the total apartment market sales. The other sales volumes achieved during the last 12 months were respectively 44 units (R0 - R400 000), 25 units (R800 000 - R1,5 million), 13 between R1,5 million and R3 million and only 1 for more than R3 million.

83 Residential vacant land (erven) sold in the last 12 months - of which 4 were inside an estate and sold for an average of R381 000. The other 79 pieces of vacant land (erven outside of estates) sold for an average price of R639 000.

Suburbs - Pricing Overview of Properties For Sale

There are 21 residential suburban areas within Gordon's Bay.

The most sought-after areas (read most expensive areas with best lifestyle offerings) are Harbour Island, Mountainside (includes Mountainside Estate), Gordon Heights, Gordon's Bay Village and Cayman Beach.

Property choices are varied in these suburbs and range from sought-after northwest facing stands and homes in the Mountainside and Gordon Heights suburbs which offer spectacular 360 degree views over the Helderberg mountain ranges and False Bay coastline up to Cape Point.

Harbour Island provides luxury beachfront homes and apartments and an upmarket marina lifestyle with a hotel and restaurants, whilst in the Firlands area you will find a country lifestyle with smallholdings located up to the foot of the Hottentots-Holland mountain range with beautiful sea and mountain views.

The price ranges of properties in these exclusive suburbs are at present:

• Harbour Island: houses priced between R3,795 million and R21 million;
• Mountainside: houses priced between R1 959 900 and R16 million (includes Mountainside Estate);
• Gordon Heights: houses priced between R3,2 million and R14 million;
• Gordon's Bay Village: offers some of the oldest properties in the more central Gordon's Bay area and houses priced between R2,25 million and R5,7 million

Houses in the other suburbs of Gordon's Bay are predominantly priced below R2,5 million.

• Gordon's Bay Central: houses priced between R1,57 million and R1,995 million;
• Dobson: houses priced between R1,749 million and R3,995 million
• Fairview Golf Estate: houses priced between R1,09 million and R4,8 million;

For property investors, first time buyers or small families there are a choice of apartments and townhouses available in especially suburbs such as Gordons Bay Central, Anchorage Park and Admirals Park.

In the Whispering Pines section of Gordon's Bay Central you can find one bedroom apartments priced from about R520 000 and 2 bedroom apartments from about R600 000.

Townhouse in Admirals Park starts for 2 bedroom units from about R1 275 million and in Anchorage Park and Gordon's Bay Central from about R1,2 million.

Suburbs - Average Registered Prices / Highest & Lowest Prices Achieved

• Own or Full Title (Homes)

Admirals Park: 45 sales during the last 12 months at average price of R1 437 840 (R4 114/sq.m) with a highest price achieved of R2,365 million (15 Nautilus Village) and a lowest price of R748 818 (12 Shearwater Crescent);

Anchorage Park: 33 sales during the last 12 months at average price of R1 215 045 (R3 324/sq.m) with a highest price achieved of R1,81 million (14 Beachcomber Crescent) and a lowest price of R957 500 (21 Admirals Way);

Bay Park: 2 sales in the last 12 months at an average price R1 305 500 (R4 824/sq.m) with a highest price achieved of R1,35 million (16 Assegaai Crescent) and a lowest price of R1,26 million (18 Assegaai Crescent);

Dobson: 11 home sales in the last 12 month at an average price of R1 976 818 (3 519/sq.m) with a highest price achieved of R2,35 million (10 York Street) and a lowest price of R1,5 million (31 York Street);

Fairview Golf Estate: 19 sales in the last 12 months at average price of R1 044 474 (R3 847/sq.m) with the highest price of R1,98 million (Estoril Way) and lowest price of R425 000 for a 68sq.m property (14 Black Forest Close)

Gordon Heights: 3 sales in the last 12 months at average price of R5,4 million (R5 191/sq.m) with the highest price of R8 million (3 Bolussi Close) and lowest price of R3,7 million achieved;

Gordon Strand (7 sales at an average price of R1 521 429 (R2 811/sq.m) with a highest price achieved of R2,78 million (107 Faure Marine Drive) and a lowest price of R1 million (198 Lancaster Road);

Gordon Bay Mountainside (13 sales at an average price of R3 474 877 (R4 304/sq.m) with a highest price achieved of R5 million (6 Suikerbossie Drive) and a lowest price of R2 million (35 Chapman Avenue);

Gordon Bay Village (10 sales at an average price of R2 702 000 (R4 410/sq.m) with a highest price achieved of R3,45 million (10 St Croix Drive) and a lowest price of R850 000 for an 89sq.m. property (57 Watt Road);

Harbour Island (9 sales at an average price of R4 037 556 (R10 242/sq.m) with a highest price achieved of R7,2 million (27 Watt Road) and a lowest price of R2,138 million (19 San Juan Close). Antilles and Cayman Beach sales is included with Harbour Island sales.

Mountainside (7 sales at an average price of R2 511 667 (R2 161/sq.m) with a highest price achieved of R2,85 million (18 Bluegum Street) and a lowest price of R1,97 million for (25 Clivia Street);

Mountainside Estate (11 sales at an average price of R2 266 818 (R5 197/sq.m) with a highest price achieved of R3,4 million (9 Felicia Crescent) and a lowest price of R1,24 million for a 99sq.m property (4 Oxalis Street);

Sea Breeze (7 sales at an average price of R1 382 143 (R3 532/sq.m) with a highest price achieved of R1,775 million for a 227sq.m property (4 Durmonte Crescent) and a lowest price of R960 000 for a 81sq.m. property (77 Durmonte Crescent);

Temperance Town (5 sales at an average price of R417 000 (R1 500/sq.m) with a highest price achieved of R980 000 (9 Collins Street) and a lowest price of R175 000 for an 29sq.m. property (12 Jupiter Street);

Winslow (4 sales at an average price of R1 531 250 (R3 305/sq.m) with a highest price achieved of R1,65 million for a 93sq.m property (11 Roos Street) and a lowest price of R1 350 000 for an 128sq.m. property (10 Lancaster Street);

• Sectional Title (Apartments)

Apartments are very sought after with investors and first time buyers - especially in Gordon's Bay Central where 103 apartments sold in the last 12 months at an average price of R765 694).

The Greenbay development in Firlands has brought a new eco and luxury lifestyle dimension to the local sectional title market. With more than 400 sales confirmed by the developer of which the first 151 units registered in October and November 2021 for between R13 431 and R18 803 per square meter, this development is a ground-breaking one for the sectional title developments not close to the beach in Gordon's Bay.

If you are looking to buy or sell a property in Gordon's Bay, please contact one of our local residential estate agents to assist you.