Strand Property Market - 2018 Property Sales Report
Category Property Report - Strand
Strand has a distinct "Boland at the sea" feel to it and given the 20,7% per year capital growth achieved since 2003, it offers an excellent investment destination for a prime as well as second home destination – in fact the locals will testify there is no better place to be strand-ed indefinitely!
Strand property prices varies between entry level apartments of +- R400 000 to beachfront penthouses of R22 million. A fairly big variety also exist in terms of own title houses which varies between townhouses of R500 000 and sea front houses up to about R13 million in Greenways Golf Estate. The most active property growth points in the area during the last 6 years has been the big choice of new developments in the Paardevlei area close the Somerset Mall.
A severe limitation on available residential development land bodes well in the long term for any property investment in the Strand.
Entry level apartment units in e.g. George Street (Atlanta / Broadway complexes) which sold in 2003 at R90 000 for a 29 sq.m. bachelor bedroom apartment – has during 2017/8 sold for up to R350 000 (last 5 sales were for an average of R311 000). That is a growth of 246% in 14 years or about 17,6% per year.
Beach front apartments were selling in 2003 from about R6000 per sq.m. to about R9000 per sq.m. Beachfront property is at present selling from +-R14 000 per sq. to just below R30 000 per square meter. The lowest priced apartment on Beach Road available is a 49 sq.m. 1 bedroom unit for R799 000.
The existing complexes on 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 = R14 000 to R19 000 per sq/m
2. 10 - 20 years = R14 500 to R26 500 per sq/m
3. 3 - 10 years = R23 500 to R30 000 per sq/m
The highest priced penthouse on Beach Road is in the market for R22 million – at R75 862 per sq.m.
Future growth points in the Strand property market is the Paardevlei development node across from the Somerset Mall. This will be the last land available for development - eagerly awaited by investors.
Capital growth for sectional title property (measured by median prices achieved) has since 2011 grown from R420 000 to R696 000 in 2018 – i.e. 65.7% over 7 years (or about 9.4% p.a.). The spade of distressed sales (auctions) in the property market during 2009 and 2010 (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 8 auctions during 2018. This shows that the oversupply of sectional title property created during the 2007/8 property boom has all been “sorted out”.
The more sought after suburbs such as Goedehoop & Strand North, has experienced capital growth rates between 2003 & 2018 of about 311% (20,7% p.a.) - with the median house price in Strand North raising from R450 000 to about R1.85 million.
Despite the drop of about 20% in sales volumes in the Strand during 2018, capital growth has however not “flattened” as with the rest of the country – rising e.g. in some suburbs such as Strand South with 19.46% for own title and 28% for sectional title during the year.
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). The highest priced property per square meter however are the Strand Beach Road apartment blocks which runs for about 5 kms along the beach and can be divided between the Golden Mile (Strand North’s beach area), Blakes beach (Van Ryneveld’s beach area) and the Platinum Mile or Parks Estate’s beach area.
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 million.
Smaller town houses and apartments are very sought after with investors and first time buyers - especially in Guldenland (9 townhouses at average price of R924 444 and 61 apartments at an average price of R459 179 sold during 2018) and Broadlands Village (25 sales in 2018 at an average price of R530 360).
Own title houses rarely comes onto the market in the areas of Rusthof (only 3 sales during 2018 at average price of +-R500 000), Southfork (5 sales in 2018 @ average price R959 600 / highest price of R1,1 million), Weltevreden (2 home sales in 2018 @ R777 500 average price), Gustrouw (7 sales in 2018 at average price of R799 286 with the highest price (R1 100 000) and lowest price of R650 000 achieved and Helderberg Park (1 sale for R500 000). In Tarentaal Plaas only 3 sales took place at an average price of R160 000 – highest price of R290 000 achieved whilst in the adjacent Casablanca 4 sales at an average of R312 500 registered - including a highest price of R400 000 which has been achieved.
The following median prices were achieved during 2018 in the suburbs of Asanda (15 sales @ R80 000 average), Lwandle (28 sales @ R125 131 average – highest R220 000), Nomzamo (7 sales @ R87 962 average – highest R120 000)
Author: Lightstone / Benhard Wiese