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Villiersdorp Property Market - 2018 Property Sales Report

Category Property Report - Villiersdorp

Introduction

The Villiersdorp own title (homes) property market has seen strong capital growth (measured by the rise in median prices achieved) - rising by 18,9% from R925 000 in 2017 to R1,1 million in 2018.

The contracting South African economy has not affected the Villiersdorp property market sales volumes during 2018 as it increased by 11,4% in property sales between 2017 and 2018 - up from 3,5 properties sold per month to 3,9 properties. Sales is however much lower than the 5,66 property sales per month which was experienced during 2016.

Villiersdorp forms part of the Overberg region and has 967 freehold properties and 32 sectional title properties (of which none is in estates). The town's demographics include a population of 7398 adults with an average household income ranging between R4 000 to R9 000. The Theewaterskloof Country Estate and also Gloria Bay also forms part of the Villiersdorp property offering - it is however not included in the town stats presented in this article and is introduced separately.

Villiersdorp is only a 24 minutes' drive (27km) away from the restaurant capital of South Africa - Franschhoek, 59 minutes (62 km) from Paarl, an hour from Stellenbosch (64km) and 74 minutes (94 km) from Cape Town International Airport.

During the last 12 months (Nov 2017 - Oct 2018) Villiersdorp attracted buyers in all the age brackets - while 50% of the buyers were younger than 50, 34% were aged 50 to 64 and 16% were older than 65. While only 26% of stable owners are younger than 50 years, 39% of stable owners is aged between 50 and 64 and 35% is 65 and older. Only 3% of the stable owners are between 18 to 35 years old - whilst 18% of the recent buyers and only 6% of the recent sellers fall into this age group bracket.

Property Sales Analysis

Villiersdorp offers a good choice in more affordable housing than its neighbouring town of Franschhoek - with own title median prices of R1,1 million in comparison with Franschhoek's (R3,55 million).

The property sales volumes in the Villiersdorp property market (excluding the residential estates around Theewaterskloof dam) has between 2008 and 2017 been about 40 property sales per year (or 3,33 properties per month). The best years in terms of property sales were 2008 (67 sales) and 2016 (68 sales) - whilst 2012 was with 18 sales the lowest point in the post-2009 national property market slump. Sales volumes during 2018, has been up to the end of October, 39 sales (3,9 sales p.m.) - which is an increase in sales of about 17% relative to the average annual sales & also better than 2017 in which 42 properties were sold in Villiersdorp.

A price range analysis of Villiersdorp property sales reveals that the majority of the freehold homes sales (excluding those in the estates along the Theewaterskloof dam and excluding vacant erven), took place in the price range of R800 000 to R1,5 million - 24 sales during the last 12 months (November 2017 - October 2018). The 2nd most active market segment was between R1,5 million to R3 million with 5 sales whilst there was no sales in the price range of more than R3 million.

In the sectional title market no units (flats or apartments) got sold in the last 12 months.

10 Residential vacant land (erven) sold in the last 12 months - of which 7 sold for less than R400 000 and at an average price of R262 000. The other 3 vacant land in Villiersdorp sold for an average price of R490 000.

Capital Growth

Despite the 2018 contraction of the Western Cape property market sale volumes and in some areas even fairly substantial drops in sales prices achieved, capital growth, measured by the rise in median prices achieved, has seen strong growth in the own title (homes) market in Villiersdorp - rising by 18,9% from R925 000 in 2017 to R1,1 million in 2018.

Capital growth achieved for freehold properties (homes) between 2009 and 2018 was 101,4% or 11,3% per year - rising from R546 000 to R1,1 million.

There has been no sectional title property sales in Villiersdorp since 2015 whilst the median prices of vacant land (erven) has risen from R210 000 (2008) to R355 000 (2018).

Sales in execution does not have any influence on capital growth - as it forms such an extremely small part of the Villiersdorp property market with only 13 properties being sold via sales in execution since 2000.

Villiersdorp has shown during the last year a capacity to withstand negative external market forces. The strong capital growth in the median price of 23% in Villiersdorp has largely been due to the demand in the price range between R800 000 and R1,5 million - which accounted for 71% or 24 of the 34 home (own title) sales (excluding plot or vacant erven sales) during the last 12 months.

Residential Estates Along Theewaterskloof Dam

There are 2 residential estates just outside Villiersdorp along the Theewaterskloof dam - Theewaterskloof Country Estate and Gloria Bay.

  • Theewaterskloof Country Estate

The TWK Country Estate is set on the Eastern shores of the Theewaterskloof dam and is surrounded by one of South Africa's top rated 9-hole golf courses accordingly to the SA Golf Digest.

Sweeping views across the dam of the Franschhoek mountains set the backdrop for this Resort zoned Estate with its abundant bird-life, Renosterveld vegetation and a variety of recreational facilities such as hiking, biking, fishing, water sports and golfing. For the less adventurous there are beautiful picnic areas, children's playgrounds and bird lovers can indulge sighting 92 different birds currently on their list.

24-hour access control gives peace of mind and creates a safe haven for permanent families and visitors to enjoy the beautiful scenery and a quality lifestyle with access to a private beach, slip way, swimming pool, tennis court and club house.   

Located 7 km from Villiersdorp - essential amenities such as doctors, banks, a pharmacy, a dentist, a supermarket and coffee shops/restaurants are within easy reach.

Property market

There are 164 homes in the Theewaterskloof Country estate - with a median municipal valuation of R1 900 000.

There have been 66 property sales since 2008 which relays to about 6,6 homes and plots sales per year. 7 Sales have been registered during 2018 - 4 homes at a median price of R2,175 million and 3 vacant erven at a median price of R820 000. The highest price obtained for a vacant erf was R1,695 million.

Capital growth

Capital growth has seen a 70,6% growth in the own title (homes) market in Theewaterskloof Country estate - rising from R1 275 000 in 2008 to R2,175 million in 2018 - i.e. at about 7% p.a..

Vacant land (plots) median prices have increased by 56,2% from R525 000 (2010) to R820 000 (2018) - i.e at about 7% p.a. 

Demographics

The average household income is between R35 000 and R45 000. 81% of the stable owners are older than 50 years - of which 49% are older than 65. The recent buyer profiles are: 70% (aged 50-64), 20% (36-49) and 10%18-35. The recent seller profiles: 75% (older than 65), 13% (50-64) & 13% (18-35).

  • Gloria Bay

Surrounded by farm land and located on the southern banks of the Theewaterskloof dam - Gloria Bay provides the perfect escape from the hustle and bustle of city life. A low-density private resort with all homes slightly elevated - the panoramic views are spectacular and uninterrupted of the surrounding mountains and Villiersdorp village in the distance. Strict architectural guidelines assure the privacy of all home-owners and protect the environment and eco-systems - a haven for nature lovers and water sports enthusiasts providing all permits are in place.

Property market

There are 30 properties in the estate - with a median municipal valuation of R1 175 000. There have only been 6 property sales since 2011 - 4 homes and 2 plots. The last home sales registered during 2016 at a median price of R2,95 million and the last vacant erf sale took place in 2014 for R131 000. The top house price achieved in 2016 was R3 350 000.

Demographics

81% of the stable owners are older than 50 years - of which 6% are older than 65. The existing owner profiles are: 73% (11 years and more), 13% (5-7 years) and 13% (less than 5 years).

If you are looking to buy or sell a property (home or farm) in Villiersdorp or the surrounds, please contact our local member estate agent to assist you, or phone 021 851 1951 / villiersdorp@cch.co.za.

Author: Lightstone / Benhard Wiese

Submitted 13 Nov 18 / Views 822

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