A marked rise in interest from upcountry buyers and overseas investors has significantly bolstered the sales and rental markets in Somerset West, Strand, and Gordon’s Bay over the past three years.
This surge in demand has prompted ongoing development efforts to meet the increasing needs of prospective buyers.
Andre Coetzee, owner/principal of Lew Geffen Sotheby’s International Realty in Helderberg, Roodepoort, Krugersdorp, and Lanseria, notes the spike in interest from inland buyers, particularly from Gauteng and KZN.
Market activity post-lockdown, as indicated by Lightstone data, highlights a record increase in median house prices across all three areas.
In Strand, the median house price rose from R1.27 million in 2022 to R1.59 million in 2023, while Gordon’s Bay reached a high of R1.89 million in 2022, dipping slightly to R1.88 million the following year.
In Somerset West, the median house price climbed from R3.3 million in 2022 to R3.96 million at the beginning of the current year.
The sectional-title market has also seen positive performance, with median prices in Somerset West and Strand reaching highs of R3.1 million and R1.45 million, respectively, this year. In Gordon’s Bay, a record median price of R762,500 was set in 2023.
Coetzee said that many buyers prefer to rent before committing to purchase, leading to multiple applications per listing and stock shortages, particularly in the R20,000 to R35,000 market range.
Cindy Lee van der Sandt, area rental agent for the group, noted a surge in demand driven by ongoing semigration and prospective buyers turning to rentals due to high lending rates and economic challenges.
“Clients relocating from upcountry are beginning to express their concern about the shortage of available stock at affordable prices as many are former homeowners from Gauteng who have not managed to sell their houses at the prices they anticipated so have opted to rent here instead."
Properties in the R20,000 to R35,000 per month price range are in high demand in Somerset West, with a growing interest in four-bedroom houses with study areas in the R40,000 to R60,000 range.
Additionally, there is exceptional demand for apartments or townhouses in the R10,000 to R15,000 per month range.
Somerset West remains popular among foreign buyers, with a notable increase in interest post-Covid.
The area attracts a diverse community, including German, Swiss, and Dutch nationals, particularly drawn to gated estates in the R4 million to R12 million price bracket, appreciating the value for money, lower living costs, and appealing lifestyle despite prevailing socio-political challenges.
Comments