2 days ago
Cape country towns booming thanks to agriculture and tourism
The property market in several sought-after country towns including Swellendam, Bonnievale, Ladismith, Barrydale, Struisbaai, Riversdale, and Pearly Beach has seen a significant surge in transactions this year, according to Jaco Badenhorst, sales manager for Seeff Country and Karoo.
Agents have reported a sharp increase in sales driven by buyers looking to relocate due to healthy local economies and low crime rates. The limited stock for sale has made the market highly competitive. Well-priced properties are attracting multiple offers and selling quickly, often within days of being listed.
Lightstone data shows that over 8,000 transactions worth almost R9.5bn were concluded across the Cape countryside last year with about 90% of transactions below R1.5m. Freehold houses in the more popular towns averaged at between R1.8m to R2.5m.
Semigration, retirement, and remote working are big drivers of the demand. Growth in local industries such as the major R4.5b Overberg Wind Farm Project near Swellendam is another boost while more buyers are also turning their holiday homes into their permanent residence, he says.
Aside from the lifestyle aspects, Badenhorst says the attraction includes the ability to buy a lot more for your money in the country towns. Many people sell up in the big cities, and move to the small towns and start a small business, he adds.
The towns mostly offer good infrastructure, access to schools, and proximity to bigger commercial centres. Properties are still overwhelmingly freehold houses, but the sectional title market is growing with new lifestyle and retirement estates coming into the market. There are also plenty of vacant plots in many areas, along with a mix of small holdings, agricultural farms, commercial properties, guest houses, and more.
Towns such as Swellendam, Barrydale, and Riversdale have active agriculture, tourism, and small business sectors, which may appeal to new residents. An influx of workers and professionals has boosted demand for rental homes in and around Swellendam and Bredasdorp. Badenhorst says many landlords are reporting full occupancy, and rental prices are beginning to reflect the increasing demand.
Val Anderton and Marinda Roux, agents with Seeff Swellendam say they have seen an increase in enquiries from Gauteng and Pretoria as young families look to relocate due to the excellent schools and wholesome environment to raise children.
While the average price is in the R2.4m to R3.4m range, they are seeing interest in higher priced properties. Rentals are also in high demand. There's also growing interest in estates such as the new Oewerlust Estate, selling from R2.417m is for example also attracting investment buyers.
The Barrydale area is very active in the R2.5m range with buyers coming from all over, especially the Cape, some downscaling or retiring, and others working remotely, says Beate Joubert, an agent with Seeff. Large homes suitable for conversion to guest houses are also in demand.
Coastal towns such as Still Bay and Gansbaai are also seeing a rise in people moving to the areas. Adel Regtien, an agent with Seeff Still Bay says the town has always been a popular holiday and retirement destination and has grown significantly over the years, with an increasing number of permanent residents choosing to settle in the area thanks to its proximity to the Garden Route and its location just a few hours from Cape Town.
Badenhorst says property values in high-demand areas will keep rising as more buyers seek country living.
Another coastal hotspot, Gansbaai has also seen a significant surge in activity and prices over the past few years, according to Anet Rossouw from the Seeff. The average property price has climbed to approximately R2.25m – an increase of over R1m in just four years.
This coastal gem is drawing strong interest from across South Africa, she adds. Nearly 60% of buyers are from Gauteng, with a further 10% from other provinces, and the remaining buyers primarily from the Western Cape in search of weekend getaway homes.
Everyone wants a spot by the sea, says Rossouw, but it is becoming increasingly difficult given the growth in demand. It's now nearly impossible to find an average three-bedroom, two-bathroom home with a double garage for under R2.3m. With rising demand and limited supply, time is of the essence for buyers.
Badenhorst says potential buyers should come prepared so as not to lose out on opportunities. Have your finances in order and work with an experienced agent who can help you move quickly when the right property becomes available.
Issued by Gina Meintjes
