12 July 2017
Muizenberg, which in the Edwardian era ranked as one of South Africas most prestigious and upmarket holiday resorts (for many years the peninsula rail line ended there) can today offer an exceptionally wide variety of residential properties and almost of all, says Errol King, Rawson Properties Muizenberg franchisee, are significantly less expensive than similar homes five to ten kilometres up the line - in precincts that are often, he adds, less attractive and less community orientated.
What is more, said King, there are few areas in Cape Town where buy-to-rent investors can count on such a strong demand from tenants - and be virtually assured of getting anything from a 6% to 10% return from the day they take transfer.
That is the good news - the not-so-good-news, said King, is that saleable stock is in short supply and Rawson Properties, now the dominant and largest estate agency in the area with over 50 homes on their list and 150 apartments and houses under the management of their letting division, have sometimes had to keep buyers waiting several months before they can satisfy their needs.
Asked to define what he means in describing homes here as '˜significantly less expensive, King said that it is still possible to buy a small one bedroom apartment five minutes walk from the beach for under R400,000. Larger modern flats on the beach front can also still be obtained for under R1 million. Especially good value recently, said King, have been units sold in the high security, beautifully equipped Bay View Lodge complex, which have gone for as little as R380,000. A unit recently sold at that price, he said, is now earning R3,000 per month in rent.
'The overall picture shows that prices here are still at 2006/2007 levels,' said King, 'and although on occasions we have been able to buck the trend and get far more for homes than the market would appear to make possible, buyers are still in control'
This situation, he predicted, will continue for at least another six, possibly 12, months.
Certain precincts, notably the higher mountainside homes at Muizenberg and Lakeside, all of which enjoy spectacular views, have fetched prices varying from R2,5 million but homes here, he said, are very definitely in short supply and seldom on the market.
Homes in Marina da Gama, said King, are still, in his view, underpriced and have in the past sold for between R550 000 to R3,3 million. Fetching reasonable prices is the recently renovated Cinnabar, with prices achieved this year for a 84m² unit of R840 000. A spacious two bedroom two bathroom 114m² unit with stunning views sold for R1,38 million and one with 162m² for R1,4 million.
Peter Wetton, who has now sold properties for Rawson Properties in Muizenberg for seven years, said that the bonus factor attached to any buy in the village area is that it introduces the resident quickly to one of the friendliest and most congenial communities in the Greater Cape Town area. To move here, he said, is to take a step back in time to a period when people knew - and greeted - all their neighbours.
Werner Rix, also selling for Rawson Properties, added that a highly successful Muizenberg improvement district initiative had rid the area of certain less desirable occupants and ensured that in future landlords will be careful about the tenants they sign on. Crime in the area, he said, is low by Cape Peninsula standards.
Rix added that the caf life, the beachfront boardwalk, the beach itself and the highly enjoyable train ride to and from Simons Town as well as the mountain walks behind Muizenberg have all given the precinct an appeal difficult to match elsewhere.
'The upgrading of Muizenberg which people predicted so confidently three to four years ago,' said King, 'has as yet been only partially achieved - but it is taking place. As a medium to long term prospect there can, therefore, be few better areas to buy so long as prices remain at or close to their current levels'
For further information contact the Rawson Properties Muizenberg office on 021 788 9996 or email muizenberg@rawsonproperties.com.
Footnote
Some examples of good value homes currently available from the Rawson Properties Muizenberg franchise include:
1. A low maintenance three bedroom home in the security village '˜The Breakers which is situated just 3km from the Muizenberg railway station. This has an open plan kitchen, a spacious living room and off-street parking. The asking price is R499 000.
2. A secure, spacious three bedroom apartment 110m² conveniently close to the Muizenberg CBD and retail centre. This is priced at R750 000.
3. A three bedroom home with wooden floors, high ceilings and a living room that has its own cast-iron fireplace. There is, too, a courtyard, a storeroom and an enclosed patio. The price here is R890 000.
4. A magnificent double storey home with no less than six bedrooms, two studies, two kitchens, three and a half bathrooms, two separate living rooms, a dining room and an entrance area. The home, said Peter Wetton, would be idea for two family occupation or could be run as a B & B or guesthouse. The list price of R2 395 000, commented Wetton, is roughly one-quarter of what would be charged for a similar home in the Rondebosch/Newlands area and possibly one-sixth of what would be charged in Constantia or Bishopscourt for a home of this standard.
