Tourist Interest in Metro and Surrounding Areas Drives Up Values
Category The Property Market
THE INCREASED local and international marketing of the Western Cape as a tourist destination has had a “huge impact” on its property sector growth, says Samuel Seeff, Seeff Property Group chairman.
“Much of the property growth comes from outside – the continued inward migration of buyers looking to move here or invest in property here.”
It is not just the metro, but also high- profile tourist areas such as the Winelands, Overberg and coastal areas like Hermanus. This interest drives price growth, with statistics indicating that property prices are still increasing as fast as anywhere else.
Areas that have benefited most from tourism are the Atlantic Seaboard and City Bowl, Blouberg, the Winelands/Boland, and the Overberg/Karoo.
The CBD has become an “enormous success” because foreign investors spotted the potential of redeveloping old buildings.
“That in turn spurred the development of small businesses, coffee shops and trendy eateries to further boost tourism.”
Many areas such as Green Point and Sea Point were once run down, but thanks to tourism they have been transformed into sought-after neighbourhoods.
Mouille Point, the Waterfront and the Foreshore are also sought-after residential options with prices of six apartments sold in the past 12 months averaging R100 000m², say Pam Golding Properties agents.
Anne Porter, chairman of Knight Frank Residential in Cape Town, says living in a tourist hub has many benefits.
“New hotel development and other tourism- enhancing initiatives are well- managed by the metro, which benefits homeowners in terms of added infrastructure and enhanced public transport. Upgraded amenities add further value to properties as well as to the lifestyles of Capetonians.”
The financial benefits are valuable, says Jeff Gilmour, president of the Association of Residential Communities, because any renewed interest as a tourism destination adds value to nearby residential properties.
Voted by Lonely Planet as one of the top 10 cities in the world to visit, Cape Town is known for its natural beauty, and properties in the city’s tourist areas are desirable as holiday homes, says Taryn Lewis, PGP agent for the City Bowl.
Seeff says these buyers tend to target areas close to the beaches in areas such as the Atlantic Seaboard and Hout Bay, “but they also love golf estates and the winelands.”
Author: Knight Frank
