3 beach suburbs in Cape Town that are still ‘affordable’ investment options
While property price growth in Cape Town has far outpaced any other region in South Africa over the past several years, Seeff property group highlights three areas in the Mother City that are still considered ‘affordable’ investment options.
Property investors need to study various potential areas and consider what has happened in those areas before deciding where to buy, said Tony Ketcher, Seeff’s regional general manager in the Western Cape.
“Eliminate suburbs that aren’t secure and are situated with easy access and egress routes attracting criminal activity and suburbs that have not shown any growth and are not within a reasonable distance of good schooling, shopping centres and work opportunities,” said Ketcher.
In general gated villages and security estates are also safer investments because they are in high demand due to the security and lifestyle offerings.
Read: These are the best areas in Cape Town to invest in property
Seeff said that for those people hoping to secure a well-priced property in one of the Cape’s top ranked beach locations, then head to one of these well-priced coastal areas:
Gordon’s Bay is considered as one of the coastal towns in the Western Cape that offers the best value for money because although house prices here have shown a 6% growth since 2015 and some sectional title complexes a growth of up to 10%, property here is still much more affordable than in most other harbour towns, Seeff said.
The average house price in Gordon’s Bay range from R1.2 million to R1.4 million and this price mostly includes three bedrooms, at least one garage and a garden, the property group said.
The Harbour Island area in Gordon’s Bay is especially sought after as this is a very secure lifestyle complex and a safe investment, it said.
Seef said that in 2010, prices in Costa da Gama in False Bay were at a point where you could buy a three bedroom and two bathroom apartment with a garage and sea view for R750 000, but now you would pay no less than a million rand.
The adjacent Capricorn Beach offered potential purchases of R650,000 for a freestanding secure gated community home, but now you would have to fork out at least R950,000.
“Even though these two areas have seen dramatic price increases in the past year; like Gordon’s Bay it still offers some of the most affordable beachfront property in the Western Cape and the rental market here has also recently skyrocketed,” said Ketcher.
By contrast, much has been written about suburbs including, Clifton, the V&A Marina, Camps Bay, and Llandudno, where in some streets, prices range between R54,000 and R94,000 per square metre.
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