17 APRIL
GOLDEN MILE:SHOWING SIGNS OF RECOVERY
Strand beach front a ‘favourite destination’ DALEEN FOUCHÉ The sales and interest in Beach front property in the Strand is picking up and showing signs of recovery from the recent recession. Pierre du Preez, real estate agent for Rawson in Strand and specialising in beach-front propert, says there is a definite increase in demand for and sales of property on the Strand beach front. He says the first signs of an upswing in this specific market started showing in January this year and interest from especially Gautengers, who want to retire in Strand, is also forthcoming. According to Du Preez, one of the reasons why the Strand beach front is so popular, is because of the reasonable prices. He says compared to Bloubergstrand, the Strand offers very competitive prices, but has similar tourism attractions such as the long stretch of beach. According to Du Preez the Golden Mile that begins at the Hibernian Towers towards Somerset West is especially popular and many retirees prefer to buy apartments in older buildings because it is a lot more spacious than new buildings. He says the new buyers invest money to renovate the older apartments, which brings renewal to the Strand beach front. The development potential on the Strand beach front is, according to Du Preez, very small with only a hand-full of properties left with the potential to be developed. Alten Vermaak, a real estate agent for Seeff in Strand, who specialises in beach-front property, says Seeff currently has 120 beachfront apartments for sale.
In 2013 Seeff in Strand sold 103 properties totalling R147 million. According to Vermaak there is a definite increase in interest in beach-front property for the first time since the economic recession hit the country in 2008. He says the upswing in sales started in January this year, after a very quiet December. Vermaak believes Nelson Mandela’s passing was responsible for the quiet December period, which is usually one of Seeff’s busiest times. He speculates that buyers probably wanted to see what economic consequences would follow before investing in property. Beach-front property, however, is still not doing as well as suburban areas that are closer to schools, such as the popular Strand North area. He says prior to the development boom on the beach front, the majority of buyers were investing in holiday homes. He added that now, more people are buying apartments on the beach front to live in. Sakkie Kotze, team leader of Engel & Volkers, says there is a constant stream of available property on the beach front, mostly apartments. He says the type of buyer interested in these properties are mostly people who want to retire in the Strand and prefer not to be saddled with big houses. Other investors in beach-front property include the parents of students in Stellenbosch and Cape Town who buy apartments for their children and later on use the property as a holiday home. Kotze, however, says the economy still has to recover quite a bit before the market will allow for beach-front property to do as well as before the economic recession.
Beach Road in Strand is still a popular holiday and retirement destination.
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