Does your view really make a difference to the value or demand?
Cape Town’s property market has maintained its growth and there are no signs of it slowing down, everybody wants a slice of heaven overlooking the ocean. The high return on investment for home owners in certain areas along the Peninsula has further highlighted how buying real estate, especially in the right area, remains a fantastic investment. With that said many potential buyers ask us about local tenant behaviour and how high on the priority list features like a sea view are?
The reality is that there are a wide range of property requirements for tenants along the False Bay coast and a sea view might, more often than not, fall in the “nice-to-have” category more than the “need-to-have” category. Although this depends entirely on the scenario.
When it comes to investment with the intent on letting to holidaymakers, the view is whole different kettle of snoek.
Let’s unpack this a little further.
Apartments close to the shore overlooking the ocean undoubtedly are more expensive than flats hidden away a block or two, the perk of opening your bedroom window to catch a whiff of the morning sea breeze is still a luxury many long for, yet this does not mean these properties are in higher demand.
We’re noticing more and more families moving toward areas like Fish Hoek and Simons Town and in their case, they usually need more space. This results in homes a bit further inland toward suburbia being more suitable and affordable. Similarly, retired couples settling down along the coast often don’t have the budget for a sea view property yet still yearn for the small-town friendly neighbour lifestyle.
Alternatively, as mentioned before, if you intend on buying an investment property and aim to let it out solely to holidaymakers and foreign tourists, the sea view properties are far more in demand.
This should illustrate how each scenario applies to the intended goal.
This is a highly active market, and without a doubt a high demand zone. My advice to any potential buyers hoping to let is that you should consult with a local real estate expert. Somebody that can advise you on the best possible options considering budget and investment desires.