Local property trends

L’Agulhas, officially the southern-most tip of Africa, and Struisbaai, have long been popular holiday and retirement destinations, albeit at a price. Now, however, with the property market arguably at the bottom of a lengthy downward spiral, this pristine coastal area, characterized by endless white beaches, an abundance of water sports and a reputation as an excellent viewing point for southern right whales, offers outstanding brick-and-mortar affordability.

In fact, property prices are at their most affordable in 5 years, not only as a result of the market downturn but also because of the low interest rate, which has dropped from an all time high of 25,5% in 1998 to its current 8,5%. I don’t expect our current pricing lows to continue indefinitely, though. As the market cycle turns upward again – and indications from economists and the banks are that it’s already happening in other parts of the country – house price values here are also likely to start moving upwards again. Price growth should be further stimulated as a result of infrastructural improvements in the area, including the tarring of the road between Gansbaai and Elim, which according to Ward 5 councilor Derick Burger is anticipated to begin in January 2013. Our tourism appeal will be further enhanced should our beaches be granted Blue Flag status. Mr Burger is pressing the municipality to support this much-needed tourism lure by providing funding for the construction of public ablutions and safe parking as well as the maintenance of the beach going forward. In the event that this project is approved, that the lighthouse upgrade is completed and the planned cultural centre built at its entrance, we’re going to be able to offer people an extremely attractive holiday destination, which will surely fuel holiday home buying as well as attract new permanent residents to the area

The upgrading of our infrastructure should also translate to an extended holiday season, which will benefit existing local business. In order to improve our economy, we need to attract newcomers in addition to our regular holidaymakers, who, having watched the whales and visited the lighthouse, will nevertheless want to stay on to enjoy other offerings such as a world-class beach. At the moment, our economy peaks in the December holiday season, although it also benefits on a lesser scale from May to year-end, when visitors come to watch the whales mating, calving and cavorting in the warm southern Cape waters. The better our infrastructure and the more facilities we can offer, the more we can be sure of enticing visitors to stay longer and even buy their own properties. In so doing, our economy will improve, which will in turn encourage new business and much-needed job creation. This, coupled with our relatively low crime rate, our well-maintained roads and pavements, and our abundance of flora and fauna, will enhance our status as a holiday, birder and botanist paradise