9 Jul 2015

Residential and holiday home buyers have again flocked in their droves to the seaside resort town of Hermanus.

Almost R1.3 billion in property was transacted in this area last year; more than double that of five years ago. Sales volumes have also doubled to over 1 200 registrations for the year.

This is according to Reon van der Merwe, Seeff’s licensee for the area, who says the market remains active. Stock levels are down by up to 30%, and there is almost nothing to buy below the R1.5 million price mark. The busiest price band remains below the R3 million mark, and there is still low demand above R5 million.

Located about one and a half hour’s drive from Cape Town and the airport, Hermanus is fast shedding its reputation as a hamlet. It is now home to well over 26 000 permanent residents, with a thriving tourist infrastructure that attracts thousands to this area annually.

The town now boasts top retail brands, boutique stores and restaurants to satisfy just about every palate, and progress continues. A new 30 000sqm shopping mall has just been approved, something that Van der Merwe believes can only benefit the town and its economy.

He says aside from residential, retirement and holiday home buyers, they are beginning to see growing numbers of commuter buyers investing. “We now even have people settling their families in this area and commuting weekly and monthly to Gauteng and other provinces for business.

Gated villages are in great demand, but stock is in short supply.

There are still a few excellent buys on offer in Onrus and Vermont, priced to around R2.5 million, but stock is now in short supply in areas such as the Fernkloof Golf Estate.

Van der Merwe says the demand for vacant stands has taken off quite markedly. There are good buying opportunities with prices ranging from R200 000 to R1 million for a top-end location.

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