Properties worth R8 billion sold in one South African suburb

The Blouberg and Milnerton areas benefit significantly from the country’s semigration trend, with property transactions worth around R8.2 billion over the past year.

Seeff Property Group’s JP Ricketts, a sales manager at Seeff Blouberg, revealed that the greater Blouberg and Milnerton property market has benefited tremendously from South Africa’s emigration boom. 

‘Semigration’ refers to moving from one part of a country to another. This trend has become very prevalent in South Africa over the past few years, with an influx of people in the Western Cape.

Ricketts said the market remains buoyant. CMAInfo data shows that property transactions worth about R8.2 billion – representing 3,649 transactions – were concluded across the area over the last twelve months.

Around 38% of these transactions were semigration buyers from elsewhere, according to a Lightstone Report. 

He explained that the market comprises about a 48/52 split between full title and sectional title sales. 

The average transaction price for a full title sale is around R2.9 million and R1.57 million for sectional titles, but prices are area-dependent.

He explained that while most semigration buyers are from the Gauteng metros, they are coming from all over the country. 

Around 2% of confirmed sales over the last year were to international expats and investors, who spent, on average, around R3.79 million. 

“There is also a significant rental investment market with high demand for residential and holiday rentals,” he said.

Lightstone data shows that the market has been rewarding for property owners and investors, allowing them to earn a good rental income and above-market-average capital growth due to the high demand. 

Propstats data shows that average prices have generally doubled over the last ten years, increasing by, on average, 87% for freehold homes and 90% for sectional titles.

“While a popular middle-class area, it is now home to diverse residents and suburbs which offer various price points,” Ricketts said. 

“There is a growing luxury property sector for homes and apartments, adding further a dimension to the market.”

For example, Seeff has achieved prices of up to R7.75 million and R9.75 million in Dune Ridge Estate in Big Bay and R11 million in Bloubergstrand. 

He added that the Bloubergstrand village, where old homes have been rebuilt or remodelled into modern luxury villas, is popular with luxury buyers.

In addition, there is a growing choice of new luxury homes in Parklands North and Sandown in the Western Cape, selling for upwards of R4 million to R8 million and more for high-end homes. 

Beach houses in Blouberstrand and Waters Edge in Big Bay can sell for upwards of R10 million to R20 million. 

There are also two golf estates, Sunset Links and Atlantic Beach Estate, where houses sell for an average of R8 million.

“That said, the area still offers outstanding value for buyers,” he said. “About 69% of all sales are still below R3 million, and about 42% below R2 million. Agents are seeing a lot of enquiries between R800,000 and R2 million.”

Ricketts said sellers also have opportunities as stock levels are dropping in certain pockets. Some areas are even moving to a seller’s market with many buyers in the R1.8 million to R3 million price range.

This is especially true in areas like Parklands, Table View, Milnerton, and Sunningdale. Semigration buyers generally look in the R1.5 million to R3 million range.

He explained that location and value are the big draw cards. The area is fronted by a long stretch of beaches, with the Blouberg waterfront areas packed almost year-round. 

Ricketts attributed the popularity to the coastal lifestyle, attractive amenities, and high volume of security estates and complexes. In addition, there are about twenty schools in the area, including top-performing private schools.

“Residents have everything on hand, and you do not have to travel out of the area,” he explained. 

“The neighbourhoods are family-friendly and great for cycling and hiking. Aside from the beaches, there are a large number of greenbelt areas, and the West Coast and Winelands are only about an hour’s drive away.”

Blouberg/Milnerton property