Noordhoek property increasing steadily in value and popularity

07 September 2015

Noordhoek has often been labelled as an area that is “too far”, “over the mountain” and “isolated” but it is gaining in popularity with younger buyers and the perception has changed much over the years. Buying in this area is very much a lifestyle choice, however, and buyers will not give the same reasons for living here as those living in many of the more central locations in Cape Town. Many of the properties here do not have high fences, or security gates, nor do they have streetlights and the rural feel has been kept in much of Noordhoek, says Barry Clarke, a Knight Frank Residential SA agent who resides in Noordhoek.

Until perhaps eighteen months ago, the residential property market in Noordhoek seemed quite slow, and plots were readily available, he said. Even up to nine months ago, some pieces of land were still available but the situation with regards to availability of plots has all changed now. There is very little land for sale (if any) and prices of plots are now fetching in the region of R2,2 to R2,3 million for approximately 1 000m², he said.  

The good news, however, is that development has picked up once again and there is one large estate (with ±200 homes) currently being marketed here, and another rumoured to be coming soon, so those who want to build in Noordhoek but can’t find land to buy, could possibly buy into the plot and plan packages in one of the estates at prices around R5 million.

Property prices in Noordhoek have increased steadily over the years, despite it being known as “far” from the convenience of the southern suburbs. A home bought in 2010 for R2,5 million, said Clarke, was recently valued at R4 million. While a 60% increase in market value on a property over five years is virtually unheard of, where there is very little on the market and very little stock, basic economic rules apply and it becomes a sellers’ market. There are very few homes on the market at present, as in many of the areas in greater Cape Town, and most homes that are put on the market now sell within six to nine weeks, said Clarke.

Another example of property price increases in the area, he said, is a home that was bought at a price of R3,9 million in 2011, and now, four years later, has sold at a price of R4,7 million in Noordhaven.

PropStats, the Institute of Estate Agents Western Cape property data service, indicates that the average price for a freestanding home in Noordhoek (if taking the first half of this year’s figures into account) is R4,189,063 and homes are selling at a 5,7% difference between the asking and selling price.

Some areas, such as Belvedere, are priced much higher because of their position, said Clarke, with homes valued between R6 million and R9 million.

San Michelle and Noordhoek Manor values are on average R2,5 to R3,5 million and the older Lake Michelle estate values are between R3,5 to R4 million with the newer buildings being valued at between R4 and R5 million.

Because Noordhoek has always been known to be a “lifestyle” area rather than a typical residential area, said Clarke, and many of the residents being from the “horsey set” and a large number in the surfing community, as well as those who prefer the more rural feel of the area, it has increased vastly in popularity with young families. Most residents here do not mind travelling a little more each day because of what this lifestyle offers families, which adds much value that is non-tangible and possibly immeasurable.