Industrial growth drives Cape West Coast residential market

“The economy of the West Coast, which was once driven entirely by the fishing industry, is now all about other industries,” he says. “As a result, we’re experiencing a year-on-year growth in house prices of at least 20% along the whole coastline from Yzerfontein to Velddrif – and development is not expected to slow down any time soon.”

Significant investment for infrastructure development

For example Saldanha Bay, which was identified by government as a Strategic Integrated Project in 2012, has already received significant investment for infrastructure development from both the public and private sectors. As an oil and gas servicing and marine repair hub, the new Saldanha Bay Industrial Development Zone (IDZ), which will be fully operational by 2021, is expected to create more than 21,000 jobs.

“And the property sector has already experienced significant growth in anticipation of the Saldanha Bay IDZ,” says Potgieter. “In Yzerfontein, which is 70km away from Saldanha on the Cape Town side of the R27, you’ll struggle now to find a 250m² house for under R2m.”

Property prices in Langebaan, which is 50km up the coast, and in Jacobsbaai, yet another 20 minutes’ drive away, aren’t far behind those of Yzerfontein, he says. “The same size house will cost you between R1,5 and R1,8m in these villages while in St Helena Bay and Velddrif, where you could still buy a house for R850,000 last year, you’ll now pay between R1,2m and R1,5m – unless it’s a beachfront property, which will set you back at least R5m.”

Intention of becoming permanent residents

He also notes that, while the buyers of a few years ago were largely Capetonians seeking a weekend retreat in a traditional fishing village, these days they’re almost exclusively purchasing with the intention of becoming permanent residents. “Young families are streaming into the area. Nine years ago, Curro Langebaan, the private school of choice on the West Coast, had no more than 200 pupils. Today it has over 1000.

“There are also many buyers from upcountry who find the West Coast property prices easier to stomach than those of Cape Town. Many of these residents work in the northern suburbs and don’t mind the 70km commute to, say, Table View.”

Unsurprisingly, there has been considerable commercial development in the area in response to the influx of newcomers, says Potgieter. “The Weskus Mall in Vredenburg has been substantially expanded and there’s a major upgrade in the pipeline for Langebaan’s Laguna Mall, with two new anchor tenants, a 3000m² Checkers and a Woolworths Food store, opening in the centre.”

Opportunities for buy-to-let investors

Needless to say, the whole of the West Coast also offers excellent opportunities now for buy-to-let investors, and this will only intensify as demand rises in tandem with new employment opportunities created at the various new industrial and commercial developments, he says.

“Rentals have increased by more than 30% in the last year and a two- to three-bedroom house on the West Coast will now fetch a rental of at least R15,000 a month – if you can find one. At the moment there is a severe shortage of rental stock.”

“Properties here are still a good catch. Where else in the Western Cape can you buy a beachfront home for R5m? But don’t procrastinate too long, or you may be left with little more than wistful tales of the one that got away…” predicts Potgieter for the future of the housing market in these once quiet fishing villages.