Intro
New road from Gansbaai to Cape Agulhas has positive spin-offs for property market
The major new 65-70km road which is to be built between Gansbaai and Cape Agulhas in the Overberg region of the Western Cape is expected not only to have significant socio-economic benefits for these areas and the coastal towns en route, it will further impact positively on the residential property markets in those areas, says Glyn Bricknell, MD of Pam Golding Properties' Boland and Overberg region of the Western Cape.
"This is very good news as it heralds a major boost for tourism, as previously, the tarred road ends 20km east of Gansbaai - famous for its Great White shark-diving tourism - and visitors were faced with gravel roads through to Cape Agulhas, which is the southernmost tip of Africa. As a result travellers often simply bypassed the area altogether, which is extremely unfortunate as this is possibly South Africa's best kept secret with spectacularly beautiful natural scenery, and pristine beaches. The new road will also provide a huge boost for employment, with some 5000 new jobs to be created during the two-year construction period.
"In terms of the real estate market, news of the new road is extremely positive as it will create greatly increased awareness of the attractions in these areas, boosting demand for homes and resulting in increased investment in existing and new homes, and ultimately providing a greater return on investment for home owners," adds Bricknell.
She says the tarring of the final stretch of road from Gansbaai to Cape Agulhas will create a wonderful scenic circuit of the farms, beaches, nature reserves and fishing resorts of the area right from the Strand, Gordon's Bay to Kleinmond and Hermanus, Stanford, Gansbaai, Pearly Beach to Cape Agulhas, Bredasdorp, Napier, Caledon and back to Cape Town on the N2.
Pam Golding Properties is very active in the marketplace in the various towns along or in the vicinity of the route of the planned road. Gansbaai and the adjoining coastal towns of Franskraal, Die Kelders and Perlemoenbaai are already popular destinations and are connected by tarred roads. Here, prices for plots with sea views range from R200 000 to R1.1 million at an average size of about 600sqm. However stock is limited, and new seafront properties are practically unobtainable.
The areas of Kleinbaai, Franskraal, Pearly Beach and Die Dam, which lie further east along the southern coastline, are already connected by tarred roads, and these towns are developing at an extremely rapid rate. However, the creation of the coastal connecting road will open up the area of the old Moravian mission town of Elim with its original church clock, water wheel and picturesque thatched cottages. The new route will be called the Slave Route. Tourism will unlock the potential of this quaint village as well as open up the farmlands in the area to new investors, facilitating technological improvements and ultimately resulting in increased values.
At the Victorian village, Stanford, which is situated between Gansbaai and Hermanus, its proximity to the Klein River and scenic mountain backdrop make it an extremely sought after residential area, coupled with the fact that it is easily accessible. In 1994 a conservation programme was implemented, in order to preserve its Victorian character and ambience. PGP agent Jillian Smith says recently there has been a strong demand from younger Capetonians seeking a village where young families can enjoy a freedom of lifestyle, as well as a strong demand from the 'young retired' age group. Prices for two bedroom, open plan houses now range from R650 000 while river properties, when available, are priced from around R970 000. Occasionally one of the older, Victorian homes come onto the market priced from approximately R500 000.
Says Le Roux van der Merwe, PGP's area manager for the Overberg and South Western Cape areas incorporating Bredasdorp, Napier, Arniston and Breede
River: "Currently the best and quickest way to reach the already popular coastal resorts of Arniston, Struisbaai and Cape Agulhas is on the N2 over Sir Lowry's Pass and through the towns of Caledon, Napier and Bredasdorp, which is a trip of two to two-and-a-half hours from Cape Town.
"Because of their popularity, there is a strong demand for homes from both local and overseas buyers, which is resulting in increased prices. At Cape Agulhas and Struisbaai, stands with sea views are selling from R500 000 to R600 000 with one of the last remaining beachfront plots on the market at R800 000. Houses with sea views sell from R650 000 to R2 million and further back, stands range from R100 000 to R160 000, with seafront houses along the golden mile selling for up to R3.5 million.
The fishermen's cottages on the cliffs at Arniston, which in their entirety are a national monument, are a scenic backdrop to this coastal village, where property is also in great demand. Here, seafront houses change hands for over R6 million, with a recent PGP sale being for a home priced at R4.3 million, while another seafront house is currently on the market at R4.76 million. Seafront or sea view plots are unobtainable, while other plots are fetching up to R1.7 million. Further back the lowest priced house is currently on the market at R850 000.
Bredasdorp - whose surrounding areas are a haven for bird lovers - was established as a municipality in 1834 and is the supply town for the surrounding farms as well as being the seat of the Cape Agulhas Municipality. It is a charming town set against the Heuningberg mountain, with a population of about 10 000 and a good infrastructure and facilities.
Van der Merwe says house prices range from around R350 000 for modest homes to R850 000 for luxury homes against the lower slopes of the mountain. Erven range from R45 000 for 400sqm to R77 000 for 1500sqm stands with excellent views.
Adds Bricknell: "These south coastal areas have tremendous potential.
Farmlands which were traditionally used for wheat, barley, oats and sheep, are enjoying interest among both local and overseas investors, with positive results. Now, in the cool folds of the hills between the sea and the R316, vines are being planted, which because of the five degrees lower than average temperature, allows for harvesting during the day - eliminating the need for costly night harvests. Olive groves, also suitable for the Mediterranean climate, are appearing, while other new forms of farming include game, dairy and beef farming, and cattle and sheep stud farms - with the latter producing some of the most prized Merinos in the world, due to the good climate and the soil's rich nutrients."
The areas are also known for Australian fresh water crayfish and carp, angora goats, ducks, geese and ostrich, as well as for its fynbos - including proteas and other flora for a thriving export industry.
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