June 2017
Hout Bay's landscape is changing. Our next phase of growth is already underway.
There are two factors in play that will swell the population by another 20% in the next five years. New townplanning regulations and urbanisation.
Urbanisation is a fact of life and it is estimated that by 2050 that 77% of the global population will be urbanised. In South Africa already 66% of the population have migrated to live near cities. Johannesberg and Cape Town will bear the brunt of this migration.
Hout Bay is still considered an area of choice amongst people migrating from areas like Gauteng and KZN-perhaps to escape urbanisation there. International buyers are still attracted to Cape Town and we have several enquiries every week from our overseas offices. The prices here are more affordable than other areas on the Atlantic Seaboard, we have good schools, easy shopping, vibrant restaurant scene and of course a rural lifestyle that is highly sought after.
Recently subdivided plot in the Tarragona Estate oo the market for R5,5million
About 300 properties are sold in Hout Bay every year but new legislation will increase that number by around 50% in the next few years. Townplanners have made it easier to subdivide and to add second dwellings. There are at least 7000 properties in Hout Bay that qualify, and the trickle of people subdividing or adding second dwellings will now increase to a steady stream. Developers are searching for opportunities and by my count there are 200 new properties coming on to the market in the next two years. Already the landscape is changing as forests are being removed and land cleared.
As these rich migrants come to the area they add to the demand for employment.
The second factor is the development of Imizamo Yethu.
I attended a meeting with Mayor Patrica de Lille a few weeks to hear a progress report on the plans for IY.
The devastating fire helped to galvanise the City and community leaders to action. Apart from the loss of life and displacement of many people the fire cost the City in the region of R150million in one weekend. They are eager to never repeat this happening again.
City will be investing another R150million into rebuilding Dontse Yakhe. They will provide proper infrastructure and make it easier for fire engines to access the area. Shacks will be made be more fire retardant and there will be enforced spacing between each shack. With such investment, it seems likely that political promises to try remove all shacks from IY will be fruitless.
For the last year the City has been putting in the infrastructure to begin the building of almost 1000 new apartments at a budgeted cost of R250million. Infrastructure will include street lights, tarred roads and pavements, electricity and water to each house and a stormwater and sewerage system.
There will be two types of building- CRUs (Community Residential Units) which will be rented from the City and BNG (Breaking New Ground) houses where the resident owns the house and the plot. Similar units can be seen on the way to the airport. The timeline has completion in 2018 (read 2019!) The units will comprise 2brms and 1bthrm on 40sqm and 43sqm. There areas allocated are the zones next to Penzance and Hughenden and the largest in the old Forestry land.
Obviously this will have a dramatic impact on the Hout Bay landscape. The remnants of the old Forestry station will be replaced and residents on the slopes of Oranjekloof will have a different view. The development will be visible from the Main Road from the cemetery until the clinic. Currently the design of the CRUS are double storey but the layouts also give an option for a third storey. As City has very limited options in the Peninsula when it comes to low cost housing it seems inevitable that they take the option to go to the third storey and probably even a fourth- thereby adding another 500 units.
Civils are currently underway in the Forestry site, 492 residential units are expected to be completed by early 2020.
This development of Imizamo Yethu will ultimately be a big positive for Hout Bay. It will slow down the growth of the population as slumlords will be unable to rent out shacks to newcomers, and residents will protect their areas- as has been seen in other areas. Better quality of life often leads to better security and a drop in crime levels.
For every seller there is a buyer waiting in the wings. If you would like an informed opinion on the future value of your home contact Matt Mercer on 021 790 6777, 0832991133 or [email protected]
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