In terms of tourist destinations, South Africa is a treasure trove of hidden gems. One such jewel is the quaint suburb of Kalk Bay, named one of the “coolest neighbourhoods around the world” in an article published by Forbes last year.
The many boutique stores, iconic Olympia Café and Dalebrook rock pool, along with many other fantastic restaurants, incredible surf opportunities, quaint harbour and mountain views help make this suburb one of the trendiest places to live.
According to Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, this therefore makes the Kalk Bay market a sound investment option for local and foreign buyers alike. “Trendy suburbs such as Kalk Bay offer year-round rental opportunities and promise good returns in terms of annual house price growth. Lightstone data reflects that the median asking price of a freehold title year-to-date is sitting at R6 million, which reflects solid growth on the R2,450,000 that was recorded in 2009,” he explains.
However, Kalk Bay is not often considered purely as an investment suburb. According to RE/MAX Living sales associates that operate in the area, there are lots of local buyers looking to purchase in this neighbourhood. “While holiday accommodation is available, most people choose to live in the village year-round,” explains Karin Aggouras of RE/MAX Living.
This therefore presents an opportunity for buyers who are searching for a holiday home that can earn an additional income throughout the year. Because there aren’t as many properties available for holiday letting in this area as there are along the Atlantic Seaboard and other trendy oceanside hotspots, those who purchase in Kalk Bay stand a better chance of letting the property year-round.
“In fact, we currently have a property for sale that is rented for almost the whole year. The property ‘Bishops View’ was built by world renowned architects approximately 15 years ago and has been predominantly used as a holiday villa ever since. It is ideal for either a permanent residence or a holiday home that could continue being let in between. The beach and the village are right on its doorstep and the property has unbelievable views, which makes it the ideal holiday home investment,” says Louise Killeen of RE/MAX Living.
Because we are still in a buyer’s market, Goslett explains that buyers stand to pick up properties such as the one mentioned above for really attractive prices. “For investors who can afford to enter the market now, I would therefore highly recommend looking at the Kalk Bay area to find a property like this to bolster your income year-round,” Goslett concludes.