Hout Bay properties see increased sales as market adjusts to current prices

The Hout Bay residential property market has adjusted to current market conditions and is staging a strong comeback, says Doug Styles, new owner of the local Aida franchise that serves Hout Bay and Llandudno.

"The market had to adjust to new realities last year after the strong surge in prices during the boom. It has now stabilised at a more realistic level with prices now on a par with those of 2006, leading to increased sales activity."

Styles, who decided to buy holiday property in Hout Bay after a visit a few years ago, bought more than he bargained for on his return earlier this year. Instead of a holiday home, he bought the Aida franchise.

"My wife Filomena and I fell in love with the area while on a visit four years ago," he says. "On learning that the Aida franchise was for sale we made a decision on the spot to move to South Africa from our base in Europe - and we agreed to the deal within minutes."

For the past 16 years the Styles have been selling property in the world-famous golf and beach developments of Vale do Lobo and Quinta do Lago, the golden triangle of the Algarve in southern Portugal.

Luxury properties in the R20 million to R50m price range are the norm there

Styles says his decision reflects his full confidence in the prospects for the Hout Bay area, which he describes as the "jewel in the crown of the fairest Cape".

There is strong interest again from local buyers, he says, and the setting and property on offer suit the taste of international investors.

Prices for three-bedroom homes in Hout Bay now average just under R2m, and one-bedroom apartments sell from R700 000 upwards.

Two-bedroom apartments sell for about R1m and top properties in Llandudno find buyers at around R20m.

Sunday Argus

Posted at 10:45AM May 04, 2009 by Editor in Market  |