Article by: Benhard Wiese, Principal Property Practioner at CCH
The Kleinmond property market has during the last 18 months benefitted from a pandemic-driven housing demand surge for a work-from-home lifestyle in a coastal town close to a city.
Capital growth measured in median property prices has in the last 18 months increased dramatically.
This very high capital growth came about as property sales in Kleinmond increased in 2022 to 26,7 sales p.m. - which is about 55% higher than the pre-Covid-19 average in 2019 of 17,25 sales per month.
Kleinmond property market sales have shown considerable growth since its lowest point in 2008 when there were only 88 sales (7.3 sales per month). Total sales in 2021 were 269 properties (13 sectional titles, 210 own titles, and 46 vacant erfs) - i.e. about 22,4 sales per month, or a month-on-month increase of about 207% in comparison with 2008. Total property sales registered in the Deeds Office in the 1st semester of 2022 were 160.
Kleinmond is a very popular retirement destination as it offers most of the city's conveniences but without the more impersonal lifestyle and higher crime rates, retirees encounter in cities or large towns.
During the last year, 78% of the stable owners have been younger than 50-year-old, whilst 63% of the recent buyers have been younger than 50 and only 26% between 50 to 64 years old.
The biggest age group amongst all Kleinmond buyers were those investing in their future retirement property. Of all recent buyers, during the last 12 months, 44,27% were aged 50 to 64. Pensioners older than 65 formed 22,9% of recent buyers.
Although Kleinmond's commercial infrastructure is much better developed than the 3 closest towns on the Whale Route, its median freehold property valuation of R1 550 000 is lower than Bettys Bay (R1 650 000), Pringle Bay (R2 000 000) and Rooi Els (R2 800 000).
The undeveloped stands in Kleinmond are available from about R380 000. Plots near Kleinmond beach are quite sought after and the prices of sea view stands range between R900 000 to R1 500 000. Larger erfs located closer to the mountainside are available from R785 000.
Houses near the beach prices vary on average between R2 800 000 to around R7 600 000.
Most retirees are looking to buy homes under R1 100 000. Property prices in some of the suburbs of Kleinmond start at about R795 000 for homes in the Palmiet area, while those in the Klein Berlyn area range from about R1 999 000 to R4.95 million. In one of the newer areas, Heuningkloof, home prices start at around R2 295 000.
Sectional title property or apartments are also available from about R900 000 (2 bedrooms).
For more from CCH and their local Kleinmond agent click here