De Kelders Suburb Report - Gansbaai Property Market - Property Sales Report 2018
De Kelders is the northernmost suburb of Gansbaai and is located 19 km from the town of Stanford within the Walker Bay area of the Cape's Whale Coast and in the Overberg region of the Western Cape.
De Kelders has 1 198 freehold properties of which only 4 is within an estate and 45 sectional title properties of which 31 is in an estate.
Owner Profile / Demographics.
The suburb's demographics include a population of 963 adults with an average household income ranging between R17 000 to R25 000 (LSM 7 High - LSM 8 Low).
De Kelders has a fairly mature property owner profile with 39% of them being 65 years and older and 42% aged 50 to 64. The majority of recent buyers (62%) are also older than 50 - confirming that De Kelders is a popular retirement area. It is also important to note that 88% of sellers are also older than 50 years - confirming the fact that the property market predominantly "turns around" buyers retiring or sellers downscaling. Only 2% of the "stable owners" are between 18 to 35 years old - whilst 18% of the recent buyers and only 1% of the recent sellers fall into this age group bracket. 38% Of the buyers in De Kelders are younger than 50 of which 20% is aged 36 to 49.
Property Sales In De Kelders - Property Market Size
The contracting South African economy had a relatively small effect during 2018 on the De Kelders property market sales volumes - especially relative to the record 92 registrations achieved during 2017 (which was close to double the 56 sales of the 2008 boom phase in the South African property market and more than 3 times the "record low point" of 2009).
The De Kelders property sales volumes has continually increased on an annual basis from 2009 to 2017 - with monthly property sales increasing by about 10,6 % in the last 2 years from 6,6 registrations p.m. (2016) to 7,3 p.m. (2018) - alternatively from 79 registrations (2016) per year to an expected 87 during 2018.
Sales volumes dropped by 5% per month for the first 11 months of 2018 to 7,3 properties registered p.m. (80 sales in total from January 2018 to November 2018).
Sectional title units forms a very small part of the De Kelders property market sales volumes with only 59 sales taking place between 2008 and 2018.
The De Kelders property market experienced very suppressed sales volumes between 2009 and 2014 - reflected by only 29 property sales in 2009, 37 in 2010, 36 (2011), 48 (2012), 52 (2013) and 42 sales during 2014. A definite positive swing has occurred in the market sentiment since 2015 when sales jumped to 70 sales (14 more than the 2008 boom period), 79 (2016), and 92 in 2017.
Capital Growth
Despite the 5% contraction of the De Kelders property market's sale volumes during 2018, capital growth, measured by the rise in median prices achieved, has been positive - especially in the sectional title property market.
Sectional title property prices increased during 2018 by 58,5% from R675 000 to R1 070 000, freehold property (houses) by 5,9% from R1 275 000 to R1 350 000 and vacant land (erven) by 5,2% from R252 000 to R265 000.
Capital growth achieved between 2010 and 2018 were respectively - for freehold properties (homes) 45,9% or 5,1% per year (rising from R925 000 to R1 350 000), for sectional title properties (apartments) 32,9% or 3,7% per year (rising from R805 000 to R1 070 000) and for vacant land -15,9% or -1,8 % per year (dropping from R315 000 to R265 000).
During the period 2010 and 2012 annual sales in execution basically doubled in volumes created a negative price growth pattern with executions rising from 4 units in 2008 to respectively 8 and 7 units per year in 2009 and 2010. During this period erf or vacant land prices dropped from R328 000 (during 2008 at the highest point of the boom phase) to R272 000 (2011) and freehold homes from R942 000 to R710 000.
This pattern has been reversed during the last 8 years - where sales in execution dropped from 8 in 2011 to only 2 sales in execution during 2018.
De Kelders Real Estate Market - Property Prices Analysis
A price range analysis of De Kelders property sales reveals that the majority of the freehold homes repeat sales (excluding those build in estates and excluding vacant erven), took place in the price range of R800 000 to R1,5 million - 28 transactions during the last 12 months (December 2017 - November 2018). The 2nd most active market segment was between R1 500 000 to R3 000 000 with 15 sales. There was only 1 sale between R400 000 and R800 000 for R799 000 and only 2 sales in the price range of more than R3 million for R3 850 000.
The highest price was achieved at 8 Waterkant Street (R7 million with a municipal valuation of R2 825 000). The lowest price for a freehold property was paid for 85 Main Road (R502 116 with a municipal valuation of R756 000).
There were no property sales inside estates nor any new developments (i.e. first time registrations of property) during 2018.
In the sectional title market only 6 units got sold during the last 12 months - 1 units got sold in the price range between R400 000 and R800 000 for R640 000 (a 60 sq.m. apartment in Walker View Apartments). 4 Units got sold in the price range between R800 000 and R1 500 000 at an average price of R1 069 000. Only 1 sectional title unit sold for more than R1,5 million - which was an apartment of 119 sq.m. in Whale Cove for R2 195 000 .
35 Residential vacant land (erven) sold as repeat sales in the last 12 months at an average price of R343 000 - of which 26 sold for an average price of R252 000. Of the other 9 erven which got sold, 8 plots sold for an average of R569 000 and 1 De Kelder erf sold for R910 000.
The highest price obtained for an vacant erf was 31 Cliff Street - R2 150 000 (595 sq.m. - municipal valuation of R1 650 000). 18 Botha Street was the lowest price obtained - R110 000 (830 sq.m. - municipal valuation of R375 000).
If you are looking to buy or sell a property in De Kelders or in the greater Gansbaai area (from Stanford to Pearly Beach), or you would like to know more about the town's lifestyle, please contact our local Gansbaai member estate agent, George Prinsloo to assist you on 078 84 4341 or george@cch.co.za.