Helderburg Sees Property Boom

October 19 - The Helderburg area in the Cape Peninsula, which incorporates towns such as Somerset West and the Strand, is enjoying a huge property boom in recent months.

Buyers can expect to find houses in this area that begin at R250,000 and climb to a staggering R22 million, although the main activity can be seen in the R1.3 million to R2 million price bracket.

Property groups have commented that there has been a strong growth in turnover for the sale of homes in these areas, with franchises such as Rawson Properties showing that there had been an 85% increase in turnover in July, August and September, compared to last year.

There are several reasons for the flurry in activity that had one property expert commenting that it is "as if there's never been a recession."

One of these reasons is that buyers are starting to recognize the fact that the market is on its way to recovery and that the only way that house prices are going is up.

"This is an accurate perception because nationally deflation in prices was reduced in September to 4.4% from over 6% in August and FNB are predicting that they will again be in positive territory by 2010," said Schalk van der Merwe from Rawson Properties in Helderburg.

Another reason for the increase in prices is that students are starting to recognize the advantages of buying in these areas instead of the more expensive Stellenbosch.

"The university is a mere 10 minutes drive away," said Leslie Hurwitz from Seeff Properties. "Instead of paying R1.3 million for a place in Stellenbosch, their parents prefer to buy in Somerset West and let them drive to Stellenbosch."

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10/19/2009 8:51:18 AM