The Rejuvenation Of Muizenberg
Category News
Two decades ago, South Africa’s key cities embarked on rejuvenation projects as a response to rapid urbanisation and neglect that had led to urban decay. Today, suburbs including city centres within Durban, Johannesburg and Cape Town are still addressing this decay through the restoration of derelict properties, development of new commercial, residential and industrial properties, construction of new amenities and infrastructural improvements. The coastal town of Muizenberg has undergone immense transformation and through key investments, the town’s developments have taken shape and are attracting a wealth of property investors and homebuyers who seek to tap into this re-born market.
The first signs of Muizenberg’s transformation began in 2013, and today it is most popular among young families and first-time buyers who are largely drawn to the affordability of the area, with 33 percent of all recent buyers under the age of 35. Family homes and apartments have been most in demand, within a price range of 2.5 million to 4 million.
Currently, the majority of properties in the coastal town are freestanding homes, which comprise of 60 percent of the total residential property market. However, this looks set to change as there are a number newer sectional-titles and cluster homes under construction including Costa da Gamma and Capricorn, offering mostly affordable units starting from around R650 000 for a one-bedroom flat. Over the last few years there have been many new developments, including 400 flats in Muizenberg East.
From 2013 to the beginning of 2016, properties worth a total value of R760 million have been sold in the area, apartments account for 56 percent of these sales and make-up a total of R340 million. Freestanding account for 44 percent of total sales, or 334 houses, worth almost R420 million. As a result of this, developers are capitalising on investment opportunities by further developing the residential market through the construction of freestanding homes, sectional-title properties and trendy upmarket apartments.
Apartment sales grew by 117 percent, from R84 million in 2013 to R184 million at the end of 2015. This phenomenal growth led to the average price of apartments increasing by 8 percent year-on-year, from R680 000 in 2013 to R800 000 in 2015. Muizenberg’s rejuvenation has also led to freestanding homes performing just as well, with a 9 percent year-on-year growth, increasing in value on average by R1.1 million in 2013 to R1.3 million in 2015. The most highly sought area for investors is Muizenberg Village due to its centrality, convenient beach access and vibrant atmosphere. The slightly more upmarket, Main Road and Boyes Drive are also firm favourites.
Muizenberg is undoubtedly rising from urban decay and transforming into a holiday and residential destination. It will be interesting to see the new developments burgeoning as a response to the insatiable demand for homes in the area. The coastal town’s affordability, breath-taking natural beauty, its innate holiday spirit and rapidly increasing property values make Muizenberg an ideal investment location.
Author: Dormehl Property Group
