Even as South Africa's national property market seems to continue cooling and slowing down, the old saying that property is all local still holds true if you know where to look. Although relatively few in number, there are areas where the real estate and property investment markets are moving in an opposite direction than the national market – up.
The latest of these markets to attract media attention and increased scrutiny from property investors is Cape St. Francis, on the outskirts of St. Francis Bay. This suburb is clearly defying the widespread market slump that the country is currently experiencing.
According to Richard Arderne of Pam Golding Properties, "Properties here sell quickly – if reasonably price – and this is one of the few areas that can still be considered a seller’s market."
He added, "Total market turnover for Cape St Francis doubled from R35 million 2006 to more than R80 million in 2007, and we are always seeking stock to cater for the demand." Arderne himself recently bought a house in Cape St Francis for his own family instead of choosing to live in St Francis Bay.
Although relatively unnoticed until now, property values in St Francis Bay have risen by nearly 25% per annum during the past five years and the market appears to be getting stronger.
In fact, according to Esme Welman of Lew Geffen Sotheby's International Realty, "The market in St Francis Bay has performed exceptionally well over the past five years as result of the low crime rates, idyllic scenery and close proximity to the city of PE."
However, beyond the common features listed in any promotional brochure, St Francis Bay is also experiencing an economic growth that has been attracting businesses and generating jobs in the region. An increasing number of young adults and families are choosing to live on the outskirts of the city.
