A lot of variation can be seen in both the average house price of beachfront properties and the average rand per square metre value of these properties. Diversity can also be seen in the prices of properties at beaches within provinces.
According to the analysis by the solutions company- Lightstone, the estimated values of around 138 000 residential properties which are situated within 500 meters from a beach and registered at the deeds office. 57 000 of which are registered under a sectional title scheme.
As stated by Paul-Roux de Kock- analytics director at Lightstone, while comparing the price of beachfront properties across the country, two main measures of value need to considered: one is the average price of the property and the other is the RAND value per square metre for each holiday destination.
He says “Even though the average rand per square meter value of sectional properties is considerably higher than that of the freehold properties, the average property price of freehold properties is noticeably higher than that of the sectional properties located in the same area. Hence distinctions can be made between the freehold properties and the sectional properties.”
The analysis also states that the province with the highest beachfront property value of both freehold and sectional title properties is seen in Western Cape, which is 32% more expensive than those in the KwaZulu-Natal (KZN) (R1.56m) and 51% more expensive than those in the Eastern Cape (R1.36m).
Looking at the price the average rand per square metre value of Western Cape freehold properties is on average 175% larger at R4 400 while compared with the R1 800 in the Eastern Cape and R1 600 in KZN. For sectional title the average house price in the Western Cape is R1.85m and about 59% higher than that in KZN and 83% higher than that in the Eastern Cape- by de Kock.
It is not necessary that the values of beachfront properties is the same from one province to the other. In order to determine the average value across different destinations, Lightstone did an analysis on the average house price and the average rand per square metre value of both freehold and sectional properties in the Western Cape, Eastern Cape and KZN.
Capetown rules the position by having the most expensive freehold beachfront properties in South Africa with an average value of just under R 8m. It is followed by Plettenberg Bay, with an average at just below R4.2m and at third position comes the Milnerton at R3.1m. Knysna, Fish Hoek and Simon’s Town’s beachfront properties are valued between R2m and R3m.
Examining the prices of the sectional properties in the same town, they were less than half of the price of freehold properties.
