THE TIDES HAVE CHANGED
Category Property News
Like most coastal villages in South Africa, everything about Hermanus since the Covid pandemic has changed. Amongst these, its dramatic shift from a seaside village to a growing and thriving small town has had a major impact on the property market. For the past 100 years, Hermanus has attracted multigenerational families who have loved to holiday on its shores. In terms of permanent residents, these have typically been retirees from Cape Town, its surrounds, and even South Africans from further north of the country. Today, Hermanus finds itself in the enviable position of having earned a reputation as one of the most desirable seaside towns, even competing on a global scale. For the first time, its property market is being driven by a new wave of younger, commercially active buyers who seek to change gears with an emphasis on a family-orientated quality of life. As the housing demand increases for a burgeoning population of permanent residents, all sectors of the market are benefiting. In turn, minimal development trade and rapidly declining stock levels are having a knock-on effect on the rental market where extreme scarcity is driving rental prices upward to figures similar to those in major centres.
There is no doubt that this new segment of purchasers is surpassing the demand from traditional holiday home and retiree buyers. Areas like Voëlklip and Onrus Peninsula which have classically been characteristic of holiday homes are now becoming popular permanent addresses. Another scenario is that purchasers from other provinces are being faced with selling a lot for a little, yet have to buy a little for a lot. This could be part of the reason why traditional holiday nodes are now being considered as permanent addresses. Owners are happy to sacrifice square metres at home as the pristine open and public spaces in Hermanus remain accessible and safe. The feeling amongst residents is that being able to walk to a coffee shop, beach or along the cliff path, means that they no longer need to live behind high walls typical of suburban homes in cities. Since Hermanus Property Sales inception more than 30 years ago, we have seen many ebbs and flows in our property market. From microeconomic influencers like the early 2000 drought as well as the run on the Rand to more dramatic events like the 1998 interest rate hikes of 24%, the 2006 bubble and the 2008 crash, the Hermanus property market has remained constant.
Today, the population totalling 104, 000 enjoy a quality of life that is arguably one of the best in South Africa. As a collective, the community strives for excellence with both the public and private sectors holding each other to account in its pursuit. Hermanus Property Sales is privately owned and managed and we pride ourselves on offering our clients friendly, efficient and personal service. Having established ourselves as local experts, we have three offices in the Greater Hermanus area where we are known as true property professionals at all levels of the market. Over the years, we have built up an enviable list of high[1]profile clients, many of whom are South African captains of industry and overseas entrepreneurs. These clients have not only become excellent sources of referral business, but also friends. While we attribute our credibility to our longevity, it is also the dedication of every one of our agents and staff who live up to our company credo, "Professional Property People" and who are valuable members of the HPS family, who contribute to our success.
Author: John Leppan, Principal, Hermanus Property Sales
