But relief is in sight as ground breaks on La’Mare’s new 84-unit residential development.
A NEW CHAPTER FOR HOUT BAY
Marking the official commencement of construction at the La’Mare Residential Development, key stakeholders participate in the formal sod-turning ceremony. Pictured from left: Paramount Chief Regan James; Gavin Meskin, Managing Director of Merelava Property Developments; Councillor Roberto Quintas; and Chief Basil Van Der Ross.
HOUT BAY, CAPE TOWN
Demand for modern, energy-efficient units in Hout Bay is becoming increasingly difficult to satisfy as a result of a growing shortage of sectional title stock.
According to Property24 data, there are currently just 35 one- and two-bedroom sectional title units available in the area, the average prices of which are R2.55 million and R4.50 million respectively.
Coastal hubs like Hout Bay are attracting huge buyer interest, says Just Property CEO Paul Stevens. “With traditional freestanding houses in the town now averaging around R5.9 million, sectional title units have taken over as the main growth engine. Demand isn't the problem here - it's supply,” he states.
Adds Graham Ross, Manager at Just Property Hout Bay: “Small-to-medium size sectional title units are exceptionally hard to come by, and the gap is even wider for budget-conscious buyers who want two bedrooms, because the average price for these units has risen to around R4.50 million. The fact that sectional title properties tend to sell within 45 days, compared to 107 days for freehold houses, tells you where the demand lies.”
Hout Bay’s booming rental market is also contributing to the sectional title squeeze, he continues. “While rentals for 2-bedroom units in neighbouring Atlantic Seaboard suburbs regularly start at around R34,000 and can go up to as much as R48,000, Hout Bay offers a sweet spot of between R19,000 and R36,000. This compares with inland pricing in suburbs like Newlands or Claremont, but of course here they are usually more spacious and some even have sea views.”
Hout Bay’s buyer demographic
Citing Deeds Office data, Ross says buyers in the 36 to 64 age group are behind almost 70% of Hout Bay’s real estate sales. Delving deeper into the demographic, he splits them into semigrating families, working professionals, savvy investors and retirees.
Investors are drawn to this stretch of the Western Cape Peninsula for a number of reasons, he points out. “Firstly, they can cherry pick from a pool of good tenants looking for long-term rentals. Secondly, our year-round tourism market gives them a strong short-term alterative. And then there’s the fact that property values here have risen by almost 60% in the last five years, which is higher than many of the inland suburbs. As a result, long-term capital growth and rental yields are generally excellent!”
The rest of this particular buyer group is usually looking for a more affordable Western Cape coastal lifestyle without sacrificing proximity to Cape Town’s business centres, he says. “Hout Bay boasts a number of top schools including Hout Bay International School, Ambleside, and Kronendal Primary, and then of course there’s a kilometre of white sandy beach. The sea is much calmer and gentler than the Atlantic coast, which is perfect for paddling, kayaking, and paddleboarding. Another huge attraction is the middle section of the beach, which is a designated off-lead area for dogs and horses.”
La’Mare to deliver 84 new units in 2027
There is light at the end of Hout Bay’s inventory crunch: construction by Merelava Property Developments has begun on the new 84-unit La’Mare sectional title development in Bayview Road.
On final completion in the third quarter of 2027, La’Mare will comprise seven low-rise blocks, each with 12 sea-facing apartments, says Gavin Meskin, Managing Director at Merelava Property Developments.
Configurations include one- and two-bedroom units and penthouses with large entertainment balconies that look out over the ocean. Along with high-speed fibre, 24-hour manned access control, an electrified perimeter and braai areas, the development is also pet-friendly, subject to approval. Pricing starts at R1.995 million and there’s no transfer duty payable.
“The Heights commands some of the best views in the City of Cape Town,” says Roberto Quintas, Councillor and Mayoral Committee Member: Urban Mobility. “With a panorama from Chapmans Peak across Hout Bay to the Sentinel Mountain, and the Karbonkelberg and its Table Mountain National Park reserve status behind the development, it really offers the best of sky, sea and berg. As the ward councillor for the area, I am excited to see this sustainable development bring new residents looking at buying ‘affordable luxury’ into our vibrant and diverse community.”
What Hout Bay hasn't had is enough modern, well-priced homes for the people who want to live here, says Meskin. “The numbers tell the story. When there are only a few dozen one- and two-bedroom units on the market and they're selling in under seven weeks, that's not a cooling market, that's a market crying out for new stock. La'Mare is our answer to that."
