The Overstrand is firmly gripped in property-boom fever.
We are no longer aspiring to join the ranks of South Africa’s so-called ‘Millionaires’ Row’. Judging by the astronomical prices fetched in Hermanus over the past year – and increasingly in places such as Onrus – we have arrived. ‘Billionaires’ Row' might be a more appropriate description.
Estate agents, developers and property owners can hardly be blamed for enjoying the good times. But amid all the talk of record prices and lucrative returns, one wonders whether the noise of mammon is drowning out a more uncomfortable question: What is this property boom doing to the society that already lives here?
The environmental consequences are obvious. Ever more intensive development, in an area blessed with extraordinary conservation value, risks eroding the natural heritage that makes the Overstrand desirable in the first place. Destroy the goose that lays the golden eggs, and the property boom may consume its own foundations.
But there is another, less-discussed casualty – ordinary residents, especially the retired sector.
Increasingly, one hears murmurings from elderly residents who came to the Overstrand years ago, built their lives here and carefully planned their retirement around the homes they own. Now, soaring property values can translate into sharply higher municipal rates. Their financial planning may have been sound, but the arrival of substantially wealthier neighbours can make staying in their own homes increasingly difficult.
It is a new twist on the old saying: There goes the neighbourhood.
The four-yearly municipal valuation process is based on, among other things, property values and comparable sales. As sale prices soar, so can the assessed value of surrounding properties – and with it the rates burden.
For some, the eventual choice may be stark: find the money to keep up or sell the home they regarded as their piece of paradise.
The younger generation faces an equally vicious circle. As property prices rise, so do rentals, making it increasingly difficult for people who work in the Overstrand – teachers, nurses, municipal workers, hospitality staff, tradespeople and others – to find affordable accommodation anywhere near their jobs.
A place can become wealthy while becoming progressively less affordable for the people who make it function.
I am no property economist, but surely this deserves a more serious public debate than simply celebrating the next record sale.
As a former mayor once put it: “You can’t stop development.”
Perhaps not. But must we surrender to every consequence of market forces?
Can development be managed in a way that protects the environment while ensuring ordinary residents, including those who helped build the Overstrand into what it is today, are not gradually priced out of their own communities?
The property boom may be creating fortunes. But we should also be asking what, and who, is being sacrificed along the way. It would be valuable to hear from people experiencing these pressures, and from property experts and municipal officials who can explain what can realistically be done about this issue – if anything.
NO-SHOW FESTIVAL
The controversy surrounding the Milkwood Festival continues.
It did not take place at the Zwelihle Sports Ground on Saturday. The Overstrand Municipality was informed that the event organiser withdrew his involvement from the festival application. Consequently, the municipality is now considering its right to recourse, which may include formal legal action.
And so the dance around this issue continues.
Surely it is now time to bring the matter to a close.
The public deserves to know what steps will be taken to hold those responsible accountable – and, crucially, what is being done to recover the R250 000 paid to the festival organisers from the mayor’s discretionary fund last year.
After all the promises, explanations and shifting arrangements, residents are now entitled to some clear answers.
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