Property in Tesselaarsdal, a tiny village in the Hemel en Aarde valley of the Overberg, still offers growth reminiscent of the recent boom times — in some cases doubling in value within a year.

Riaan Smuts of the RealNet office in nearby Hermanus says growth of between 50 and 100 percent is still being achieved on most properties in the village.

Tenfold increase in past three or four years

"These increases come off a low base, which probably accounts for the fact that prices on some pieces of land have increased tenfold in the past three or four years."

Tesselaarsdal, at the edge of the valley and about 20 kilometres from Caledon, was established when a farmer gave his freed slaves parcels of land and descendants of those original owners started selling their properties when prices started climbing thanks to the recent boom in the real estate market.

"The spectacular setting of the village soon attracted the attention of Capetonians looking for country retreats and lively interest quickly spurred the rise in local prices," says Smuts.

"It is a typical small country village with little commercial development, set among mountains and valleys, and the only sounds one is likely to hear are those made by man or animal — not machines. However, the necessary infrastructure such as water, electricity and telephone lines is in place and there is 3G reception."

Prices start at around R200 000

Prices in the village itself start at around R200 000 for a cottage in need of repair on about 1000m² of land. Surrounding smallholdings of about 4.5 hectares, but with no improvements, can still be found at prices of less than R500 000 while undeveloped 20 hectare units cost around R1-million.

The climate is suitable for growing lavender and olives, says Smuts, but although some buyers are starting to establish agricultural enterprises most properties are bought as holiday or weekend getaways.

He is confident that the local boom still has a lot of steam. "There are still some very good investment opportunities, but I expect that prices will reach a ceiling in the next three to five years after which properties will be in step with the national property cycle and show average growth."