When it comes to buying property, the age-old mantra “location, location, location” remains as relevant as ever. To make the best possible investment, buyers need to understand how this critical factor impacts a property’s value.
This is according to Claude McKirby, Co-Principal for Lew Geffen Sotheby’s International Realty, who notes: “While other factors such as a property’s size, design, and features certainly play a role in determining its value, location remains the single most influential aspect affecting a home’s worth and investment potential.
"Whether you’re buying a home to live in or an investment property, understanding how location impacts property value is crucial for making a smart financial decision. Property markets vary significantly from one city to another, and even between neighbouring suburbs, so knowing what to look for in a location can mean the difference between a solid investment and a poor financial choice.”
In South Africa’s prime markets, a great outlook is more than a lifestyle luxury - it’s an asset with measurable economic value. From the Atlantic Seaboard and City Bowl to Umhlanga’s coastline and the Winelands’ ridgelines, homes with compelling views consistently trade at higher prices and demonstrate greater resilience through market cycles. Local data and decades of hedonic pricing research, which isolate the value of individual property features, support this trend.
“You can upgrade finishes any year you like; you can’t manufacture a mountain or a shoreline. In our top-performing suburbs, uninterrupted views operate like a permanent competitive advantage,” explains the team at Fine & Country Sub-Saharan Africa (SSA).
Why outlooks hold value
Fine & Country SSA emphasizes that the value of prime view properties is underpinned by structural scarcity. Geography naturally limits available stock between mountains, oceans, and nature reserves, while planning frameworks and established built form restrict densification that could otherwise erode these outlooks. Scarcity endures over decades, ensuring that buyer demand remains consistent.
Proven amenity value: Views combine multiple benefits - light, privacy, perceived safety, and favourable microclimates due to elevation or exposure - which buyers consistently capitalise on, translating into measurable price premiums.
Depth of demand: Premium view homes attract a diverse pool of buyers, including local upgraders, semigrants, returning South Africans, and international purchasers. The same demand is evident in the rental market, where low vacancy rates in Western Cape metros reflect a sustained willingness to pay for ‘position and outlook.’
Downside protection: Even during periods of modest national price growth, micro-markets rich in amenity tend to outperform or recover faster. “We see it every cycle: well-located homes with uninterrupted ocean, mountain, lagoon, or golf-course edges remain price-sticky,” Fine & Country notes.
How to underwrite the view
For sellers and developers:
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Document the outlook with elevation surveys, HOA design manuals, height-restriction overlays, and neighbouring zoning.
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Prove the premium with matched-pair analysis - comparing similar properties with and without the view - and use view-forward photography to showcase its impact.
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Leverage short- and medium-term rental performance (low vacancy, higher ADR for sea/mountain-facing units) to reinforce the investment case.
For buyers:
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Assess permanence: Investigate what can be built between you and the view, including cadastral boundaries, neighbouring heights, and any pending applications.
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Evaluate quality: Ensure the outlook is wide-angle, uninterrupted, correctly oriented, and minimally affected by noise.
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Model the premium: Expect to pay a higher acquisition price today for stronger capital preservation, liquidity, and long-term value in prime locations.
“When we assess premium stock, we underwrite the view the way an analyst underwrites a cashflow: quantify it, prove it’s durable, and price it appropriately. That is how outlooks become not only beautiful but bankable,” says Fine & Country SSA.
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