St Francis: phoenix from the fire
[caption id="attachment_39670" align="alignright" width="405"] SOUGHT–AFTER: The tempo of sales of canal plots has increased fourfold since the devastating fire of November 2012 in St Francis Bay[/caption]
A YEAR and a half after the devastating fires at the canals at St Francis Bay, more than 40 of the homes which were destroyed, have already either been rebuilt or are currently under construction.
Pam Golding Properties (PGP) area principal Richard Arderne said sales in the market in general have been good, increasing substantially since the fire, which ended a few years of subdued sales. Ardene said prices remain under pressure, with sellers still outnumbering buyers.
"Positively, for the 12-month period to February this year, we have doubled our turnover to R70-million compared with the previous year, while this current financial year is looking even better after the first quarter [March to May].
"Furthermore, we have completed 12 sales to the value of R23-million last month, our best trading month since October 2008 – when we sold a canal house for R21-million. We find the trend is that buyers visit in summer and commit to buying decisions during the winter months," Arderne said.
He said the demand for especially canal plots has soared. "The tempo of sales of canal plots has increased fourfold since the fire, which is not surprising as buyers have had and still have a once-off opportunity to choose from a wider selection of plots than for many years.
"In the year and a half since then there have been 22 such sales [across the market], after only 10 canal plot sales in total in the three years preceding the fire.
"The recent canal plot sales were mainly in the price range from R900000 to R2-million, with two further sales priced at R2.9-million for a north-facing stand in the Marina Village estate and R3.6-million for a plot on the ski canal with a sea view," Arderne said.
He said the average price of a canal plot has dropped to R1.5-million after averaging R2-million before the fire.
"We now have more stock of canal plots than previously, with 20 plots marketed on a sole mandate by Pam Golding Properties, most of which are priced from R950 000 to R1.8-million, with a few over R2-million and one large, prime plot for R7.7-million.
"Having said that, the canals have certainly outperformed the rest of St Francis Bay, for example 42 of the 64 properties sold for more than R3-million since January 2011, were canal properties," Arderne said.
Canal plots range in size from about 500m² to 2000m², averaging at about 1000m².
"Importantly, there will be no further extensions to the canals, which makes a home right on the water a desirable option – particularly now while prices are still low – with sound medium- to long-term investment potential due to the scarcity factor in the future. Of the 517 erven on the canals, there are only 92 vacant plots left, 30 resulting from the fire. The number of vacant plots is reducing all the time as new homes commence construction, and is expected to drop to about 70 within the next 12 months," he said. - Weekend Post Reporter
