BIG budget buyers in Johannesburg and Cape Town hedge their bets on Plett property, a top local estate agency says.
While the leisure sector of the secondary coastal market continues to trade at about 30% to 40% below the pre-2007/8 sales volumes, Seeff Plettenberg Bay principal Kevin Engelsman says this primary holiday town has seen a rally in leisure sales over the past year and into this year.
It seems many buyers are realising prices are now probably as low as they are likely to go and the value on offer is not to be passed up, he says. The estate agency has sold 90 properties to the total value of about R181-million over the past year compared to 60 properties worth about R118-million in the 2011/12 year; about a 50% improvement.
“Operating in a down-market is challenging and we realised if we were to be successful for sellers, we needed to relook our approach.
“Consequently, we have seen good growth in leisure sales with almost 70% of our sales over the last year coming from the leisure sector. Almost half of these comprise buyers from the greater Johannesburg area while Capetonian buyers make up about 13% and foreign buyers, predominantly from the UK and European countries, about 7%.
“Most notably, sales include six properties sold above the R10-million mark, something we have not seen much of since 2007/8,” says Engelsman.
Gauteng buyers invested between R18.5-million and R45-million (the highest price paid for a home in the town), while Capetonians snapped up properties priced between R13-million and R17.3-million.
“We were granted a sole mandate to sell the remaining 21 stands at The Hill and have just clinched the sale of all of these plots to an investment consortium for R16.6-million.
“This follows hot on the heels of the recent sale of 24 out of the available 33 units at Whale Rock Ridge in five weeks.
“Confidence in property in the town is not misplaced,” continues Engelsman.
According to information from SA Property Valuations, average prices in Plettenberg Bay have grown annually at an average of about 15%, demonstrating the investment value if bought at the correct price. Agent Alet Ollemans says market conditions still favour buyers and properties on the market offer exceptional value.
For example, a beautiful riverside villa with a private boat mooring that is situated in the Twin Rivers Estate is on offer for R9.95-million.
This 22ha nature estate is situated between the Bitou and Keurbooms Rivers, about five minutes’ drive from the centre of the town.
The estate comprises a lush peninsula formed by the two parallel flowing rivers that form a single estuary into the warm Indian Ocean.
A large part of the estate is covered in indigenous vegetation with villas situated on the Keurbooms River bank.
There is a clubhouse with a swimming pool and tennis court for residents and security is top class. The location makes it a nature lover’s paradise with birding, fishing and water sports just some of what is on offer.
This particular home offers 650m² in floor space with beautiful finishes such as stone basins set on a custom-built vanity cabinet and a free-standing bath in the main bathroom.
Open-rafter ceilings add interest to the interiors. Floors are finished in a combination of wooden and Travertine floors and there is a fireplace in the living areas. There are two lounges, a dining room and an ultra-modern kitchen.
The living areas open to a spacious entertainment terrace with a bar and lounge area that faces the river and overlooks a decked area and rim-flow swimming pool.