Market tops R6.4bn, boosted by semigration and lifestyle

Market tops R6.4bn, boosted by semigration and lifestyle

Category Area Focus

Transactions worth almost R6.4bn were recorded across the Garden Route and Eastern Cape coastal towns for last year.

Seeff’s licensees looked at the performance of towns such as Mossel Bay, George, Knysna, Plettenberg Bay, St Francis Bay, Jeffreys Bay and the Kenton on Sea/Port Edward areas and advise that while there has been some decline and price growth has flattened, the markets have held firmly and property investments are safe.

These are some of the best run towns with clean beaches and a healthy climate which continue to attract an influx of buyers and scores of holiday makers. The areas are multi-faceted with excellent infrastructure and roads and easy access including airport access; being just some of the advantages of investing in property here.

Buyers tend to be a mix of families, retirees and holiday buyers. There’s also a busy rental market including a popular tourist and holiday letting sector. While emigration sales are low, semigration into the areas continue to boost the markets.

Mossel Bay holds the status of best run town in SA and, says Kaaiman Schutte, Seeff licensee for Mossel Bay and surrounds, it is well deserved. The town is clean with beautiful beaches and a fabulous village vibe with street cafes and restaurants, décor stores and more. The Langeberg Mall offers a range of shopping including big brands.

Some R1.7bn in transactions were concluded in 2019 and the town is one of the few that still achieved positive y/y price growth of 8% for sectional title, 22% for freehold and 16% for estate homes. Aside from retirement and holiday buyers, the town is family-friendly with access to good schools and amenities. Popular hot spots include Diaz Beach, Hartenbos, Groot and Klein Brak, Tergniet and the Oubaai Golf Estate.

The nearby George market also achieved over R1.7bn in transactions and y/y price growth of 14% for sectional title and 10% for freehold houses. Pieter Jordaan, Seeff’s licensee says the market remains steady and a correctly priced property under R2m can sell within days to a few weeks. The most popular price range is between R1m to R1.5m, but stock is limited. Most properties sell for 10% below asking price.

Most sales are elderly people downscaling as well as the selling of investment properties while buying continues to be boosted by people migrating to the area as well as buy-to-let investors. Estates are attractive for the security and lockup and go convenience, he says.

Although Knysna has seen some decline, the market achieved transactions worth well over R910 million for 2019. Gail Rimbault, Seeff licensee says the town offers several major attractions, from the beautiful waterfront estates and property to two top golf estates being Pezula and Simola as well as neighbouring Sedgefield. There is a broad choice of property types and price points on offer.

With almost R700 million in transactions for last year, there was still plenty of activity in the Plettenberg Bay market. Kevin Engelsman, Seeff licensee says the market appears to have bottomed out and will remain flat with a slight improvement this year.

The most popular price bands are between R1.5 m and R3m and up to R5m. Properties spend around 95 days on the market and achieve about 91% of the listing price. Reasons for selling tends to be economic with owners selling second holiday homes and a small percentage due to emigration. We are currently in a buyer’s market offering excellent value below R5m, he says.

The Jeffreys Bay market meanwhile achieved turnover of over R800 million with transaction volumes remaining fairly even since 2016 although price growth has flattened over the last year.

The town attracts a good mix of young and old buyers. As the top surfing mecca, it offers fabulous beaches, rivers and nature reserves with plenty of adventure, birding and angling says Gerrie Nieuwenhuis, Seeff’s licensee. Top schools make it family-friendly and there is a bustling commercial centre. Port Elizabeth is only an hour away for other needs including the superregional Baywest Mall. The easy access also makes it an ideal commuter town.

The St Francis Bay market achieved over R440 million and here too, transaction volumes remained steady between 2018-2019 although it is now showing some decline as it catches up to the economic realities says Desiree Ferreira, Seeff’s licensee.

This beautiful coastal resort town offers excellent waterside living and a range of properties. There’s still plenty of land from around R250 000 and houses from R1.2m in the village and R2m on the canals and in the golf estate.

Port Edward and Kenton on Sea has seen some decline and achieved R120 million in transactions last year. Simon Oliver, Seeff licensee says the market for second (holiday) homes is subdued and overall, stock levels are rising thus putting pressure on asking prices. Properties in the mid-market sector of R2m to R4m are taking longer to sell, but below that, if accurately priced, will sell quite quickly.

Although there is some emigration related selling, most sellers are looking to cash in given that prices had grown well over the last few years and are now looking to downsize or move into a retirement complex and keep the rest of the money as a nest egg.

The area is renowned for its schools and the celebrated Rhodes University in Makhanda (Grahamstown). Most buyers are parents of children at school in Grahamstown. We also get buyers from the farming community and from friends and family of those living here already. Attractions include the malaria-free Big-five game farms, golfing at the Royal Port Alfred and Fish River Country Club courses, Blue Flag beaches and water sport. The market currently offers excellent value, concludes Mr Oliver.

Author: Seeff Head Office