Residential Guidebook Residential Guidebook 2014 (Subscribers) | Page 52

PRIME REAL ESTATE houses and plots on the canals, leading all the way to Cape St Francis, where we experienced particularly strong demand. Sellers still outnumber buyers and according to FNB, prices for coastal resorts are still about 30 percent below their 2007 peak in real terms. However, St Francis Bay has almost certainly outperformed this national average. Situated on the Garden Route, Mossel Bay saw a huge increase in inquiries in the six months culminating in the recent festive season with a revival in the market for vacant stands, and with inquiries exceeding previous summer season. Purchasers are mainly acquiring leisure homes or properties for future retirement on the coast, with the majority from Gauteng and some from Cape Town and the central provinces. However, the rand value has been low, bearing in mind that most of these were plots which sold from R250 000 to R1 million and houses and apartments which sold between R550 000 and R1.3 million. The biggest demand has been in Pinnacle Point Beach & Golf Resort, which has gained market confidence with very affordable prices for investors, while in Mossel Bay in general low-priced homes are still very much in demand with a few inquiries in the upper end of the market from R3 million to R12 million. Interestingly inquiries regarding Pinnacle Point have been from a number of international buyers, for 50 Residential Handbook 2014 properties priced from R350 000 for vacant land to a beautiful cliff-front house at R14 million, as well as lodges and villas priced between R750 000 and R1.8 million. In the scenic Western Cape coastal towns of Witsand and Stilbaai, along the area known as the Blombos coast, there has been heightened interest among upcountry buyers, including Gauteng and Limpopo - particularly those who have visited the area as a holiday destination and wish to settle in a safe haven and enjoy a slower paced lifestyle. There is also interest from Capetonians, especially in seafront properties as the area is much closer than other Garden Route destinations and the prices are very competitive. There is also an increase in expatriates choosing to return to South Africa for their golden years, with the addition to our village of an acute hospital and a day clinic definitely adding appeal, as well as the weaker rand. In terms of holiday homes the highest demand is for properties as close to the water as possible, although in Stilbaai these homes tend to be the older houses, needing work and often on smaller plots. Those looking to relocate tend to go for value for money, choosing the established suburbs and settling for distant blue views. Buyers opt for a variety of leisure homes, with the highest demand from approximately R1 million to about R1.3 million. Frontline homes are popular but the premium price paid and the high maintenance costs put them out of the average buyer’s budget. www.reimag.co.za