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