Beachfront strip properties lead the pack in Plettenberg Bay sales race
Category Property News
Property worth a hefty R640 million changed hands in the small Garden Route town of Plettenberg Bay last year, with the most consistent sales and highest prices being realised for residential properties on the prestigious beachfront strip, Beachy Head Drive.
Gauteng buyers still lead the pack in high-end price brackets in the scenic coastal town which has retained its popularity as an elite holiday destination with many purchasing second homes here. While the town also attracts some foreign interest, it’s a small market share compared to South Africans, who still dominate the market.
According to Steven Neufeld, Manager Principal of Lew Geffen Sotheby’s International Realty Plettenberg Bay, this is largely due to an attractively constant market where, over the past ten years average prices have kept pace with inflation, growing annually at an average of 6%.
“Around 300 sales were made in the town last year and current prices range from around R1.1 million for entry level houses to up to R27 million for properties on the beach,” says Neufeld.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says: “In terms of the current market in the area, 2014 followed the gradual but consistent trend of recovery from a dip in 2011 and, although the budget speech in February created some uncertainty, we remain cautiously optimistic that the 7% increase in total sales and prices from 2013 to 2014 will continue, especially at the luxury end of the market.”
The record price so far for residential property in Plettenberg Bay was R50 million for a luxury coastal estate, sold in 2006 by Hein Pretorius, Broker Owner of Sotheby’s International Realty Plettenberg Bay.
Pretorius says: “Prices have stabilised overall. There is still an oversupply of entry-level vacant land, but stock levels are decreasing in other segments, particularly the upper end of the market, where choice is diminishing and values are increasing. We expect moderate growth overall for 2015 in line with inflation.”
According to Pretorius the highest prices achieved for residential sales in 2014 were for four houses on the beachfront on Beachy Head Drive, whose prices ranged from R25m to R27m. In 2013 the record sale was for a larger residential estate further up Robberg Beach, which sold for R43m.
“Although Plett abounds with mansions of all shapes and sizes, it’s still extremely affordable to get a foothold on the property ladder here. The entry-level price for apartments around here is about R450 000 and you can buy vacant land for as little R199 000, with even more affordable options available in the surrounding areas,” says Neufeld.
“Competitively priced within the market, sectional title units can be snapped up for around R1.25m, with freehold property averaging R2.44m.”
Neighbouring Keurbooms retains its desirability as a holiday haven, with five properties sold in 2014 for an average of R4.186m, while 11 properties in Natures Valley realised an average of R2.86m each. More accessible Wittedrift saw five properties change hands for an average price of R782 000.
Says Geffen: “Plettenberg Bay is one of the jewels on the Garden Route and although it is largely a holiday-based economy the town will continue to grow and remain a sound property investment for both second homes, and those who want to settle away from the rat race.”
Weekend Argus, 5 April 2015
Author: Weekend Argus