21 Dec 2011
Buyers and savvy investors are said to be eyeing some of South Africa’s premier holiday resorts to purchase prime holiday properties.
Plettenberg Bay, like many coastal towns was negatively impacted by the economic downturn, but now with a brand new airport imminent and an upsurge in international visitors, Plett is back in vogue.
Greg Stroebel says an estimated 60 percent of their target market is in Gauteng, particularly those who fly in and out of Plett for weekend getaways, purchase a primary residence and commute as required on business or weekly.
As an example of some of the good buying opportunities being capitalised on at present include a four bedroom and four bathroom house situated in Robberg Road selling for R2.5 million.
He says this property was previously on the market for several years priced at R4.2 million.
Stroebel says currently the Plettenberg Bay residential property market is most active in the R2 to R3 million price range for a freehold property on an erf of between 800 to 1000 square metres.
He explains that this is good time to buy property in Plett because all the sellers in an over-supplied market including those under duress are competing with each other to sell first.
“In the past it was all about offering value, but now the emphasis is on liquidating an asset.”
This opens up a large scale opportunity for those looking to buy to move to Plett or for holidaymakers wanting a more permanent holiday venue, he says.
Buyers are looking for value-for-money properties that are close to amenities and leisure activities, especially if they are holiday home investments.
Lodewick notes that while many of the lower priced properties are sectional title units, larger holiday homes are also in demand, which are often sold to inland buyers who are mostly farmers and large corporate companies.
Sectional title units sell from R360 000 to R1 million, while free-standing homes range in price from R900 000 to R10 million.
Beachfront stands are priced from R1.3 million to R6 million while homes within the secure golf estate range from R.11 million to R5.5 million.
Lodewick expects Langebaan properties to appreciate by approximately 5 percent year-on-year depending on the boom in the neighbouring suburb Saldanha which will shoot Langebaan property prices sky high if it takes off next year.
Ludwig Schulenburg of the local Aida franchise says it is not only cheaper to move to Hermanus, but it meets all the criteria of the most popular Australian destinations.
“The town is relatively crime free, offers a wonderful lifestyle on the coast, a pleasant climate, and business opportunities aplenty,” says Schulenburg.
Hermanus, traditionally a holiday and retirement destination, now regularly draws economically active buyers from large metropoles in Gauteng, KwaZulu-Natal and the Cape and the new 'settlers' have swelled the number of permanent residents to 55 000, he says.
Holiday homes are in demand and buyers are taking advantage of market-related prices.
Schulenburg says sellers who up until very recently held out for their asking prices, are now much more inclined to negotiate with prospective buyers in order to clinch a deal.
Prices of two bedroom apartments from R600 000, townhouses are sell from R800 000 and family homes are priced from R1 million.
Although Franschhoek is not generally considered as a holiday destination by South Africans, it remains popular with overseas guests especially those from the UK, Netherlands and Germany.
Peter Hager, broker/owner of RE/MAX Prestige Country Properties says Franschhoek has and always will be a sought after and desirable location for both local and foreign property investors.
Hager says Franschhoek has performed well as far as demand is concerned but property appreciation and selling prices have dropped due to the global downturn.
Full title properties, which account for close on 60 percent of the area’s total properties, according to Lightstone are in higher demand among leisure buyers as the sectional title levies and increased care costs often put leisure investors off.
While not a typical seaside holiday spot, Franschhoek holds the lure of culture and history, exceptional cuisine, a solid property investment market, along with excellent wine tasting and wine farm visits, he says.
Heny says there have seen a slight increase in property sales over those achieved 2010 with the average selling price around R850 000.
Port Alfred offers leisure investors a variety of holiday accommodation ranging from flats, to duplex town houses, single dwellings and homes on the beachfront or the Marina.
On a sale volume basis the flat/town house category offers the best property pricing and proves to be the most popular,” says Heny.
Duplex townhouses are priced from R650 000 to R1.350 million at the Settlers Sands development.
Settler Sands is the most popular complex in Port Alfred and throughout the year, owners collect good rental income either for full term leasing or holiday rentals.
Larger beachfront homes with superb sea views are priced from R 1.5 million to R 4 million.
He adds that buyers can expect to achieve fair appreciation on their holiday homes in future as prices have now levelled due to building costs having caught up with the inflated prices of the past few years. – Denise Mhlanga
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Denise MhlangaProperty journalist at property24.com
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