Residential property in Cape St Francis, a suburb of St Francis Bay in the Eastern Cape and gateway to the Garden Route, is bucking the national trend and selling rapidly.

"Properties here sell quickly - if reasonably priced - and this is one of the few areas that can still be considered a seller's market. Total market turnover for Cape St Francis doubled from R35m in 2006 to over R80m in 2007, and we are always seeking stock to cater for the demand," says Richard Arderne, area principal for Pam Golding Properties (PGP).

He recently purchased a home there for him and his family, as opposed to a home in St Francis Bay itself. He cites the better surfing for him and his three sons as one of the reasons for buying in Cape St Francis. That - and the extremely sound return on investment.

"A 700sq m plot in Cape St Francis was recently sold for R900k. This reflects a twenty-fold increase in value, from R45k 12 years ago when the current seller, a Johannesburg family, purchased it in 1996. This is a typical example of the steep escalation in value achieved - particularly recently - in what we refer to as the 'Clifton' of the Eastern Cape," says Arderne.

He says front row properties have appreciated even further. Numerous transactions have recently been concluded for front row properties - most of them vacant land or old cottages which have been or will be demolished.

"Another interesting example of sound price appreciation is that of a front row cottage that sold for R370k in 1995 and again in 2005 for R3,25m - only for the cottage to be demolished in 2007 and with a R5m-plus, 500sq m house now under construction. This represents a total investment approaching R10m for a holiday home."

The highest price paid for a home in Cape St Francis remains a R7,5m luxury home sold by PGP last year (2007). Also noteworthy is a beachfront plot recently sold in the marketplace for R5,15m. However, further back from the sea, it is still possible to purchase plots, and even cottages, for below R1m and within easy walking distance from the beach.

"Adding to buyer appeal is the area's quiet, village ambience, and the pristine nature reserve surrounding Cape St Francis, which prevents further development.

"Other attractions include the lighthouse and penguin rehabilitation centre, beach and rock fishing and diving. The coast to the west stretches nearly 100km to the Storms River Mouth, largely isolated and pristine, apart from the small settlements of Oyster Bay and Eerste Rivier. In fact this beautiful coastline can be walked all the way to the famous Otter Trail," Ardene says.

For more information contact Richard Arderne on 083 284 0168 or send an email.

Readers' Comments
Have a comment or question about this article? Email us now..

Get up-to-date property news
Would you like to receive free weekly news and information about property in South Africa? Click here to register and sign up for Property24's Week in Review.

Property News
Click here for more property news articles.

Need a blog?
Start your own blog with a free blog from 24.com.