Coastal prices soften

23 Dec 2008

Prices of coastal properties in SA have not eluded the economic downturn and have softened significantly.

Evidence of this is holiday homes in Blaauwberg on the Western Cape Coast going for R450k.

Helene Visser of ERA Steer Blaauwberg says this price will buy you a two-bedroom sectional title unit in a security complex. "It may not be grand but it does indicate how prices have softened."

In the R1m bracket, she quotes Parklands and Tableview as areas where bargains are to be had. Ideally, she says, buyers should have cash as rentals will generally not cover a geared bond if they want to let the property out.

Nick Hill of ERA Atlantic Seaboard says prices in the City Bowl and Atlantic seaboard are holding. However in Woodstock, Observatory and University Estates, entry-level prices are around the R700k mark. Gautengers are in the market but there is "no mad rush" of overseas buyers despite the softer rand.

On the Garden Route, Sedgefield offers real value right now. ERA National's Henning Swanepoel says chic apartments with great rental potential are available from R490k and a family home a stroll away from the beach is selling for R750k.

At Wilderness, prices are "sheer joy" this year – a compact home with all the mod cons is on the market for R1,395m and a four-bedroom home with sea views is going for R3,9m.

At Mossel Bay, Swanepoel says, there are real opportunities for discerning investors. A large house in Dana Bay selling for R1,6m will get you a fixed rental of R9k pm and at Hartenbos a three-bedroom, two-bath apartment within walking distance of the beach is selling for R795k.

In Port Elizabeth, Vanessa Sutherland of ERA Sun Port Elizabeth says vacant land offers good value. A 700sq m plot with a sea view will cost you R500k to R600k.

PE's South End, North End and Kensington (where you can pick up a property for around R300k) offer real bargains, while in high-end markets such as Humewood, Summerstrand and Lovemore Heights, homes are currently priced at 20% to 30% below true market value.

In East London, Ascot Park and Beacon Bay offer new three-bed townhouses for R950k and in Stirling you can pick up a three-bedroom family home for R1,25m, says ERA Sun East London's Roy Taylor.

In Durban's centrally situated Berea area, ERA Berea North's Rishaad Mohamed says sellers have knocked off about a third of asking prices. "Sellers who have been hanging on are now perhaps more ready to negotiate and the bargains are appearing," he says.

On the KZN North Coast, ERA Unique St Lucia's Rene Baumann says despite the upmarket image of Ballito, you can acquire a two-bedroom, one-bathroom sectional title unit for around R700k.

Further up the coast at popular Mtunzini, a unit in a complex will cost you around R680k to R800k, while a three-bed home on the agency's books is going for R1,2m. At Richards Bay you can expect to pay around R950k for a four-bedroom home while a sectional title unit will cost you from R700k to R860k.

For more information contact Gerhard Kotzé on 012 682 9610 or click here to visit the website.

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