The Knysna property market has shown a 28% growth in sales during the first quarter of 2009.
Commenting on this growth figure, Alan Evans of Seeff Knysna says they conducted 10 sales totaling R22,65m in the first quarter of 2008 and nine totaling R28,99m this quarter. Even though numbers were slightly down by 10%, the value was up by 28%.
"At this point in time investors have put themselves in limbo to 'watch and wait', but Knysna's slight upward trend can be ascribed to deals mainly on Thesen Islands, an eco-friendly development, two of which were over the R7m mark.
"None of the sales in the first quarter were affected by the bond crisis, as most were cash or pre-approved bond finance deals."
Also up from 2008's first quarter is East London, who operating off a smaller base, saw an increase of 380%. "The numbers reveal that finally, after a long period of slumber, the city of East London is finally coming into its own, and are a good indication that the Eastern Cape's economy is in an upward phase. General business activity in the housing and commercial markets has certainly boosted our figures," says Seeff licensee Taki Kondylis.
Kondylis says East London is attracting many buyers from Gauteng and the Free State, looking to settle in the smaller city. "As a city East London is expanding, and many companies are looking to expand their business interests in the area, while many professionals are purchasing homes with commercial groups looking for business sites."
Seeff Properties East London is currently finalising a R22m commercial property deal, and a 44-unit housing development, reports Kondylis.
The third area showing growth in sales figures quarter-on-quarter was Tulbach. "Sales for Tulbagh in the first quarter 2009 were R7,29m compared to R3,547,500 in 2008, an increase of 105,5%," says Seeff Winelands' Rob Biden.
"We have performed well in the historical town of Tulbagh in the Witzenberg Valley, because properties were priced realistically," says Biden.
"The Tulbagh property scenario is pretty indicative of the general property picture in country areas. There is a fair amount of activity, but deals take a long time to conclude and price is the dominating factor."
Biden's comment is confirmed by Simon Mouton of Seeff Swartland who reports nine sales in first quarter of 2008 and 2009. While units did not increase, sales amounted to R4,850,357 for 2008 and R6,196,071 for 2009 (first quarter).
"Our quarter-on-quarter figures improved by 34%.
He reports good activity throughout the whole of the Swartland and Namaqualand region, with the majority of sales in larger towns along the N7 – Malmesbury, Moorreesburg and Vredendal, and the Swartland's artist getaway – Riebeek Kasteel.
Mouton says at this point price is the dominating issue for property buyers, and that the most sales activity has been in the under R1m price category. He has no doubt that price is the defining factor.
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