05 Nov 2009
So says Herman Botha-Bosch, sales manager for Pam Golding Properties (PGP) Margate, who adds that 95% of these sales are cash-driven. "There's a pent-up demand and people sitting on a bundle of cash are now putting their money into property rather than keeping it in the bank.
"Our buyer profile consists mainly of families looking for a second property at the coast. They are mostly established business people who range from international buyers to locals from the Free State, Gauteng and Mpumalanga," he says.
Dale Terblanche, who recently joined the new Chas Everitt International agency in Margate, says prices for holiday units in Margate start at around R800k, which will buy a townhouse with two or three bedrooms and inland views. Similar properties with sea views are being offered from R1,3m, while top of the range apartments sell at around R4m.
"The biggest demand currently is for properties under R2m," Terblanche says.
Terblanche says some properties are now as much as 30% cheaper than at the height of the recent property boom.
"In fact, the market has been flooded with holiday units as investors who over-extended themselves during the boom try to downsize their portfolios – and buyers can now pick and choose among a wide range of properties at very favourable prices," he says.
Botha-Bosch agrees and says buyers are very picky as far as holiday units are concerned. "They know that supply is outstripping demand and these units are quite cheap right now."
"Bargain hunters are coming into the market now, many of them with cash to spend. They should be aware, however, that while most keen sellers are amenable to negotiating on price, they are still rejecting unreasonable offers," Terblanche warns.
"About 80% of our buyers vet properties by viewing them on our website and some properties are viewed by up to 250 interested parties.
"And we expect the volumes to increase towards the end of the year – traditionally a popular time to view or buy holiday property – thanks to lower interest rates and encouraging signs of a recovery in the economy as a whole." - Eugene Brink
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