19 Dec 2012
With its resort-like atmosphere, and a range of attractions and activities, it’s easy to see why Plettenberg Bay is one of South Africa’s leading holiday destinations.
Situated on the Garden Route, Plett is known for its beauty and sandy beaches, as well as being an idyllic spot for nature lovers, with the Robberg Nature Reserve and Tsitsikamma National Park nearby.
While the demand for leisure property in recent years has been muted, the market is now into the recovery phase, and demand for leisure properties has started to increase.
This is according to Cheryl Anley, Broker/Owner of RE/MAX Prime Properties, who says while property sales in Plettenberg Bay were quiet for the first half of the year, the second half has seen an increase in activity. She says rentals have been slow, which is fairly normal, but there has been a good demand for the upcoming holiday season.
Anley says sales and prices took a serious knock over the past three years. "Sales volumes are still recovering and certainly prices are not yet rising and are still in a stabilising phase." Therefore, purchases with the idea of a quick turnover are not advised, she says. However, they have seen an increase in the volume of sales over the past six months and believe they are close to the bottom of the property cycle and it will only improve, slowly, from there on. "There has certainly never been a better time to buy property.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says the leisure property market always lags behind the property cycle by about a year to 18 months. He says while noteworthy recovery is not expected in this sector for some time, there are currently leisure investment opportunities available to buyers. Goslett adds as with buying any property, a good investment decision can only be certain if a buyer has done all the necessary comparisons and is sure the investment they are making is worth the financial commitment they are laying down to acquire it.
She notes buyers are looking for homes priced between R1.5 million and R2 million, while the most popular rental properties are for between R2 500 and R3 500 per day during the high season.
Anley says secure estates and homes located close to the beach or with sea views are proving to be the most sought after. “We have noticed, however, that price is paying a much larger role and good buys are becoming more dominant than emotional purchases.”
She adds that buyers are after good value, good position, and adequate accommodation, with homes situated within secure estates becoming more sought after. “If the price is right, buyers are prepared to upgrade homes.”
When it comes to rentals, Anley says tenants require neat, clean, well equipped, fairly priced properties that offer easy access to the beach and good accommodation standards.
RE/MAX Prime Properties currently has a double-storey thatched home with five bedrooms and three bathrooms on the market for R2.35 million. It has two master en suite bedrooms, each with its own balcony. The house is ideal for entertaining, as it has a large kitchen, swimming pool, lapa and built-in braai. Security includes an alarm, outside beams and a palisade fence around the property. The position is good for idyllic holidays, being a five minute stroll from Plett’s famous Robberg Beach.
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