10 Aug 2012
Property buyers hunting for bargains in Jeffreys Bay have unrealistic expectations brought about by the low selling prices of distressed and repossessed properties.
This is according to Johnny Galvin, manager at the Aida office in the popular seaside resort town, who says the effects of the slow economy are clearly visible in the local property market.
However, prices at some sales in execution auctions have been far below the true market value, and this has distorted perceptions and given many bargain hunters the wrong idea, says Galvin.
This is not to say that there are no good buying opportunities, at fair prices, or that the market is in the doldrums, he says.
Jeffreys Bay is still attractive to buyers who are looking for properties with sea-and-sand views and prices are about half of what one would expect to pay for comparable properties in upmarket coastal destinations such as Clifton, he says.
The market is, however, in flux with no definite direction at the moment, says Galvin, for instance, some properties languish in the market for months, while others find buyers within a week or even a day.
For now though, Galvin says, there is more movement in the middle segment of the market with buyers targeting homes in the R750 000 to R1.2 million price range.
Prices of starter units begin at around R550 000. Units in this price range typically consist of two bedrooms, one bathroom cottages that may need a bit of modernising. Some of these units are a bit dated but are solid and are perfect projects for DIY enthusiasts who want to customise a small holiday pad, says Galvin.
More modern townhouses are selling at prices from around R600 000 while average family or holiday homes are priced between R750 000 and R950 000. Luxury homes with four bedrooms, double garaging, two or three bathrooms, a pool and a sea view sell from about R1.5 million.
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