The Belvidere area in Knysna has seen a number of sales in recent weeks, mostly between R1,5m and R3m.
"In Belvidere there has been quite a lot of movement with sellers relocating to smaller homes, coupled with overseas buyers who have been waiting for the right prices. Other areas in demand and experiencing sales include Leisure Island, Brenton-on-Sea and central Knysna," says Ling Dobson, area principal for Pam Golding Properties (PGP).
"Historically, Knysna's residential property sales occur mainly between November and May, and as an area in total we are seeing sales activity back up to levels experienced two years ago. Our total sales for May 2009 were R14,9m compared to R9,8m for the same period last year, ie up by 52%.
"While this area, like others around the country, is experiencing challenging market conditions, we are seeing that prices have rationalised across all price ranges," she says.
Another noteworthy and rapidly growing trend is the growing interest from overseas buyers, mainly for high end properties priced from R10-30m and mostly located at Pezula and Leisure Isle.
"During the past several months we have had many international visitors in town – from the UK, Ireland, Germany, Russia, Holland and France – as well as South Africans.
"Despite the negative impact of the global economic crisis, Knysna has retained a reasonably sound value in areas such as Belvidere, Leisure Isle, Thesen Islands, Sparrebosch, Pezula and Eastford Estates. While in many other suburbs we have experienced a rationalisation of prices, very few showed extreme bottom-out prices and those home owners who felt no pressing need to sell preferred to take their homes off the market rather than drop to unrealistic values.
"Moving forward we are optimistic that the property market in Knysna will show growth this year, especially from the early summer onwards and leading into 2010."
Currently, long-term rental prices range from R3k per month upwards for two bedroom flats, from R6,500-R1,200 for three and four bedroom houses – depending on location, while secure, luxury lifestyle estates such as Sparrebosch and the area of Belvidere commands higher rentals. Leisure or holiday rentals range from an average of approximately R2k a day, up to R5k per day at a location such as Pezula.
For more information contact Ling Dobson on 044 382 5574 or send an email.
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