Contrary to most of the property market, sales of agricultural land are buoyant at the moment.
Gerhard Kotzé, CEO of the ERA South Africa property group, says that this is due to a "happy confluence" of elements, including the desire of many city dwellers for an escape from increasingly pressurised and problematic urban lives, and the search by many farmers for new opportunities after receiving land claim settlements.
A further if lesser element, he says, is that of overseas buyers seeking a lifestyle very comparable to that in prime farming areas of Europe and elsewhere, but at a fraction of the cost.
"A tranquil lifestyle, the opportunity to turn a profit from a cash crop or activity and perceived value for money relative to, say, a holiday home on the Cape eastern seaboard or a smallholding in Provence in the south of France, is a potent combination, making South African lifestyle farms increasingly attractive," he adds.
It's a trend that's being experienced countrywide, but areas of particular activity in this respect include the likes of Upington, Paarl and Thabazimbi.
In the Upington area of the Karoo, the big driver of farm sales recently has been the land claims settlements in the neighbouring North West province, which have generated cash-in-hand for numerous displaced farmers.
Dirk Myburgh of ERA Upington says that land prices in the area rose by as much as 100% in the two years to end-2008, but have since stabilised and that demand is strong, with sales only being limited by many existing owners' reluctance to dispose of their properties.
"This is a primarily sheep area but an additional factor is the emergence of smallholders paying from R10k/ha for productive land under grape and other cash crops."
Heinie Gersbach of ERA Gersbach in Paarl reports a similar scenario with numerous enquiries but owners being reluctant to part with their holdings while buyers are hunting for bargains. Nonetheless, deals are being done in this wine, grape, wheat and sheep producing area where land values start at around R20k/ha.
In the Thabazimbi district, ERA Thabazimbi/Bosveld's Herman Barnard says land claims have been less prevalent than in neighbouring areas and that farm demand is good. Prices range between R6k and R9k/ha for land that lends itself to game and cattle farming in this bushveld terrain.
Residential eco-estate development is also booming in the area and there are numerous game lodges offering safaris and hunting to local and international clientele, all of which further underpins the demand for farmland.
For more information contact Gerhard Kotzé on 012 682 9610 or click here to visit the website.
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