Bargain hunters targeting Onrus

The bulk of the buyers in the Western Cape’s Onrus are people with cash looking for bargains.

So says Adrian Kuiper, Pam Golding Properties’ (PGP) area manager, who adds that there certainly are bargains to be had in this coastal town, but that sales have been thin due to bank lending issues.

“Also, sales at the lower end of the property market have come under severe pressure. This is why Onrus properties, which are mainly at this side of the market, have been struggling while nearby Hermanus, which is a high-end town, have fared quite well in recent times.

“Another challenge is the expectation gap between buyers and sellers. Buyers are still putting in offers that are way too low and sellers are reluctant to accept them.”

Deon Esterhuyse, owner of the local Aida estate agency, reports that sales started improving in September last year and that the trend has been sustained.

Retirees and people nearing retirement make up a large percentage of buyers, he says. “Buyers come from various parts of the country, with the majority from the Cape, Gauteng and the Free State, and they say they are attracted to the relatively safe environment of Onrus, as well as the relaxed atmosphere of a holiday destination.

“Another draw card is the way that the local municipality functions. Service delivery is excellent and residents have no cause for complaint on the whole.”

Kuiper corroborates this and adds to this list the quiet streets and the town’s non-industrial nature.

Esterhuyse says the Onrus property market also benefits from an overflow of buyers from Hermanus. “This whole stretch of coast is a preferred destination. However, local property offers more value for money when compared to property in nearby Hermanus.”

Demand for holiday homes has also increased since the last quarter of 2009 and Esterhuyse says holiday buyers mainly target the same price ranges as residential buyers. “This arguably accounts for stock shortages in the R1m to R1,5m price range, although residential buyers are also active in the price range up to R2,6m, while demand for holiday homes on the beachfront is climbing. Top properties in this category fetch prices of up to R5m.”

Kuiper says there is a 70/30 split in Onrus between leisure buyers and permanent residents. “Anything between R800k and R2m is in high demand right now. These are almost exclusively older homes.”

Esterhuyse adds that low interest rates probably stimulated the market.

“Although our local economy is somewhat unique and not closely related to trends in the wider economy, many buyers from other parts of the country had been waiting to sell their own property elsewhere in order to buy homes here. This would indicate that property markets elsewhere are also showing signs of increased activity.” – Eugene Brink

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