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Buyers cashing in on Garden Route and Eastern Cape property

09 Nov 2016

Even though most experts agree that the economic and housing market conditions in South Africa have been delicate over the past year and will remain so for the immediate future, many of Seeff’s branches in the Garden Route and Eastern Cape are flourishing and are well on track to achieve much the same or even slightly higher sales figures than last year.  

Situated in Whale Rock Heights, Plettenberg Bay, this home offers four bedrooms, four-and-a-half bathrooms, open-plan living spaces, fitted kitchen, swimming pool, garden and garaging for two cars. It is currently on the market for R4.9 million – click here to view.

This is according to Tony Ketcher, Regional Manager for Seeff Southern Region, who says Seeff Plettenberg Bay, for instance, has experienced a record year in terms of sales as at the end of September 2016 and sold properties in excess of R10 million. He says sales have reached up to R32 million in areas like Beachy Head, Whale Rock Ridge and the Lookout Beach area.

Seeff Knysna has made the most expensive sale on Thesen Island to date this year, and while the most active segment of the market remains in property priced below R1.5 million, branches like Oudtshoorn and Mossel Bay have also sold properties exceeding the R5 million mark, he says.

Ketcher says most branches in the Garden Route are experiencing semigration, especially from buyers in the Northern parts of the country looking to relocate to the coast. He says these buyers are often cash buyers. In fact, he says there are so many cash buyers in a town like Mossel Bay that around 70% of all transactions taking place here are cash transactions. This branch is also experiencing increased sales volumes of up to 80% this year compared to last year.  

This Port Alfred home has five bedrooms, three bathrooms, open-plan living arrangements, country-style kitchen, entertainment patio and a double garage. It is currently selling for R3.995 million – click here to view.

The majority of buyers in Plettenberg Bay, in particular the high priced segment of the market, are also cash buyers. These buyers are selective and knowledgeable about the market and make sound investment decisions, says Ketcher.

In general, the property market in the Garden Route remains healthy, and predictions are rosy as the reasons for buying property on the coast will still be in place next year. House prices are predicted to remain stable in 2017, while some areas like Mossel Bay are expecting some house price growth, especially the first quarter of 2017.

“Seeff’s branches in the Eastern Cape say while the most active price range here is between R800 000 and R1.2 million, there is also activity taking place in the more expensive price ranges, although not as much as last year when sales of R12 million and R10. 9 million were concluded in PE, Kenton on Sea and Port Alfred respectively.”

Ketcher says while most buyers in the Garden Route buy holiday or retirement homes, many buyers in PE are first-time home buyers, and buyers investing in Kenton on Sea and Port Alfred are either from up North, Cape Town, surrounding farming areas or parents of students and children at schools in Grahamstown

He says while a lot of the properties in Kenton on Sea and Port Alfred are holiday homes and recent political disturbances have somewhat softened the demand for second homes, this branch still predicts their market share to grow in 2017. PE predicts average house prices in their area to increase by around 6% to 8%.

Both these branches conclude that their market will remain stable for both buyers and sellers in the New Year.  

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