Sound value for money and a great lifestyle continue to draw home buyers – especially leisure seekers – to South Africa’s aptly named Sunshine Coast, with its sun-kissed beaches, lagoons and rivers, and abundance of sport and leisure activities.
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“From a capital growth point of view, getting the time to buy in a market cycle correct is important,” says Dr. Andrew Golding, chief executive of the Pam Golding Property group, and right now there are very appealing ‘land-and-build’ opportunities along this scenic coastline to secure a place in the sun to build your dream home – whether for a holiday getaway or permanent residence.
“In recent years, there has been robust demand for vacant plots on the Sunshine Coast, with a particularly pronounced increase in plots sold in St Francis Bay in 2021 and 2022. A similar trend is evident in Kenton-on-Sea, where sales rose sharply in 2021 and notably so in 2022, while plot sales in Port Alfred have risen steadily during the past 10 years, with sales in 2021 the highest in a decade.
“Comprising predominantly freehold property, the housing market in all three towns is very positive. Port Alfred and St Francis Bay have both recorded solid growth in freehold prices over the past five years.”
Dr. Golding says while all three towns are particularly appealing to the older homeowner, such as those who are downscaling due to life stage and/or retiring, they all enjoy a fair distribution across the various age brackets, which is indicative of the broad appeal across generations as they offer a very attractive lifestyle and still affordable house prices. Interestingly, Port Alfred has the largest percentage of recent buyers who are ‘young adults’ (18-34 years of age), many of whom are possibly first-time home buyers.”
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Such is the demand that the median price of vacant plots sold in Port Alfred rose by 56.6% from 2017 to 2022, and in St Francis Bay increased by 52.5% over the same period, reflecting solid capital appreciation. However, In Port Alfred, vacant plots remain affordable, despite the town having registered extremely strong growth in prices of +150% over the past decade. (Source of statistics: Lightstone)
Local area principal in St Francis Bay, Richard Arderne, says the property market has been very buoyant over the past three years, with house prices increasing way ahead of inflation.
Arderne says: “Vacant plots have on average at least doubled in price over the last three years, indicative of sound return on investment. On the canals, prices have doubled from around R2 million to R4 million-R5 million plus, with only 28 vacant plots remaining out of the total of approximately 500 canal plots.
“In Santareme, prices have also doubled, both at prime coastal sites – now at around R4.5 million – as well as entry level plots, which are currently priced around R300 000. On St Francis Links, plot prices have at least doubled, despite quite a few plots still being available, with hardly any on the market under R500 000, and some even selling for over R2 million.”
Construction activity in St Francis is still brisk, says Arderne, with some buyers investing over R20 million in plot plus building costs.
Arderne says: “St Francis Links has about 50 houses under construction at any given time while the 35 unit sectional title development, St Francis Links Villas is nearing completion. Building is also steaming ahead in our exclusive mandate nearly sold-out 100-unit Homestead Views Security Estate, and the 55-unit Port View Place, while home building is about to start at the 130-unit Grand Comoros retirement village.
“Many canal homes are being built and more being renovated, while some older homes are being demolished to make way for new residences.”
Arderne adds: “An improved retail offering in St Francis has made the town more attractive, with excellent new restaurants, coffee shops and pubs, in addition to décor, clothing and DIY retailers, two new gyms, two indoor pools, a proliferation of yoga, pilates, boxing and other varied activities, plus a host of water and other sports such as surfing, paddling, boating and golf. As a result, we’ve seen an influx of buyers, many of them young families, creating work for many, including builders, and seeing more secure estates being developed.”
Meanwhile in Port Alfred, Isobel Meyer, Pam Golding Properties area principal, says over the past two years there’s been a consistent demand for vacant land in all areas, with plots typically selling between R150 000 and R2 million, and mainly for freehold land, or land in freehold estates.
Meyer says: “Now is certainly a good time to buy and build as Port Alfred is experiencing a stock shortage of existing homes across all price brackets, and land is still obtainable at accessible prices. Good opportunities also exist for aspiring or seasoned developers looking to enter the residential market with two or three-bedroomed units in established areas. We currently have a variety of vacant land options ranging from approximately R180 000 for a single residential plot of around 800sqm to R2 million for 14 000sqm of development ground.
“Currently, those purchasing vacant land are doing so with a vision in mind – either permanent relocation or a holiday home, with most emanating from upcountry, from areas such as Bloemfontein and the entire Gauteng region, and securing land now in order to build in a few years’ time. Those looking to build immediately intend to relocate permanently. The greater demand in our area is for freehold land in excess of 700sqm, with some coastal view or outlook.”
Port Alfred’s main appeal for buyers is the coastal lifestyle, with a smaller town and close amenities allowing for easy, simplified living in the heart of nature, and with the work-from-home trend still very evident.
Meyer adds: “We have seen a notable increase in property values year-on-year due to the heightened demand for residential stock across all price brackets. For example, a four-bedroom, three-bathroom, two-garage property which sold for R2.1 million in 2018, recently sold within a week for R2.5 million – this without any major improvements.
“Port Alfred is renowned for the Royal Alfred Marina, the beachfront and Kowie River, however there is currently very little waterfront stock available. Entry level prices of homes on the sought-after Marina have increased significantly from around R3.2 million in 2019 to R4.59 million at present.”
In Kenton-on-Sea, Pam Golding Properties area principal Michael Wilmot reports good demand for vacant land as it is well priced, ranging from R250 000 to R3 million for erven mainly from 500-800sqm in size, in prime locations such as Kenton Eco Estate, which is especially popular among younger home purchasers.
Wilmot says: “A key driver of vacant plot sales is that there are currently very few homes available under R1.5 million. Coupled with this, our award-winning agent Tracey Bull sold about 90 stands during the past year in Boknes and Cannon Rocks, making this a hotspot for property on the Sunshine Coast. A new shopping mall, Kariega Centre has opened at the entrance to Kenton, while the Sunshine Coast Spar here has added a further 420sqm to their shopping complex, enhancing the appeal of this area.
“Our buyers are from all of the regions in South Africa, including the Eastern Cape and Gauteng, and expatriates living overseas, wanting to keep a foot in Africa in a secure environment such as Kenton Eco Estate. One of the major drawcards for Kenton is the secure lifestyle on offer. Increased house prices are definitely being achieved, with recorded sales in Kenton of up to R14 million. Beachfront properties in Boknes and Cannon Rocks are available, starting at R4.85 million.”
Commenting further on the market in the Kenton area, Wilmot says the area is experiencing tremendous growth, as there are currently in excess of 50 homes under construction.
The Sunshine Coast is home to 10 rivers and 150 kilometres of unspoilt coastline, with surrounding malaria-free Big 5 Game Reserves, offering the very best of “Beach and Bush”.
READ: Invest in a piece of paradise: Coastal plots for sale in Franskraal and Hermanus
What are some of the questions people looking to build a residential property should ask of their quantity surveyor?
In an article published on 9 February 2023, professional quantity surveyor Guillaume Cillié, managing director at CAQS Quantity Surveyors in Cape Town, says there are various factors that determine the cost of building a residential property. He sheds light on some of the most pertinent considerations.
How can we reduce the cost: The goal should always be to get the most value for money. “There is nothing wrong with asking your quantity surveyor where and how you can best optimise your building budget,” Cillie believes.
How long is this project going to take: Time is money on a building project so make sure you have clarity on how long your residential building project is going to take so that the various parties can be held accountable and expectations managed.
How do I choose a contractor: Your quantity surveyor is likely to have a database of trusted contractors that they work with on a regular basis.
What is the expected cash flow: The quantity surveyor is usually responsible for paying the construction company, which means they are in charge of cash flow. Cillié explains: “Make sure you know how the project will be paid for. It’s usually monthly, though in some cases it might be 30% upfront, 30% at halfway and the balance upon completion. Make sure you’re clear on how the cash flow will be managed.”
How are the costs of the quantity surveyor calculated and what does it include: The quantity surveyor is also a service provider and should not have a problem disclosing how their fees are calculated.
What kind of building contract is put in place: Insist that your quantity surveyor explains the in’s and out’s of the contract if necessary.
How and where can one save on a residential building project?
"Opt for brickwork, rather than concrete elements if possible. Concrete is more durable but in terms of structural integrity brickwork is just as suitable for a residential property," Cillié advises.
Reducing the height between the floor and ceiling is also likely to make a noteworthy difference to the cost. Significant savings can also be had on the finishes, including flooring, joinery, sanitary ware and even paint.
"Choose locally manufactured products and materials wherever possible, it’s the best way to sidestep the effect of the exchange rate and to boost the local economy," Cillié believes.
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What are some of the unexpected costs that always come to plague a project?
One of the reasons one opts to employ a quantity surveyor on a residential building project is to ensure that unexpected costs don’t crop up. "The quantity surveyor’s role is to determine and manage the budget as tightly as possible, to offer maximum value and minimum cost, so that there are no surprises when it comes to costs," says Cillié.
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