The market and prices of productive agricultural farm properties have remained largely unaffected by the Covid-19 Pandemic.
The pandemic has given an added boost to the lifestyle and hobby farms market as people looked to reevaluate their lifestyles and escape to the countryside. Buyers are coming from all over the country, says Ian Badenhorst, managing director for Seeff Country and Karoo.
Aside from looking for weekend getaways, buyers often add guest accommodation to earn an extra rental income from visitors and tourists. Destination weddings and events are also adding to the demand for farms.
Hobby farming is another growing aspect which adds to the demand for smaller farms in the Western Cape. Badenhorst says buyers often look for the opportunity for small-scale farming such as vegetables and even boutique wine and olives or goats for milk and cheese. You can enjoy the life of farming without the huge commitment that a commercial operation requires. Some even retain their city jobs and businesses and do this as a sideline, sometimes with a manager on the farm.
Lifestyle farms in huge demand in the Winelands/Boland area
Farms below R10 million are in demand, according to Nelia Retief from Seeff Tulbagh who says these are in short supply and presents good opportunities for prospective sellers. Several farms have sold over the last two years in the Tulbagh area priced at R11.3 million, and in Wolseley at R27.5 million. “We also have a pending deal at a much higher value,” she adds.
Current stock on the market ranges from R5 million for a small farm to about R23 million for a top-end olive farm on the slopes of the Witzenberg Mountains with guest cottages, extensive housing and infrastructure and excellent water and irrigation.
Demand for Overberg farms spreads to coastal areas such as Arniston
Richard Pratt, manager for Seeff Struisbaai, Agulhas and Suiderstrand says due to tourism, guest farms are now a popular option. Small farms are priced from R4.5 million to just over R40 million for the top-end Inhoek Farm, just 4.5kms from Arniston which offers a mix of productive farming and guest and venue facilities.
The infrastructure is excellent with housing, sheds, stables, camps and a kraal, water and Eskom electricity. Guest facilities include cottages and a large (150 pax) venue for weddings and events along with a smaller venue/chapel, wine bar and more. Guests enjoy stunning natural surroundings including a 5km scenic trail through the farm and neighbouring nature reserve to the deserted dunes and pristine beaches between Arniston, De Mond and Struisbaai.
Excellent income yields for Bonnievale farms in the Breede River Valley
Neil Rademeyer from Seeff Bonnievale says the area is popular for weekend getaways due to its location on the popular R62 route. It is just two and a half hours from Cape Town and is characterised by fertile soil and a mix of farms ranging from fruit and wine to dairy products.
Aside from productive farms, lifestyle and hobby farms are also popular. Prices range from R3.5 million for a small property to R24 million (negotiable) for a productive fruit, wine and pomegranate farm which offers a high long-term return on investment. Nine houses are rented out permanently offering a stable, low-risk income. Three have river frontage and are suited to short-term rentals. Smaller subdivisions could also leverage additional income.
Growing demand for Hermanus wine and guest farms
Aside from the Hemel en Aarde wine valley, the area is home to wine farms as far as Kleinmond and Bot River, says Paul Kruger, licensee for Seeff Hermanus.
Prices tend to be at the upper end. For example, a top boutique and guest farm between Kleinmond and Bot River costs around R45 million, he says. It is a top property with fertile soil, water and excellent infrastructure including housing, offices, various outbuildings and staff cottages.
32ha comprises vineyards in a variety of cultivars (Sauvignon Blanc, Chenin Blanc, Sémillon, Cabernet Sauvignon, Shiraz, Merlot, Malbec, Pinot Noir and Mourvèdre) and there is a cellar and tasting room. There is also an olive grove, 1.5ha of essential oil plantings and 1ha of lemons. Guest facilities include five luxury income-generating villas (each with a private pool and jacuzzi) and two further cottages, all set in beautiful surroundings.
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