Located adjacent to the Crocodile River on the southern boundary of Kruger National Park in Mpumalanga, the popular holiday town and nature conservancy of Marloth Park is seeing savvy investors snapping up vacant stands in order to build homes for leisure rental income.
Coupled with this, we are also experiencing an influx of home buyers from all regions around South Africa, says Pam Golding Properties area principal, Gerhard van Niekerk, who is based in Nkomazi.
Says van Niekerk: “Since Covid, the Nkomazi Municipality has approved more new home plans in Marloth Park than the rest of Mpumalanga combined, with sales of stands and houses booming. Vacant plot sales soared to a decade high in 2021 while the median price of stands has accelerated since 2020 and notably, in 2022. The lifestyle here is a major attraction, coupled with the wildlife appeal, while residential property prices, rates and taxes are relatively low, making this area very affordable. For nature enthusiasts, there are numerous organisations, such as Honorary Game Rangers, where you can become active in nature conservation.”
Van Niekerk says currently, vacant stands are becoming increasingly in short supply to meet the demand, with stock levels low due to over-optimistic sellers. Marloth Park is home to approximately 4 500 stands, which is more than the combined number of residential properties from Komatipoort, Malelane and Hectorspruit.
Click here to see all the sale and listing price trends in Marloth Park
“At present, the average price for a vacant stand is around R320 000 for plots mainly between 1 900 and 2 200sqm, providing sound opportunities for speculative building.
“Marloth Park has huge appeal for those wanting to enjoy nature close-up in this lowveld area, which includes prolific birdlife and free-roaming wild animals such as impala, zebra, giraffe, waterbuck, wildebeest, kudu, nyala, warthog, duiker, reed buck, buffalo, baboons, monkeys and mongooses.
“Furthermore, Kruger National Park is only a 20-minute drive, making day trips through the park easily accessible, while Mozambique’s sub-tropical coastal resorts are about an hour away. In fact, many Mozambiquans own properties in Marloth Park, mainly to enjoy the wildlife and Kruger National Park. Nearby Komatipoort offers great opportunities for tiger fishing, golfing and game viewing, while other activities include mountain biking or 4x4 trails, river game drives and safaris.”
Adds van Niekerk: “With a community shopping centre, filling station, restaurants, other small retail outlets and two business centres, the most sought-after price band for houses is up to R1.7 million, which would acquire an old-style Marloth Park home which can be renovated. Most permanent home buyers are seeking three-bedroom homes which range from R1.5 million, while spacious five and six-bedroom homes, ideal for leisure use or rental income, are still affordably priced at around R2.5 million to R3.75 million. An average four-bedroom home would cost in the region of R1.85 million.”
According to Lightstone statistics, nearly a third of stable owners – who have owned their homes for the past 12 months - are retirees, while the largest age cohort of owners (44%) are 50-54 years of age, and nearly a third of recent buyers are middle aged, with a further 12% young adults, most of whom are drawn by affordable prices in order to build and then let as holiday rentals. Van Niekerk says the town also remains popular among overseas buyers, many of whom stay in Marloth Park before or after a visit to Kruger National Park, while others stay in Marloth to enjoy day visits to Kruger.”
Concludes van Niekerk: “Adding appeal is that the stands are large and there are green belt areas where homes are spaced well apart. Residents are able to work remotely as there is very good WiFi and cell phone towers, plus there are all the amenities one needs, with additional facilities in nearby towns.”
Surge in high-end sales and rentals on Cape Atlantic Seaboard, reports Pam Golding Properties
Still basking in the glow of a bumper festive holiday season, with some domestic tourists still in evidence, and the Mother City set to host an influx of international tourists during the forthcoming months from January to April/May, the demand for residential property in Cape Town continues unabated, says Basil Moraitis, regional manager for Pam Golding Properties in the Western Cape.
Says Moraitis: “We’ve experienced a busy festive trading season on the Atlantic Seaboard with sales to the value of R200 million concluded during December (2022) alone, and including high-end sales from R20 million upwards.
“The lifestyle and natural scenic beauty of Cape Town, and in particular the prime Atlantic Seaboard coastal strip between Table Mountain and the Atlantic Ocean, resonates with home buyers around the country and globally.
“The market post-Covid lockdowns has been driven mainly by primary home buyers and also international buyers looking for a place in the sun during the Northern European winter months. A relatively new trend is for buyers from Finland looking for a bolt hole far away from the conflicts and war in Eastern Europe. As stock levels reduce, as they have currently, we are starting to see investors returning to the market looking at hospitality products for the Airbnb markets. In fact, we are currently experiencing some of the lowest levels of stock in the Western Cape in a decade.
Click here to see all the sale and listing price trends in the Atlantic Seaboard
“Notably, activity is brisk among high-end buyers of luxury homes in the price bracket north of R20 million, with our recent sale of a sumptuous five-bedroom home in Bantry Bay achieving the full asking price of R75 million from a German buyer acquiring his dream holiday home. Newly built and in a prime location, this contemporary, fully-furnished residence combines bright, spacious living areas which flow seamlessly onto an elevated pool deck with panoramic views of the ocean and Table Mountain Nature Reserve. It includes elevator access to all four levels, fully-equipped media room, gym, sauna, staff suite and multiple garaging and parking.”
Moraitis says given its prime location, world-class homes and exceptional lifestyle, the Atlantic Seaboard consistently attracts a high proportion of cash buyers – not surprising due to its appeal for a more well-resourced, affluent buyer demographic.
“Coupled with this, the topography of many of the prime areas of the Atlantic Seaboard are located in a narrow band of steeply raked view sites along the Atlantic Ocean, which increases the value of the land due to the scarcity factor, and also results in an extremely high cost to construct a dwelling.
“It therefore follows that the feasibility of developing and selling these types of properties is dependent on buyers with cash resources who choose to invest in unique luxury or trophy properties offering spectacular views and the lifestyle that goes with it. This is why this segment has always drawn international and upcountry buyers with cash – and increasingly of late, German buyers. The properties which they choose to buy offer them the opportunity to realise their ambitions of owning their own spot alongside other captains of industry and the jet-set. Covid has literally turbo-charged this trend with people wanting to live their best lives now and in the place that makes them happiest. International buyers include those who have made the decision to spend more time in Cape Town away from the winter and uncertainty in Europe as a result of the war in Ukraine.”
Moraitis adds: “Most international buyers mention that the value offered by our properties is significant while the lifestyle on offer is extremely compelling, ranking among the best available elsewhere in the world. This segment of the market is also unaffected by interest rate hikes, and generally keen to diversify their investments while benefitting from living in properties with outstanding views, lifestyle and amenities, with globally acclaimed wine farms easily accessible. Not only has the Atlantic Seaboard always been relatively less impacted by not only the interest rates, but also by other cyclical downturns and shocks to the economy, and continues to serve as a hedge against uncertain times.”
Click here to see all the sale and listing price trends in Clifton
Commenting on Camps Bay, Moraitis says this residential property market has boomed, especially for upcountry and foreign buyers who are pleasantly surprised by the value offered for prime property with views of both the Atlantic Ocean and the Twelve Apostles. “The Clifton bungalows are again very much in demand by upcountry buyers looking for a specific and unique lifestyle offering. The entry level price for a bungalow is currently R20 million for a knock-down. We have recently sold two such bungalows on Fourth Beach, both of which are to be demolished for new state of the art homes. Luxury top-end apartments also remain in demand across the entire Atlantic Seaboard and continue to be sought after by international buyers for ease of convenience and lock up and go lifestyles.
'High demand for property in Green Point'
“Green Point is also very much in demand, with its convenient location in close proximity to the central city and main arterial routes in and out of the Atlantic Seaboard making it a firm favourite for families and professionals. The price points from around R2 million up to R20 million make it easier to get into this market and the lifestyle is very similar to the rest of the Atlantic Seaboard.”
The holiday rental market in the Cape Metro has also soared. Arno de Wit, Pam Golding Properties rentals manager for the area says: “We experienced a boom in holiday rentals over the festive season as local and international visitors returned in their thousands. We concluded a number of holiday lets over December with five of our most recent including:
- a seven-bedroom villa in Constantia let at R30 000 per night x 17 nights
- a four-bedroom house in Green Point let at R135 000 per month for a three-month lease period
- a four-bedroom villa in Camps Bay let at R25 000 per night x 10 nights
- a four-bedroom villa in Camps Bay let at R15 000 per night x 11 nights
- a three-bedroom house in Silvermist Estate in Hout Bay let at R8000 per night for 7 nights.”
Click here to see all the sale and listing price trends in Green Point
De Wit says with Cape Town recently voted one of the top 10 World’s Best Cities with various online polls it is no surprise that the Mother City remains a popular hotspot for many tourists. “Camps Bay with its vibrant, cosmopolitan beach strip packed with trendy restaurants and night spots, remains a firm favorite for holiday rentals. Most of the enquiries are from overseas visitors, looking for villas with contemporary, luxurious finishes, fast internet connectivity, good security and a swimming pool. The weak rand has also been an additional draw card for foreign tourists.”
Among long term rentals, Pam Golding Properties recently let a five-bedroom home in Claremont Upper in Cape Town’s Southern Suburbs for R170 000 per month, while their highest asking rental currently available is R290 000 per month for a 10-bedroom home in Constantia.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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