Higher demand expected for leisure property

A much higher demand for holiday homes is anticipated in the areas of Knysna, Sedgefield and Wilderness. This is according to Chris van der Merwe, Broker/Owner of RE/MAX Lakes and RE/MAX Eden, which services Knysna, Sedgefield, Wilderness and the surrounding areas.

4 Bedroom House for sale in Knysna, Western Cape

“We expect the leisure property market in these areas to do a lot better than it did during the previous holiday season. Accommodation establishments have filled up far quicker than they did last year and their booking percentages are also higher, this points to the fact that more people have expendable income available for holidays than last year,” says Van der Merwe, who notes that generally this means a higher number of holiday home sales in the area should follow.

In general, Knysna, Sedegefield and the Wilderness are very popular among both local and international visitors. “Often we find that visitors to these areas come back over and over again because they have had an unforgettable holiday. With some of the country’s most beautiful terrain, it’s easy to see the appeal among holiday makers and property buyers alike. We have seen a trend develop with holiday makers who visit, fall in love with the area and come back to purchase either a holiday home or permanent residence here. Although buyers have the opportunity to rent out their holiday home, we find most would rather utilise the homes themselves and spend as much time here as possible,” says Van der Merwe. “The area caters to people from all walks of life and appeals to buyers of all age groups. We have a combination of young and old consumers on both the purchasing and rental side of the market because there is something here for everyone.”

According to Van der Merwe, holiday homes in the region vary in price from as low as R1.2 million in Sedgefield to as high as R8 million in Buffalo Bay in Knysna. In Brenton on Sea, buyers can purchase a beautiful holiday home with ocean views for around R3.5 million. “This season I believe the most popular price band in Sedgefield will be homes selling between R900 000 and R1.8 million. In Knysna the highest demand will be for homes between R2 million and R3.5 million, while the most movement in Wilderness will be homes priced between R2.5 million and R4 million. This is based on affordability levels and these are the price ranges that are proven to sell in these areas,” says Van der Merwe.

He notes that for those who wish to rent property in the area, daily rates of holiday homes in Sedgefield start from around R900 per day for a home that will accommodate a family of two adults and one child. For larger homes and more extravagant properties, the daily rental can be as much as R15 000 per day. This would typically be a property in The Cove which is situated in the Pezula Golf Estate.

Adrian Goslett, CEO of RE/MAX of Southern Africa, says the due to the fact that properties within security and lifestyle estates are in such high demand among property investors and holidaymakers, these kinds of properties generally fetch higher premiums in today’s market.

According to Van der Merwe, aside from security aspects influencing the premiums, property buyers in the region will also pay more for homes that are close to the water, be it either the estuaries or the beach. “These properties are highly sought after among buyers and holiday makers,” he says. “Other features that make a home more popular among buyers are luxurious finishes, a swimming pool, braai areas and en-suite bathrooms.”

In conclusion Van der Merwe says that the strong demand for property in the region is set to ensure positive returns on investment over the medium to long term.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us