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.

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