Plettenberg Bay property now ranks with Atlantic Seaboard and Sandton according to latest wealth survey

Plettenberg Bay now ranks in the top three premier property locations in the country next to Cape Town’s Atlantic seaboard and Sandton in Gauteng.

4 Bedroom House for sale in Whale Rock, Plettenberg Bay

That is according to the latest New World Wealth Survey of wealthy suburbs undertaken in conjunction with MasterCard.

Kevin Engelsman, Seeff’s licensee for Plettenberg Bay, says that according to the survey some 260 millionaires now own second homes in Plett, 120 of which are worth more than R20 million. This is the highest number of homes valued at this price outside Cape Town and Johannesburg.

Plett is attracting a lot of attention and this has boosted the property market, he says. Save for a shift in demand to the more affordable, sub-R5m to R10m price sector, there appears to be little cooling in the demand for property here.

Seeff has for example sold R132m worth of property between November and February, which is twice as much as during the corresponding period of the previous year.

Although the bulk of the sales activity is still under the R2m price band, about 20 percent of all activity was above the R5m to R10m-plus price range. That is notable if you consider that very few properties were sold above the R5m price mark just five years ago, says Engelsman.

“Awareness of Plettenberg Bay as a premier coastal destination is growing and buyers and visitors are now coming from across the globe.

“The Plett Tourism Bureau is doing a great job promoting the town and we now also have a recognised wine route with 12 wine estates, many offering wine tastings and food. There are also plenty of leisure activities, from nature reserves to the river, sea and Blue-Flag beaches. The almost year-round sunshine and mild winters also make Plett a popular choice for retirement buyers, some as young as 50,” says Engelsman.

It is now also easier to get to Plett by air. Weekly flights from Joburg and Cape Town make it ideal for weekenders and commuters over and above the traditional holiday makers.

“The Cape has seen an influx of buyers from other provinces, especially Gauteng, but as far as KwaZulu-Natal investing in second homes or to the province. Some of this is happening in Plett too, another boost for property sales.

“The summer was buzzing and we expect a busy year ahead. Seeff’s annual Lifestyle Property Portfolio brochure, which showcases our sole mandates, was extremely popular with clients and we sold 29 of the listed properties over the summer. We have even had same day sales here.”

3 Bedroom House for sale in Central, Plettenberg Bay

Despite now ranking with the Atlantic seaboard and Sandton, Engelsman says that Plett is still offering excellent value and smart buyers are taking note. Prices have risen very conservatively at only about 2 percent above the CPI rate over the last few years and property prices here are still significantly below par.

According to the latest Private Property data, the average price for a two-bedroom apartment is R1m and for a three-bedroom apartment around R1.5m. A three-bedroom house sells for around R2.43m and a four-bedroom house for around R4.17m.

In reality though, says Engelsman, you can still find two-bedroom apartment for around R600 000 and houses for well under R2m. There is also still plenty of land available for under R400 000 and you can even get sea or river views for under R600 000.

“Although most buyers are looking for good value, there has been no shortage of luxury sales over the last five years with several R20m-plus transactions ranging to as much as R43m for a beach house in Robberg Beach, sold jointly by Seeff.

“Luxury holiday home buyers who find Cape Town’s Atlantic seaboard a bit busy are now heading to Plett. It is a prime seaside location with excellent infrastructure including top class communication and web connection and excellent public and private schools,” says Engelsman.

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