select
|

Margate property set to withstand market downturn thanks to ongoing tourism

Just 20 km south of Port Shepstone, and a scenic 135 km coastal drive from Durban, lies the popular seaside resort town of Margate.



Renowned for its laid back lifestyle and idyllic south coast beaches – with warm water swimming, scuba-diving, snorkelling and boating activities – this south coast gem has been a favourite holiday destination for local and overseas tourists for many years.

As a tourism-fuelled town, however, there have been fears for the future of the local property market now that South Africans are tightening their belts against increasing financial strain. Interestingly, local experts are not predicting Margate’s tourist economy to negatively affect property growth. In fact, the considerable rental sector could help see the town safely through the upcoming market downturn.

“Margate has always been fuelled by the tourism industry,” says Charl Cilliers, the Rawson Property Group’s franchisee for the area. “It’s particularly popular with local families as a more affordable alternative to the north coast, and that’s going to play into its favour as holiday budgets come under fire.”

Cilliers says that around 75 percent of Margate’s sectional title properties are let out as holiday accommodation, while 35 percent to 40 percent of freehold properties operate on a similar basis.

“We do expect to see a decrease in the average length of holiday rentals over the next period,” he says, “but numbers should remain high enough to keep those units reasonably full, especially if holiday-makers turn to Margate in preference of more expensive destinations.

“Confidence in Margate’s tourist appeal and property market potential appears to have spread to buyers in the area. Our general sales enquiries have increased noticeably over the last six to eight months,” says Cilliers, “and we’re seeing huge demand for rentable permanent accommodation as well as the usual holiday properties. For now, we have a good amount of stock on offer, so the opportunities are there for the taking. Prices are also stable, but will increase gradually over the next few years.”

Buyers can expect prices in Margate to range from R400 000 for one-bedroom apartments, to R6 million for a luxury penthouse.

“Our most popular price range at the moment is between R750 000 and R1.3m,” says Cilliers. “These properties tend to be ideal for rentable holiday accommodation, and often generate income sooner than more expensive investments.”

Margate has much more than just typical holiday apartments on offer, however, and Cilliers describes a mix of old and new freestanding homes, eco estates and even smallholdings in the area. Historically, a lot of buyers are either scaling down or investing in their second or third home, which is why sectional title properties are so popular – they’re easier to manage and to maintain.

“Local families living in the area permanently, however, tend to prefer freehold properties, and there is increasing demand for long-term rentals of this type, which is a great opportunity for buy-to-let investors.”

Cilliers advises buyers to do their research before investing in a particular Margate property. The purpose of the purchase dramatically affects the type of property to look for, he says.

“If you want a short-term holiday rental property to generate decent income, don’t look in a quiet neighbourhood far from the beach. Long-term rentals, on the other hand, could benefit from the peace and privacy of a less central location.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK