Holiday home market expected to pick up during festive season

As the year comes to an end, many will be making plans to visit some of the country’s top leisure spots during the festive season. This provides buyers with an ideal opportunity to get a feel for these areas before making their final decision regarding purchasing a holiday home.

Broker/Manager of RE/MAX Coastal, Chris Van der Merwe, says that generally, Knysna, Sedgefield and the Wilderness are extremely popular holiday locations for both local and international holidaymakers. “We find that many visitors return to the region time and time again because they simply fall in love with what the area offers. With some of the country’s most beautiful terrain, it’s easy to see the appeal among holidaymakers and property buyers alike,” he says. “We have seen a number of people who have visited for a holiday, but then have come back to purchase either a holiday home or permanent residence.”

He notes that while economic conditions surrounding the property market have been challenging for consumers, with a large number of inland holidaymakers visiting during the months ahead, it is expected that the number of property transactions within the region will increase. “Those who have access the necessary finance can escape to a second home that is away from the hustle and bustle of city life to enjoy the lifestyle benefits these types of properties offer,” says Van der Merwe.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, property is considered to be a strong asset class in which to invest, particularly over the medium to long term. A leisure property can prove to be a home to enjoy as well as an investment that generates healthy returns. “However, as with any property investment, when looking to purchase a leisure property there are several aspects that buyers should consider to before deciding to commit financially. It is important to look at the key factors that will impact on the property’s investment potential,” advises Goslett.

Van der Merwe says that before making a final decision, buyers should find out a few things about the particular location they want to purchase a holiday home in, such as, the percentage of property price growth over the last three years, how many homes have sold in the area over the last 12 months, and how many homes are currently on the market in the area. Other aspects to consider include the daily rental one can expect the home to fetch while not in use and whether there are reliable property management agencies in the area. Ask the estate agent to provide a comparative market analysis of the home values in the area.

According to Van der Merwe, holiday homes in the region vary in price from as low as R1.2 million to as high as R10 million. “This season I believe the most popular price band will be the higher-end properties ranging from around R5 million to R10 million, purely because these are the homes that are currently available. Buyers in the region will 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 holidaymakers,” 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
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us