Vacant St Francis Bay plot sells for 55% more in 18 months

Vacant plots on the canal in St Francis Bay are in demand and in very short supply to the extent that Pam Golding Properties has just sold a 600sqm plot for 55 percent more than it fetched just 18 months ago – an appreciation in value from R1.1 million to R1.7 million.

Says Richard Arderne, Pam Golding Properties area principal: “This is indicative of the high demand for canal plots.”

Arderne says since 2007, there have been 97 canal plot sales in St Francis Bay at an average rate of six per year for the first five years and 12 per annum for the last five years. The average price has been fairly steady at about R1.9 million, but over the past 12 months there is growing evidence of prices increasing fairly rapidly. During the past 12 month period 15 canal plots changed hands at an average price of R2.2 million and of these, Pam Golding Properties sold six.

“Two recent sales in particular illustrate this growth trend, the first being the abovementioned resale of a canal plot in the small estate called ‘The Island’ for 55 percent more than we sold it for 18 months ago. In addition, a Canal Road plot also sold for R2.8 million whereas a dozen very similar Canal Road plots have traded in the price range from R1.4 million to R1.8 million over the last 10 years.

“It is interesting to note that we at Pam Golding Properties alone had 22 canal plots for sale on sole mandate in 2014, whereas currently there are only a total of nine plots for sale between all agencies. These available plots range in size from about 500 to 1600sqm and are priced between R1.475 million and R3.9 million. Of the total of 517 erven on the canals, there are only 70 vacant plots, 21 of which have been sold within the last two years and are likely to be built on within the next few years. The number of vacant plots is reducing constantly as new homes commence construction.

“Significantly, the fact that there will be no further extensions to the canals makes a home situated right on the water highly sought after, with the added attraction of investment potential due to the scarcity factor in future.”

The scenic coastal hamlet of St Francis Bay experienced a building and property boom following a devastating fire in November 2012 which destroyed 76 homes, of which 55 have been rebuilt.

The canals provide huge appeal for residents, comprising 7km of meandering waterways which are flushed twice a day by the ocean tides, ensuring that the water quality is always excellent.

It’s a safe and sheltered playground for all ages for swimming, canoeing, boating and fishing and provides easy access to the Kromme River, which is navigable for 14km, and to the sea. Homeowners are able to moor their boats at the end of their gardens, for some as close as three metres, or up to just 20 metres. Other facilities available close by include two 18-hole golf courses, world class surfing, the private harbour of Port St Francis, and the village with its array of shops and eateries.

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