select
|

COASTAL PROPERTIES A GOOD BUY

The coastal holiday towns in the Garden Route stretching from Wilderness through Sedgefield, Knysna, Plettenberg Bay to Natures Valley, have been particularly hard-hit by the downturn in the economy.
 
So says Graham Anley, Broker/Owner of RE/MAX Coastal, which services these areas. He explains that this is because the areas his offices serve are mainly holiday resort towns where the market predominantly consists of luxury holiday homes. “Sales volumes are down dramatically and prices achieved are generally down to levels experienced in 2006,” he says. But, having said that, Anley notes that it is certainly a strong buyers market and there are great investment opportunities for the shrewd property buyer.
 
Anley explains that in the midst of the boom, before the implementation of the National Credit Act, many buyers purchased two or three investment properties with 100% bonds with the intention of holding onto them for a short period of time with the aim of taking quick profits.  “A number of these investors are now struggling to meet their bond commitments,” says Anley, “and they are now being forced to sell these properties at prices which, in some instances, are substantially less than what they paid for them.  This is providing fantastic buying opportunities for investors seeking to acquire a holiday property in prime areas.”
 
Anley says that pricing for an entry-level home starts at around R1,2m, which would buy a two-bedroom, two-bathroom home with open plan living areas, situated in a sought-after area, close to the beach. “In Knysna entry-level apartments in the CBD come in at around R449 000 including VAT for brand new development consisting of 20 apartments with one or two bedroom options available.”
 
 In the middle price range, Anley’s offices have a number of options available, one of which is a uniquely designed home priced at R2,85m. They also have a selection of luxury homes in the secure Brackenridge Eco Estate ranging in price from R3,2m to R15m.  These homes range from modern family homes with lovely views of the private nature reserve to luxury upmarket executive homes perched high on the Brackenridge hill with stunning views of the ocean, mountains and golf course. Anley believes that this estate offers the best value for money in the Garden Route area, especially considering there are 1500m2 vacant stands here that are priced from R320 000, which he says is ‘a never to be repeated price’.
 
Talking about the buyer’s mix in these areas, Anley says that as the towns in which they market properties are predominantly coastal holiday towns, 90% of their business is conducted with up-country or Cape Town buyers looking for holiday homes.  “Buyers are looking for and are finding bargain properties being marketed by distressed sellers, or are working through our agency to negotiate great deals from banks portfolios of repossessed properties.”
 
For example, in Knysna RE/MAX Coastal has a selection of luxury homes situated in the sought after areas of Simola Country Club, the renowned Pezula golf course and lagoon frontage canal homes of Knysna’s Thesen Island.
 
But it’s this home situated on Plettenberg Bay’s popular Robberg Beach that is the cream of the RE/MAX Coastal crop. Initially priced at R22m, this home is now on the market at a reduced price of R16,75m. It features ocean views and five en-suite bedrooms, a luxury apartment, large entertainment areas, two fitted pubs, an elevator, wine cellar with racking and air conditioning, and a range of luxury finishes including a solar heated pool with glazed windbreak, gas fireplaces, gas spit braai, fully landscaped and irrigated garden as well as security systems including cameras and electric fencing. 
 
“The Garden Route is arguably the most beautiful part of the country,” says Anley, “and is the third most popular place to visit for all foreign tourists. The property market in South Africa has already shown a marked increase in property transactions and in sale prices over the past six months. “
 
Adrian Goslett, CEO of RE/MAX of Southern Africa notes that there has been a very slight increase in the leisure section of the property market and that majority of buyers in this category are cash buyers. “The market is as low to the bottom as it has been for many years,” he says, “which means that there is value to be found in many properties currently on the market. Interest rates are at an all time low and the economy as well as the property market is on the upturn.”
 
In the Garden Route areas where RE/MAX Coastal is active, Anley says they have not yet experienced the upward trend as the luxury market generally lags behind in a property recovery. “We therefore foresee our market starting to follow this upward trend in the near future.  This means that there has never been a better time to buy coastal properties than now,” Anley concludes.

Initially priced at R22m, this home is now on the market at a reduced price of R16,75m. It features five en-suite bedrooms, a luxury apartment, large entertainment areas, two fitted pubs, an elevator, and a wine cellar with racking and air conditioning along with many other features
 
ISSUED BY GREEN GRAPES COMMUNICATIONS
ON BEHALF OF RE/MAX OF SOUTHERN AFRICA


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
        
    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