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Signs of a positive 2011 in Plett property market

So says John Fuller, owner of the Chas Everitt International franchise in Plettenberg Bay, who notes that the substantial reduction in demand for coastal properties over the past three years has now generated a positive spin-off for buyers.

 

“It has taken some time for sellers to realise that market conditions have changed, but coastal home prices have come down and most are now exceptionally well-priced. Buyers currently also have an enormous choice of properties and demand is starting to rise once more.”

 

He says the coastal properties that have continued to show positive growth in recent years are mostly in highly-desirable locations, such as on the beachfront, or in prime secure estates with good sea views. “Until 2008, it was often more attractive to purchase a vacant stand and build a new home, whereas now, with building costs continually rising, many existing homes offer excellent value.

 

“As a result, there is strengthening demand for modern homes in the R3m to R5m range in recently developed secure estates. However the most interest from buyers is in the R1m to R2,5m category.”

 

Sectional title apartments and other lock-up-and-go properties remain very popular, says Fuller, especially in the R700 000 to R1,3m range, and an increasing number of buyers from Port Elizabeth and Cape Town are buying Plett properties in this price range.

 

“Port Elizabeth buyers in particular are currently very active in our market. Typically, buyers here do their homework carefully and many are realising that there is excellent value for money on offer. Indeed, we receive many comments that prices here are more attractive than for similar homes in Johannesburg and Cape Town.”

 

Most buyers in this category, he says, are able to pay cash and they are snapping up some of the best priced and most attractive properties, “but financial institutions are finally adopting a more relaxed stance and we are even experiencing 100% bonds being granted for some sectional title properties”. 

 

Meanwhile, holiday rentals in Plettenberg Bay have enjoyed heavy demand. “Rentals through our office were about 50% up on last year and our forward bookings into 2011 are strong with a lot of foreign interest from late January through to April.

 

“Plett has retained its renown as the best and most beautiful coastal holiday resort destination in South Africa. This year it walked away with two accolades in the annual TripAdvisor Travellers’ Choice Destination Awards – being named the third best Beach and Sun destination in Africa, and one of the top ten Outdoor and Adventure (wildlife) destinations.”

 

Berry Everitt, CEO of the Chas Everitt group says that excellent opportunities currently abound around the country for investors who can afford to purchase additional properties, with the best “buys” in this respect being properties in popular coastal locations.

 

“Many good quality second or holiday homes in these locations are now for sale at really competitive prices, and the prospects for value growth in the medium to long term are sound as coastal land becomes an increasingly scarce commodity. And this festive season, our coastal offices are all ready to embrace the savvy purchaser wanting a second home in the sun.”

 

ISSUED BY CHAS EVERITT INTERNATIONAL



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