Sole mandates the key to accurate pricing

Excellent value on offer in current market, says Pam Golding Properties Pringle Bay.

There has never been a better time for investors to purchase second homes in coastal towns of the Western Cape.  So says Pam Golding Properties’ area manager for the western Whale Coast, Mike Bisset, who reports that some sellers have begun adjusting their expectations amid ongoing pressure on the holiday home market.  Bisset says the result is a wide selection of well-priced properties, offering some of the best value for money in years.

For example, Bisset points to the towns of Pringle Bay and Rooi Els, located on the Overberg coastline just an hour’s drive from Cape Town.  PGP agent in the towns, Nicola Lloyd, says it can initially be difficult for buyers to make sense of values in the area, as there is such a huge variety of homes on offer at vastly varying prices.  But she believes a good indicator is to look first at properties which are listed on sole mandate, as these are likely to be the most accurately valued.  “Agents who have a property on sole mandate have committed their focus, time and investment to marketing these homes, have made sure the sellers are serious, and will generally have priced them very realistically,” she says.  “With an open mandate, there is sometimes the risk that competing agents might list a property at an inflated price.  The result can be a vastly over-priced home that gives a false impression of property values in the area.”

PGP currently has over 25 properties on sole mandate in Pringle Bay and Rooi Els, and Lloyd agrees that there is excellent value to be found in the current market.  For example, she recently sold a three-bedroomed Cape Cod-style home in Pringle Bay for R2.015 million, located just one minute’s walk from the beach, with unobstructed sea views.  

“We had a busy festive season with the towns full of holidaymakers enjoying the fine weather,” she says, “and many Gauteng residents in particular were looking at property with a view to purchasing second homes here.  There was particular interest in the R770 000 to R1.5 million price bracket – but there is excellent value to be found across all price ranges from entry level to top end.  For example, we currently have a fine selection of quality homes in the R1 million to R1.5 million bracket, and several listings for seafront properties in both towns priced under R4.5 million.

Those looking for affordable lock-up-and-go cottages also have a range of options, priced from R750 000 to R995 000.  These are all excellent buys for those seeking homes on a pristine piece of coastline that is easily accessible from Cape Town, and offers an enviably relaxed, low-crime environment.”

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