Plettenberg Bay property remains popular for holiday home investment

Situated on the Garden Route, Plettenberg Bay is known for its beauty and sandy beaches, as well as being an idyllic spot for nature lovers, what with the Robberg Nature Reserve and Tsitsikamma National Park in the area.

With its resort-like atmosphere, and a range of amenities, attractions and activities, it’s easy to see why Plettenberg Bay is one of South Africa’s leading holiday destinations.

While the demand for leisure property has remained fairly muted, now that the property market is well into the recovery phase, demand for leisure properties has slowly started to increase. Cheryl Anley, Broker/Owner of RE/MAX Prime Properties, which operates in the Plettenberg Bay area, says that while property sales in Plettenberg Bay were quiet for the first half of the year, the second half has seen an increase in activity. Rentals, she says, have also been slow during the year, which is fairly normal, but there has been a good demand for the upcoming holiday season.

“Sales and prices took a serious knock over the past three years,” says Anley. “Sales volumes are still recovering and certainly prices are not yet rising and are still in a stabilising phase. Therefore purchases with the idea of a quick turnover are not advised. However, we have certainly seen an increase in the volume of sales over the past six months. We believe that we are close to the bottom of the property cycle and it will only improve from here on, albeit slowly. There has certainly never been a better time to buy property.”

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that the leisure property market always lags behind the property cycle by about a year to 18 months. “Therefore, while noteworthy recovery is not expected in this sector for some time to come, there are currently great leisure investment opportunities available to buyers. However, as with any property purchase, a good investment decision can only be assured if a buyer has done all the necessary homework and comparisons and is sure that the investment they are making is worth the financial commitment they are laying down to acquire it.”

The buyers and renters in Plettenberg Bay, Anley says, are mostly families from Johannesburg, Cape Town and the Free State, although there are some investors looking to buy property here to a lesser degree. “Buyers are looking for homes priced between R1,5million and R2million, while the most popular rental properties are those going for between R2500 and R3500 per day during the high season.”

Anley says that secure estates, homes located close to the beach or with sea views are proving to be the most sought after. “We have noticed however, that price is paying a much larger role and good buys are becoming more dominant than emotional purchases.”

Buyers, she notes, are after good value, good position, and adequate accommodation, with homes situated within secure estates becoming more sought after. “If the price is right, buyers are prepared to upgrade homes.”

When it comes to rentals, Anley says that tenants require neat, clean, well equipped, fairly priced properties that offer easy access to the beach and good accommodation standards.

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