Plettenberg Bay property is back in business, says Kevin Engelsman, licensee for Seeff. Despite the challenges brought on by the Covid-19 Pandemic, our market is active again, in fact more so than what we have seen for some time.
The interest rate has been a great stimulus for the market and people are investing more into property. While about 90% of all sales fall below R4m, the market is active across the board, he says further.
There is lots activity in the R7m to R9m range, but our agents are also quite busy showing homes across the board from R10m to R15m and also in the R18m to R25m range. The luxury end of the market is also on the up with renewed demand for high-end R20 million-plus properties.
The perception that property prices are negotiable is only true where properties are not priced in line with the current market. Where they are correctly priced, sellers are achieving close to and even full asking price. Below R4 million, where there is an active level of demand, buyers need to be alert to the fact that in many instances these properties are selling at full asking price, provided obviously that the sellers were correctly advised by the agents regarding competitive pricing.
Pricing of properties will always differ depending on the size of the erf, accommodation and finishes and the location, whether they are close to the beach or river, have views or located in an estate. In this market, the role of an area agent is more important than ever, he adds.
Given that sellers have only one chance to create a favourable first impression, new listings are currently attracting the highest attention. It is therefore important for an experienced agent to assist the seller to stage a property in such a way that it will create a strong demand for the property.
Bear in mind, he says, most sellers in Plettenberg Bay do not need to sell, especially if it is secondary property holdings, and they are prepared to wait for the right price. Where sellers do offer a discount on the asking price, it is generally only about 5%-10%, he says.
Low offers are not accepted, and the buyer simply risks losing out on the property, even at the top end of the market. Mr Engelsman says that there have been two sales above R40m, both at full asking price. Even at this level, buyers need to keep their offers realistic.
For example, Seeff was dealing with a buyer who initially offered 20% below asking price on a R44 million property. When this was not accepted, he upped his offer to 12.5% below the asking price only to lose out to a buyer who paid the full asking price. That is how active the market is.
A key emerging trend in Plettenberg Bay since the onset of the Covid-19 Pandemic and Lockdown, is that people are now buying to work from home. Engelsman says there has been quite an influx into the town since late March as people look to enjoy better surroundings while confined to their homes and working from home.
There has also been a major pick up in the rental market with a shortage of stock, especially at the higher price levels being the R17 000 to R25 000 per month range and some demand ranging to R27 000 per month. It is therefore a great opportunity for property owners to put their homes into the rental market or to invest in property for the rental market right now.
Overall, the demand for property is currently much higher than the number of new listings that are becoming available. In contrast to what we may have expected in the current market, there is a shortage of luxury stock for sale and rent and opportunities across the board, concludes Mr Engelsman.
