Property sales in St Francis Bay have rocketed in the past two years, and with supply exceeding demand by quite a margin, the average home sale price is now almost 60% ahead of the average for the previous 24 months.
Brendon Lahana, principal of Chas Everitt St Francis Bay, says excellent sales after the pandemic lockdowns in 2020/ 2021 were followed by exceptional sales from mid-2021 to mid-2022, and that there is no sign of demand slowing down even now.
“It’s very clear that St Francis Bay has gone from being a quiet holiday retreat to one of SA’s most popular ‘zoom towns’, with young couples, families and retirees flocking here from cities around the country to enjoy our peaceful and relaxed lifestyle.
“In fact, 400 new families have moved here in the past two years and now we are starting to see new property developments in response to the demand. One of the most exciting is our first retirement village, which will provide 300 new homes for seniors at prices from R1,3m for a one-bedroom garden cottage to around R5m for a three-bedroom home.
“The new private medical facility attached to this development will also be a first for St Francis.”
The main drivers of the buyer influx, he says, were initially the very low home loan interest rates that prevailed until December 2021, and the huge spike in remote working, which gives people much more freedom to choose where they live.
“But there is also an ongoing trend towards living more simply and safely, and with more access to nature and outdoor activities, in small country and coastal towns like St Francis Bay.
“So a good proportion of our semigrants in the past year have actually not been people who work from home, or retirees, but people who are also bringing their businesses or professional practices to St Francis Bay, or seeking to invest in an existing local business. This has really benefited the local economy.”
Lahana says the biggest percentage of buyers in the past year have been aged between 40 and 60 and that most have relocated from Johannesburg, Cape Town and Durban. The Village, the Links golf estate and the Canals have been the best-selling areas and the highest demand has been for homes in the R3m to R3,2m range.
Prices for homes in the Canals area currently range from R7m to R20m, he says, but are seldom available, and may well sell without even being advertised when they are. At the Links, which has a Jack Nicklaus-designed golf course rated as one of the best in SA, the prices for vacant stands range from around R400 000 to R2,5m, and those for built homes from R3m to around R12m.
Looking to the future, he says, sellers may start to find the market softening a little in the coming months, not due to a lack of demand but because rising interest rates make it harder for buyers to qualify for home loans and to afford the monthly repayments.
“Slow economic growth may also prompt some people to postpone their relocation plans, and the current developments including the retirement village will add a total of around 600 new homes to our market. Many of these will be absorbed by the huge demand for more long-term rentals, but we are still advising sellers to price carefully with assistance from a property professional in order to remain competitive.”
Newer areas where there are also stands available include St Francis on Sea and Santareme, and prices here start from around R250 000. Three-bedroom built homes in these two areas start at around R2,4m. There is also a new estate on the Kromme River, where stand prices start at around R695 000.
In St Francis Bay Village, stand prices start at around R375 000, and home prices range from around R3,4m to around R6,9m. And for those who prefer apartment living, there are luxury three- and four-bedroom options available in Port St Francis, which is SA’s only privately-operated fishing harbour, at prices from R3,2m.
