Asking prices decrease in Plett

News > news - 17 Oct 2006

Asking prices are decreasing in Plettenberg Bay as the market swings in favour of buyers and as a result there are now some great bargains to be found.


Current real growth in house prices across South Africa has declined significantly from 2004.  With interest rates set to increase soon, this downward trend is likely to continue. 


“Plett fared surprisingly well last year, but there is a definite downward swing this year.  The total value of transfers registered this year decreased by 25% mainly off the back of decreased volumes of sales, although it is still too early to be sure of a recessionary market,” says Hein Pretorius, principal of Lew Geffen Sotheby’s International Realty Plettenberg Bay.


 “Gauteng, which continues to set the trends for the rest of the country’s property market, is seeing homes sell at up to 50% less than initial asking prices, in cases where sellers have refused to embrace reality, and Plett is slowly beginning to follow this trend. Buyers would be wise to keep an eye out for the bargains that are emerging in this seaside town, in cases where sellers cannot afford to wait for an unrealistic price..


“A good example of this dramatic decrease in asking price is a luxury property in The Tides development, a prestigious gated community on the Keurbooms Lagoon.  Here the asking price was initially R7m but the seller in desperation, is now accepting offers from R4 million - you couldn’t build a house of this quality for this price.


“It is taking time, but serious sellers are realising the importance of the correct pricing and marketing in this difficult market,” says Pretorius.


For more information, contact Hein Pretorius on 083-701-3159.

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